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The Inside Scoop on How Mortgage Loans Work

The Inside Scoop on How Mortgage Loans Work

| September 17, 2018
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We tracked down some answers to some of the most frequently asked questions regarding the process of obtaining a loan for your home purchase.

What is the difference between working with a commercial bank or credit union and working with a broker?  
Amazon Financial Group is a local broker in Longmont and has access to numerous investors.  When going through a bank or credit union, loans usually must fit in a box and meet specific guidelines.  A huge advantage of working with an independent broker, is the broker’s ability to shop around with many different investors to find a loan that meets your needs.  So, if one place doesn’t work, we go to the next, until we’ve found the best loan product for your individual situation.  

How are commissions determined and are they negotiable?
There are two different ways brokers are paid.  The first is Lender Paid, which means for every loan sent to a specific investor, the Lender pays the broker.  The borrower pays for actual third-party services that are required, i.e. appraisal, credit report, title work, etc.  The second way is called Borrower Paid.  For this approach, the borrower is charged origination points on the fee sheet to pay the broker.  Lender Paid is the most commonly used.

Which fees have set pricing and which fees are negotiable? 
Credit reports, appraisals and title fees are mostly pre-determined, non-negotiable and paid directly to the vendors. Amounts vary by the number of borrowers, property location, appraiser availability and finally, title insurance is determined by loan amount. 

How much does your credit score affect the rate?
Rates are FICO (credit score) driven.  Lower scores can prevent you from getting a great rate or even a loan itself.  Higher scores will help obtain the best financing available.  

What steps can you take to set yourself up for a successful journey in going through the lending process?  
Try to gather as many documents as possible at the beginning of the process in order to avoid delays or surprises and make for a smooth closing. Be sure to work with a lender that will sit down with each borrower to explain the process and provide a list of items that will be needed to initiate the loan.

About Amazon Financial Group

Amazon Financial Group provides mortgage loans and they have been in business since 2003 and can work with clients all over Colorado. They specialize in personalized mortgage loans and take pride in obtaining the best loan for each individual circumstance. You can reach Amazon Financial Group at 720-340-4440 or 720-308-8761.

Amazon Financial Group, Varra Financial Associates and LPL are separate and unrelated companies. You are under no obligation to use the services of Amazon Financial Group and may choose any qualified professional to provide mortgage services. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

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