This is a partial list of questions we are frequently asked. If you have any questions that are not addressed here, or elsewhere on or webpage, please feel free to email us at questions@arizonwholesalemortgage.com

I'm shopping for a loan, and am trying to compare Good Faith Estimates (GFE) from different companies. What should I look for?

• When shopping for a loan, it is important to understand that the only fees brokers/banks/lenders charge directly (and therefore have control over) are the "Items Payable In Connection With Loan", a.k.a the 800 numbered fees. 
  
  The "Title Charges" (1100 numbered fees) and Government Recording and Transfer Charges (1200 numbered fees) are charged by a 3rd party, and a mortgage company can only give an estimate of those charges. 
  
  The Items Required to Be Paid in Advance (900 numbered fees) depends on the day of the month you close. If you close on the 3rd to last day of the month, you only pay 3 days of prepaid interest; if you close on the 3rd day of the month, you will likely pay ~27 days of interest.. 
  
  The Reserves Deposited with Lender (1000 numbered fees) depend on the actual cost of your homeowner's insurance, property taxes, and mortgage insurance (if required). Since taxes and insurance costs and vary dramatically, unless you specifically tell the mortgage company of your costs for these things, the estimates may be off.      
  
  Since a mortgage company only has control over a small amount of the GFE, some companies will "lowball" the estimates they don't directly control to make the GFE look more attractive.  When comparing different mortgage companies, compare customer service, trustworthiness, and mortgage knowledge in addition to the 800 numbered fees.  

What is a mortgage broker? What makes a mortgage broker different?

• A mortgage broker works on behalf of their client (the borrower) to find the best mortgage program available to the client. Mortgage brokers work with multiple lenders to find programs with the most favorable rates and terms that their client can obtain
  
• Mortgage brokers work with lenders that deal directly with the public (i.e. Countrywide, Bank of America, etc.) and many that don't lend directly. When a mortgage broker works with the first kind, the lender provides wholesale mortgage rates to the broker. Since the broker is doing most of the work for the lender, the lender can afford to give these discounted rates. Mortgage brokers can get rates for their clients that they likely could not receive if they dealt directly with the lender. 
  
  Mortgage brokers also deal with many lenders that don't deal directly with the public. Some private lenders are willing to extend credit to borrowers when traditional lenders are not, such as borrowers with less-than-perfect credit, high debt ratios, or other special situations. 

How long does the mortgage process take?

• The mortgage process can take anywhere from 2 weeks to 6 weeks, but the typical time is ~3 weeks (update: current times are running ~4 weeks due to the recent influx of loan applications industry-wide). Because of the time it can take, if you are searching for a new home, it is advantageous to pre-qualify to ensure there is plenty of time to get everything in order. 

If you have any special timeframe, be sure to let your loan officer know what time constraints you have. Most of the time, your loan officer can work with you to meet your needs.

When is the right time to refinance?

• There is no set answer to this question. A rule of thumb is, if you can reduce your rate by more than 1%, it may be time to refinance. 

Of course, other situations may make it the right time to refinance. If you can combine a 1st and 2nd mortgage into 1 mortgage, and reduce your monthly payments, or consolidate debt to reduce monthly expenses, it may be advantageous to do so. 

For a good estimation, check out the "Should I refinance" calculators provided by the Motley Fool  (www.fool.com)

If you would like a more detail analysis, fill out our refinance pre-qual worksheet, and our loan officers can discuss your situation with you. 

What is the difference between Conforming and Non-Conforming loans?

• Conforming loans are loans that comply with the guidelines set forth by the federal government for "conforming" lending. Some of the guidelines are borrower credit scores, and total loan amounts. These are typically loans for people with good credit  and borrowing less than $322,700 for a 1-unit home. The government has tried to "standardize" these types of loans, because they are often bought from mortgage companies by Freddie Mac and Fannie Mae. 
• Non-conforming loans to do not abide by these guidelines. Non-conforming loans have higher loan limits. They can also be advantageous to borrower with credit scores that make conforming loans unavailable to them.  

How much will I have to put down on my loan?

• This depends on many factors. For purchases, we have loan programs that allow financing from 95%, 97%,  to even 103% or 107% of the home value. Of course, loans with a loan-to-value ratio (LTV) of greater than 80% will likely require private mortgage insurance (PMI) by the lender. For refinance loans, we have several "no out of pocket" loans available. For exact amounts, please contact us.