Here is a standard list of documents we’ll need upon submission of your loan application to start the loan process. The list varies by customer because not every item applies to every borrower.

Credit is a crucial part of the loan approval process and can greatly affect your loan approval, rate, and more. There is a lot to know about credit and the more knowledge you have on the topic the more you can help yourself when it comes to getting a loan.

I get this a lot – and it’s a great question. One of the well-known facts in the industry are that there are special programs for first time buyers to encourage home buying. This is really one of my specialty areas – I have always done a lot with first time buyers and I consider myself an expert in the programs offered and the extra time and detail needed to properly explain EVERYTHING there is to know about buying a home. To answer the question – yes – there are many first time buyer programs available and Leader Bank has a great variety to offer.

PMI is short for Private mortgage insurance. Private mortgage insurance is an insurance the bank requires some buyers to pay as a penalty for not putting 20% down payment. Essentially the bank takes on more risk when the buyer doesn’t have enough “skin in the game” for which 20% happens to be the fine line. When you put down 0, 3%, 5%, 10% or even 15% the bank wants added protection that you won’t default on the loan. This is accomplished by having a 3rd party insure the loan so that the bank won’t suffer the loss of the loan.

Why doesn’t everybody get the same rate? Fair question. Rates are based on risk, and there are many different factors that go into how the bank assesses risk. Below is a list of items that can have an impact on your rate:

Many customers I talk to have already heard of points and want to know if I’m quoting any points with my rates. Points typically have a negative connotation and rightfully so – they are probably the most commonly abused vehicle for predatory lending. Points are commonly referred to by lenders as “discount points” and sometimes “origination fee” which is confusing because the application fee is also referred to as origination fee sometimes but they are completely different.

This is one of the most important topics to discuss with new buyers. I am always surprised when I talk to clients who have spoken to other mortgage lenders and have no knowledge that they will need money at closing outside of the down payment money. It is very important that a buyer understand the total costs upfront right from the beginning.

So you found a brand new or newly renovated condo and you are excited to be the first person to ever scratch the brand new hardwood floors. Congrats! Aside from trying not to get any fingerprints on the newly painted surfaces there are a few items you will want to know about regarding new conversions/construction condos.