Low Rate Mortgages - Mobile Alabama, Low Rate Home Loans, Mobile Alabama

Your lender will provide a Good Faith Estimate of Closing Costs which include but are not limited to:

Down payment

The loan origination fee

The mortgage loan processing fee

The mortgage loan underwriting fee

Appraisal fee

Credit report fee

Flood certification

The homeowner's insurance premium for the first year

Escrow account reserves for insurance and property taxes, if applicable

Survey fee

Attorney fees

Title search fee

Title insurance premium

Title company fees

Courier fee

Deed recording fee

HOA transfer fee if applicable

When you insure your home, you should insure your home for the total amount it would cost to rebuild your home if it were destroyed. If you don't have sufficient insurance, your insurance company may only pay a portion of the cost of replacing or repairing damaged items.

1. What is Prequalification? Prequalification is the process of determining what price a home can be purchased by a prospective buyer.

2. My real estate agent recommended that I get a commitment letter. What is a commitment letter, and why should I get one? A commitment letter is given by the lender stating the terms which it agrees to provide a mortgage to a homebuyer. Commitment letters help you set realistic goals while you're house-hunting, provide the same negotiating ability as a cash buyer, and enable you to move quickly once the perfect home is found.

3. When mortgage lenders refer to "PITI" what exactly are they referring to? PITI is Principal, Interest, Taxes, and Insurance- the components of a monthly mortgage payment.

4. When my loan officer asks me if I want to waive my escrows, what exactly does that mean? When you waive escrows, you take the responsibility of paying taxes and insurance, as opposed to having them included in your monthly payment. Waiving escrows may add a small fee to your closing costs. You can only waive escrows if your loan value is 80% or less on your first lien.

5. What does my mortgage lender mean by points? One point is equal to one percent of the loan amount. Points are used to buy down the interest rate.

6. How does the annual percentage rate differ from the interest rate? The annual percentage rate (APR) is the effective rate of interest for a loan if the calculation is based on the original loan amount less the closing costs. This is the rate that will appear on your preliminary Truth In Lending. Please note that the APR is higher than the interest rate on your Real Estate Lien Note.

7. How do I know what my interest rate will be? Upon your request, a loan officer will search for the lowest rate and "lock" your rate. The "lock-in" guarantees the homebuyer a specified interest rate provided the loan closes with the buyer within a set period of time. The lock-in also specifies the number of points to be paid at closing.

8. Do I need to have a certain amount of money left after I buy my home? Most loan programs require a cash reserve sufficient enough to make the first mortgage payments (PITI).

9. What is the Debt-to-Income Ratio? A ratio used by lenders to determine whether a person is qualified for a mortgage. Debt-to-Income is the total amount of monthly debt, including house payment, credit cards and other loans, divided by the total gross monthly income.

10. What is the difference between an FHA and a VA loan? An FHA loan is a loan guaranteed by the Federal Housing Administration. FHA issues specified guidelines for mortgages. A VA loan is a loan guaranteed by the Veterans Administration. To obtain a VA loan, the borrower must have served in the armed forces.

11. What is Private Mortgage Insurance? PMI is insurance required to cover the lender should the borrower default on the loan.

12. Do I always have to have PMI on my loan? PMI can be eliminated by having a down payment of at least 20% or by obtaining a second lien with an 80-10-10 or an 80-15-5 loan program.

13. Will I have two separate payments if I have a second lien? The second lien is often from a different mortgage company than the first lien. Therefore, borrowers with a second lien will make two separate payments each month- one on the first lien and one on the second lien.

14. What does my lender mean by "papertrail? A "papertrail" is copies of all paperwork necessary to prove a financial transaction: copies of all checks, deposit slips, loan paperwork, forms to liquidate assets, etc.

15. Why did I receive a Truth In Lending? Truth In Lending's are sent to all borrowers after loan application has been made, regardless of whether they have a contract on the property. The Truth In Lending Act is a federal law requiring lenders to reveal all of the terms of a mortgage. The APR that appears on your Truth In Lending will be higher than the interest rate on your Real Estate Lien Note.

16. Will I get a copy of my credit report and appraisal? You will receive a copy of your credit report directly from our credit agency. If we need a credit letter explaining any credit issues, we will notify you. You will receive a copy of your appraisal at closing.

17. What inspections does the lender require? The lender requires only a clear termite report and an appraisal. If the appraisal recommends repairs, the lender will require that those repairs be done before closing. The appraiser will then perform a final inspection to assure that the repairs were done correctly. Appraisers seldom require repairs. If the termite report recommends treatment, treatment is required. We will need a receipt showing the name and amount of chemical used.

18. When will I find out what my final figure is for total cost to close? The title company will prepare a Settlement Statement detailing the closing figures. We will review this statement and provide you with an amount for closing. If you need this figure more than 24-hours before closing, call your processor and request a new good faith estimate. Remember to bring a cashier's check made payable to the company.

19. Where do I go for closing? Your closing will take place at the Title Company. The title company name and address appears in your sales contract. If you are refinancing a property, call your processor for the name and address of your title company.

20. Where do I send my first mortgage payment? Refer to your "First Payment Letter" in your closing documents to find where to send your first mortgage payment. If you receive a statement from your new lender prior to the due date of your first payment, send your payment to the new lender. Otherwise, send your payment to Prime Lending, Inc. as detailed in your "First Payment Letter." If you have any questions regarding your first payment, call your loan officer.

These days if you are in the Real Estate business ( mortgage business included ) you almost have to feel like you are on a episode of Survivor...not wanting to get voted of the island !

Lenders with new guidelines ( Daily )

Appraisal Issues ( I sure a lot of are saying don't even get me started on this one )

$4.00 gas

I love the story of Cortez's and his persuasive speech.

Once out on the ocean, it didn't take long for Cortez to realize he had a problem. Some who were excited before the journey, had now turned into Cries of "I shouldn't have come,"

"This isn't what I thought it was," and "I didn't know we were going to have to work this hard," began to circulate among the people. Yet Cortez persisted, formulating an idea that had never been used before. He created a system to motivate and train his soldiers and sailors that was unheard of in the history of the military. When they landed on the shores of the Yucatan, Cortez began training, coaching, stoking them, even. He would hold "seminars" in the afternoon and "pep-rallies" at night. They were reminded constantly of all that they were about to accomplish. Cortez painted a panoramic picture of the magnificent treasure that would soon be theirs. And as they marched up and down the beach, honing their skills of warfare, they were told, "This is just one of the beautiful beaches we'll be able to walk along when we get that treasure!"

Oh, but they were fired up! They were eager, animated, energized, and as they waited, trained, and prepared for victory, their conviction grew. But there was one more level of commitment that Cortez wanted to take them to, and they arrived at that place on that last, historic day, as they lined up to march inland.

They were probably expecting something like, "OK, guys, we're gonna get out there and win today, and when we do, we are going to par-TAAAY! . . . Oh, and if it gets too tough, we'll just meet at the oak tree and come back to the ship."

As they listened, Cortez leaned in and said three simple words that changed everything: "Burn the boats."

"Excuse me?" they must have said.

Theirs is the attitude a I must embrace in myheart and mind: I must burn my boats. What are the boats in my life that are keeping me from accomplishing what you really want? What vessels in my mind are keeping afloat doubt and frustration ? Whatever prevents me from achieving my goals and dreams is a boat that must be burned.

Unfortunately, when the bullets start flying, we make for the boats. It's just human nature. Doing anything else really requires a decision on our part. It's attitude more than anything. A willingness to work without the net, to burn the bridge-or boat. It can only happen one way: by embracing a level of commitment that sees sacrifice as a positive thing. Training is good and needed, being motivated by others is helpful as well....... but in this lending enviroment it is not enough.

There still remains a lot of people that need our help !

So strike a match to the anchors of your past and introduce yourself to the victories of your future.

Lenders, Appraisals, Buyers, Sellers, Doubters or $4 gas is going to keep me from my DREAMS, Don't forget why you got in this business either.

Burn the boats!

Have a Blessed and Successful Day

A Radical Industry Restructuring is Upon Us- Mark Sunday morning, September 7, 2008, as the day the residential mortgage business changed forever.

" By the rude bridge that arched the flood, Their flag to April's breeze unfurled, Here once the embattled farmers stood and fired the shot heard round the word"

Emerson wrote " Concord Hymn " to emphasize a critical event happened that triggered something of global importance. Could yesterday be such a day ?

Whether we see mortgage rates fall is a 64,000 question, Mortgage rates have not been the barrier to home buying, but the rates and fees have effected refinance.

It looks like the Treasury Department has laid the groundwork for the eventual dismantling of these once politically powerful (and once highly profitable) government chartered enterprises.

The takeover of the two GSEs could set the stage for housing deflation the likes of which Americans have not seen since the Great Depression and then some. With less liquidity in the mortgage market that means less home buyers and less home buyers creates intense pricing pressure on the downside. The days of easy mortgage money are over. Downpayments once again will become the norm as 'Stated loans' and 100% financing disappear.

They could survive as separate smaller companies with Congressional charters or they could be made into one government agency that serves only low and moderate income Americans. If that happens the mortgage business likely will shift back to portfolio lenders like savings and loans, banks, and credit unions. The loans these institutions make will be placed on their books and kept for the long haul -- which is what the business was like until S&L crisis of the 1980s.

One thing is for certain: the mortgage industry of the past two decades -- one where most residential loans were sold to Fannie, Freddie and Wall Street firms like Bear Stearns, Merrill Lynch and Lehman Brothers -- is on the road to extinction. What lies ahead could spell opportunity or death for today's surviving lenders.