Norman Mortgage News

How do you "buy" a better rate?

Do you plan on keeping your loan for a while? Then it may make sense to "buy" a lower interest rate by paying one or more "points." 

Even if you don't know how long you'll keep your mortgage or refinance, it may make sense to buy points now to get a lower interest rate. For example, do you have a high-paying job now but you think you might change careers in the next few years? We can help you sort it out.  It's part of our goal to find you the right loan for your means and future. 

A point -- which equals one percent (1%) of the total loan amount -- is an up-front fee that lowers your annual interest rate and total interest due over the life of your loan.  So, a one point loan will have a lower interest rate than a no point loan. Basically, when you pay points now, you save yourself from having to do it later. You can even pay fractions of points, meaning there are a lot of points packages to work with your specific needs.

There are a variety of rate and point combinations available. When you look at different loan programs, compare the package as a whole, rather than looking solely at the rates. Federal law requires lenders to publish their loans' Annual Percentage Rate, or A.P.R. The A.P.R. is a tool used to compare different terms, points, and offered rates.

Posted by Don Spears on August 5th, 2020 9:13 AM

Why you should get an Inspection

Whether you are buying or selling a home, you should have a professional home inspection performed.

A home inspection will look at the systems that make up the building such as:

  • Structural elements, foundation, framing etc
  • Plumbing systems
  • Roofing
  • Electrical systems
  • Cosmetic condition, paint, siding etc

If you are buying a home, it is essential that you know exactly what you are buying. An inspection from a professional home inspector will reveal any issues with the home so that you can address them before closing off on the deal. When you make your final offer, be sure that you require an inspection. An inspection contingency should be in the contract. Hire your own inspector, and pay close attention to their report. If you are not comfortable with what they find, then you should cancel the deal.

If you are selling your home, you need to know about such potential hidden problems before putting your house on the market. Nearly all contracts are contingent on a satisfactory inspection being completed, and most buyers will insist that the inspection is done by a professional that they hired. If the buyers inspectors find a problem, the buyer may get cold feet and back out of the deal. It is in your best interest to get ahead of the problems, and deal with them before the buyer can find them. If you don't, you can count on the buyer's inspector finding them, and at the worst possible time.

Posted by Don Spears on July 8th, 2020 3:16 PM

Five ways to make the loan process go faster

We should say that "working with us" is the first way! When you let us help you find the perfect loan, you are getting the best expertise in the Norman area! With that comes an easy and speedy loan process.

But here are five other ways you can speed up the process of getting a mortgage loan:

1. Have everything ready and in one place. Elsewhere on our website, you'll find a list of things you might need in support of your mortgage application. If you get them all together and keep them in a safe, portable place like a special pouch or folder, you can cut down on time spent searching for things we may need.

2. Be honest and thorough when you fill out your application. "Fudging" your employment or residence history or omitting open credit accounts you'd rather not have considered doesn't increase your chances of getting a favorable loan. In fact, it always leads to the process being  more difficult, and taking longer.

3. Respond promptly to requests for additional information. During processing, we or the lender considering your loan may need additional information. Provide it as soon as you get the request, or return the call as soon as you get the message.

4. Be prepared to explain derogatory items in your credit report. If you had an illness or a divorce where you missed or made late payments, or you have other instances of late payments or delinquencies on your credit report, be prepared to explain them. Be honest, and don't be nervous! The loan processor isn't judging you, they're just trying to fill in all the blanks in their paperwork.

5. Let the appraiser in! The appraisal is one of the lengthiest parts of the mortgage loan process. Studies have shown that the single biggest factor in appraisal "lag time" is the appraiser's inability to reach the homeowner to make an appointment. If you're refinancing and the appraiser calls to make an appointment, make it as soon as convenient for both of you.

And remember that the appraiser doesn't want to buy your house. He or she will say what the house is worth clean and tidy and in reasonable repair, even if you have some dirty laundry on the laundry room floor or dirty dishes in the sink. Cleaning doesn't get you a higher appraisal! Letting the appraiser in as soon as possible gets you a loan faster, though.

Posted by Don Spears on June 29th, 2020 9:47 AM



My Favorite Blogs:

Sites That Link to This Blog:

Executive Lending Group

A Division of 1st Capital Mortgage LLC

2401 Tee Circle, STE 102B
Norman, OK 73069