What documentation will I need?
To take advantage of today's low rates and to reduce your overall monthly payment, please fax, mail, or e-mail the following documentation today...
Most Recent W2 (1040's for self-employed customers)
Recent Pay Stub
Recent Bank Statement
Recent Mortgage Statement or Coupon
Declaration Page of Homeowner's Insurance Policy
That's it! It's that simple! That's all we need to lock your rate.
What exactly does my credit score ‘FICO score’ mean to banks?
Most banks use a scoring method to determine the creditworthiness of customers. Your score is derived by looking at many different factors such as history of on time payment, credit you've used vs. what your available credit is, how much total credit is currently extended to you and how many times you've applied for credit in a 24 month period. While we work with investors that use this method, we also have relationships with ones that don't. Occasionally a customer can have a mediocre or even low credit score without having that much derogatory credit. However, we have programs where we do not need to look at your credit score, so this is rarely an issue.
What are the ‘Closing Costs’?
'Closing Costs' are the fees associated with completing a real estate loan transaction. This includes the appraisal done on the property to determine value, a title search performed by a lawyer to ensure sole ownership of the property, drawing up the loan contract, etc. These fees vary depending on the type of loan requested. Please call us for a quote in writing and feel free to ask about our ' No Closing Cost ' option.
What rate can you offer me?
The interest rate that you may qualify for depends on many different variables like credit history, income, property type, etc. However, PrimeSource Funding is the largest Direct Lender in Southern Minnesota and because we deal in volume, we are ALWAYS able to provide lower rates than any of our competitors. We have rates as low as 1.25% and would welcome the opportunity to give you a quote, so CALL US TODAY!
Do rates really change every day?
YES! Many customers don't realize that the wholesale cost of lending money changes everyday. Most banks or mortgage backed securities investors (people that purchase mortgages as an investment) purchase government bonds to make up for lost profit from early payment of the home loans they buy. Thus, if treasury prices go up, interest rates go up and vice versa. Acting quickly once a decision has been made to buy a home or refinance is imperative to ensuring that your Loan Officer can guarantee your interest rate.
What does it mean when my interest rate is “Locked”?
When a Loan Officer "Locks" your rate it means that PrimeSource Funding has made a commitment to deliver your mortgage to an investor within a certain period of time. Should that occur, the investor guarantees the rate quoted to you. Since rates change daily, investors require us to deliver your loan package within the lock period to honor the rate quoted. Locks are typically for 30, 45 and 60 days. By locking the loan for a shorter period of time, it allows us to offer you a lower interest rate.
How quickly can my mortgage go through?
Depending on industry volumes at the time of your loan, we can get your loan done in as little as 14 days.
What are ‘Reserves Deposited With Lender’ and ‘Items Required By Lender To Be Paid In Advance’?
Reserves Deposited With Lender' should only appear on your Good Faith Estimate if you wish your county property tax and homeowner's insurance to be included in your monthly mortgage payment. Because your current lender will send you a check in the mail as a refund of your Escrow Account instead of transferring the funds directly to us, we need to re-collect these funds at closing to ensure enough funds are available to pay these items when they come due. 'Items Required By Lender To Be Paid In Advance' is the interest due on your new loan through the end of the month that you close in. Example: Your loan closes on Monday, October 15th. This means that the funds will be dispersed on Friday, October 19th. Because once your mortgage enters its first full month, the interest is not paid in advance so you will skip your November payment and make your first payment December 1st. However, you still need to pay interest on the loan from the 19th through the 31st.
My ‘APR’ and my ‘Rate’ are different, why?
APR or Annual Percentage Rate is the cost of consumer credit as a percentage spread out over the term of the loan. While required by Federal law to disclose to consumers, 'APR' is not an accurate way of looking at cost. 'APR' does not take into consideration inflation, the 'value' of a lower rate or the fact that most mortgages never make it to term. Your 'Rate' is the percentage on interest you are paying on the money you borrow.
Will my loan get sold?
Most likely. Almost all banks sell a portion of their portfolio to free up funds to continue to provide loans. If a bank kept all of their loans, most of which are amortized over 30 years, they would not receive enough repayments to be able to continue to lend money.
If my loan gets sold, will anything change?
No. All the terms of your loan will be exactly the same.
How much may I borrow?
Depending on your credit history and income, we can loan up to 100% of the value of your home. Please call us today to determine what you qualify for.
Will my loan have a pre-payment penalty?
Most of our loans do not have a pre-payment penalty and the few that do also are available with a NO PRE-PAYMENT PENALTY option. However, on the rare occasion you qualify for one of these loans, you will receive a better rate by electing to have a short pre-payment penalty. If you are relatively sure that you will not sell or have a need to refinance in two years, you will save more money by receiving the lower rate. Furthermore, many states (such as Minnesota) have strict pre-pay penalty laws that limit the amount a lender may charge you for paying the loan off early.
I’d like to buy a home, how much do I have to put down?
While putting at least 5% down will allow you to qualify for the best rate available, we can finance 100% of the purchase price of the home while allowing the seller to pay up to 6% of the loan amount towards your settlement charges. This means you can purchase your home with NO MONEY OUT OF POCKET. This translates to extra money for improvements to the home once it's purchased.
What is the difference between a Mortgage Broker and a Mortgage Lender?
A Direct Lender is actually borrows the money to you and deals in large volumes of loans to get discounted rates. Mortgage Brokers use Direct Lender's buying power to obtain discounted rates in exchange for a Broker Fee.
What is PMI (Private Mortgage Insurance)?
PMI or Private Mortgage Insurance is an insurance policy that protects us in the event of a foreclosure or default. This is a small part of your total monthly payment and is charged only when the balance on your loan is above 80% of the value. Once we loan more than 80% of the value of your home, we take on additional risk because the likelihood of being able to auction off the property and re-coop the entire principal amount of the loan is unlikely. However, with a combination of paying off the principal portion of the loan and your home appreciating in value, most customers are able to have the policy cancelled in about two years. We also have programs available where PMI is not required.
What are points and will my loan have any?
Points are a percentage of your loan amount charged as a fee to get your interest rate lower than the going rate. Many Lenders use this technique in their advertising to emphasize a rate that is not attainable without a significant increase in fees. NONE of our loans have points. We do not suggest 'buying down' an interest rate unless you know for sure that you will not sell or have a need to draw on your equity of your home for at least 5 years. Considering the average homeowner either refinances for a better rate, draws on their equity, relocates or moves to a larger or smaller house EVERY 4 YEARS a 'buy down' is not a good investment.
What states are you licensed in?
Do you do construction loans?
Yes. Please call us today to let us assist you with building your dream home!
Will it cost me anything to get pre-approved or to apply?
Absolutely not! PrimeSource Funding collects no upfront fees! We do all the work and collect no fees until you receive the loan you want. Many banks charge an application fee up to $1,000.00! This fee can be used to facilitate a bait and switch tactic by tying you down to the loan. PrimeSource Funding does not charge an application fee.
My Loan Officer explained a variable rate (ARM) to me, but it sounds risky?
Many customers are unfamiliar with how adjustable rate mortgages work. An adjustable rate mortgage actually has a FIXED RATE for up to 10 years before the rate can adjust! What's more is that over the term of your loan your interest rate has an equal chance of DECREASING as it does increasing. (Considering the average homeowner either, refinances for a better rate, draws on their equity, relocates or moves to a larger or smaller house EVERY 4 YEARS an adjustable rate mortgage is a better investment. By electing an 'ARM' you will receive an interest rate that is lower than the going rate for the period of time (up to 10 years) that the rate is fixed. Please call us today to find out if an 'ARM' is right for you!
Can my mortgage payment be automatically debited out of my bank account?
Yes. Your first payment will have to be mailed in, however, after that you may set up an electronic debt of your checking or savings account.
The rate you quoted me is different than that what I saw in the newspaper?
Mortgage rates change daily, sometimes more than once a day. A rate you saw in the newspaper on Sunday may not still be available today. When comparing rates, the rates you are comparing should be compared on the same day. Also many banks advertise 'Teaser Rates.' These are loans that start out with unbelievably low rates, but then quickly go up within the first few months to as high as 7%!
Can I include my property taxes and homeowner’s insurance in my monthly payment?
We can escrow your taxes and insurance in you monthly mortgage payment.
Do I have to include my property taxes and homeowner’s insurance in my monthly payment?
No. However, in some cases you may receive a better interest rate in you choose to do so.
I’ve been turned down before at other companies, can you help me?
Most likely. We can help 95% of applicants consolidate their debt, buy a house, get out of bankruptcy or foreclosure. Give us a call today, and get a free credit analysis.
I just applied for a mortgage, may I still use my credit cards or apply for other loans?
No. It is imperative that you make NO major purchases on credit cards or apply for other credit during the process. By increasing your credit card balances and/or applying for additional credit, your 'FICO' or credit score may drop. In many cases this will not prevent you from getting a loan, however, you may not still qualify for the interest rate that was initially quoted to you.
I closed my loan days ago, why haven’t I received my check?
Federal law requires us to give you three days to 'rescind' or cancel the loan after the day of closing. After the three days are up, your loan will fund and you will receive your check.