FAQ of Loan

 

                             If you can't find the answers of your questions in below, please Contact Vicki. Vicki can set up free one-to-one consultant with you. Vicki experienced many difficult loans which other loan officers can't process. Her experience and due diligence definitely can help you.
 
1. My friend told me you provided him stronger loan approvel letter which is more competitive than normal pre-approval letter, and it helped him to get the offer. What is that? How can I get it?

A: It is DU loan approval. 

 

It used to be that just being prequalified was good enough to submit an offer on a property, but I would take this one step further and have the buyer get a DU preapproval which will give buyer/borrower's offer better chance to be acceptted by seller. The differnce is critical, because a DU preapproval means that all the buyer's information was submitted to an automated underwriting program that will determine if the buyer will get a loan approval or not.  With a DU approval the buyer is 90% of the way to getting a formal loan approval.


I offer my clients a free DU preapproal, free credit reports and I do not charge any upfront fees. Please refer questions 11 below for the documents we need for DU preapproval letter.

2. Will I choose escrow/impound account?

A: An escrow/impound account is typically set up and designed to make sure that your property taxes are always paid on time and your insurance is always current. This account is not mandatory, but choosing an escrow account could lower your interest rate, and normally no fee or charges for the account.

 
 
3. Is it ture: no fee no point refi?

Yes, it is free to you. All loans have NRCC closing costs, including processing fee, underwriting fee, appraisal fee, title/escrow fee, and so on, , but we will pay it on your behalf, so it becomes a no-point-no-fee loan to you. In order to ensure you follow through with the loan, we do ask all of our borrowers to pay upfront for 3 items: $25 credit fee, $20 lender application fee and $400-$500 appraisal fee. These 3 items will be reimbursed to you during close of escrow.

4. Who will decide my property’s value?
A: Lender will assign an appraiser for you after we submit your loan. The appraiser will contact you and set up a time to visit your house to do appraisal. Then the appraiser will issue an appraisal report with appraisal value to lender. Lender will use the appraisal value as your property’s value. Different lender work with different appraisal company, and we normally have an idea what the apprasial value will be. It is one of the considering factor for lender choose for your loan.

 

 

5. Why your rate can compete other companies?

A: Rate is not the only important factor borrower should consider. It depends on scenarior of every loan. We are not only direct lenders. but also we are working with more than 15 lending institutions, and every lender has its own pro and con. Some lenders has very low rate, but they are very picky and stringent. Some lenders’ rate are not the lowest, but they are fast, easy to deal with or very flexible. We will choose the lender according to every loan’s condition to make sure the case could be approved and closed on time and smoothly.

6. How soon for purchase loan and refinance loan can be done?

A: It depends on scrcenarior of every loan, lender and borrowers. The speed at which a loan can close is based on how closely a loan's supporting paperwork matches its original loan application, how soon borrower can provide additional paperwork,  and how quickly third-parties to the transaction can provide additional supporting paperwork. We can close a loan in 21 days, no matter puchase or refinance.

7. Do you have stated income(不查收入)loan program?

A: Yes, we have lenders who accept stated income. For detailed information, please contact Vicki.

8. As Realtor and Loan Officer, what is your advantage than other Realtors or Loan officer?

A: As a Realtor and loan officer, I know how the loan is processed during the purchase transaction, so I can adjust the real estate process according to loan status, such as contingency remove, bargain with seller, etc. It will protect buyer's right, and avoid the misunderstanding and potential hidden problem by un-professional loan agent. I had bad experience to handle real estate transactoin and purchase loan seperately(with different loan agent), and I hope such mistake wouldn't happen again.

9. What will influence the rate? How can I get the best rate?

A: There is no one single interest rate for everyone. Many factors determine your final interest rate, everybody’s situation is slightly different which is why we highly encourage you to email us for your customized rate quote. The following factors all contribute to the final interest rate you receive.

  • Loan Program: The interest rate you get depends first and foremost on the loan program you select. Normally 5/1 ARM would have the lowest rate, followed by 7/1 ARM, 10 year fixed, 15 years fixed, and lastly 30 years fixed.

  • Credit Score: We will run a credit report from the 3 credit reporting agencies. The lender will then pick the middle score out of your 3 scores to use as your qualifying credit score. If your middle credit score is 740 or higher, you will get the best interest rate available if you meet the income, LTV and below requirement.

  • Loan To Value (LTV): The highest LTV we accept is 115%, but the lower your LTV, the better chance you get the best rate. An appraiser will appraise your property after we submit your loan with lender, then lender will use appraised value to calculate your loan to value ratio. LTV of 70% and below is needed to get the best rates.

  • Impound Account: Your rate will usually be about 0.125% higher if you choose not to include impound (escrow) account. Lenders prefer it that borrowers pay their property tax/homeowner insurance to them monthly and give lower rates for borrowers who choose to have impound accounts.

  • Property Type: If your property is a condominium and your LTV is above 75%, you may not get the best rate available. Single family homes will get the most favorable rates.

10. How can I get the best rate? 

A: We highly encourage you to know what your credit scores are before you apply for a loan. If you think your credit scores should be higher, call the reporting credit agency to dispute any damaging history that shows up on your records. To lower LTV to get better rate, you can consider to put funds to reduce your loan amount. As senior loan officer, Vicki can help you to get the best rate.

11. What will effect you FICO score?

A: Factors that affect your credit score:

  • New late payments can drop scores over 100 points.

  • Short sales can also drop a credit score over 100 points.

  • Even a collection account with a small balance can cause a credit score to drop.

  • Joint account holders share ownership of the account and both are liable for repaying debt. If there is any delinquency, this would report on both credit holder’s accounts.

  • Credit history looks better if you have long-standing, established accounts. The older the age of the account, the better it is for your score.

  • Please click here to downloan document: "Factors That Affect Your Credit Score".

12. What documents I need prepare for DU approval or loan application?

 

A:

For Salary Borrowers (W2 borrower)

___Last 2 years (2012 & 2013) W-2 & tax return

___2 most recent pay stubs (cover 1 full month)

___Last 2 months bank statements (All pages, no big deposit)

___If you own rental properties (two years tax return & schedule E)

___Current mortgage statement (for re-financing)

___Fire insurance company, agent’s name & phone number

___A Copy of driver license

___If you have HOA, please provide HOA name, address & phone number

___Copy of green card (Front/back) if you are permanent resident or H1 VISA

 

For Self-Employed Borrowers (1099 borrower)
____Last 2 year’s income tax return (1040) with all schedules (signed)

___Copy of business license

___YTD profit & loss statement (signed)

___Copies of all K-1’s if you are partnership

___Copies of 1 year corporate returns if applied (signed)

___Last 2 months bank statements (All pages, no big deposit)

___Current mortgage statement (for re-financing)

___Fire insurance company, agent’s name & phone number

___A Copy of driver license

___If you have HOA, please provide HOA name, address & phone number

___Copy of green card (Front/back) if you are permanent resident or H1 VISA

 

Purchase Loan

__ Purchase contract, Selling/ Listing agent’s name & phone number

__ Title Company, Escrow officer’s name & phone number, escrow number