Saving time and saving money. That’s pretty much the mantra of our society today, it seems. We’re always in search of finding new ways to save our own valuable time (which seems to be spread far too thin anymore). And since the Great Recession, who hasn’t paid a lot more attention to how their money is spent, making sure we get the best value for our buck?
We start shopping for a car online, and often find the perfect one for the best price several states away – so we’ll have it shipped to us and still save money in the process. When it’s time to shop for a home, it’s back to the computer where we’ll take a look at everything available that fits our needs, and then try to negotiate the best price. Saving time. Saving money.
“But you know what just got missed in those transactions? Taking a little extra time to save money on the financing,” explains Rick Piette, owner of Premier Mortgage Lending in Las Vegas. “It always amazes me that people put such effort into finding those big-ticket items they want to purchase – but often completely ignore the costs involved with borrowing the money to buy it.
“Let’s face it, those banks didn’t get “too big to fail” by making it cheap for customers to borrow money. And in the same way banks will nickel-and dime you with fees just for the privilege of holding your money for you (with service fees, ATM fees, minimum balance fees, see-a-Teller fees, and more) – banks also maximize their income by charging mortgage borrowers plenty of fees piled on top of the mortgage interest rate they’ll be paying.
“If it weren’t for the fact that when it comes to a mortgage loan – those fees they pile on can cost you thousands of dollars that you shouldn’t have to pay – it might not be that big of a deal. If all things were equal, it might be worth showing your financial institution some loyalty and keep all your business in one place. But things are not equal when it comes to mortgage loans, and that type of misplaced loyalty can be more expensive than you know.
“It’s an unfortunate truth that many homebuyers aren’t aware of,” Piette continues. “Partly because Banks and Mortgage Bankers have gone out of their way to create a scenario that makes it seem all these fees are “the normal cost of doing business” – and they’re not.
The alternative? One example would be the true “No Fee Loan” from Premier Mortgage Lending. As a Mortgage Broker, Premier is able to save borrowers a tremendous amount by completely eliminating those income-inflating fees, such as:
1. Loan Origination Fee – which can be anywhere from 1-2% (or more) of your purchase price.
2. Processing Fee – which can range from $495-$695 or higher.
3. Underwriting Fee – ranges from $250-$500 and more.
4. Document Prep Fee – $250 + up (and really? you have to pay for them to prepare the documents, too?)
“At Premier Mortgage, literally none of those fees apply – which for a $225,000 loan can cost a borrower upwards of $6,000, right out of pocket,” Piette explains. “There’s no smoke and mirrors with Premier, either. No bait and switch. Our traditional loans just flat out save our customers that money.
“But “time” is an important factor, too. Saving time AND money is one of the best things about working with a Mortgage Broker. Why? Because with a Mortgage Broker, you only need to fill out one loan application – and then we work with our large network of lenders to shop around to find the absolute best deal for your needs.
“That’s a real time-saver for borrowers,” he explains, “because with a Bank, your loan application is only to apply for their own loan products. There are no options to consider, no choices to make – it’s only their rates, their fees, and if you want to look for a better deal you have to go around town and fill out multiple loan applications. But since a Broker works with many lenders, we do all that legwork for you. Then we sit down with the results of our search and together we choose the best loan for you.”
Of course, saving time and money is great – as long as there’s a level of trust involved with the money part, that is.
“So, one other thing to remember is this: A Mortgage Broker is required by law to disclose all income they receive from your mortgage loan directly to you on paper . . . but Banks and Mortgage Banks…don’t,” reveals Piette. “Just something to think about when you’re shopping for your next mortgage loan!”
Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas, Henderson, and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.