Why should I use a mortgage broker? We have access to so many different lenders and are able to offer you advice along with determining which mortgage is best for your financial interest, not the financial interest of the lender. If you go directly to a lender, you have access and they are only able to offer to you, the products they have available.
Do I pay more for your services? No. At Wilson Mortgage Services, Inc., we do not charge any more than you would have paid had you gone directly to the lender.
What classifies a mortgage as a "Jumbo": Loans in excess of $417,000.00. I do have a few lenders that do not charge extra but their rates are generally higher to begin with.
What is a piggy back mortgage: A Piggy Back mortgage is when you obtain 2 mortgages. The first is at 80% of value and the second is at 10 or 15% of value. By doing this, you avoid paying PMI or Private Mortgage Insurance. As of 03/01/09..temporarily unavailable. 80-10-10 on case by case basis only
What is closing? Closing is when a purchaser and a seller finalize the transaction. It normally takes place at either the attorneys’ office or a title companies office. It’s when you actually sign all the final paperwork for your mortgage and keys to the home are exchanged.
What do I need for closing? The standard items needed for your closing are picture ID, certified funds payable to the attorney or title company and your original homeowners insurance. Other items may be needed depending on the particular situation.
What if my current residence isn’t sold yet but I want to buy a new home? See Swing Loans under "Types of Financing"
How does construction financing work? See "Construction" under "Types of Financing"
I heard the standard ratios are 28/36. What does that mean? The 28% means that your Principal, Interest, Taxes and Insurance (PITI) payment should not exceed 28% of your gross monthly income. The 36% means that your PITI plus other monthly debt should not exceed 36% of your gross monthly income. These ratios may be expanded depending on the borrowers credit, employment, debt and assets.
What is an escrow? An escrow is when you include your taxes and insurance with your monthly mortgage payment.
Must I escrow? No, not with 20% down.
What are the advantages and disadvantages of an escrow? The disadvantage is, the lender is holding your money to pay your taxes and not paying you interest on it. The advantage is, instead of getting a tax bill and having to come up with the money yourself to pay it, you send it to your lender and they pay it out of your escrow account. They have been collecting the money from you every month.
My credit is not that good, can you help me? Not that good means different things to different people. I would need to see your credit report. We do have programs available for you however, the guidelines are different than those with "good"credit.
What is PMI?: PMI stands for Private Mortgage Insurance. If you are putting less than 20% down on a home, you are required to pay PMI. Qualified buyers can avoid paying PMI by paying additional closing costs or by taking a slightly higher interest rate. It will depend on your credit score. I will work up estimates for you each way so you can determine the best alternative for your situation.