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Why did my Realtor
refer me to you?
A high quality Realtor knows that the key to a successful
transaction means TEAMWORK with a professional mortgage banker. Any
experienced Realtor could tell you horror stories about times when a
client made a poor choice of mortgage company and ended up with big
surprises at the closing table, or worse, no closing taking place at
all! A good Realtor will form relationships with trusted individuals
who have proven themselves time and time again, so that they know
you will be given the excellent service that you deserve. It is
important to know that your realtor is NOT given any compensation or
"kickbacks" for referring you to a mortgage banker. As mortgage
professionals, we desire more referrals, both from you and your
Realtor, so consider the extra motivation this provides for us to
take great care with your satisfaction!
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Why should I use a Realtor?
First and foremost, because you need an experienced professional
working on your behalf. The Realtor's commission is not paid by the
buyer, but by the seller of the home being purchased, and it is in
each party's best interest to have professional representation. As a
seller, profits are generally maximized by having an experienced
realtor market and sell your home, rather than deal with the
headaches of trying to do it all on your own.
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How and why do interest rates change?
Many people are surprised to learn that rates change on a daily,
and sometimes hourly, basis. Interest rates fluctuate in response to
changes in the financial markets. The bond market is generally a
good indicator of the general trend of interest rates. Please
feel free to use the Rate Outlook and
weekly Mortgage Market Guide features of our website.
This feature will give you an idea of what is driving rates on any
given day and what the general trend has been as of late.
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What happens once I am pre-approved?
You are ready to buy a home! Remember that it is very important
to inform us of any changes in the financial information that was
provided at the time of approval, as it may make a change in the
amount or type of loan that you can qualify for. If you have
not already identified a realtor to work with, we can help connect
you with some of the top realtors in our area that will go out of
their way to serve you.
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What is an origination fee?
Typically, it is 1% of your loan amount, and works exactly like
a discount point. Unlike most lenders, we generally do not have an
origination fee as part of your closing costs. There are times
where an origination fee may apply. In those cases we will
disclose this to you at the time of application. You can
usually avoid all, or part of this fee, by paying a higher interest
rate. In Michigan, rates are typically quoted assuming there is no
origination fee (unless noted otherwise).
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What is title insurance?
It is a policy provided by the title company guaranteeing the
accuracy of the title work done on your home at the time of
purchase. As a buyer, you are required to purchase a lenders policy
of title insurance as part of your standard closing costs, which
only protects the mortgage company. You may also choose to purchase
an owners policy, which would protect you against any loss in the
event of any legal issues relating to the title of your home.
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What is PMI (Private Mortgage Insuance)?
This is generally required in one form or another when the down
payment is less than 20% and protects the lender in the event of
loan default. The lower the down payment, the higher the risk for
the lender, and thus the higher the monthly premium. Depending on
your particulars, there are ways in which mortgage insurance can
sometimes be avoided at purchase, or dropped altogether at some
point in the future.
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What does it mean to be a mortgage banker?
Unlike mortgage brokers, a good mortgage banker is a direct
mortgage lender. Unlike mortgage companies who can only offer the
products and rates of somebody else, we are able to negotiate
directly with Fannie Mae the best mortgage pricing available.
This eliminates the middle man (mortgage broker) from the equation.
Thus, saving you time, money and unnecessary frustration. In
addition, we have connections with a number of large institutional
investors that allow us to offer some of the most competitive and
cutting edge mortgage products available. As a retail bank
with over 2 billion dollars in assets, we have our own dollars
available to lend. These loans where we act as the investor
are known as "portfolio" or "in-house" mortgages.
First Place is
a leading portfolio lender. These types of loans are
impossible for a mortgage broker as there are no assets behind them.
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How do I get pre-approved?
The process of getting pre-approved for a mortgage is easier than
what most people expect. The quickest and easiest way to get
pre-approved is by completing an application right now on our
website. Once we receive your application online, we will
contact you within 24 hours (weekends excluded) with a preliminary
loan decision. Once we are able to offer you a preliminary
approval, we will immediately schedule a time for us to meet to
discuss your approval in greater detail and to answer any questions
you might have. In addition, we will connect you with a
knowledgeable and competent realtor who will assist you with your
house hunt. It is just that easy. To get started now,
click here.
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Does it cost more to work with a Banker?
Normally the cost is less, and here's why. We originate, close
and fund mortgage loans and deliver them to Fannie Mae directly. As
a leading mortgage banker, we receive better pricing than most, and
you can benefit from our savings. Best of all, you deal
directly with the lender and not some middleman. This benefits
you by saving you time, money and unnecessary frustration.
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