Q:  How worried should I be about my credit score and what steps can I take to improve it?
A:  Your credit score is very important and there are many ways to improve your score.  The lenders use this to judge your ability to repay your mortgage loan, if your score is very low this could effect your interest rate.  Since every report is different you will need to call us to go over your specific credit scenario. 

Q:  I always hear about Fannie Mae, who are they?
A:  In 1938, the Federal government established Fannie Mae to expand the flow of mortgage money by creating a secondary market. Fannie Mae was authorized to buy Federal Housing Administration (FHA)-insured mortgages, thereby replenishing the supply of lendable money. In 1968, Fannie Mae became a private company operating with private capital on a self-sustaining basis. Its role was expanded to buy mortgages beyond traditional government loan limits, reaching out to a broader cross-section of Americans.

Q:  With the interest rates being so low, is it really that important to refinance my house?
A:  Yes and No, each situation is unique.  We will look at your information and give you a quote based on your specific needs.  If we can not save you money or determine that in the long term it is not a good financial decision, we will advise you not to refinance.

Q:  Why do I need mortgage insurance?
A:  You may not need mortgage insurance.  Mortgage Insurance protects the lender in case you default on the loan.  There are many ways to avoid mortgage insurance.  Roughly only 10% of all mortgage loans even require mortgage insurance.  If you have marginal credit, you may be required to carry mortgage insurance which is included in your payment each month.  All FHA loans have a 1.50% mortgage insurance premium upfront that is rolled into your loan amount and .50% per month included in your payment.  It is our policy to always try to avoid mortgage insurance at all costs since you can write off mortgage interest on your taxes but NOT mortgage insurance.

Q:  How much money do I need to put down?
A:  The amount of money you will be required to put down depends on many factors.  In most cases you can get 100% financing and come to the closing table with just your closing costs and escrows.  However, as a borrower you should be aware that there are disreputable loan officers and Mortgage companies that over-promise and under-deliver. If you think you have been offered a deal that's too good to be true, chances are it is. DEMAND to see your offer in writing.

Q:  How much money out of pocket can I expect for a refinance?
A:  In most cases you will have no out of pocket expenses for a refinance transaction.  The amount of your refinance depends on how much your home will currently appraise for (call if you need help determining this).  You will come to the table with no money down as long as the loan you are paying off plus the closing costs on the new loan do not exceed the appraisal amount.

Q:  Where does the earnest money go that we give the title company?
A:  Your earnest money along with your option fee money, appraisal money and anything else (except for your home inspection) will all be credited back to you at closing.  In other words, if you are doing 100% financing and your closing costs and escrows are figured at $5000 but you have put down $1000 earnest money and $100 option fee and $325 appraisal you will bring a cashier's check for $3575 to closing.

Q:  I reviewed a GFE from another company and there seems to be a lot of closing costs and fees, are these fair and accurate?  A:  Look at your Truth in Lending.  This will tell you if you are getting a fair deal.  A lot of companies will give you a lower interest rate but charge you what honest people in the industry call "junk fees".  Your truth in lending discloses to you your APR (Annual Percentage Rate) and will take into account any prepaid finance charges which will make your APR higher.  If your APR is over 1% of your interest rate you are probably paying too many fees.  These are called hidden costs.  There is NO SUCH THING as A NO CLOSING COST OPTION (just like there is never a free lunch).  Whether you pay the closing cost now or later it is up to you, but you will pay them either way.  However, if you have no money to put into the transaction and have trouble with your appraised value on a refinance transaction, we can give you some other options that may help.

Q:  My real estate agent is asking for a prequalification letter, where do I get this?
A:  Once you have filled out the loan application and we have your signed documents with supporting documentation in our office, we will send your agent a prequalification letter within 24 hours at your request.

Q:  My Dad told me that I would need several months of taxes and insurance paid upfront at closing is this correct?
A:  If you are obtaining a purchase loan this is correct unless you have seller contributions.  Most loans will allow the seller to provide 3% (and 6% in some cases) towards your closing costs and escrows.  This is generally negotiated with your real estate agent and the sellers agent.  If you are refinancing an existing lien, this will generally be rolled into your loan amount as long as the total loan amount does not exceed the appraised value of your home.

Q:  I am really busy at work, what other options do I have to get my documents you requested back to you? 
A:  We will pay for you to overnight mail your documents to us if you are not within the Austin area.  Otherwise, when you are ready we can come pick them up from you personally.

Q:  Once a closing date is set, what happens if there is a hold up of any sort in the process?
A:  You can not afford a hold up, especially if you have a locked interest rate.  When you lock your loan it should only be when EVERYONE is sure of the closing date.  If the seller you are buying the home from has a delay, you should talk with your real estate agent immediately so that he/she can negotiate a solution with the sellers agent.  We take great pride in closing all of our loans on time, but if you have a delay with any other party associated with the transaction you must contact us immediately so that we can make arrangements.

Q:  Being the loan officer, how do you get paid?
A:  We only get paid once a loan closes, all our quotes and time spent answering questions to you is free - therefore it's in our best interests to not only get you a deal that nobody else can beat to secure your business, but also to make sure that everything proceeds smoothly so that you close on the required date. The only fee on the GFE that goes to the loan officer is the origination fee.  Loan Officer's are commonly referred to as loan originators. Some people do question this, but bear in mind that our job does not simply consist of taking your application and shopping around for a low rate, we spend many hours on each loan verifying data, crossing the "t's" and dotting the "i's" and hounding everyone involved on an almost daily basis to ensure that your loan is being processed correctly. If requested we can update you daily on the progress of your loan, this is all part of our personal service which we are very proud of.  You will be signing a Texas Mortgage Broker/Loan Officer Disclosure which will go into more detail, but we may be paid by the origination fee and by the lender as well.  The lender in most cases will pay  what they call a rebate to bring the loan to them. 

Q:  My husband needs a new car, can we buy one before we buy the house or will that effect our credit?
A:  Do not buy it.  This could effect your debt to income ratio.  If you absolutely need the car to survive, please call us first to make sure this will not cause your loan to be declined.

Q:  I have a bankruptcy that is only 3 years old, has this ruined my chances of getting a loan?
A:  Not at all.  There are many loans out there for people who have had a glitch in their credit.  Some lenders will give you a mortgage loan 1 day out of bankruptcy.  We can help you with this scenario, give us a call.

Q: We ran our credit scores and while my credit is almost perfect, my husband's credit is terrible, will this cause a problem for us?
A:  There are many loans out there just for this scenario.  One option is do the loan in your name only and put your husband on the deed.  Let us take a look at everything and based on the lender programs that are available, chances are we can find one that meets your specific criteria.

Q: What exactly is a "cashout" loan?
A:  This is a refinance mortgage loan that gives you cash out of your equity at closing.  Say your house appraises for $100,000 and your current loan balance is $60,000, you would be able to get cash out up to 80% of the appraised value, so you would walk away with $20,000 minus the closing costs and escrows.

Q: I'm a veteran and qualify for the VA program, but a friend told me that this might not be the best loan for me, is this true?
A:  That depends on your credit and other aspects of your loan application.  However, many people think you can only do a Texas Vet loan if you do a VA loan.  This is incorrect, the Texas Vet program is a program you use on top of any loan to get the interest rate, so you could do a Conventional loan (to save you the VA funding fee) and put the Texas Vet program on top of it for the interest rate only.

Q: What happens if I go with another mortgage company and they can't deliver what they promised me, do I have to stick with them or can you take over?
A:  We can take over as soon as you are ready.  We have satisfied many clients by taking over and closing their loan in their terms within 2 weeks or less.  It just depends on what you are trying to do, we have references for this if you would like us to take over.

Q:  Why should I use you? 
A:  Ask us for a quote and I think that will answer your question.  Our Staff works very hard to make sure all our clients receive the best possible deal available to them.  We also go out of our way to make sure that not only our work, but the work of the appraiser, title company, lender and everyone involved is completed in a timely manner and informed at all times to stop any would be mishaps on anyone's part.  We have personal references available upon request from many of our very satisfied onetime and repeat clients.