Mortgages, Spelled Out

by Jason Breidinger

Picture the spelling bee in your mind.  The elementary school-aged child stands under the bright light, alone listening intently as the pronouncer provides the history of the word the child is required to spell.  The voice echoes through hidden auditorium speakers, “its background is both Old French and Latin; the root word is ‘mort.’” Then there’s silence.

“Mortgage.  M o r t g a g e; Mortgage” spills the child nervously into the microphone.  Rightfully so; it’s one of the most commonly misspelled words in the English language.

Logic and reason suggest the process itself should then be equally as challenging; and lonely, right?

No and No.

First, let’s do a quick little test.  Don’t worry; there’s no right/wrong answer no pass/fail; only bragging rights among friends.

Grab a pen or a pencil and a blank sheet of paper.  Ok; close your eyes.  No cheating now… Don’t look at your wristwatch (if you don’t wear a watch because Apple or Samsung tell your time don’t look at your phone).  Spin that watch under your wrist.  Flip that phone over.

Now open your eyes.  The task?  Sketch a detailed picture of your watch/phone screen.  Artistic talent is not a criterion.

You have 15 Mississippi’s; without a watch or phone timer, you’ll have to do it like we did on the school playground… count it out loud or in your mind; it’s part of the test.  Ready, set… GO.

Did you manage to draw each and every detail?  Is the sketch higher or lower than the standard you quickly advanced yourself credit for?   Here’s a good question… did you draw the actual time and date?

Right.  Items we interact with time and time again on a daily basis.  When asked to sketch a rendering with elementary distraction we find it harder a task than we initially thought.  Now imagine nothing was more important; life depends on it.

Ok.  Let’s go get a Mortgage.

Wait.  Wait.  Do we want to put no money down or a lot of money down?  Do we want to borrow a lot or just a little?  What’s the best use of our money?  Are you a first-time buyer or is this your 2nd or 3rd time buying a home?  Are you a Veteran?   What is a transfer tax in the State of Pennsylvania and how much is it?   Appraisals… cool… I get a copy, right?  Can I afford all of this?  What effects do real estate taxes have on the process?  Just what is a title company/closing attorney and what crucial, important role do they play? What’s a flood zone?  What are points and do they benefit the lender or me? How does all of this work in the present market conditions?

We will need to choose a type of loan, a term for that loan and the type of rate.  We can choose among conventional, FHA, VA, Rural Housing (USDA), first-time buyer, construction, swing or Jumbo.  All of these loan programs offer solutions to meet specific needs; individual needs.  Some require little to nothing out of pocket while others are tailored to what you determined is best for you.  Terms are available between 10 and 30 years each with options for fixed or adjustable rates.

Regardless of the type, term or rate the Federal Government requires lenders collect a 2-year history of residency, a 2-year work history, 2 years of income tax returns & w2s/1099s, 2 months of bank statements and 1 month of pay stubs in order for a mortgage loan to be compliant with its regulatory standards.  Everything we need to succeed… hey, we come across all that in the course of our day, month and year (que Emeril; BAM!).  Thanks Emeril.  That’s really good news because time is running on the low side… the closing date just around the corner and it’s pretty important; it’s where we’re going to live.  We can sketch that out, right?

Right so… how is it that we defy logic and reason?  Service; S e r v i c e.

Minute by minute, hour by hour, day by day, month by month award winning service paints a perfect picture of your immediate future.  It starts with meeting the Loan Officer, then to processing, after that the money is wired and into the title company you go!  Pick up the keys.   Regardless of what the industry would lead you to believe… that can be done with eyes closed.

A free consultation with a quality loan officer will answer all of your questions select the loan type, the term and the rate structure that meets your individual needs.  That won’t be done in general; rather, it’s at this moment that you meet your banker as both an educator and trusted advisor.  In the midst of your search you and your real estate agent and your loan officer will communicate on a consistent basis.  You and your real estate agent ratify the purchase contract.  Lastly, the loan officer will collect a formal application tailored specifically to you.  You’ll walk out knowing exactly how what you’ll be spending.

Processing will review the necessary documents you’ve submitted ensuring they meet regulatory standards and work with you to achieve compliance.  When put to task and coupled with your help processing can complete your review and approval in a day or two.

The closing department then works together with the title company your real estate agent recommended.  The property’s ownership history is clean.  The cost to close is sharpened to the penny and the loan funds are wired to the title company in advance.  You’ll receive a copy of the finalized settlement cost statement reminding you of how much cash is required and your transaction is funded.

The total process can be completed in just 8 days; many times, over.  Whether a buyer’s market, a seller’s market or in between you need service you can trust, and it is present in the industry.  You can be a priority.  Your closing date provides more than enough time for that level of service.

Call and ask questions, too; they’re important.  Find the artist that draws your picture day in and day out.  One who uses one of the easiest words to spell, not one of the hardest.  Time will fly when you’re having fun. F u n; Fun.

We’ll stand on your stage, by your side and at the ready – holding a perfectly painted picture in one hand and Webster’s dictionary in the other.

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