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Where do I begin?
A mortgage loan begins with your application. When you fill out the application, along with a credit report, we will have enough information to immediately inform you of your choices in loan programs. Without that we would not be able to give you pertinent information.
Which is the right loan for me?
Everyone's situation will vary slightly and believe it or not, there are a good number
of loan programs for all levels of credit and your need. The biggest reason to choose a certain loan would be to find the lowest rate but even this does not fit everyone. The greatest reason for using Direct One is that we will present you with a variety of choices and explain the strength of each in simple terms.
Do I have to apply online?
We have built a streamlined business that takes full advantage of
today's technology and internet in order to help process and approve
mortgage applications. We try to keep our costs lower and pass the
savings along to you with the best possible service. Our certified
loan consultants deal with only mortgages and work as a team to keep every loan moving forward and to provide pertinent answers to any questions you may have.
The great thing with Direct One Mortgage is that we give you a
choice. If you would prefer to call us directly, please do so.
We encourage you to do what makes you feel more comfortable.
It's not important how we conduct our business with you rather how
we treat you as our client.
How do I compare lenders?
Most banks and mortgage lenders have a set program and quota that they will try to meet. It leads to the 'cookie cutter' method where they will try to fit you into one of their own set programs. It is inevitably those programs in which they make the greatest profit. Here at Direct One we do not try to conform everyone into a given set of loan types. We work independently from strict lenders and we work as your agent. In this way we can provide a variety of programs, focusing on the ones that fit your needs best. We invite you to read are Direct One Advantage and decide for yourself.
What is the cost of getting a mortgage?
This is one of the most important questions everyone looking for a loan should decide on. No mortgage is made where the lender makes nothing. Often many of the points and fees are hidden in fine print. Some lenders will have you believe that they have great rates and low costs but avoid the details of costs until the last minute, thus trapping you into costs that you did not count on having. By law all mortgage lenders must provide you with a "good faith estimate." This document is very important and will show in detail what charges you incur and who receives what. We are so confident that we have the best rates and fees (often at zero points and fees) that we have no problem in providing you this early in the loan process and without undo surprises.
How important is my credit or credit report?
Simply put, very important. Having good credit will allow you more choices and lower rates available. Having imperfect credit does not preclude you from getting a loan, as we do have good programs for these situations. You will not need to provide us with a credit report. With your permission, it is required that we obtain your credit history before we can process a loan application.
What if I have Bad Credit/Bankruptcy?
Even if you have had bad credit or a bankruptcy in the past, we may still be able to help you. Whatever your reasons for a loan, it is very important that you keep current with your debts, preferably during the last two years. If you are consolidating debt, your chances for a favorable loan are greater if you do not wait until you fall behind on any payments.
Should I choose a fixed or adjustable (ARM) rate mortgage?
Most people will choose to qualify for a fixed rate mortgage for simplicity's case. The advantage is the rate on the mortgage will not change no matter what the market situation. In certain situations though, an adjustable rate mortgage may be more beneficial. The beginning rates for an ARM are much lower than the fixed rate mortgages and may be refinanced at a later term when the situation changes. If you can qualify for a conventional loan with a sizeable down payment, we will invariably offer a fixed-rate first and not an ARM. We will offer an ARM if starting money is tight and only if a customer is comfortable with the conditions.
What are points?
A point is a certain fee or cost in obtaining a loan. The amount of each point is equivalent to a (one) percent of a loan. It is an easier term to use in speaking to potential customers than saying a "certain percentage" which is more easily understood and actually represents a lot of money (one point on a two-hundred thousand dollar loan is two thousand dollars).
Should I pay points?
Often people confuse a loan with points as a loan that costs more
that a loan without points. Some points that you may pay directly
influence the interest rate that you will receive. These are "pay
down" points and if you have enough extra cash pay for these when
escrow closes, you could save money in the long term with a lower
interest rate. The points you pay most likely will be tax
deductible. Please consult with your tax professional for more
specific information
What is the mortgage rate vs. the annual percentage rate (APR) rate?
The mortgage rate is the rate that is most commonly quoted. This is the actual rate that the lender will agree to lend the loan to you. The APR comprises the mortgage rate and all costs involved (fees, points, escrow, insurances, etc) that are not prepaid before closing and included into the life of the loan.
When should I refinance?
If a better rate is available than the one you currently have, then it's a great time to refinance. If you have an adjustable rate mortgage that is or will be maturing into higher rates, contact us and see how we can save you money. Our low cost loan programs are a great reason for refinancing.
What information must I provide?
The information that is required of you depends on the type of loan that you apply for. Each situation is different but as a general rule, documentation and statements that reinforces the information you provided in your application is all that is necessary. In certain cases of credit disputes, we will help guide you in providing corrections or explanations. That won't be necessary initially but as a condition by the underwriters.
Who/How do I get information about the status of my loan?
When we receive an application, we have a team of processors who immediately begin work on collecting and grooming the loan application. In addition, a loan consultant will contact you and will help you tailor a loan
program(s) to your needs and who will work as your contact to answer any specific questions. No one at Direct One works on commissions, we work for the loan that most benefits you.
How long does the whole process take?
If all the information provided is easily verifiable and complete, not very long. The great amount of time involved is simply in collecting and submitting all the information you provide is true. Please understand that the amounts of these types of loans are great and no lender will provide a loan without verification.
Who will see my information?
The only people who will see your information are those directly involved in closing your loan. We do not sell/give your information away to anyone or any other company. Nor is any information used for any purpose other than providing you with your loan. After the loan is complete, we are required to keep an archived copy for certain set years under state laws.
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