Tag Archives: escrow

Exactly What Does a Mortgage Loan Cost You?

How about today, we talk about real numbers? We know you see a lot of mortgage company headlines and advertisements that talk about how they’ll give you “the best interest rates, the best service, the best” – well you name it, they’re always “the best” – have you ever noticed that?

“Of course, it’s one thing to “say” you’re the best choice for a mortgage loan – but it’s something entirely different when you back up that claim with facts,” explains Rick Piette, owner of Las Vegas-based Premier Mortgage. “And backing up that claim is what we’ve been doing for a long time at Premier. You can see it in the loan programs we offer, the videos we created to make it easier for people to understand how mortgage loans work, and in the testimonials and repeat business we receive from our customers.

“Yet even with all that, sometimes it all gets so confusing that you just want sit down and compare the actual dollars and cents to figure it out for yourself, right? So we’ve prepared a couple of “apples-to-apples” (so to speak) chart that helps home buyers see exactly how Premier Mortgage Lending stacks up against other lenders.

“Let’s start out with the home – and set up the parameters that we’ll use to compare,” continues Piette. “Like this:

Home Purchase Price: $250,000
Loan Amount (90%): $225,000
Length of Loan: 30 years

“So far, it’s pretty simple. Let’s see if we can keep it that way.

“Now, let’s consider interest rates –so that you can see how your monthly principal & interest payment would change at different rates. Why does this matter? Because not all lenders charge the same interest rate. That’s the reason at Premier Mortgage, we tell our customers the two most important things to compare when shopping for a mortgage loan are this: The fees and the rate. (And trust us, we’ll get to the fees in a moment.)

“For a 30-year, $225,000 loan, let’s assume a current mortgage rate of 4.00%. That means your payment would be $1,074.18 per month.

But the table below shows you how much that payment amount increases as the interest rate rises. Not only in the cost to you each month, but it shows how that cost adds up over time – for 5, 10, 20, or 30 years (depending on how long you live in that home).

Interest RatePaymentIncreases ByOver 5 YearsOver 10 YearsOver 20 YearsOver 30 Years

“Now you can see that even a slight change in the interest rate can end up costing you a lot of money – right out of your pocket each month – as well as over the long-term.

“From here, let’s take a look at the other most important number to compare: The Fees.

“The reason that the cost of Fees can vary from one lender to another is usually because of the type of lender you choose. On our blog, we’ve written several articles in the past that explain the difference between Banks, Mortgage Banks – and Mortgage Brokers (Premier Mortgage Lending is a Mortgage Broker, by the way). We invite you to read more about how those differences can affect you where it counts – in your wallet.

“But for now, let’s consider a few of the most common fees that borrowers are charged – and you’ll find these figures on the Loan Estimate that your lender provides to you.

“The table below shows you what those fees are called, and what the typical charges are for a Bank or Mortgage Banker, vs. what Premier Mortgage charges on a standard mortgage loan. (Keep in mind, these are fees your lender charges you at close of escrow – just for the ‘privilege’ of lending you money and charging you interest for it.)

The FeesBank or Mortgage Bank CostsPremier Mortgage Lending Costs
TOTAL:$3,245 - $5,945 + Up$0.00
Loan Origination Fee (1%-2%)$2,250 - $4,500$0.00
Processing Fee$495 - $695 & Up$0.00
Underwriting Fee$250 - $500 & Up$0.00
Document Prep Fee$250 + Up$0.00

“As you can see, for a $225,000 mortgage loan – these fees alone can cost a consumer thousands of dollars in unnecessary expense that comes right out of your pocket. Considering all the other legitimate costs that homebuyers are required to pay at closing such as recurring costs – like taxes, insurance, etc., and closing costs – like title search, title insurance, flood determination fee, transfer tax, etc.; when lenders choose to add such expensive and arbitrary costs, well . . . we just don’t think that’s right,” explains Piette.

“The bottom line is that despite the ‘smoke and mirrors’ that some lenders like to confuse you with when talking about their mortgage loans – any borrower can still make their way through it all to find the real numbers – which leads them to best deal. And if they take just a few minutes to educate themselves – they can save thousands of dollars in the process,” Piette continues.

“At Premier Mortgage, that’s what we help our customers do every day. No smoke. No mirrors. Just the facts, and the reputation to back them up.”

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.

1% Down Mortgage Loan Makes Renting a Thing of the Past

One Percent Home Loan

Let’s face it, owning a home really is a big deal – and not only for the financial benefits it can bring. (Although really, we think that should be reason enough!) There’s also a significant emotional boost when you’re handed the keys to your very own home. There’s an incredible sense of accomplishment, of knowing you’re providing a secure foundation for your family, feeling a part of the community, and having the ability to build the life you choose. It can literally affect everything else going on in your life and that of your family.

But surprisingly, many people just make the assumption that buying a home is something that’s out of their reach. In fact, some studies show as many as 50% of renters would prefer to own rather than paying a landlord each month – but they never even inquire if they’re eligible for a home loan.

To Rick Piette, owner of Las Vegas-based Premier Mortgage Lending, that’s just giving up on your dream. “Sometimes, people don’t think their credit is good enough; or often, they think it means saving up for a big down payment plus a lot of closing costs – and they’ll just figure they’ll never be able to come up with that much money at once.”

But now there’s a way to get into a home without that big cash outlay. In fact, buyers can now buy a home for about the same as the cost of moving into a rental apartment or home – with Premier Mortgage’s new “Conventional One Percent Down with Equity Boost” mortgage loan.

“This loan program is successfully turning many renters into homeowners. And if you look at the numbers, it’s easy to see why,” explains Piette.

“Imagine finding a home to rent for $1,500/month. By the time you pay the first and last months’ rent, plus security, cleaning, pet, and other deposits, it’s probably going to cost you $4,000+ just to move in.

“But what if instead, you buy a $285,000 house. Your down payment will be $2,850, and your total monthly mortgage payment (with taxes and insurance) will be about $1,750. However, since you gain tax advantages by owning, your tax-adjusted payment (assuming a typical 25% tax rate) would be under $1,400 per month. That means you’ll actually save money on both your initial investment cost and your monthly payment.”

“It gets even better, though,” Piette reveals. “It’s a 30-year, fixed conventional loan, so the mortgage payment never changes. It also falls within our “No Fee” loan structure, which means borrowers pay $0 for Loan Origination, Documents, Underwriting, and Prep fees.

“And the icing on the cake? At close of escrow, the lender contributes an additional 2% down, so as soon as the buyer is handed the keys, they have 3% equity ownership, not just 1%.”

“The bottom line is that our 1% Down program takes a lot of the “scary” out of getting a mortgage loan,” Piette continues. “And when you compare the numbers of renting vs. buying with this loan, it’s tough to come up with an argument not to buy a home!”

To learn more about the qualifying conditions for this loan, visit Premier’s website at www.1PercentLoan.com. For additional information or to schedule an appointment to discuss Premier Mortgage Lending’s many other available loan programs, 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.

Homeownership in Las Vegas is Still Affordable – and Now Even Easier

homeownership in Las Vegas

In a city with so much wide open space, it’s not surprising that Las Vegas evolved “out” instead of “up.” Even though recent years have seen resorts and hotels on the Strip head more in the direction of hi-rises (because there’s only so much Las Vegas Strip real estate) – our city is so unique and diverse that we don’t have the same housing limitations as other places (think San Francisco and New York).

“That’s one of the reasons that homeownership in Las Vegas is still affordable. Jobs aren’t all concentrated in one section of the city, they’re all throughout the valley,” explains Rick Piette, owner of Las Vegas-based Premier Mortgage Lending. “That makes it possible for people to take advantage of reasonable home prices that can be found in all corners of Las Vegas. And having a place to call your own is still not only highly desirable – it’s doable.”

In fact, it’s even more doable now than it has been recently – with the introduction of Premier’s new 1% Down Loan Program.

As Piette explains, “Right now, there are two huge demographics entering the home buying market: Millennials, with some 61% of prospective home buyers this year under the age of 35; and Baby Boomers – those 55+ who are making significant life changes that include relocating, downsizing, and/or retirement plans.

“For a long time, many assumed that younger generations would bypass homeownership opportunities altogether, but obviously, that’s not the case,” continues Piette. “Why? For the same reasons that applied for previous generations: Marriage, family, space, privacy, financial security.”

“But there has been one hurdle many have had to overcome: Saving up a 10-20% down payment to qualify for a loan. That’s caused many to delay their desire to buy a home for years. However, I’m happy to announce that now – here in Las Vegas – Premier Mortgage has removed that obstacle. Our new 1% Down Loan Program is changing lives and bringing the pride of homeownership to buyers of all generations,” Piette explains. “And perhaps most surprising to many is that this loan really is exactly as it sounds.

“Not only does it require only 1% of the purchase price as a down payment, but that amount can even be a gift – which means there’s no need to document the long-term accumulation of a large down payment in your bank accounts. Plus – and this part is real, even though it sounds hard to believe: The lender contributes an additional 2% down, so when you close escrow you immediately have 3% equity.

“It’s also a 30-year, fixed conventional loan – so there’s no adjusted payments over time,” continues Piette. “Your mortgage payment is a firm amount. And by taking advantage of the current low interest rates – buyers realize they can even afford to buy more home than they might have thought.

“Even better – buyers are finding they can buy and own a home for less money than they would spend on just the rent and deposits needed to lease a home. That’s an eye-opening discovery for most people!”

Learn more today about Premier Mortgage Lending’s 1% Down Loan Program by visiting www.1percentloan.com. You’ll discover more details about the benefits and requirements of this program there – then call us at 702.485.6600 and we’ll help you determine if you quality for this great opportunity.

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.

First-Time Home Buyers: It’s Easier Than You Think

first-time home buyers

Did you know that 87% of non-homeowners say they’d like to buy a home in the future? And that same 87% believe that the minimum down payment required to buy a home is a 10% of the purchase price? That’s a startling statistic. It’s also one that is causing many first-time home buyers to stop their efforts to become homeowners often before they even begin.

“In fact, for the past three years, the median down payment for first-time home buyers has been 6%,” explains Rick Piette, owner of Las Vegas-based Premier Mortgage Lending, “and if that’s the median, it means many put down even less than that.

“So, if someone is looking at buying a home or condo for $200,000, that’s a difference between coming up with $12,000 (6%) – or $20,000 (10%). And for a first-time home buyer, that gap obviously presents a mental roadblock about their ability to buy a home. Which is really unfortunate, because rather than seeking out solutions about how they can become homeowners – they’re settling for paying high rents far longer than they should.

“For those who have never owned a home of their own – even if the down payment wasn’t an obstacle – there’s no doubt it can seem mind-boggling to sort your way through all the steps involved. But what many don’t realize is that by choosing the right professionals to navigate that path, the entire process can be made much easier.

“First, finding a knowledgeable Realtor® ensures that you have someone on your side to help you find the right home, in the right place, at the right price. Your Realtor® handles all the documentation and negotiations, and since they work for you – they make sure that all your rights are protected and that no surprises are going to pop up to cause you problems down the road,” continues Piette.

“Getting a mortgage loan requires the same professional expertise. But it also means making an effort to shop around for the best rates. Of course, this might be exactly where the first-time buyer gets stuck – because how do you “shop around” for the best loan, when you don’t know what you’re shopping for?

“That’s why it’s good to know that Premier Mortgage is one lender who wants to help people learn to find the best deal themselves. We don’t want you to just take our word for it that we have the best rates, the best loans, and the best service,” explains Piette. “Because nothing makes us happier than being able to show a borrower exactly where and how we can save them money compared to other lenders.”

To help borrowers and take the ‘mystery’ out of getting a home loan, Premier Mortgage created their www.KnowBeforeYouOweNevada.com website. Here, borrowers can discover what the differences are between loans and lenders, what figures to compare, how to ask for a quote, and what questions to ask your mortgage lender.

“All that information is right on our site – explained in a series of short videos that only take 15 minutes to watch – but will help consumers save literally thousands of dollars when they get a loan,” reveals Piette. “That’s not an exaggeration, either. Our “No Fee” mortgage loans actually save our customers from $8-10,000 or more – just on the cost of getting a loan. Those are real numbers that first-time buyers should pay attention to – because not having to come up with that extra cash-out-of-pocket at escrow closing – can also be the difference between getting a loan approved, or having it denied.”

To find out more about how Premier Mortgage may just be the best thing to happen to first-time homebuyers in years – visit http://www.PremierMortgageLending.com– and be sure to make a special stop at www.1percentloan.com to see if you may qualify for our true 1% Down Loan Program. (Seriously, it’s worth checking out!) Or you can always contact Premier Mortgage Lending directly at 702.485.6600.

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.

All That Stands Between You and The Home You Want is 1%

1 Percent Down

Imagine if only one month’s rent could get you into a new home. Can you picture it? You and your family – living in a home of your own? No more landlords. No more apartments. No more worrying about rent increases. And finally being able to hang a picture, paint a room, or plant a tree without getting “permission.”

If that sounds like a dream come true – hold onto that thought. Because now, Premier Mortgage can make that particular dream a reality.

“We now have a 1 Percent Down loan program that truly is exactly that,” reveals Rick Piette, owner of Las Vegas-based Premier Mortgage Lending. “And not only are we helping people become homeowners with this program – they’re also gaining an extra 2% equity at close of escrow.

“It all sounds a bit too good to be true, I know. And to be honest, when I was first presented with this loan program, I spent a lot of time playing “Devil’s Advocate” – trying to find out what the catch was. But I’m here to say it’s the real deal. No tricks, no last-minute surprises, no catches at all. It works exactly as it’s described – and buyers are taking advantage of this loan program with us every day.

It’s called the “Conventional 1 Percent Down With Equity Boost Program” – and here’s how it works:

• The Buyer’s down payment is 1% of the purchase price. (Example: $250,000 home = $2,500 down.)
• The Lender puts an additional 2% down on your home on your behalf. ($5,000.)
• So when you close escrow, you’ll instantly have $7,500 of equity in your home – not just $2,500.
• This loan also falls under our “No Fees” program – which means $0 for Loan Origination, Document, or Underwriting Fees. (With most lenders, this can add up to 2% of the purchase price to your closing payment.)

“Those are some pretty amazing benefits,” states Piette. “And the most common question I get from customers is “Why? Why would the lender put 2% down, too?”

“The answer to that is simple: The lender charges an interest rate slightly higher than the going market rate – about .25%. And because this program results in more loans being made – they recoup their investment from that additional interest.

At a time when interest rates are still hovering just above record lows, and ownership rates continue to rise, that additional .25% interest is an easily affordable way to secure a home for you and your family and continue to build equity over time.

As Piette explains, “Say you were to purchase that home mentioned above for $250,000. With 1% down, and a loan amount of $249,000, at 4.5% interest your principal and interest payment would be $1,229. At 4.75%, the payment would be $1,265.

“That’s a difference of only $36/month. When you consider that (a) most rental rates cost more than a mortgage loan for the same property, and (b) it might take you 1 to 2 years (or even more) to save the money to put 5% down to buy a home (in this case – $12,500 – and that’s if prices and interest rates don’t rise in the meantime) – it simply doesn’t make sense not to take advantage of this loan program,” concludes Piette.

To find out more about the “Conventional 1 Percent Down With Equity Boost” loan program with Premier Mortgage, visit www.1percentloan.com, or contact Premier Mortgage Lending directly at 702.485.6600.

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.

Just Say “No” to Mortgage Loan Fees


“No.” It’s a simple word, right? But it’s amazing how often we have difficulty saying it. Especially at those times when it affects our finances. If we could just get a bit more practice in using “No” as a response to tough – or even friendly sales tactics – though, we’d probably be surprised at how far those two little letters can take us down the road to getting a better deal. Especially when it comes to a mortgage loan.

How does that work, you ask? Rick Piette, owner of Las Vegas-based Premier Mortgage Lending explains: “For decades, the mortgage industry in general has subtly trained homebuyers to simply accept the idea that getting a mortgage loan costs money . . . a lot of money. Banks and mortgage bankers have added huge fees to the Loan Estimates they provide their customers – and it’s not a coincidence that those in the industry commonly refer to them as “junk fees.

The first fee homebuyers should learn to “Just Say No” to is the Loan Origination,” continues Piette. “Lenders often explain that this figure – which can add 1-2% (or even more) to your loan amount – is “necessary” to “buy down” your interest rate. That’s simply not true. While sometimes it is possible, or even wise, to do that with a Loan Origination Fee – it’s simply not something you should have to pay to get the current market interest rate for a traditional mortgage loan.

The second fee to say “No” to is the Processing Fee. This figure will vary from lender to lender, if they charge this fee at all (which Premier Lending does not),” Piette adds. “And it can reach some pretty high numbers – as much as $495-$695 and up. But think about it: Why would you have to pay a fee for someone to simply do their job and process your loan application? Don’t they already get paid for that? The answer is – yes, they do. The correct phrase to tell your lender if this fee shows up is: “No, I’m not paying this.”

Third is the Underwriting Fee. Again, another way (and a creative term, don’t you think?) for lenders to add additional income to their bottom line just for the act of making your loan to you. Just. Say. No.

And fourth, the infamous Document Prep Fee,” explains Piette. “This one is probably the most blatant junk fee of all – charging you for their time just to draw up the documents that are necessary to make your loan in the first place. Normally in the $250 or so range, I think this particular fee is the one that infuriates borrowers the most. (And imagine the satisfaction you’ll get for saying “No!” to that one!)”

“Altogether, for a $200,000 mortgage loan – these junk fees alone can cost a consumer as much $4,000 or more, and that comes right out of you pocket at escrow closing. Considering all the other legitimate costs that homebuyers are required to pay at closing – such as recurring costs (taxes, insurance, etc.), and legitimate closing costs (title search, title insurance, flood determination fee, transfer tax, etc.) – when lenders choose to add such expensive and arbitrary costs, well . . . we just don’t think that’s right,” explains Piette. “That’s why we chose to operate as a Mortgage Broker, and we can offer our customers a true, no-smoke-and-mirrors, “No Fee” loan.

It’s not that at Premier Mortgage we have anything against a business making a profit, of course. That’s a huge part of bringing jobs to a community, and we’re all for that! But we all know that some companies operate more ethically than others. And where some will take financial advantage of their customers (even illegal advantages – as in the recent Wells Fargo fiasco demonstrates) – others are committed to consistently doing the right thing, making a fair profit, and helping customers save more of their own hard-earned money.

The latter is even more common when it comes to local community-based businesses. Why? Because these are your neighbors, your friends, the people who share your love for your town and truly want to make it a better place for all its residents. Fortunately for Las Vegas homebuyers, that also happens to perfectly describe the team at Premier Mortgage Lending.

“At Premier, we want to help our customers not only get the best deal and the best rate for their mortgage loans, we want them to understand why and how we’re able to offer that to them,” Piette continues. “We’ve even created a website (www.KnowBeforeYouOweNevada.com) of short informational videos to help borrowers understand the basics that will allow them to compare lenders themselves. It’s not about us saying “We’re the best – use us for your loan!” It’s about helping people to make the best financial decisions for their situation.

“Of course, since pretty much any financial decision is going to include the desire to save money, that pretty much explains why so many homebuyers do choose Premier Mortgage Lending for their home purchase or refinance loan needs,” Piette offers.

Find out more about Premier Mortgage Lending’s true “No Fee” mortgage loans, as well as their many other products and services by calling (702) 485-6600. Their experienced loan officers are there to help with your questions and can assist you in navigating from signed purchase agreement – to getting the keys to your new home.

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.

What Are The Steps To Getting A Mortgage Loan?


If you’ve ever bought a home before, you already know that getting a mortgage loan doesn’t happen overnight. But if you’re new to the process, you probably don’t know quite what to expect. So consider this article an “extra edition” to our Home Loan 101 educational series, as we walk you through the general steps that take you from “I love this house!” to “I can’t believe I OWN this house!”

Do I Need A Pre-Qualification Letter or a Pre-Approval Letter?

Whether buying a new or resale home, most real estate professionals or home builders will require you to obtain at minimum a Pre-Qualification Letter before signing a purchase agreement (or in some cases, before even taking you to view homes). This is not only common in the industry, but reasonable. After all, what’s the point in viewing homes unless you are reasonably certain you’ll be able to complete the purchase?

A Pre-Qualification is a simple step and does not require documentation or a credit check. By providing the lender with basic information, they will be able to give you a rough, unverified estimate of the loan size you may be qualified to receive. (Most lenders will give you a pre-qualification letter based on your verbal self-reporting of your income, assets, debts, and down payment amount.) One thing to remember: You don’t need to take out a loan from the same lender that gave you your pre-qualification letter.

For a Pre-Approval, lenders must verify everything you’ve told them (with identification documents such as your Social Security card, proof of income, assets, and employment, as well as records of any debts you hold.) Once you’re pre-approved, you’ll receive a conditional letter stating the exact amount of loan for which you’re approved.

• Note: If you have a simple situation – such as stable employment with no debt – this process can be as short as one to two weeks. But if you’re self-employed, own several other houses, have had a previous divorce or bankruptcy, have a pending court case or lawsuit against you, are in the U.S. on a temporary visa, or have other complicating factors, the loan officer may require additional documentation and this can possibly extend the process several weeks or months.

All things being equal, sellers often prefer to work with buyers who have Pre-Approval letters, rather than Pre-Qualification letters, particularly in a competitive market where homes get multiple bids. In some cases, it can mean the difference between getting the home you want – or sellers choosing another buyer because they have a firm Pre-Approval letter.

Comparison-Shop For Your Loan

It’s unlikely you would buy a car, piece of furniture, or appliance without shopping around. So it stands to reason that you definitely shouldn’t think about taking on a 30-year loan without doing some serious research.

If you know the approximate cost of the mortgage loan you’ll need – you can actually do your comparison shopping before you even select your new home. How? Because you’re shopping costs and rates at this point – not actually applying for a mortgage loan.

These are the 3 important points to keep in mind when comparison shopping:

1) Mortgage Broker vs. Mortgage Lender. As we explain further in our “Shop and Compare” video, and in even greater depth in this recent articlenot all mortgage lenders are the same. So simply knowing the difference between a mortgage broker and a mortgage banker is critical because the two don’t have to operate according to the same regulations. (Spoiler Alert: Mortgage brokers are more strictly regulated and must disclose all costs to the borrower – mortgage bankers don’t have the same legal obligation.)

2) Shop At Least 2 Lenders. It’s important to meet with several lenders so that you can obtain Loan Estimates from each. Then you can compare not only the fees they will be charging you, but also the interest rates.

That’s because the interest rate can mean additional costs to you over the duration of your loan of several thousands of dollars. Why? It goes back to the Broker vs. Banker rules. Mortgage bankers are allowed to add fees to your loan through what are called “Service Release Premiums” – and they don’t even have to tell you about them. Mortgage brokers are not allowed to charge these fees – by law.

3) Ask About Fees. Another thing to look for on your Loan Estimate is fees – such as Loan Origination Charges, Document Fees, Underwriting Fees, and others (commonly known as ‘junk fees’). These can add up to $4-$8,000 or more – and they come right out of your pocket at closing. At Premier Mortgage, we’re proud to offer a true “No Fee” loan that charges $0 for these items.

But the good thing is, by reviewing the actual Loan Estimates you receive you will be able to do an apples-to-apples comparison of how much your loan will cost you with each lender. The bottom line is that by shopping around for the right mortgage loan, you can save money. A lot of it.

And remember – although each lender will look up your credit information, you don’t need to worry every inquiry will hurt your credit score. The Fair Isaac Corporation, or FICO, allows people to “rate-shop” for a mortgage without dinging their credit scores, as long as you do all of your shopping within a 14-day window. Abide by that timeline and the credit bureaus will regard that first credit pull as a “ding,” but ignore the subsequent ones.

Obtaining Final Loan Approval

Armed with your pre-approval letter, you make an offer on your dream home and then (hopefully!) it’s accepted by the seller. (Hooray!) Next, you’ll need the lender to conduct an appraisal. There may also be requirements in the purchase agreement to allow for home inspections, to make repairs, and other items specifically requested by the buyer and/or seller.

As these will vary from one transaction to another, the time required to complete these steps will vary, too. While home inspectors are normally available with short lead time, a licensed appraiser may have a backlog of up to two weeks or more. Appointments must be scheduled that accommodate all parties – so being flexible with your schedule can help. And it can also take several days to receive these reports back which, if approved, will then allow your loan to continue through escrow.

Then, you’ll need to arrange for insurance on your new home and work with the escrow company to provide any necessary legal documentation that is required. The escrow company must also conduct a title search, issue title insurance, obtain loan documents from your lender, and more.

In some (uncomplicated) cases, the entire process can be managed in under 30 days. In other more complex situations it can take several weeks or even months to conclude. But by providing the documents requested by your mortgage lender in a timely manner and meeting all of the buyer’s obligations as quickly as possible – you can effect a huge difference in the amount of time it takes to get final loan approval for your mortgage – and then plan your move into your new home!

More questions? That’s what we’re here for. Give us a call to discuss your situation, and we’ll be happy to help!

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.

You Chose The Home. You Should Get To Choose The Mortgage Loan, Too.


Shopping for a home? That’s the easy part. Well, what we mean is that when it comes to choosing the right home to buy – that’s one decision that’s all up to you. It’s all your taste, your preference, your favorite floorplan, and the neighborhood where you want to live.

But if you’ve bought a home before, you might have felt that getting to choose the house was the only decision you got to make. Because after you made the offer and it got accepted, it seemed as if there was one hoop after another that you had to jump through to get to the finish line.

“The truth is, before someone actually hands you the keys and the “Congratulations and welcome to your new home!” – you have to deal with Realtors, inspectors, repair crews, escrow and title companies, insurance agents, credit bureaus, and mortgage lenders,” reveal Rick Piette, owner of Premier Mortgage Lending in Las Vegas. “And if it seems they’re all spending the next several weeks telling you what to do – well, they probably are. That’s okay, though, because you rely on their guidance and expertise to ensure a smooth, worry-free real estate transaction. They are, after all, getting paid to do that.”

However, when one of those parties decides to put their interests ahead of yours, you may find that your trust has been misplaced. What’s worse, you may not even be aware of it – either during escrow or after your closing takes place.

How can that happen?

Piette goes on to explain, “You may receive a referral from your agent to a particular service provider to help you complete one of the necessary steps in your purchase process. But the truth is, you might have been steered to them because your agent (or their broker) received a financial incentive to do so. Sometimes, that referral and the end result both go in your favor. Then again, sometimes they don’t. Unfortunately, when they don’t, it usually means that it’s unnecessarily costing you money.”

Nowhere is that more true – or costly – than in your choice of mortgage lender. While a shoddy repair or paying a bit too much for an insurance policy is an unfortunate occurrence, not knowing your mortgage loan options can literally end up costing you thousands of dollars.

Seriously. Thousands of dollars. (We just want to let that sink in.)

The fact is, choosing a mortgage lender should be as much your choice as your home selection. As a home buyer, you should conduct your own due diligence with several lenders to ensure you are getting the most favorable terms, best interest rate, and the lowest fees.

In previous articles, we’ve shared at length about which questions you should ask your lender, to be sure you shop with more than one lender so you can compare prices, and how to discover if a lender is hiding loan charges (that you ultimately end up paying for without realizing it).

We’ve also explained the difference between mortgage brokers and mortgage bankers (they’re not the same) – and Premier Mortgage has developed a series of Home Loan 101 videos to help familiarize borrowers with the Consumer Financial Protection Bureau’s (CPFB) “Know Before You Owe” program that was specifically designed to protect mortgage borrowers. And we strongly recommend that anyone who is now (or soon will be) seeking a mortgage loan to click on those links and review that information. If will provide you with what you need to know to make the best decision for your needs.

“If your real estate professional doesn’t encourage you to shop around, or if they tell you that you only need to go to the lender they recommend – well, you may as well just hand over your checkbook to them,” continues Rick Piette. “Because without taking those steps, you can end up paying $4,000-$8,000 or even more for a mortgage loan than you should. And that will really hit you where it hurts – in your bank account.”

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.

Shopping For A Mortgage Loan Can Find You A Bargain, Too


Shopping. It’s one of our favorite American pastimes. For ourselves, for others, for our homes. But surprisingly, many homebuyers spend more time researching the best laptop or even the perfect outfit for a special occasion – than they do searching for the best deal on their mortgage loan.

One of the misconceptions that lead to this phenomena is this: Homebuyers often don’t realize they have a choice. (Spoiler alert: They do.)

Part of the reason is that navigating the maze of purchasing real estate is confusing to begin with. It can start with a Realtor or a homebuilder, then buyers need to select options, gather financial records, pick an insurance company, and the list goes on. The buyer is very busy during the whole process, and relies on the advice they get from their agent or builder to get to the finish line. Eventually, they find themselves signing a pile of papers at the escrow company, and the next day – voila! Here’s the keys to your new home!

But if you were paying close attention to that last paragraph, you may have noticed that no one mentioned “You know, we need to shop around to find the best mortgage loan for you, too.” And the reason for that is often that a Realtor or a homebuilder has a convenient relationship with a particular lender, and buyers are led to assume that the pre-qualification letter they receive from them is a commitment FROM that lender, and TO that lender to get your mortgage loan from them.

The problem is – it’s not.

In fact, while you’re jumping through all the other hoops that have been set before you on the exciting road to owning a home, you’re missing out on one very simple way to save potentially thousands of dollars on your mortgage loan. We’re talking about money that comes out of your pocket when it’s time to sit down and sign those escrow papers. And yes, we said “thousands of dollars.”

Why would there be such a difference?

You may have heard of the Dodd-Frank Consumer Protection Act. The one that was signed into law after the financial crisis of 2008. But what you may not have heard (or remember) is that a large portion of that Act was created specifically to address consumer protections for mortgage loans. It’s legislation that has slowly entered into law over the past few years, and a very important part of it went into effect in 2014.

According to Rick Piette, owner of Premier Mortgage Lending in Las Vegas, Nevada, “One of these new rules actually places a ‘cap’ on how much a Mortgage Broker can make on your loan; and it allows that fee to be paid by the lender directly to the mortgage broker.”

What does that mean to borrowers? It means that their loan can actually cost them no money; that’s zero dollars. The broker makes his income directly from the lender in an amount that cannot be exceeded or inflated. And the final result is that the consumer is the winner in this transaction.

“In essence, the law gives the consumer control of the cost of his own mortgage,” continues Piette. “We think that’s a great thing, and as a mortgage broker, we are bound by these regulations.

What most people don’t realize, however, is that the type of lender you choose makes a huge difference. “This law doesn’t place the same restriction on banks or mortgage bankers,” Piette adds. “And that means they’re able to add costs and junk fees of their own to the actual price of your loan – and require you to pay for them out of your pocket. Ultimately, those are the costs that require you to bring extra money to the closing table.”

But once buyers understand this distinction, the “shopping” part of finding the right loan gets easier.

Simply contact a variety of lenders – and compare the numbers on their written Fees Worksheet. This is your apples-to-apples moment – where you can see clearly what it will cost to obtain your mortgage. Compare the interest rates, see if there’s a list of costly fees, add them up, and you’ve now got a very clear picture.

To illustrate what we mean, consider the difference in how Premier Mortgage Lending – a mortgage broker – works on your behalf:

1. First, as a mortgage broker, we will shop your loan among several different lenders in order to find you the best deal. This differs from how banks and mortgage banks operate, as they are ‘direct lenders’ who normally only sell their own loan products. (That’s the difference between several choices – and only 1.)

2. Second, Premier Mortgage Lending will charge you $0 for Loan Origination, Processing, Underwriting, and Doc Prep. Other lenders can include charges for these items that literally total thousands of dollars.

3. Third, by eliminating all these fees, Premier Mortgage makes it possible for you to potentially qualify for a larger loan, or leave you with extra funds after move-in so you can buy that new furniture that will look great in your new home.

4. Fourth, working with a local mortgage broker like Premier, you’ll not only get personal, face-to-face service, but because our costs and overhead are lower, we don’t need to charge our customers all those unnecessary fees. We’re paid one regulated amount by your lender at closing, much the same way your Realtor is compensated.

The bottom line is this: With very little effort, homebuyers can manage to save thousands of dollars, keeping that money in their own pocket. (Or maybe using it to buy that new laptop and the special outfit!) We just think it should be your choice to make. Don’t you?

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.