Allied Capital
Mortgage, LLC
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Frequently Asked Mortgage
Questions:
Q: What are “no cost loans”
A: No cost loans occur when your
mortgage broker pays for all your
closing costs including your
appraisal, underwriting, credit
report, processing, title and
escrow fees. The interest rate will
be higher than what you could
otherwise qualify for if you were
paying some closing cots. Apply
Now for your free mortgage quote.
Call us today if you have
additional mortgage
questions.
Call: 720-277-5544
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Q: What are Interest Only
loans?
A: Interest only loans are loans
that do not require you to pay
towards the principal balance.
You are simply paying the interest
owed on the loan without reducing
the principal. Apply now for your
free mortgage quote.
Q: What is an Option ARM?
A: An Option ARM allows you to
chose between 4 payment options
each month when you pay your
mortgage. You can chose to pay
the lowest interest rate (as low as
1%), the interest-only payment,
the principal and interest payment
or the accelerated principal and
interest payment. This is the
popular “negative amortization”
mortgage loan. Apply Now for
your free mortgage quote.
Q: What is an Origination Fee?
A: It’s a fee typically charged by
your mortgage company to close
your loan. It is usually disclosed
as percentage points of your total
loan amount. Apply Now for your
free mortgage quote.
Q: What is a Reverse Mortgage?
A: A reverse mortgage allows a
homeowner to take money out of
his/her home either in a lump sum,
through a line of credit, or through a
monthly payment from the lender.
Instead of the homeowner paying
down the mortgage, the home owner
gets paid by the lender. The mortgage
accumulates over time until the
homeowner passes away, sells the
home or refinances. The homeowner is
still responsible for insurance and taxes
on the property and title still resides in
the home owner's name.
Call 720-277-5544 today for a
free, no-obligation quote.
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Q: Why use a mortgage broker?
A: Mortgage brokers have access
to many different banks/lenders
that saves the homeowner time
and money in searching for the
best interest rates and the best
mortgage loan for their situation.
A Bank has a limited number of
mortgage products available to
the homeowner and they typically
work with borrowers with good
credit. Apply Now with us.
Q: What is a Good Faith
Estimate?
A: A good faith estimate is an
estimate of all the closing costs
involved in your new home loan.
At Allied Capital Mortgage we
stand by our good faith
estimates. Apply Now for a free
mortgage quote.
Q: Who will service my
mortgage?
A: Most mortgages are sold to
much larger banks so they may
service them. Some of those
banks include Countrywide,
Chase, Bank of America, and Wells
Fargo. This will not affect the loan
terms you agreed upon at your
closing with your mortgage
company.
Q: Which one of my credit
scores does the mortgage
broker use to determine my
interest rate?
A: Typically it is the middle of your
three credit scores. There are
mortgage loans available which
average all three of your credit
scores and some that take the
highest score but these are
typically for Sub Prime loans.
Apply Now for your free credit
report.
Q: How much will my
adjustable rate mortgage
adjust?
A: That depends on the terms in
your Promissory Note. Some can
adjust as much as 6 percentage
points the first time they adjust
but every adjustable rate
mortgage has a maximum amount
it can adjust over the life of the
loan. Call us today if you need
help determining the adjustments
in your ARM. 720-277-5544
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$300,000 mortgage
with payments of
$747.50 for 5 years!
Apply Now.
Q: Can a credit counseling
service raise my credit scores?
A: The only way to raise your
credit scores is to pay down your
debt and pay your debt on time.
If you have made late payments in
the past, it will take a number of
months for those late payments
to stop negatively affecting your
credit scores. No one can legally
remove negative trade lines from
your credit report. They may be
able to briefly remove negative
items from your credit report, but
these items will return once the
creditor is aware you have
removed them without paying the
debt owed. www.ptenllc.com
offers more information regarding
credit repair.
We stand by our Good Faith Estimates at
Allied Capital Mortgage!
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Q: When I get to my closing,
am I obligated to go through
with my loan?
A: NO. You are never obligated to
go through with your loan until
you sign all the closing documents
and any "right of rescission" time
period has expired. If you have
questions or, are unhappy with
any of your loan characteristics,
you can postpone the closing until
you are satisfied. Apply Now with
us.
FREE, no-obligation quotes!
Call:720-277-5544
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Q: What is a Hard Money loan?
A: This is a loan used when all
other conventional loans will not
work due to a borrower's credit
scores or lack of income. The
interest rates and closing costs
are typically higher. Apply Now for
a free mortgage quote!
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Q: If I'm in foreclosure, what
are my options?
A: You can sell your home or
make the required payment to
your lender to get out of
foreclosure. Please call us for
more details on each of these
options as each situation is
different. Apply Now for your free
mortgage quote.
Q: If I've had a bankruptcy
can I still obtain a mortgage?
A: Yes. We will look at the date
your bankruptcy was discharged
in order to determine the terms of
your new home financing. Apply
Now for your free mortgage quote.
Use the following links for
additional information and
helpful resources.
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Q: How do I purchase foreclosure properties?
A: Stage 1: Default
Your first opportunity comes in the "pre-foreclosure" stage, when owners have
already defaulted on their mortgage payments but actual foreclosure hasn't
happened yet. To find out about houses in default, visit the local courthouse
where defaults are registered. You can then make offers directly to the
defaulting homeowner.
However, few pre-foreclosure bargains exist among the most desirable homes.
Many of those will sell for near their appraised values. Properties that sell at a
20 percent to 40 percent discount usually need repair or are in unstable
communities. At this stage you have about 90 days to act after the default
notice is posted and another 21 to 25 days after auction sale date is published.
Stage two: Auction
If a property doesn't sell in pre-foreclosure, and the home owner actually
defaults on his mortgage, the home goes to public auction. During this stage
you can find the best bargains, but it is fraught with difficulties.
Here's some of what you're up against:
· Many auctions are canceled at the last moment as the property has been
sold or payments reworked.
· Court-appointed trustees only accept cash or cashiers' checks.
· There's little time to arrange inspections, so bidders may have no clear idea
of what they're buying.
· Properties are sold "as is," without warranties. Sellers needn't disclose
problems. Buyers may find themselves with unexpected -- and expensive --
repairs.
Not all auctions are created equal. If the loan was guaranteed by the U.S.
Department of Housing and Urban Development (HUD), then the department
takes ownership of the home and either sells it through a real estate agent or
auctions it on the Internet.
These properties are not the bargains some potential investors think they are.
For one thing, there's a lot of competition.
As for auctions of homes owned by banks or other private lenders, investors
should not show up without preparation. All investors should know the state's
laws and the particulars of the property they wish to bid on.
They should also be ready to put down a cash deposit of 10 to 20 percent of
the sale price on the spot should they win the bidding. The balance will most
likely be due in less than 30 days - in many cases in as little as 24 hours.
Financing is not the only obstacle for buyers at a foreclosure auction. The
homes may still be occupied by the delinquent owners, and it is up to the high
bidder to deal with the messy question of eviction. In some states, the former
owners have up to a year after the sale to buy back their home for the amount
they owe plus foreclosure costs.
Also, don't expect a clean title search or title insurance to accompany an
auctioned property. It is not uncommon for a winning bidder to be
unpleasantly surprised by an unpaid $6,000 bill from a roofer or a claim by a
third cousin who has an interest in the property.
And while some auctions take place in a house's front yard, allowing you to
actually look the place over, just as many are sold online or "on the steps,"
meaning at the county courthouse. Good luck locating someone with a key to
let you in for an inspection beforehand.
Simply put, these auctions are too risky for most buyers. A property could
have multiple loans, liens, back taxes, be in need of major repairs. Individuals
can look at homes at HUD's Web site and Homesales.gov.
Stage three: REOs
Here's the investor's last chance. If the foreclosure didn't sell at auction, it has
nowhere else to go but back to the lender, where it takes on a new name: real
estate owned.
Lenders hate REOs. An empty house is a nonperforming asset on their books.
The longer a house sits unoccupied, the more its value depreciates. Meanwhile,
the lender is spending money for its upkeep -- or not, in which case it faces
the possibility of a thorough trashing and an "as is" sale price.
Most large lending institutions won't deal with investors directly, preferring to
hand over properties to real estate agents. But smaller banks, eager to save
on the commission, may want to talk.
This may be the best chance for "mom and pop" to buy a foreclosure. Experts
suggest that when a lender buys a house you want, quickly send an overnight
letter to the bank president offering to pay their bid price for the property. The
bank may want a quick turnover.
Banks do want to maximize profits, though. So buying from a lender may not
result in big savings. Some of the best foreclosure deals may be had through
governmental or quasi-governmental agencies such as Fannie Mae, Freddie
Mac, HUD, and the VA. Listings are numerous and available on their Web sites,
but the properties they feature are often less upscale. Web auctioneer eBay
lists thousands of foreclosed homes, too.
Call us 7 days a week to get pre-qualified to purchase your foreclosure
property: 720-277-5544.
