FAQs About the Mortgage Concierge Group
We have listed some common questions we have heard over the years and have attempted to give you answers from our perspective that should provide you with a general understanding of issues about which you may have questions. We are not giving any legal or tax advice and nothing below should be construed as giving you specific advice concerning your particular situation. If you have any tax or legal questions, please contact an attorney, accountant or other tax professional. We are just providing an overview of some of the common questions raised. We encourage you to contact us to determine how we can best help you solve your particular financing needs. We hope you find the information we have provided informative.
Are banks still lending money after all I have heard about banks failing?
The answer is yes. Although there are many banks that are no longer in business, there are still many loans available through banks that have not failed. However, unlike the loan programs over the last decade which required very little to no documentation, now most loans need to be fully documented including the income of the borrowers, down payment monies and verifying the borrower’s assets.
How much money do I need to buy a primary residence?
Generally, you need about twenty percent of the purchase price of the home. However, there are programs which allow home buyers to put 3.5% down but there are then other costs associated with your loan including mortgage insurance. The best way to determine how much you need to buy a home is to contact us and determine which program is best suited for your particular needs.
How much money do I need to put down on the purchase of a commercial piece of property?
Most programs require at least 25 -30% of the purchase price. While there are exceptions, you should be prepared to spend approximately 30% of the purchase price between down payment monies and closing costs.
How long does it take to close a loan?
Generally a residential loan can close within 30 days of receiving the application and commercial loans take about 60 days. However, recent economic woes and lending concerns have lengthened these time frames. Nonetheless, what always holds the underwriting process up is the failure of the borrower to deliver the documents that have been requested. Remember, if we ask for tax returns or bank statements and you do not give them to us for 10 days, you have just added 10 days to the process.
We are very experienced and can help you close a loan quickly but need your help to expedite the process.
When should I consider refinancing?
A refinance of a loan means that you pay off your current loan and obtain a new loan. Since interest rates are very low these days, you should call us and see if a refinance makes sense for your particular situation. There are many reasons to refinance a loan. These reasons include, but are not limited to, consolidating debt by paying off credit cards or combining a first and second mortgage, lowering your interest rate, getting out of a variable interest rate and fixing your rate, changing the amount of years you have to pay off the mortgage, e.g. refinancing from a 30 year mortgage into a 15 year mortgage, taking cash out to renovate or remodel your home and many other reasons.
As you can see, there are many reasons to refinance and you should call us and determine if the time is right for you to refinance today.
Can a bank charge me a pre-payment penalty if I pay off my loan early?
Except for “option arm” mortgages, banks are not permitted to charge a prepayment penalty on residential loans in New Jersey. On commercial loans, banks are permitted, and generally do charge prepayment penalties for paying a loan off early during the first few years of the loan. Each loan is different so the amount of the penalty varies. If you contact us we can review the loan you have and determine whether there is a prepayment Penalty.
Why use The Mortgage Concierge Group, LLC instead of just going to a bank?
While you can go directly to a bank, not knowing what is available in the marketplace places you at the bank’s mercy. In other words, if you go to State One Bank and they are not that interested in home mortgage lending, they may offer you a higher rate because this is the only program they currently have to offer. Let’s assume that we can find a loan for you at 5% and the only loan State One Bank has is 6.5%. Without contacting us and educating yourself as to what loans are available in the market, you have just decided to spend thousands of dollars extra by committing to a higher interest rate.
As a mortgage broker, we are able to, ON A DAILY BASIS; determine what loan programs are available for you. We can assist you in determining which loan best suits your particular needs for what you are trying to accomplish. By allowing we to shop the market for you, you can be assured you are applying for the lowest interest rate available in the market.
Should I shop the interest rate and go with the lowest rate offered to me?
This question is a delicate one and we will try to educate you on some of the reasons we know you should choose our services over others. Unfortunately, some brokers promise interest rates that are not currently available. They hope that the interest rates drop before you close. Since all brokers go to the same sources for money, we know if the rate you are being quoted is accurate or low enough to get you to commit to the broker but not realistic in being the rate at which you will close.
On many occasions we have told someone who has called the real interest rate and the best we can do. We must be honest and maintain integrity in all we do. Unfortunately, hearing a lower rate has prompted potential clients to choose another broker who promised a lower rate. At closing, the rate presented is much higher than promised and higher that what we had offered. It is now too late, however, to get out of the loan and the client then suffers by paying a higher mortgage amount.
In sum, we are telling you that we will be honest and deliver to you what we have promised. Anything else would be unacceptable to us and most importantly, for you.
