Tag Archives: Another Chance Loan Program

Your Bank Says You Don’t Qualify for a Mortgage Loan. Now What?

denied mortgage loanWhen it comes to getting mortgage loan approval, most people don’t realize that there are two types of lenders: Those who say “You don’t qualify.” And those who say “You don’t qualify – yet.”

“That really is true, and there are a few reasons for it,” according to Rick Piette, owner of Premier Mortgage Lending based in Las Vegas. “In our experience – and we’ve had a lot of it over the years in Southern Nevada – it not only depends on the kind of lender you go to, but also how committed they are to you, your loan, and your personal situation.”

One of the main reasons that borrowers may run into the “You don’t qualify” type of lender is because they chose a bank or mortgage banker to apply for their loan. According to Piette, because these lenders only sell their own loan products – if a buyer doesn’t qualify under their specific guidelines, there simply are no other options.

“But with a mortgage broker like Premier, there are many other home loan opportunities to explore,” he explains. “The reason for that is that with a broker, a buyer still only fills out one loan application – but the broker can use that single loan app to shop around with many lenders – and find the best fit for each client.

“The truth is, not everyone’s employment or financial history will fit into the stricter guidelines of a bank’s loan requirements. But that doesn’t have to mean a ‘thumbs-down’ to getting a mortgage loan. Many other lenders have programs designed just for buyers with unique situations. That’s where a mortgage broker’s connections can make all the difference – by knowing the different loans that are on the market what options are available for their customers.”

As Piette explains, “It may take some creative thinking to find alternatives if the first path doesn’t work out, but that’s one of the reasons Premier Mortgage is so good at what we do. We’ll keep at it until a solution is found – so if a client doesn’t get loan approval the first time, that doesn’t mean it’s the end of the road.

“Our loan officers will work with a client often for as long as it takes. That could mean finding a different loan, working with them over time to help them raise their credit score, or helping to provide tips on exactly how to change their financial situation to that it will fit into a specific loan’s parameters.

“We’ve worked with thousands of homebuyers in Southern Nevada, and we’re proud that we can offer the best rates and no costs with our “No Fee” loan. But we also created our “Another Chance Nevada” loan program to help those who have a foreclosure in their history – or even if they just closed on a short sale yesterday. But there are also many home loan options that lie between those two extremes, and Premier Mortgage Lending helps borrowers find the one that works best for them.”

The important thing to remember is that Premier Mortgage isn’t big on saying just “no.” “We know the mortgage business better than that,” Piette adds. “And in our experience, there’s almost always a way to help a customer get into a home of their own.”

For those looking to purchase a home in Southern Nevada, get additional information about Premier’s “Another Chance Nevada” financing program by visiting their website at www.AnotherChanceNevada.com. Or, to schedule an appointment to discuss what mortgage loan options are available for your personal situation, call (702) 485-6600, or apply online at www.premiermortgagelending.com.

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.

Keeping “The American Dream” Alive and Well – With Another Chance Nevada Mortgage Financing

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Owning your own home.

That’s a powerful statement, all by itself. For some people, it’s a scary thought – for others, it’s a lifelong dream. It can conjure up many different thoughts and emotions – from gaining a sense of pride to representing grown-up responsibility . . . and pretty much everything that flows between and around those ideas.

Since The Great Recession – when untold numbers of Americans saw the value of their homes drop by huge percentages, many even losing them to foreclosures or short sales, there have been those who wonder if that particular “American Dream” is over – that perhaps its time has come and gone.

But the truth is – the dream of homeownership is still very much alive and well. And that’s because owning a home isn’t simply a ‘transaction’ – it’s a mindset and a way of life. Just ask those who lost their homes in recent years due to the housing crisis – because after having owned a home, the desire to own again is even stronger. There are no ifs, ands, or buts about it: Having a home of your own provides a sense of security, belonging, and family stability that can rarely be found any other way.

At Premier Mortgage Lending, we recognize that owning a home can be the very foundation that families build their entire way of life upon. That’s why when we saw the effect the housing crash was having on the lives of thousands of our Las Vegas neighbors, we took action. We created Another Chance Nevada, so that we could offer a mortgage alternative to those whose credit had been damaged by the recession – either through losing their home or by seeing their finances and credit rating take a hit due to the developing economic crisis.

Through Another Chance Nevada, we created a source of Private Money Financing options for those who aren’t able to qualify now for traditional financing. These loan programs do require a minimum of 20% down payment, and rates and fees will be higher than for a traditional home loan. However, it’s an excellent opportunity for buyers to obtain long-term financing at competitive rates. These loans are free of any predatory loan features — and best of all, there are no pre-payment penalties.

Why is that the best part? Because it means that as you continue to work on raising your credit score and financial stability – as soon as you’re able to qualify, you can refinance to get a traditional loan at an even lower interest rate.

In fact, we even have the perfect mortgage loan for after you recover financially, too – because Premier Mortgage Lending is the home of the true No Fee Mortgage Loan. That means Zero: Loan Origination, Underwriting, or Document Fees. And you’ll still find the most competitive interest rates – so there’s a good chance you’ll end up saving thousands of dollars on your mortgage loan. (And yes – we encourage you to shop around and compare rates when that time comes. You don’t have to just take our word for it . . . you can find out for yourself!)

To learn more about how you can own a home again – in as little as one day following a short sale or foreclosure – visit us at AnotherChanceNevada.com. And to watch our short series of Home Loans #101 educational videos, visit www.KnowBeforeYouOweNevada.com. We created them to take the ‘mystery’ out of obtaining a mortgage loan. They’ll explain exactly what you need to know to save big money on your next loan – and tell you exactly which questions to ask your next mortgage lender.

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 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

Why Owning A Home Is Important, And Why Should You Buy One Now?

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We’d like to be honest about something: There are plenty of reasons why “other people” want you to buy a home. But there are even better reasons why you should do it for yourself.

As far as the “others”, we’ll be the first to admit: Owning a home is a huge driving factor in our economy. It affects builders, real estate professionals, insurance agents, contractors, inspectors, appraisers, furnishings stores, interior decorators, and yes – mortgage lenders, too. The real estate market is tied into the cycle of jobs, and the list of benefits it brings to your local community are innumerable. In other words, the act of buying and owning a home – one person, one couple, one family at a time – has a cascade effect on your hometown that simply cannot be overstated.

“Even so – those reasons don’t address the most important factors about owning a home,” reveals Rick Piette, owner of Premier Mortgage Lending in Las Vegas. “It may sound surprising – even as you realize the livelihood of so many depends on the purchase and sale of real estate in your community. But making the choice to purchase a home actually benefits you the most – and is perhaps the most life-changing decision you can make.”

Rick Piette goes on to explain there are some very fundamental reasons this will always be true.

“When you’re in the midst of shopping for a home, there are elements your mind is constantly evaluating,” continues Piette. “Beyond the obvious points of finding a home style you like and being close to schools and shopping – your brain is actively making connections about your comfort level with the area. Proximity to people and places you’re familiar with; judgments about the surrounding homes and neighbors, and more. In fact, a wise real estate professional will find ways to appeal to your basic, evolutionary desires that address your need to supply safe surroundings for your family, a sense of community, and ways to provide relaxation (whatever that might mean to you).

“Why is this important?” Piette asks. “Because you’re not only making a financial investment in building your personal wealth – you’re putting down roots. Ultimately, where you choose to live will inform who your future friends will be, who your kids will meet and offer different opportunities for their futures. It’s the place you’ll create memories, build traditions, experience joy and heartache – and live life in all its myriad of flavors. It will be your “safe haven” from the world, where your family gathers to enjoy its unique existence. And it will be the base from which your children venture forth into the world as adults – their success often relying on the home environment you provided and on which they have come to depend.

In short, as this recent Wall Street Journal article elegantly informs, “A home is more than an investment. It is the place that helps shape who we are.”

“That’s why it’s no small matter – owning a home,” Piette adds. “Because the affect it can have on the trajectory of so many lives is immeasurable.

“For the past several years since the Great Recession, many people lost that touchstone and were forced by circumstances to become tenants rather than owners. But it doesn’t have to be that way. At Premier Mortgage, our mission is to find mortgage financing solutions that help families get back into their own home. We’re proud to say that’s exactly what we’re doing – one family at a time.”

“For years, interest rates have been at historic record lows in a nation-wide effort to help the housing market recover. And it’s worked, too. We’ve reported in previous blogs that all the data and statistics clearly show that over time the Las Vegas housing market has recovered. In many ways, it’s even healthier than ever.”

But the fact that interest rates have been so long for so long has also given buyers some leeway in postponing their decision to return to the ranks of homeowners. “Procrastination happens in everything we do,” suggests Piette.

“However, all reports point towards the fact that is about to change. The Fed has declared our improved U.S. economy and lower unemployment data indicate it’s time for an interest rate increase – and soon.

“What does that mean for those who have been ‘thinking about’ buying a home but haven’t taken action yet? Two things:

1) It’s time to get off the fence and make that decision, as delaying it can be costly in the form of higher interest payments on a mortgage loan; and

2) As many people will be making that call shortly – the amount of available home inventory will shrink as homes are removed from the market. That means potential buyers who felt they would have their pick of the home they want – will rapidly discover that’s no longer the case.

The bottom line is that there is plenty of great news affecting the current status of the real estate industry in the U.S.

• The economy continues to improve

• Jobs are still on the rise

• We’re healthy enough as a country to raise our interest rates soon

• But rates are still at historic lows right now

• Home builders are confident and building new homes to meet improved demand

• New mortgage loan industry regulations benefit borrowers more than ever before

• Time and distance from the housing collapse has made it possible for buyers to recover their finances and creditworthiness.

“Basically, if you were looking for a playbook on “The Best Time To Buy A Home” – you wouldn’t find a better convergence of circumstances than we’re facing right now,” reveals Piette.

When you decide that it’s the right time to buy, we’d like to remind you what Premier Mortgage Lending will bring to the table to help you make sure you get the right mortgage loan:

1) Savings (we’re the home of the true “No Fee” mortgage loan in Las Vegas)

2) Service (real people you meet and who work with you on your specific loan needs)

3) Transparency (no smoke, no mirrors – just apples-to-apples comparisons with other lenders, and honest answers to your questions)

You’ve heard it a hundred times before. But based on everything you just read, it may have never been more true: Now is perhaps the best time and opportunity to buy a home than ever before.

For more information on Premier’s loan programs and unique “Home Loans 101” educational program, visit. www.KnowBeforeYouOweNevada.com.

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 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.

Watching Las Vegas Grow: Again, Bigger, and Better Than Ever

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Reinventing itself – yet again. That’s Las Vegas for you. It’s always been a bit of a microcosm of American ingenuity; that ability to create something new and desirable out of what’s near at hand. It happened when the seeds for the city were first sewn back in 1905, took off again with the start of Hoover Dam, kept growing with the arrival of Nellis Air Force Base, and took full advantage of the prosperity sweeping the country following World War II with the glamorization of gambling.

As Rick Piette, owner of Premier Mortgage Lending observes, “During the 80’s, the Las Vegas Strip transformed itself from a California getaway weekend into a world class destination resort city. And because all those people had to live somewhere, construction for both housing and commercial properties boomed. And boomed. And boomed. And then it got quiet in 2007.

“Things got tough,” Piette continues, “but slowly and steadily Southern Nevada has been on the mend, and the evidence is everywhere you look. Data, statistics, and news reports continue to show that despite the reservations the rest of the country may have had about Las Vegas’ recovery – it’s returning to firm ground more and more every day.”

With major financial investments under way in the city – from the new Elan Resort & Casino and Resorts World, to the expansion of the Las Vegas Convention Center and McCarran airport, and the addition of the new Las Vegas Arena (that could see the first major sports franchise come to town soon) – it’s clear that those with the money still see Las Vegas as a good bet.

“But it’s not only tourism-related projects that have been lowering the local unemployment rate – which is now below 7% and still dropping,” Piette reveals. “New industry is finding its way into the city and making a difference in the local economy, as well. Tech and data companies are establishing a firm base in Las Vegas, while office, retail and entrepreneurial services have now surpassed their pre-recession numbers. ”

In response, it’s only natural that the housing market would be bouncing back, as well. Construction workers are now in high demand, and new and used home sales have been on a steady upward trend for some time, effectively leveling out the playing field for both buyers and sellers.

For those who play the numbers game based on news headlines, it’s important to keep in mind that even what might at first seem to be bad reports – aren’t necessarily so.

“One example is the recent announcement that Las Vegas once again topped the foreclosure rankings nationwide,” reports Piette. “But in truth, this is a direct reflection of a recent Nevada Supreme Court ruling that is effectively forcing the hand of banks to begin clearing out their foreclosure pipelines. These are properties that filled their books during the recession and banks have been holding onto them for years. Far from being a negative, however, it’s the gradual return of these foreclosed homes to the market will help Las Vegas reflect a more accurate housing status – and one that keeps both supply and demand of homes from rising too high or falling too far.”

So what does all this financial investment, building and expansion activity, improved job market, and housing recovery really mean for Las Vegas?

“It means what those of us who call Las Vegas “home” have known for a long time,” Rick Piette explains. “It’s a great place to live – for growing families and retirees, for young professionals just starting out, and for those looking for opportunity. We enjoy over 300 days of sunshine every year, a great sense of community, and let’s face it – you have to try really hard to get ‘bored’ in this city.

“The fact is, Las Vegas is more than a just a tourist destination. People come from all over the country to find, start, or create a better life here. And we like to think the role Premier Mortgage Lending plays in helping that happen makes a difference,” Piette adds.

“After the recession hit and so many lost their homes, we created our “Another Chance Nevada” program that helps people regain the pride of ownership as soon as one day after short sale or foreclosure,” he explains.

“And now that many have had the time to recover both their finances and credit histories – we are proud to offer a true “No Fee” mortgage loan – which means no origination, underwriting,, document or other ‘junk fees’. So buyers are able to keep on the path toward financial recovery without paying unnecessary loan fees that can add up to $5-$10,000 or more out of their pocket.”

The bottom line is that your bottom line matters to the people at Premier Mortgage Lending – and that’s one of the reasons for their new “KnowBeforeYouOweNevada.com” website. Visit the site to learn more about your protections as a consumer and how you can (and should) save money on 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 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.

Is Now The Right Time To Buy?

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Deciding when the right time is to buy a home is a tricky thing. Or sometimes not. In truth, for many people the timing is determined by their current life situation. Let’s face it, if you just had new twins join your household, that 1-bedroom apartment simply isn’t going to cut it any longer.

But for most people, listening to all the chatter out there about when you should try to sell your existing home to buy a new one that’s better suited to your needs can be confusing at best. At worst, it feels a bit like trying to follow advice about investing in the stock market: All the so-called “experts” seem to have polar opposite opinions about how and when it should be done. When the truth is, no one has come up with a ‘sure-thing’ (or we wouldn’t be here writing this article, would we?).

“The fact is, there’s no single answer that’s right for everyone,” points out Rick Piette, owner of Premier Mortgage Lending. “Every situation is different, everyone has their own set of circumstances to consider. But there are a few checkpoints to keep in mind on the way to your decision, and we’d like to point out three of them to help you determine when is the right time for you to make the leap into buying a home.”

What If You’ve Had A Short Sale or Foreclosure?

“This is perhaps one of the most important questions we hear, especially these days,” reports Piette. “So many experienced financial hardships when the recession hit that losing a home to a foreclosure or short sale became much more common than it had been in the past.

“What many people don’t realize is that although there are enforced waiting periods of several years to get another government-insured mortgage loan – there are other options available that can help you get back into a home of your own as early as 1 day after those events. Here in Las Vegas, we created Another Chance Nevada just for that purpose – because we saw a need to help families get back into their own homes, and we wanted to help. With several loan programs and private money financing available, we’ve helped hundreds of locals become homeowners again. Plus, with our Another Chance Nevada loans, there are no pre-payment penalties – so when credit has been restored, owners are able to refinance to a more traditional mortgage loan to save even more.

Do I Buy When The Market is Hot, Cold, or Holding?

“The good news is that across the country, the housing market has made gains since the crisis and has pretty much returned to a stable footing,” states Piette. “As always, some markets are ‘hotter’ than others – often simply due to supply and demand. Others see rising job opportunities and populations that increase competition and prices. And if you should find yourself in a transition to a new area, it’s often wise to rent first to make sure you find the neighborhood that appeals to you most.

“But for those who know their city and plan to stay put for 5 years or more, buying a home is almost always going to be the best option. Here in Las Vegas especially – where rents are nearly twice the cost of a mortgage payment for the same property – it just makes more sense to invest in yourself, rather than your landlord.

“Real estate in Las Vegas has pretty much returned to normal, which is a great thing,” Piette continues.” There’s now the typical ebb and flow of values that naturally occur over time, and no indication of another ‘bubble’ on the horizon. In fact, prices that have been steadily climbing over the past 3-4 years are cooling slightly, showing that the cost of homes is leveling off. Right now, it’s neither a Seller’s nor a Buyer’s market – which pretty much puts everyone on a level playing field.

What About My Credit and Finances?

“There’s no doubt about it – the state of your credit score and finances are critical when it comes to buying a home,” states Piette. “It can be the difference between loan approval and denial, and also affect how much that new home is going to cost you over time. Simply put, someone with a good credit history will pay less for a home over the 30-year term of a loan because of a more favorable interest rate, than one with a poor credit score. By as much as $100,000 or more.

The good news? Interest rates are still at historic lows – although there’s reason to believe with recent jobs data reports that the Fed may begin raising those rates soon. Plus, the upcoming Presidential election may also play a role in interest rate fluctuation.

“Surprisingly, surveys have shown that almost 50% of potential buyers simply assume they won’t qualify for a traditional mortgage loan, so they don’t even apply. But the truth is, many of them will (at Premier Mortgage, we make it happen all the time.) But even if a traditional loan isn’t available to them right now, getting a non-traditional loan at a slightly higher interest rate helps build their credit back up so they can refinance to qualify for a lower rate in the near future.

“One other thing that many buyers aren’t aware of is that the regulatory changes in the mortgage industry have been made in favor of the consumer. More transparency, clearer disclosures are two of them. And buyers are learning that shopping around for the right mortgage is one of the easiest ways to save money – a lot of it. For example, as a mortgage broker, Premier Mortgage Lending is able to offer clients a true No Fee loan. That means no loan origination, document fees, or other junk costs that banks and mortgage bankers will often add onto your Loan Estimate. It can be a savings of literally thousands of dollars – and one that can tip the scales in your favor so you receive that “Great news! Your loan is approved!” phone call. (Visit our KnowBeforeYouOweNevada.com website to learn more.)

“When you put these elements together – a level real estate market, current low interest rates that are projected to rise, and the cost of owning being considerably less than renting – it’s a pretty safe bet that Las Vegas is currently a prime market to buy into right now,” Piette reveals. “Our company is proud to be playing a big role in helping Nevadans get back into a home of their own. It’s about time, don’t you agree?”

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 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.

OWNING A HOME AGAIN REALLY IS AN OPTION – WITH THE RIGHT LENDER

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If you’ve owned a home before, you know how it feels when a dream becomes a reality. You’ve felt the pride of staking a claim on your own land, the joy and satisfaction that comes from making your home environment personal and unique to your family’s needs.

But if you lost that home in a foreclosure or a short sale – as so many thousands were forced to do during the recent recession – you also know what it’s like to have your dream come crashing down around you.

As Rick Piette, owner of Premier Mortgage Lending states, “There’s no doubt about it – losing a home that way is devastating. And it’s not just a financial matter – it’s emotionally difficult for you, your family, and perhaps especially on your self-esteem. Being able to provide the basics for our family is built into our DNA – which makes such a loss a very difficult transition. ”

However, we’d like to remind you that this is a good time to remember that old adage: “It’s better to have loved and lost, than never to have loved at all.” Because we’ll let you in on a little secret . . . that theory applies to many things in life. It’s especially true when it comes to owning a home again. Because just as love will find a way to re-enter your life — once you’ve experienced the pride of owning a home, you’ll find that with the right help, you can get back there again, too – and earlier than you may have thought.

“At Premier Mortgage Lending, we wanted to take an active part in getting Las Vegas families back into a home of their own,” reveals Piette. “We’re part of this community, too – and rather than stand by and idly watch as the housing crisis hit our family, friends and neighbors so hard – we decided to seek solutions instead. The kind that could help people recover financially and experience the pride of becoming a homeowner once more – sooner rather than later.

“For the last several years, that’s been the sole purpose of Another Chance Nevada. With our unique private lending division, we’ve made it possible for hundreds of people to obtain a mortgage loan as early as one day following a short sale or foreclosure.

“Because private financing is free of the mandatory waiting periods that accompany government-backed loans following a foreclosure or short sale,” he continues, “we’ve been able to assist buyers in obtaining that coveted ‘Good news! Your loan has been approved!’ phone call a lot faster. And even while the rates and costs may be slightly higher than an FHA or VA loan – the savings still add up over time when compared to the high costs, uncertainties, and restrictions that go along with rented properties.”

Studies have shown that over half of the people who want to buy a home are too afraid to ask if they qualify, simply due to the hardships they suffered during the recession. But with the passage of time and an economy on the upswing – this is precisely the right time for you to ask that question . . . of the right lender. Let Premier Mortgage Lending help you find a way to give you back that American Dream. Call today for a personal consultation – or even apply online.

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 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.

MORTGAGE LOAN CHARGES: SOME YOU SEE, SOME YOU DON’T

Understanding Service Release Premiums and Loan Servicing Costs

 

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Knowing the vast differences between the types of mortgage lenders you have to choose from is a topic we discussed in an earlier post (see “The Difference Between Mortgage Brokers and Mortgage Bankers”). In essence, regulations recently put in place by the Dodd-Frank Act put a cap on the amount of money that a mortgage broker can earn on a loan, making Mortgage Brokers your best source for home loan financing.

However, as Rick Piette, owner of Premier Mortgage Lending explains, “We discuss “Visible vs. Invisible Loan Charges” in our Home Loans 101 video at our KnowBeforeYouOweNevada.com site. Yet even when armed with that particular knowledge about limits, it’s still possible that as a borrower – you can receive Loan Estimates from banks or mortgage bankers that don’t clearly define how much money they will make off of your loan.

“So we’d like to help shed a little light on how that happens. To Premier Mortgage Lending, it’s a matter of transparency. We simply believe people should know what they’re paying for – regardless what the product is – and mortgage loans should be no different.”

That is one of the reasons that Premier Mortgage Lending fully supports the goals of the Consumer Financial Protection Bureau (CFPB), specifically as they pertain to mortgage lending. The CFPB’s national “Know Before You Owe” program inspired the local Las Vegas mortgage broker to carry their message even further through the creation of its KnowBeforeYouOweNevada.com site.

How Lenders Earn Money On Your Loan

Lenders aren’t obligated to disclose this, but the fact is most banks and mortgage bankers make money in two ways:

1) First, they make money up front by charging fees.

2) Second, they make money when they sell your loan.

With #1, that’s the “visible” part – the fees that are shown right on your Loan Estimate form. This includes line items for Loan Origination Fee, Underwriting Fees, Document Prep Fees, and so on. It can be the source of literally thousands of dollars of income for a mortgage lender. But these costs can also vary widely from one lender to another, and it’s one of the potentially expensive reasons you should always shop around for the best mortgage loan. Premier Mortgage Lending, by the way, charges none of these fees in our No Fee traditional loans. (See? You just saved money already!)

But with #2, this is where the “invisible” charges enter – and the key terms to remember for these charges are “Mortgage Lender,” “Loan Servicer,” and “Service Release Premium” (SRP). To clarify:

1) Your mortgage lender is the financial institution that loaned you the money;

2) The loan servicer handles the day-to-day tasks of managing your loan (such as processing payments, managing your escrow account, etc.)

3) The Service Release Premium is so called because the lender who wrote the loan releases the right to “service” the loan. These “servicing sales” can generate millions of dollars of additional income to banks and mortgage bankers.

How Does This Puzzle of Confusing Terms Affect You?

“Here’s how it works,” Piette explains.

“A loan servicer buys your loan from a mortgage lender through a Service Release Premium (SRP). Why? Because the servicer will receive future income from the mortgage interest. The higher the interest rate is on the loan, the more they will earn – and the more they are willing to pay the lender for the SRP. The bottom line is, the lender makes more money in Service Release Premiums on loans with higher interest rates, and less money on loans with lower interest rates.”

That is why some lenders want you to pay a higher interest rate for your mortgage loan than you may actually qualify for. Because the higher rate the lender can sell you, the more they receive in SRPs when they sell your loan. “Other than having to compete with other lenders for your business, the lender doesn’t have any incentive to offer you the lowest interest rate,” explains Rick Piette.

Additionally, these lenders will often ‘double-dip’: Charging high fees up front (Loan Origination, etc.) and also collect Service Release Premiums on the back end.

Still with us so far? Because there’s still one more very important thing that every borrower should know:

Mortgage brokers can only receive income that is fully disclosed – complete transparency. They cannot earn additional income by collecting Service Release Premiums. In short, a mortgage broker cannot receive compensation based on the interest rate of a loan.

“These are all key things for you to keep in mind the next time you’re comparing mortgage loan offers,” adds Piette, “because they can all affect the amount of money you pay for your loan. And if we’re not mistaken, there are probably many other things that you’d rather spend your money on – rather than putting it into a lender’s pocket.

Whew. That’s a lot to follow, and we hope we’ve helped to make sense of it all.

“But if you still have questions or would like help comparing apples-to-apples with your mortgage loan offers, give us a call,” states Piette. “We’ll be happy to help – because our only goal is that you get the best deal possible. Even if it’s not with Premier Mortgage, we’ll tell you that, too.”

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 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.

The Difference Between Mortgage Brokers and Mortgage Bankers

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They’re two different animals – mortgage brokers and mortgage bankers. And if you don’t know the difference between them, it’s something that can end up costing you a lot of money, unnecessarily.

The truth is – not every mortgage lender is created equal. As with any business – you want to work with a reputable company that provides good service. You’re also likely to do a little online research to see what previous customers have to say about their experiences. (If there’s one thing consumers aren’t shy about, it’s letting the world know – in a very public way – how they felt about their transaction.)

“But the problem is,” according to Rick Piette, owner of Premier Mortgage Lending, “is that once you’ve gone that far, you’ve already missed the most important step: Deciding which is the right choice to begin with.”

So let’s get back to the basics with a little apples-to-apples comparison of how a Mortgage Broker compares to a Mortgage Banker.”

How a Mortgage Broker Works

1) The key advantage of a mortgage broker is that borrowers complete a single loan application – and with that information, the broker has the ability to shop with numerous banks and lenders simultaneously to find the lowest interest rate and/or the best loan program that can be structured to suit your financial goals. It’s one-stop shopping that works for you.

2) New Federal Regulations in the mortgage industry (that went into effect in 2014) – place restrictions on the amount a mortgage broker can earn on your loan. What that means to the buyer is this: A broker can now make you a true No Fee Mortgage. (Not all of them choose to do this, but Premier Mortgage Lending is one that does.)

3) Brokers are typically small, locally owned companies – consisting of people you know as part of your community, They live, work and are invested in your town – just like you. They have a low operating overhead, and with a mortgage broker, only two people will make money on your loan: The Loan Officer and the Owner.

How a Mortgage Banker Works

1) Typically, mortgage bankers are ‘direct lenders’ who offer loan programs and services from a single bank. This limits the borrower’s ability to see all the loan options available for his circumstances – unless he wants to make multiple loan applications with various banks or mortgage bankers – a task that only takes up your time and resources.

2) With new legislation passed through the Dodd-Frank Act that became law in 2014 – neither banks nor mortgage bankers are subject to earning limits on a mortgage loan. As a result, ‘invisible charges’ and ‘undisclosed income’ generates additional income for the lender that buyers may not even be aware of (but they may pay for it in the form of higher rates or higher fees).

3) Mortgage banks (and banks) are large operations with layers of low, middle and upper management. Every one of whom receives income from making your mortgage loan. So everybody gets a piece – including the Loan Officer, his Manager, District Manager, Assistant Vice President, Vice President, Sr. Vice President, and right on up the line.

What’s important to buyers is that they should be looking to find the best deal for their loan:  the one that costs them the least amount of money, either out of pocket or over the loan duration. To get there, we’d like to remind you of one very important point: A “No Fee Mortgage” from Premier Mortgage Lending is exactly that.

Unlike some loan offers that seem too good to be true (see our article entitled “Getting A Credit Towards Closing Fees”? What That Really Means.” for more information on that) – this loan product represents itself clearly : Borrowers are charged $0 for Loan Origination, Underwriting, Document Prep, or other ‘junk fees.’ And unlike mortgage bankers, the laws that govern mortgage brokers require all of our fees to be fully disclosed and visible on your Loan Estimate. (No hidden or invisible costs here.)

So when you request an initial Fee Sheet from multiple lenders, be sure to take a close look at those line items on the form. Because if they say more than $0 – you may be paying too much. Sometimes, thousands of dollars more than you need to – to get the exact same mortgage loan.

Still have questions? Rick Piette will be happy to answer them, and even if you plan to shop other lenders (which we always encourage our customers to do) – he’ll help you to understand the differences and know which questions to ask. Putting the power of choice about your mortgage loan back in your hands – it’s our mission. Visit KnowBeforeYouOweNevada.com to learn more.

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 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.

Are restrictive standards and new mortgage rules affecting home sales?

New mortgage standards have mandated a four-year waiting period for most home loans, to “keep risky buyers on the sidelines.” This nearly doubles the time that some homeowners, who experienced short sale or foreclosure, must wait to qualify for a new loan. Is this keeping the risk out of home buying or homeowners?

Rick Piette, Premier Mortgage Lending, said he believes the new standard will hurt closings, though already-tight regulations will head off big cuts. Even before the four-year waiting period, buyers with recent mortgage troubles had to put 20 percent down. And in Las Vegas, where the effective un­employment rate hovered near 25 percent at the recession’s nadir, not many buyers have the savings or home equity to make the cut.

The National Association of Home Builders asked builders if they had lost sales over the past couple month directly relating to new mortgage qualifications. Eighty-three percent said yes and it was estimated that 18,700 new-home sales were lost because of it.

Premier Mortgage Lending believes there are thousands of Las Vegans who deserve the opportunity of owning homes of their own. For those who have lost a home to short sale or foreclosure, we are your second chance at homeownership!

For additional information or to schedule an appointment for mortgage prequalification or refinancing, call Premier Mortgage Lending at 702-485-6600 or visit www.AnotherChanceNevada.com.

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 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.

4 Things Mortgage Lenders Want to Know About Your Credit

1. The Whole Truth: Make sure not to hide anything that might effect your application for a mortgage. The good lenders will be dedicated to their service and try to help as best as they can. As long as you tell the truth you can get right to it!

2. Credit Bumps: After a foreclosure, late mortgage payments or short sale, when you are applying for your new loan bring proof of your house payments now. Show your lender that you have a record of responsibility.

3. Financial Mismanagement: It is possible to be approved for a new mortgage after foreclosure or bankruptcy, but you need to be able to have financial records. It is important to prove that it was not due to your own financial mismanagement but to other extenuating circumstances that you lost your home.

4. Disputes: Be sure to have all disputes resolved before applying for a mortgage. This will eliminate any chance that the approval will be revoked because of withholding credit information.

There will always be companies willing to slide past the rules and promise a quick fix. This will only hurt you in the end. When you decide it is time to apply for a mortgage, call Premier Mortgage Lending for you trusted, low cost loan information!

Premier Mortgage Lending, NMLS #393282, is located at 8689 W. Sahara Ave., Suite 100, Las Vegas, 89117. The full-service lender is a member of the Las Vegas 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.