About Closing Costs
Shopping for a mortgage can be confusing and
frustrating. We know, we have been at this for many years, and have financed millions of
dollars in real estate for local families.
There are several factors that come into play for getting you the best mortgage that fits your circumstances, and you'll be surprised to know that there is a mortgage product available for just about every circumstance. Although you may feel like your situation is hopeless, you'll be pleasantly surprised at how quickly Direct Finance Corp. can get you financed.
Closing Costs: This is a number that everyone asks about. But be careful- this number is only one part of settlement charges! If someone quotes you a low closing cost figure, ask about points, escrows, insurance, and down payment. All of these, in addition to the closing costs, make up the settlement charges.
Since each situation is unique, make an appointment to have one of our Mortgage Specialists come to your home or office and explain all these terms and numbers to you!
Interest Rates: Shopping for just interest rates may be hazardous to your health! There are so many variables to what the final interest rate is that you can qualify for! At Direct Finance Corp., we always strive to get you the best interest rate for the mortgage program you qualify for- the one that fits your situation best.
One way to describe interest rate is the old saying, "You can pay them now, or pay them later!" Paying points will lower the interest rate, good credit will also help get you a lower rate, a larger cash down payment or lower debt payments will have a positive impact on your interest rate.
Be careful if you're shopping for just a low rate- you may not be getting the whole story. Read on to become better educated so you won't be taken advantage of.
At Direct Finance Corp., we have what we call the Four C's, or the Four Conditions to home financing.
Condition #1:
Appraisal- The first condition is the appraisal of the property. No bank will give a loan for more than the value of the property. That's how banks protect themselves financially. Your property needs to appraise at a value above the loan amount you are looking for.
Condition #2:
Income- This is an ever changing area. To obtain the lowest interest rate you need to meet specific debt to income ratio guidelines. contact us to learn what your "debt to income" ratio is and which loan program will best meet your needs.
The great news is that we even have loans available for people that don't report or earn any income. If you've been declined by other lenders because of too much debt or not enough income- give us a call today, or fill out our online application!
Condition #3:
Assets (cash)- Condition three seems straight forward- do you have enough cash to purchase your new home or refinance your existing mortgage? For many folks a lack of savings is often a problem. But, we have solutions! Our Mortgage Specialists can help you structure your transaction with minimal out of pocket cash. In fact, we have "NO Money Down" and "100% Gift" loan options.
Condition #4:
Credit- You'll be asked your F.I.C.O. Score, which is like an SAT rating system for credit worthiness. Many loan options rely on your score to determine your interest rate and loan amount. That's great if you have a high score. Direct Finance Corp. can help you get the lowest interest rate you deserve. Fortunately, we also have loan programs that do not rely on, or require a credit score. Call right now to get a FREE review of your credit report. We'll be happy to help you with any repair explanations letter, if needed.
In Summary-
Shopping for closing costs and interest rates is more than it may seem. The Four C's all play a role in interest rate and closing costs. The mix of all four conditions, and your story, or explanation of your circumstances, is more important to getting you a mortgage than just interest rate and closing costs. Sure, we can quote you 3.45% to make you happy, but it might not be realistic! Everyone shops rates, because we have taught you to do this! Fill out the enclosed online application, submit it to Direct Finance Corp.
Cut through all the clutter! Our only goal is to get you approved with the lowest rate for your situation and circumstances.
Fast service, competent professional Mortgage Specialists, hundreds of loan options, and great rates all add up to you becoming another satisfied customer! Let us earn your business. Fill out our online application today.
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