Tell us a little bit about your company and its foundation.

Steven Bray: Texas Lone Star Lending is a different kind of mortgage company. We’re small and prefer the personal touch. We don’t operate on bank hours. We’re not on the golf course at 3p. Your questions and needs are important. While we cannot always answer the phone, if you call between 9a and 7p Monday through Friday, we will return your call within two hours. (We’ll even return calls on Saturday between noon and 6p, but please cut us some slack on holidays.)

Steve and Stacy have over 30 years of combined industry experience, and if we don’t know the answer to your question, we know where to find it. We mean it when we say we’re “Your Loan Educator.”

What are some of the services your company provides?

Residential mortgage, commercial mortgage, land loans, construction loans.

What are some important questions to ask your mortgage broker before applying?

How is my interest rate determined?
How are you (the loan originator) paid?
Should I lock my rate at application or later in the process?

What are some important aspects of the mortgage approval process?

I’m going to break the process down into six important steps. While it’s possible to argue that other parts of the process are also important, I think these six capture the essence of it.

Application: During this step, you meet with your loan originator (LO), in person or on the phone, to discuss your needs and provide financial information. Your LO should give you a list of required documentation, which will support the loan application.

Appraisal: I’m listing this as a step because it’s so critical to the approval process. The appraisal is an estimate of the market value of your property. If the value is less than expected, we may not be able to approve your mortgage.

Underwriting: Once we have all your documentation, we submit it to our underwriter. It is this person’s job to verify that your financial information conforms to the loan program’s requirements and to make sure all the documentation makes sense. The underwriter also reviews the appraisal to make sure that the appraiser followed accepted guidelines and that the appraised value supports your loan application.

Conditional approval: Assuming your financial information meets the loan program requirements, the underwriter will issue a “conditional approval.” This means the approval will be granted if you satisfy certain conditions. Typically, these are requests for additional documentation to explain something in the loan file, such as a large deposit, a recent job change, or mismatching addresses on your bank statements. I recommend you be patient with this process. It can seem tedious, but as a result of the financial crisis, all i’s get dotted and t’s get crossed.

Closing: Once you satisfy the conditions for approval, you’re ready to close your transaction. Generally, the closing process takes a couple days as the lender’s attorneys prepare the loan documents and iterate with the lender and the closing agent (usually a title company) to get all the numbers right. The most important number for you at this point is how much money you have to bring to closing. Your LO should be able to give you a good estimate, but the closing agent will calculate the final amount. Closing happens when you sign the loan documents and give the closing agent your check.

Funding: For a home purchase, you should get the keys when your mortgage funds, and that should happen the day you close (unless you close late in the day). If you’re refinancing, federal regulations dictate that your mortgage cannot fund until the fourth business day after closing. You have the right to cancel the transaction during this time. Funding pays off your previous mortgage.

How do you suggest clients prepare for this process?

Get your financial documents ready. Your LO likely will need copies of the following:
Most recent 2 months of bank and investment account statements- If you don’t receive paper statements, see if you can download them from the institution’s Web site or contact the institution for copies.
Most recent 2 years of tax returns- If you don’t have copies, you can order them from the IRS. If you filed an extension for the most recent year, you will need a completed copy of the extension request form. You may have to document that you paid any income tax due.
Most recent 2 years of W-2s- If you don’t have copies, your employer(s) should be able to provide them.
Pay stub- You will need to provide your most recent pay stub.
Driver’s license- Your lender will need a copy to comply with the Patriot Act.
Legal papers- Examples include a divorce decree, child support order, bankruptcy filing, or anything other legal matter that could affect your financial situation.
If you’re refinancing, your LO also will need copies of your existing survey and your property insurance declarations page.

In addition, it is important to pay attention to the following so you don’t rock your credit boat. Until your mortgage funds:
Do not apply for new credit
Do not co-sign for anyone else’s debt
Do not quit your job
Do not make unnecessary large deposits
Do not move money between accounts unnecessarily
Do not make late payments on existing debt
Do not spend your closing funds

What are some common issues you face when it comes to approving a mortgage?

The most common issues we encounter are associated with the applicant’s credit or with the appraisal:

Credit issues: If you ignore the advice above and “rock your credit boat,” you may torpedo your approval. We will check for new credit accounts and verify that you’re still employed just before closing. If anything changes, the underwriter must consider how it affects your ability to repay the mortgage.

Appraisal issues: The appraiser is our “eyes” on the property. If the appraiser identifies issues with the property that could affect your health or safety, these must be corrected before we can approve your mortgage. Keep in mind that the appraiser is not a home inspector, but he/she is going to notice issues like a broken exterior door lock (safety issue), non-functioning bathroom (health issue), or large cracks in walls or the foundation (safety issue).
A more common appraisal issue we face is the appraised value not equaling the sales price (for a home purchase) or expected value (for a refinance). For a purchase, approval depends on the seller lowering the contract price or you increasing your down payment to cover the difference between the price and the value. For a refinance, the resolution depends on the amount of equity you have in your property. Outcomes range from no effect to a slightly higher interest rate to a higher amount of cash due at closing.

What advice do you have for those with a low credit score?

For someone looking to purchase a home, I suggest you work with your LO or a reputable credit services company to improve your scores. If your credit report contains errors, you have the right to have them corrected. You may not be able to buy a home right now, but if you work on the issues depressing your scores, you can buy in the future. It’s really unlikely the issues will go away if you ignore them.

For someone looking to refinance an existing mortgage, it may be possible to refinance regardless of your low scores. Talk to your LO about the available options.

How long does the approval process typically take?

It depends on the type of mortgage and the complexity of the situation. It can take as little as two weeks or as long as several months. On average, it should take 30 to 40 days.

Are there any special circumstances that can speed up the approval process, and if so what?

Use the checklists I provided above to be prepared. We spend much of the mortgage process waiting- waiting for the applicant to return documents, waiting on the appraiser, waiting for real estate agents to update contracts, waiting for the underwriter, etc. We cannot eliminate all of the waiting, but if you’re prepared, it will speed up the process.

Secondly, be forthcoming with your LO. If you think an issue may affect your ability to qualify, chances are it will. Some issues are easily explained with additional documentation or a letter from the applicant. If you tell your LO about them up front, you eliminate the need for the lender to discover them and issue conditions for approval. Besides, if an issue is going to prevent you from qualifying, isn’t it better to know that before you spend money on an appraisal and a credit report?

What is the best way for people to get in contact with you or your company?

You can contact us by phone (512-261-1542) or by email (info@LoneStarLending.com). We’re on the Web at www.LoneStarLending.com and www.facebook.com/TexasLoneStarLending. We recommend our daily, one-minute videos posted on both sites to keep you up-to-date on interest rates, loan program changes, and real estate market trends.

‍

-By Steven Bray, Lone Star Lending

Tell us a little bit about your company and the services you offer.

Starkey Mortgage is a full-service mortgage banker. We originate homes loans for purchase, construction or refinance. My business is focused mainly in San Antonio and surrounding counties. However, I’m licensed and can originate anywhere in the state of Texas.

Is there a common misconception that first-time homebuyers have about home loans?

It’s funny. They either think that it’s too hard and don’t try or think they think it’s really easy and get frustrated. It’s my job to help educate a first time homebuyer on both budgeting and financial issues as well as the loan process and what it takes to get their loan approved. Many times it starts with credit and income consultation before they ever look at a house.

What’s the most important thing that banks will be looking at in the application?

The lending environment we are in now makes that an easy question: Credit. If your credit score is sufficient to get through the “gate” then we can start the loan process. If it doesn’t meet a certain threshold then we can’t even start the loan process. That threshold varies from program to program but across the board we start with credit. As a result a lot of my time is spent consulting with borrowers on their credit, what affects credit and what they can do to get into a position to be ready to buy. After credit is income. Under the Dodd-Frank Act the government requires creditors “to make a reasonable, good faith determination of a consumer’s ability to repay a loan.

Can you briefly describe the difference between working with a mortgage broker and a direct lender?

A mortgage broker is a licensed entity but they just gather the necessary information and send it to a mortgage company to make a decision. He’s paid a fee to deliver the package. A direct lender is originating, underwriting and funding the loan. Then they either keep the loan in their portfolio to collect the payments or it may be sold as an asset in the secondary market.

What are some of the biggest regrets you’ve seen first-time homebuyers have when it comes to the mortgage process?

Working with a mortgage loan officer that is as inexperienced as they are. And unfortunately that’s hard to know when you begin the process. If a new loan officer gets involved in a difficult loan and doesn’t have the experience to direct a homebuyer regarding their finances, know which is the best loan program for a buyer or how to overcome an underwriting conditions it could result in either a bad loan or a loan denial. Either way it’s the homebuyer that pays the ultimate price.

What advice would you give to first-time homebuyers in Texas to help them get the best loan terms as quickly as possible?

I would educate myself prior to starting the process. There’s a lot of information on the web for first time homebuyers. Then I would work with a seasoned realtor and loan officer. These days the more experienced professionals have web presence and these include reviews. Read them! They’ll tell a lot about how a person does their business. And of course a referral is a wonderful thing!

What’s the best way for people to contact you and your company?

My company phone number is 210-545-9300. I can be reached there or on cell at 210-240-0174. My website is www.debbievillarreal.com.

‍

Tell us a little about your company and the services you offer.

My name is Romney Navarro. I am the Vice-President of Lending of Streamline Funding, a boutique private lending firm located in Austin, TX. Streamline Funding is one of Texas’ oldest and premiere private lending institutions, providing loans to real estate investors throughout the state since 2002. Our products are far from conventional as we specialize in financing “fix and flip” projects as well as new construction projects for real estate investors. We do not provide homeowner loans, instead we provide the interim financing to those who renovate and build the homes of future homeowners. Our clients range from those who “Buy Ugly Houses” to those who build small subdivisions in/ and around the major Texas metro areas.

What would you say is the main difference between national and local mortgage brokers?

Historically the main differences that I have seen between national and local mortgage brokers is the level of service provided to the end consumer. Generally speaking a local Broker can provide a level of service that a national one cannot as the local broker is able to meet with his/her client face to face and address concerns in a personal manner that a national Broker simply cannot as National Brokers typically do not have that luxury as setting up local representation ? many times this option is not financially feasible to the National Broker. To compensate, however, the National Brokers, have had to build processes and systems that tends to be superior to that of the Local Brokers as the cost to implement such systems many times is not feasible for the Local Brokers. Clearly both provide value but at the end of the day they also create a nice balance because it allows end consumers to choose their preference be it personalized attention or ease of transaction and little contact. Being that we, at Streamline Funding, are Regional Lenders we can many times appeal to those who fall somewhere between the two spectrums but even then, I have seen where we can be too small for those looking for a National Broker or too big for those looking for a Local Broker.

Can you briefly explain some of the advantages of going with a local home loan provider?

One main advantage that I can see in utilizing a local home loan provider is the ability to get references from people in the community that you know. In today’s day and age where information is available at ones fingertips and online reviews appear to exist with everything this may not be as important in the past but I do believe that personal references do still hold a lot of weight and accountability is more tangible with someone in your area than it would be with someone in a distance. As a result I continue to see Local Brokers thriving on referral business whereas National Brokers rely heavily on their marketing to attract new clientele. .

Do national and local lenders offer the same rates?

Generally speaking, yes, I believe they can offer the same rates. Seeing how I am a private lender, however, I do not follow local and regional pricing is as closely as a traditional Broker and as such am not fully equipped to provide expert feedback.

What’s it like for people to work with someone local compared with a national or Internet lender?

When someone works with a local Broker as compared to a national Broker, the level of direct communication and (obviously) face to face interaction is far greater solely due to their proximity and accessibility. While many people don’t require such service there is still a large percentage of the customer base that does. Because of this a customer is able to experience far more tailored service that is not necessarily viable from the national Brokers. I have seen numerous times here in recent history, since the resurgence of the real estate market, that local Brokers and not national Brokers have been able to close on transactions that seemingly were “uncloseable” as those local Brokers were again able to position the client with a tailor made product suited specifically to their needs? a intangible service that national Brokers generally cannot offer.

What advice would you give first-time home buyers in the Austin area about choosing a mortgage broker?

Personally I tend to be more of an advocate of the local Broker for a number of reasons. For instance: A) the service level and product offerings are likely to more personalized than canned, B) it allows the business to stay in the local economy, C) you usually have more options because they have access to a wide variety of wholesale mortgage rates that national Brokers may not as they are usually limited to their own product offerings and D) they are typically easier to get in contact with and when someone is buying a home for a first time it is very likely that they are going to need to speak to their Broker often as they will have numerous questions to this somewhat foreign process. What I would suggest to a first time homebuyer who is choosing a mortgage Broker to finance their home is to ask their friends and family about who they may have used in the past and to provide them with good, candid feedback so that they could make an informed decision.

What’s the best way for people to contact you and your company?

We are very easily accessible by phone (512-250-8575), web ( www.streamlinefunding.com) or email (info@streamlinefunding.com). We can also be followed on the different social sites such as Facebook, LinkedIn, YouTube and Twitter. Currently we organize a monthly meeting for new and old real estate investors called the “Investment Real Estate Roundtable” in Austin (first Wednesday), San Antonio (second Wednesday), Houston (third Wednesday) and Dallas (fourth Wednesday). Anybody looking to learn more about real estate investing is welcomed as the group is basically an open networking forum whereby folks can meet, greet, network and learn. I strongly suggest this group to anyone interested in real estate investing to consider as it has proven, since its inception back in early 2013, to be a place where deals are made, relationships formed and ideas sparked. The Facebook page would be the best place to find out more information but one can also look it up on www.meetup.com by simply typing in the name of the group in its respective city.

‍

Everyone’s credit profile is unique, built by a diverse myriad of purchases and balances we all acquire over time. So if you find yourself searching for tips and techniques to help your slipping credit score, chances are you will quickly become overwhelmed with all the advice out there. The fact is, not all of this advice is accurate or wise for each circumstance, which means that even some tips intended to help your score could wind up having something closer to the opposite effect.

Keep that disclaimer in mind when reviewing these five credit tips – consider how each could apply to your situation, from your current financial outlook to your future goals (buying a home or car, etc):

Tip #1: Open (or expand) Your Credit Profile

If you do not already have a credit card, now is a good time to get one. If you have one card that you’re managing well, then consider applying for a second and using them in rotation. You should not fall for the misunderstanding that you have to have a balance on your credit cards in order to have a decent credit score. The fact is that you do not, and you should not. However, having and also using one or two credit cards can help you see a significant improvement in your overall credit score.

Tip #2: Don’t Ask For a Lower Credit Limit

There’s a train of thought that asking the credit card company for a lower credit limit will help them limit their spending, which in turn will keep their score from being hurt. However, there is some risk involved with this technique. When your credit score is determined it is based on 30 percent of what you owe. The formula takes into consideration how much you actually owe, compared to how much available credit remains. This means that if you are not able to pay off your debts, then a lower credit limit will actually increase this ratio and also damage your score.

Tip #3: Eliminate All of Your Nuisance Balances

A nuisance balance is any small balance that you have on one or more credit cards. This can help your score since one of the factors that is used to determine it is how many cards actually have balances on them. Put simply this means that charging $20 on one card and $40 on another instead of the same one can actually hurt your overall credit cost. This means that you should gather up all your cards with small balances, pay them off and then use your one with the best interest rate for all of your purchases.

Tip #4: Add an Installment Loan

You will see quick improvement in your credit score when you show that you are a responsible consumer with more than one type of credit: both revolving (i.e. credit cards) and installment (i.e. car payments, student loans, etc.). If you do not currently have an installment loan, obtaining one and making timely payments can help your score significantly.

Tip #5: Dispute Any Inaccuracies on Your Credit Report

If you have any charges that should not have been posted to your card, which resulted in collections, you can continue to protest this in order to have it taken off of your rating for good.

Each of these tips will help you improve your score and achieve the credit, home, car and even job that you truly want.

‍

Tell us a little bit about your company and the services you offer.

Heritage Mortgage is a family owned branch of Hancock Mortgage Partners, a Texas based (headquartered in Sugarland) mortgage bank. While there are additional states in which we do business, the core of our bank’s lending, and those of our branch, are in Texas. We offer conventional, FHA, VA, Tex-Vet, USDA, and Jumbo loans to provide financing for those buying a home or refinancing an existing build. Additionally, we offer construction financing.

What are the main reasons people choose to refinance their mortgage?

Most of the time a homeowner refinances to reduce their interest rate and monthly payment. We are currently coming off an unprecedented period of very low interest rates, and while they are still historically VERY low, we are unlikely to soon see the historical circumstances that, combined with the Federal Reserve’s Quantitative Easing program, brought rates down to the low rates seen May 2012-May 2013. After improvement in the market over the first six months of the year, rates are now the lowest they’ve been since June 2013, so if a homeowner missed or were unable to refinance before, now is probably the time to do it.

When the rate environment isn’t conducive to what I’ve described above, which we call a “rate and term” refinance, the most common reason why a homeowner will refinance is to take equity out of their house in the form of a cash-out or home-equity line of credit loan.

How much equity do you need before considering refinancing?

On a conventional loan, we can lend up to 95% of the value of a home. The vast majority of homeowners who’ve come to me for a refinance prefer to use equity to pay for any closing expenses, the cost of which might be represented by 2-5% of their equity (depending on the size of the loan). In Texas, most urban areas have seen appreciation of greater than 10% each of the past two years, so many refinance candidates should see an improved equity position once their home has been appraised.

For a cash-out or home equity loan, a homeowner will need greater than 20% equity plus any rolled in closing costs.

If a homeowner’s credit scores are low, will this affect their ability to refinance their mortgage?

Credit scores are the largest single factor we use to determine rate pricing, so low credit scores can be a barrier both in terms of minimum credit score requirements, as well as a pricing standpoint. The minimum credit score on a conventional loan, for most lenders, is going to be 620; additionally, anyone at or near that minimum score is going to be penalized heavily on the rate, making any refinance less attractive from a savings perspective.

If you’re considering a refinance but are concerned about your credit, contact your lender and request they pull credit. This is important for two reasons: one, because the formula used to determine mortgage credit scores is different from that used for consumer scores available directly from the bureaus, and two, because a good lender will help you create a strategy to improve your credit. Speaking for myself, I’m always willing to help coach a prospective borrower on techniques to improve their score and I don’t charge for it, either. We also subscribe to a service that will help predict score improvements based on reducing debt, so it answers the questions many borrowers have of how to prioritize any debt reduction payments.

Can someone refinance if they have a second mortgage?

They can, but it’s rare. Generally any lender in the 2nd lien position will need to approve any refinance of the first. I think in this market, in which there’s been so much appreciation over the past few years, it’s more likely that a homebuyer will find better savings by “baking in” that appreciation into a new first lien and paying off the 2nd, even if it results in a period of the homeowner paying for mortgage insurance (as a reminder, mortgage insurance is required on all conventional loans with less than 20% equity). First off, the very presence of the 2nd lien worsens the pricing we can offer on the first lien (it can be as much as .25% on the interest rate). Second, mortgage insurance rates have come down considerably since the market crashed in 2008, and I can usually find that the cost savings between a cheaper new first lien and the relatively cheaper MI more than offsets the sum cost of the interest from the previously higher first lien and the 2nd lien interest.

That may be a little confusing to a reader; the short version is that a good lender will look at alternate scenarios to find the best combination of loans to fit your needs with least amount of expense to you.

Are there any risks associated with refinancing a home?

The principal risk in a refinance is losing the value of any closing costs paid up-front because a homeowner sold before there was enough time for savings to accrue. Refinances generally use pretty easy to understand math. There are fixed costs in terms of lender fees and title company charges, and the savings comes in the form of reduced payments from a lower interest rate. Because the expenses are paid up-front, either from a borrower’s cash reserves or through equity in the property, there is a period of time in which the borrower is “upside down” on the cost of the refinance. When I create a refinance estimate for a borrower, I always articulate any savings in terms of a break-even date. For example, if the fixed costs involved in the refinance total $3500, and the borrower will save approximately $100 a month post-refinance, then the break-even period is in 35 months. So at a minimum, the borrower will need to stay in the house for three years in order to come out ahead.

Main Reasons You Should Refinance Your Mortgage

If interest rates have dropped since you signed for your mortgage, you’re paying an unnecessarily high amount on your monthly mortgage payments. Refinancing your mortgage can solve that, but that doesn’t mean it’s a smart move for every Texas homeowner. Consider these points before deciding whether to plunge into a new mortgage plan.

If You’re Refinancing From Adjustable to Fixed Rate

Consider how the mortgage rates are trending. Are they going up, or dropping? With an adjustable rate mortgage, it may rise to a rate that’s higher than a fixed-rate mortgage. In that scenario, it’s wise to consider refinancing to a fixed-rate loan. But again, consider how long you plan on staying in your home. If you’re staying put longer than seven years, it’s a smart move to refinance to a fixed-rate. If you plan on moving a few years down the road, it may be unwise to refinance out of your ARM.

If You’re Refinancing from Fixed to Adjustable Rate

If you’re signed to a 30-year fixed rate, ask yourself, “How long do I plan on staying in this home?” If the answer is anything other than “as long as possible,” or “forever,” it doesn’t make financial sense to pay a higher, 30-year interest rate on a home you won’t keep for that long. The higher monthly payments are an unnecessary money drain. Research your refinancing options for an ARM (Adjustable Rate Mortgage), as the lower rate will produce a lower monthly mortgage payment.

Changing the Length of Your Mortgage

Texas homeowners can change the length of their mortgage. For instance, if you have a 15-year mortgage, you can extend it to 30 years. The principal balance of your mortgage is spread out over a longer period of time, lowering your monthly payments. On the negative side, the interest is higher on longer-term mortgages, meaning you pay back more in the long term. On the flipside, those with 30-year mortgages who want to pad their long-term savings should consider shortening their term to 15-years. Your monthly payment is higher, but wind up paying much less in interest during the life of the loan, saving you thousands of dollars in the long run.

If You’re Refinancing to an Interest Only Loan

With an interest-only loan, the minimum amount you have to pay is the amount of interest for a certain period of time. You can off pay as much of the principal as you like. This provides the flexibility to pay less if circumstances force you to divert money elsewhere.

‍

What’s the best way for people to contact you and/or your company?

While the bank’s hours are 9-5, I’m almost always available by phone and check email frequently throughout the day (joshhiller@heritagehomeloans.com). I’m also happy to take calls after hours or on the weekends by mobile (512) 300-4813.

Tell us a little bit about your experience, company history and the services you offer

I have been in the mortgage business for over 10 years. Our former clients are by far the largest part of our business. We know this and that is why we endeavor to bring you the best service possible, as fast as possible. AmCap Mortgage Ltd. is a registered Mortgage Banking entity with the Texas Department of Savings and Mortgage Lending. We offer Conventional, FHA, USDA, VA, and Jumbo mortgage loans.

Can you explain the difference between a mortgage broker and other mortgage provider options?

Amcap Mortgage Ltd. Is a mortgage bank. This is different from a mortgage broker. Amcap processes, underwrites, and closes loans all in house. This means we have more control of the entire process. We specialize in closing in less than 30 days and keep a high level service with our clients and referral partners

What are the main factors that people should consider before applying for a home mortgage?

Some of the main factors people should consider is when going to a large retail bank you will be in line behind thousands of others. If you prefer to have a live person you can meet in person, contact after hours, or speak to on the weekends the larger retail banks won’t work. Also, all of the loan officers on our team have years of experience. This means when your application is taken we are going to make sure everything is lined up before you are under contract.

Is there a difference between pre-approved and pre-qualified?

Pre-Qualification is the licensed loan officer taking application without reviewing all of the borrowers financial documentation. A Pre-Approval is the licensed officer going thru all financial documentation. We go through credit, tax returns, bank statements, W2’s, and pay stubs in detail before the file is even in processing. After taking a application with my team you will be asked to provide as much as possible so we can make sure you are pre-approved for the correct amount and that there won’t be any surprises. This is a great way to find problems up front so we can all have enough time to find the right solution.

Are there any ways that a homeowner can help make the mortgage process move faster?

Yes! Please collect tax returns, bank statements, W2’s, and pay stubs up front. We also have a in depth “do’s and don’ts” document that goes out to every client with the pre approval letter. It breaks down in detail what should be avoided. For example: don’t make cash deposits, don’t apply for new credit cards before closing, don’t change jobs without disclosing, etc.

What is one of the most common problems for homeowners in Texas who are applying for a new mortgage?

The most common problems people are facing is not being prepared. It is very important to have a loan officer look thru all financial paperwork before looking at homes. This way there are no surprises. If people know what the problem are up front they can put a plan in place and start on the right path.

What advice would you give to Texas homeowners who want to choose the best mortgage lender for them?

Go with someone that has a eye for detail, a professional who takes the time to talk you through the process, and someone who answers your calls/emails quickly. Also, make sure you work with someone you like and trust. You will be communicating a lot thru the process.

What’s the best way for people to reach you and your company?

Email any time us at todd@mcdougallmortgages.com

‍

More mortgage tips by Joe Mays:

Tell us a little bit about your experience, company history and the services you offer.

I have been in the mortgage business since I graduated from Texas Tech in 1971. I started in the mortgage department of a national bank and have managed several mortgage department and companies until I founded American Property Financial which has been in operations for thirty years. American Property Financial offers a wide variety of mortgages to purchase and refinance residential home loans.

What are some of the most common misconceptions that people have about getting a mortgage for a new home?

The mortgage market has gone through a lot of changes in the last five years and individuals are not aware what is expected of them to qualify for a mortgage loan. The changes effect what their credit scores need to be, how much income they need to be able to prove they make. These changes have also greatly changed the mortgage products that are available and the criteria of qualifying for a mortgage have changed. Many people are working under the assumption that what once was available or they hear a friend was able to do in the past is still available in getting a mortgage.

What would you recommend as the first steps that someone who wants to buy a house should take to secure a mortgage?

People need to find an individual they can visit with who can look at their overall financial situation and find out that their goals are in buying a home or refinancing their existing home loan. Once they have been advised, they will know all the documentation they will need for the actual mortgage application.

Can you briefly explain the main types of loans and who they are typically best suited for?

There are not loans that are best for individuals and not all individuals qualify for every mortgage available. American Property offers many types of loans, FHA, VA, USDA, Tex-Vet, and Conventional Mortgages. Each of these mortgage products are designed to meet specific needs. Once you have had the different type of mortgage explained to you, you will be better prepared to choose the mortgage type that is best for you.

Are there any things that prospective homeowners should not do when they’re applying for a home loan?

Prospects should not make applications for new credit or buy new items which will create new debt obligations. Their application and Pre Approval will be based on current debt obligations and these new obligations to jeopardize this approval.

What is one of the biggest regrets you’ve seen people have when it comes to their mortgages?

The regrets prospects have is that they have done thing they felt was what they needed to do to qualify for a mortgage without expert advice or have not gotten the advice they should have and have done the things they needed to do to improve their situation earlier. Find out what you need to do and get started now so you will be best prepared to buy a home or refinance your current mortgage.

What’s the best way for people to reach you and your company?

The best way to reach and find out more about our company is to go to www.saloans.com or call us at 800-738-5626 or email me personally at hjmays@aol.com.

‍

‍

Tell us a little bit about your company and its foundation.

Jack Rattikan III: Rattikin Title Company is one of the largest independent title insurance agents in Texas. Founded in 1944 with its corporate headquarters in Fort Worth, Texas, Rattikin Title has a large, professional team with convenient office locations in Tarrant County to serve our commercial and residential client base.

In general, what is Title insurance supposed to provide for homeowners?

Title insurance is a very unique insurance policy that protects you and your lender if someone challenges the title to your property because of unknown title issues when you bought the property. Unlike other policies, title insurance protects the owner from past errors related to ownership history rather than future risks such as fire, flood or other physical damages. Title insurance doesn’t guarantee you will never have a problem, but it does give you the assurance and peace of mind that the title company will be there to address a problem if there is one.

What is the difference between an owner’s policy and a loan policy?

An owner’s title policy protects the purchaser of the property, while the loan policy offers protection to the lender or mortgage-holder. When purchased in conjunction with an owner’s policy, the cost of a loan policy is usually offered at a discounted rate.

Who is responsible for payment of the owner’s policy and loan policy?

Although negotiable, it is customary for the property seller to pay for the owner’s policy. It is usually the borrower/buyer who pays for the loan policy. You may have the option to purchase additional endorsements with your policy.

What are some common title claim defects/concerns that may rise from my title policy?

A thorough title search can help uncover any title defects tied to your property. Some of the common title concerns often covered by an owner’s policy of title insurance includes: errors in public records, unknown liens, illegal deeds, missing heirs, undiscovered easements, boundary/survey disputes, undisclosed heirs and forgery. When you buy property, make sure you’re protecting that investment with title insurance.

How long is a Title Policy in effect and do I pay an Annual Premium?

Unlike other types of insurance, the premium for your title policy is paid only once, at closing, and your policy remains in effect as long as you own the property.

What items are included in the title insurance premium rate in Texas?

Texas has an “all-inclusive” premium rate. This means that in addition to the risk covered by the title insurance company, the rate also includes the title search, examination, closing and funding the transaction, and issuance of the title policy.

What are some factors that influence the rate charged for my title insurance policy?

In Texas, the Department of Insurance is the state agency charged with oversight of title insurance. Premium rates are established by the commissioner of the Texas Department of Insurance through a public hearing process, and all title agents and companies are required to charge the same rate. The rate is based on the amount of coverage provided by the policy.

May I choose the title agent or the insurer that underwrites my title policy?

Yes. One of the few choices you have is which title company to use. You are not required to use a title company selected by the builder, real estate agent or mortgage lender.

Where can I find more information about title insurance in Texas?

The Texas Department of Insurance (http://www.tdi.texas.gov) has a variety of resources and links to help you learn not only about title insurance in Texas, but also other useful information valuable to you as a homeowner.

What is the best way for people to get in contact with you or your company?

When it’s time to close on your property, ask your real estate professional to call Rattikin Title, a well-known and highly respected Fort Worth title company since 1944. Go to www.RattikinTitle.com for not only a complete listing of our Fort Worth title insurance offices, but also the services we provide and many other valuable resources to help you prepare for closing on your property

By Jack Rattikan III