Premier Mortgage

When it’s time to sit down and figure out how you’re going to finance the home you really want to buy, it’s also a good time to remember a very important real estate rule of thumb: Just because a mortgage lender has a household name doesn’t mean they’re going to be the best choice for your mortgage loan. There’s a way they got to be a household name, after all – by advertising. And who do you think ultimately pays the cost for that? Yep. Their customers – through the higher rates and fees they charge to cover that expense.

(Of course, some mortgage lenders became household names by doing some not-very-savory transactions with their customers, too. But unfortunately, it’s also true that people often remember the name better than the deed . . . so, yeah, there is that.)

And, if you’re of the opinion that those “discount” mortgage financing options you see online are saving you money because they don’t have the ‘brick and mortar’ costs associated with traditional mortgage lenders, you’ll want to think again. The largest online mortgage lender has over 8,000 employees manning phones and populating cubicles in office buildings, all getting loans closed. (They have to – because that’s a lot of brick-and-mortar to pay for!)

So if you’re in the market to get the best deal on a mortgage loan for your needs – it’s a good idea to maybe gather some information (like a Loan Estimate) from the ‘great and powerful wizards’ – but then we recommend you go do some exploring on your own for the ‘little man behind the curtain.’ Because more often than not, it’s going to be the small, local mortgage lender who is going to be working harder on your behalf to give you the best service and save you money on your loan.

Knowing the difference between mortgage lenders and how they work – as well as how they earn their fees – is a critical part of making the right choice, too. There are different regulations that govern banks and mortgage banks, vs. mortgage brokers.

Here in Las Vegas, one locally owned mortgage broker is helping to unravel the ‘mystery’ behind mortgage loans with a series of informational videos that make it simple to understand. Premier Mortgage doesn’t expect borrowers to be experts about mortgage loans, that’s their job. But they do make an effort to help people understand how important it is to shop for a loan with more than one mortgage lender – and what exactly to look for when comparing the numbers, so they can make the best choice themselves. (How to Discover What You Don’t Know About Getting a Mortgage.)

One other important thing to remember about getting a loan: Timing is critical for a borrower’s mortgage transaction. If a loan is delayed due to errors or a Loan Officer’s failure to request and submit proper documentation on time, the buyer may end up paying more money, not have a place to live in the interim, or may even lose the deal completely. And that’s no way to start off the “Happily Ever After” in your new home!

Your Realtor® can be instrumental in helping you make the right mortgage loan choice – and the right Realtor® will recommend that you shop around with several mortgage lenders before making a decision. (Remember, simply filling out an application – or getting a “loan pre-approval” from a lender does not commit you to using them.) Making the wrong choice for a lender can literally cost you thousands of dollars more out of pocket than you need to spend. And wouldn’t that money look better in the new furniture for your new home? We thought so, too!

New Home Resource helps current and future homeowners with all of their Las Vegas real estate needs. Whether your preference is for property management, a newly built home from a local builder, or a resale property in just the right location, a New Home Resource Realtor® is here to provide the service you’re looking for. Please contact a New Home Resource Realtor® today at 702-365-1000 or visit www.newhomeresource.com. Broker Joanna Piette, and agents Denise Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, and Kathy Paterniti are all here to help!

Whether you’re new to homeownership, or in the process of hunting for your 10th residence – the one thing that most of us have in common is the need for a mortgage lender. (Any recent lottery winners out there? If so, you have our permission to skip this article.) And thank goodness for mortgage loans, because without them, it would take an awfully long time to scrape together the pile of cash needed to buy a home.

One thing that many buyers don’t realize, though, is that much like any other products we buy – the cost of a mortgage loan can vary widely from one lender to another. In fact, mortgage lenders themselves fall into different categories – such as banks, mortgage bankers, and mortgage brokers. For those not in the industry, the assumption is usually that all three of those are pretty much the same. But as real estate professionals who have worked with scores of different lenders, we can assure you, the loans they offer – and the costs they charge to obtain those loans – can be very, very different.

Since the economic downturn and housing market crisis, new regulations have gone into effect (Dodd-Frank) that were designed to assist and protect consumers seeking mortgage loans. One of the benefits to buyers coming soon is the implementation of new loan disclosure requirements (they go into effect nationwide on October 3, 2015).

One other benefit is that many of these laws placed restrictions on the fees that mortgage brokers, specifically, can collect from buyers for a home loan – and that is one of the reasons that all homebuyers should shop around. (Note: Some real estate professionals will guide clients to one particular lender, but there can be reasons for this that may not be financially beneficial to the borrower. They are known as “Market Service Agreements, and New Home Resource does not engage in this practice. Click here to learn more on this subject.)

One local mortgage broker who has taken a consumer-friendly approach with its home loans for Las Vegas valley homebuyers is Premier Mortgage Lending. Taking its cue from the Consumer Financial Protection Bureau’s (CFPB) new “Know Before You Owe” program, Premier Mortgage even created a complementary website, KnowBeforeYouOweNevada.com to help consumers be aware of their rights and options – and to offer plain-language explanations to your home loan questions.

Embracing the concept of ‘mortgage loan transparency,’ Premier Mortgage is one of the few Las Vegas lenders that offers a true “No Fee” home loan – meaning: No Loan Origination, Underwriting Fee, or Documentation Fees, which can literally save a borrower thousands of dollars out of pocket. That can mean the difference between getting the house you want – and the home you love. Or even in your ability to hear the words “Your loan was approved!” – rather than “We’re sorry to tell you . . .”

Shopping around for the right home loan is starting to sound like a pretty good idea now, right? We suggest contacting numerous lenders, gathering their Loan Estimates together, and then comparing them line-by-line. The CFPB has some tips here on how to do that, too.

In your search for the right mortgage lender, it’s helpful to have a good grasp of the terminology, too. Knowledge is power – so we’re going to leave you with a list of 15 lending terms that every homebuyer should be familiar with:

1. Adjustable Rate Mortgage (ARM). A type of loan where the interest rate changes periodically, up or down. Rates change generally according to movement in the financial market.

2. Annual Percentage Rate. The yearly cost of finance charges (interest, loan fees, service charges, mortgage insurance or other items).

3. Appraisal. An opinion of the fair market value of a land parcel and any improvements at a given point in time. This evaluation generally determines what the property would sell for in the current marketplace.

4. Cap. The limit to the amount an interest rate or monthly payment can increase for an ARM; may apply to either each adjustment or over the life of the loan, or both.

5. Closing. The final step in the purchase process when, through a licensed escrow holder (a neutral third party) the payment of the purchase price to the seller is completed, the Buyer’s note and loan agreement are delivered to the lender, and the deed to the buyer and any mortgage (trust deed) are delivered to the county recorder’s office for recordation.

6. Conventional Loan. A mortgage-secured loan that is not insured or guaranteed by a government agency such as FHA or VA.

7. Credit rating. A numerical score formulated by a credit bureau to assist a lender and seller in determining if a potential home buyer is a good credit risk. Your credit score can make a big difference in your costs and interest rate – so take good care of it.

8. Earnest Money. Money the buyer gives the seller to motivate the seller to enter into a purchase agreement with the buyer. These funds are later applied to the purchase price of the home, but are also funds at risk in the event the buyer breaches the purchase contract.

9. Fixed Rate Mortgage. A loan with an interest rate that remains the same for the entire repayment term.

10. Government Loan. FHA: This type of mortgage is backed by the Federal Housing Administration (FHA). VA: This type of mortgage is backed by the Department of Veteran Affairs. The maximum loan amount for these types of loans varies by county.

11. Mortgage Lender. This term includes banks, mortgage bankers, and mortgage brokers. Banks and mortgage bankers are typically ‘direct lenders’ who offer loan programs and services from a single bank. Mortgage brokers have the ability to shop your loan (using a single loan application) with numerous banks and lenders simultaneously to find you the lowest interest rate and/or the best loan program.

12. Equity. The difference between what a home is valued and what is owed on it.

13. PITI. Principal, interest, taxes and insurance; a quick way to reference your combined monthly house payment.

14. Principal. The amount of a loan, not including interest or other charges.

15. Private Mortgage Insurance (PMI). A type of insurance that is usually required by a lender if your down payment or equity is less than 20 percent of the loan value. PMI insures the lender against loss if you were to default on your mortgage.

New Home Resource helps current and future homeowners with all of their Las Vegas real estate needs. Whether your preference is for a newly-built home from a local builder, or a resale property in just the right location, a New Home Resource Realtor® is here to find the perfect property for you. Please contact a New Home Resource Realtor® today at 702-365-1000 or at www.newhomeresource.com. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, Lance Partin and Kathy Paterniti are all here to help!

Have your financing ready to go!!

Today’s lending environment has changed. Gone are the days of simply “fogging a mirror” as proof of life to obtain a home loan.

Lending in the past few years has become MUCH more detailed and complex  – your lender will require much from you, and they’ll need 45 days to get you to the closing table.

Of course, you may use anyone you wish. We like to recommend our sister company Premier Mortgage Lending; a local lender with over 75 years of combined lending experience. You may find their link to the right on our home page.

ALL offers today require some type of “proof” you can buy the home. This comes in the form of a loan approval letter from a reputable financial institution. With over 20,000 (!!) listed properties on MLS today, it’s certain you’ll soon find one to buy.  Without that “evidence”, your offer cannot be seriously considered by the seller, and you’ll lose out to someone else who was prepared. And THIS is why your agent says “Get Prequalified First”!!

To make your homebuying experience a pleasant one, have your financing ready to go!!