You are not just paying for the loan process |

You are not just paying for the loan process


There is no science to applying for a mortgage. The process has been a simple procedure for more years that I have been in the mortgage profession.

An applicant completes a three-page application ” the first step to the submission of the file to an investor. Simple, easy and quick. As I inform clients we are not inventing anything new, we fill out the application, sign a few disclosures and the process has been started.

The reason you get a mortgage professional involved in obtaining a mortgage is not only to fill out a few forms. The reason a mortgage professional is involved is to listen to your thoughts and plans for the home and to locate various mortgages that meet your expectations.

A mortgages professional’s real job is to know which investors have the mortgage programs meeting your needs and to get you those programs and the interest rates associated with those programs.

As an example, I recently had a client who had a new home under contract. The buyer’s current home was on the market but had not sold and was not under contract to sell. We determined that he was buying the new home with the intent to live in it only a few years. His personal goal was to make some improvements to the home with new paint, carpet and kitchen appliances and within three to five years sell the home.

Since his current home had not sold, we set up a simultaneous close first mortgage and second mortgage. We set the second mortgage at a figure close to the profit the client anticipated to receive from the sale of his current home. Then, once that home sold, he could use those proceeds to pay off the second mortgage.

The mortgage process then proceeds to the Good Faith Estimates and Federal Truth in Lending forms. These detail the dollar figures anticipated to close the deal. The Federal Truth in Lending details the amount of interest you will pay if you keep the mortgage for the life of the loan and if you have a pre-payment penalty.

The other things you mortgage professional will do on your behalf is work with your real estate agent to meet all of the deadlines set forth in your purchase contract. Plus they will work with the real estate appraiser and your insurance agent so the home is adequately insured. All of these actions take time, with the ultimate goal of closing the deal on or before the dates listed on your contract.

So in choosing a mortgage lender, look for someone with the desire to work on your behalf and to meet your goals in a mortgage. The time you spend with your mortgage professional will pay off as now both of you know and understand your financial situation and what you want to accomplish.

For answers to your mortgage related questions, call BOB KIEBER at (970) 262-1199 or e-mail him at Bob is a local mortgage banker and principal of Resort Lending. He has 30-plus years of professional experience in real estate, finance and investments, and is a longtime resident of the High Country.

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