Diamond Certified Companies are Rated Highest in Quality and Helpful Expertise.

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Diamond certified companies are top rated and guaranteed

Why Trust Diamond Certified Mortgage Brokers Rated Highest in Quality?

Homeowners discuss loan options with a mortgage broker.

You are the customer. If your goal is to choose a mortgage broker that will deliver high customer satisfaction and quality, you’ll feel confident in choosing a Diamond Certified mortgage brokerage. Each has been rated Highest in Quality in the most accurate ratings process anywhere. And you’re always backed by the Diamond Certified Performance Guarantee. Here’s why the Diamond Certified ratings and certification process will help you find a top-rated mortgage broker and is unparalleled in its accuracy, rigor and usefulness:

1) Accuracy: All research is performed by live telephone interviews that verify only real customers are surveyed, so you’ll never be fooled by fake reviews.

2) Statistical Reliability: A large random sample of past customers is surveyed on an ongoing basis so the research results you see truly reflect a Diamond Certified company’s top-rated status.

3) Full Disclosure: By clicking the name of a company above you’ll see the exact rating results in charts and read verbatim survey responses as well as researched articles on each qualified company.

4) Guaranteed: Your purchase is backed up with mediation and the Diamond Certified Performance Guarantee, so you can choose with confidence.

Click on the name of a Diamond Certified company above to read ratings results, researched articles and verbatim customer survey responses to help you make an informed decision.

More than 200,000 customers of local companies have been interviewed in live telephone calls, and only companies that score Highest in Quality in customer satisfaction–a 90+ on a 100 scale–as well as pass all of the credential-based ratings earn Diamond Certified. By requiring such a high score to qualify, the Diamond Certified program eliminates mediocre and poorly performing companies. Read detailed information about the ratings and certification process.

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DIAMOND CERTIFIED EXPERT CONTRIBUTORS IN THE Sonoma County – Mortgage Brokers CATEGORY

Ken McCoy is a 28-year veteran of the mortgage industry and manager of American Pacific Mortgage dba Petaluma Home Loans, a Diamond Certified company. He can be reached at (707) 439-8297 or by email.

Ken McCoy

diamond certified contributor profile and expert article

Ken McCoy: An Unexpected Investment

By James Florence, Diamond Certified Resource Reporter

PETALUMA — When Ken McCoy bought his first house, he knew he was making a smart financial investment, but he never thought he’d also end up with a new professional livelihood. “In my prior career, I sold furniture,” he explains. “It was during this time that I bought my first house. After the purchase was finalized, the loan officer I was working with told me that if I ever got tired of selling furniture, I should come work for him. I guess he saw something in me.” Six months later, feeling a growing sense of dissatisfaction with his work, Ken remembered the offer and made a call. “I contacted the loan officer and asked if his offer still stood. He said it did, so I got my real estate license and went to work for him. I’ve been doing home loans ever since.”

Today, as manager of Petaluma Home Loans, Ken says he enjoys the varied and challenging nature of his profession. “Every loan is a puzzle and no two loans are the same, so it’s a continual challenge to assemble things in a way that meets both the underwriting guidelines and the borrower’s needs. In some cases, I have to think outside the box in order to make things work, but those kinds of challenges keep the job interesting.”

A resident of Petaluma (where he lives with his wife, Cheryl), Ken expresses his appreciation for the city’s close-knit character. “There are more than 60,000 people living in Petaluma, but it’s still a small town where everybody knows everybody, so it’s a really neat dynamic.”

Outside of work, Ken engages in a variety of active pastimes, from RVing to sports. “I’m the wagon master of a local RV group that does monthly weekend trips to places like Reno, Fort Bragg and Monterey,” he explains. “I also play soccer in a local men’s league, as well as handball and golf.” Additionally, Ken enjoys spending time with his family (including his three sons, Chris, Nicholas and Brandon) and volunteering with his local Rotary Club. “I’ve been in the Rotary Club of Rohnert Park-Cotati for 28 years. I’m actually an advisor to the Rancho Cotate High School Interact Club, which is like a Junior Rotary Club.”

In regard to his professional career, Ken espouses the importance of integrity. “It all comes down to treating people right and doing the right thing, even if it doesn’t always benefit your personal interests,” he says. “If I make a commitment to a client and something doesn’t go right on my end, I pay for that out of my own pocket. At the end of the day, keeping my commitments is a far higher priority than making a profit.”

When asked the first thing he’d do if he were to retire tomorrow, Ken says he’d split his time between volunteering and travel. “I’m not the kind of person who likes to sit still, so I’d definitely continue to be active in the Rotary Club. I’d also travel more—in fact, I’d love to take my RV around the United States and see some areas of the country I haven’t yet visited.”

Ask Me Anything!

Q: If you could travel anywhere in the world, where would you go?
A: It’s a tie between Scotland and New Zealand.

Q: What’s your favorite sports team?
A: The San Francisco Giants.

Q: What were you most known for in high school?
A: I played trumpet in the band.

Q: What’s your favorite local restaurant?
A: 630 Park Steakhouse in Rohnert Park.

Q: Do you collect anything?
A: I collect pin flags from different golf courses I’ve played at. I must have 40 or 50 pin flags on my office wall.

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The Complex Truth about Interest Rates

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PETALUMA — In the past, if you wanted to know the current interest rate for a home loan, you could simply ask a mortgage professional and get a direct answer. Today, however, interest rates aren’t as simple as they once were. For… Read more

Expert Video Tip

Video: A Good Time to Reassess Your Mortgage

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Complete Video Transcription:

PETALUMA — Host, Sarah Rutan: If you’ve had a recent life change such as retirement or the birth of a child, it’s a good time to reassess your… Read more

Dan Eichhorn is a 32-year veteran of the mortgage industry and owner of West-Cal Mortgage, a Diamond Certified company. He can be reached at (707) 879-8928 or by email.

Dan Eichhorn

diamond certified contributor profile and expert article

Dan Eichhorn: An Unlikely Connection

By James Florence, Diamond Certified Resource Reporter

SEBASTOPOL — Dan Eichhorn may have studied finance in college, but it was through a side job that he established a connection to his future profession. “While attending CSU Chico, I supported myself by working on a boat that belonged to one of the Lake Tahoe casinos,” he explains. “During that time, I became acquainted with a regular who happened to own a mortgage company. I told him I was going to work for him after I graduated, and that’s exactly what happened.” After getting his foot in the door, Dan spent the next several years gaining valuable industry experience before founding his own mortgage firm in 1990.

Today, as owner of West-Cal Mortgage, Dan says his favorite part of his job is facilitating life-changing transitions for his clients. “I really enjoy helping a first-time buyer get their first house. As a mortgage broker, I get many different kinds of clients, but there’s something about working with first-time buyers that’s especially satisfying. It’s probably because it’s a big deal for them—a real life-changer.”

A resident of Sonoma County (where he lives with his wife, Julie Leveque, and their children), Dan likes to spend his time outside of work getting his hands dirty. “We have a five-acre farm, where I enjoy working and growing my own food,” he says. “I also like working on my ’53 Dodge Power Wagon, which I’m in the process of restoring. Additionally, I’m an avid cyclist—I actually used to race bicycles when I was in college.”

In his life and career, Dan espouses the importance of maintaining a balanced lifestyle. “As a business owner, a husband and a father, it’s always a challenge to balance work and family,” he says. “In my line of work, it’s easy to become a workaholic, but when you’re raising kids, sometimes you have to know when to shut off the ‘dumb phone.’ At the end of the day, I think maintaining that balance makes you a better partner, parent and businessperson. Otherwise, you just get burnt out.”

When asked the first thing he’d do if he were to retire tomorrow, Dan says he’d get his auto restoration project ready for the road. “I’d finish restoring my Power Wagon and drive it to Alaska. It’ll basically be a new truck when I’m done with it, with a new engine and transmission, so it should have no trouble handling a big road trip like that.”

Ask Me Anything!

Q: If you could travel anywhere in the world, where would you go?
A: Nepal—I’d love to do some trekking through the Himalayas.

Q: What’s your favorite local restaurant?
A: My home.

Q: What’s your favorite thing to do on a rainy day?
A: Read a book.

Q: What kinds of books do you like?
A: Usually historical books like presidential biographies and World War II accounts.

Q: What types of music do you like?
A: Mostly classics from the ’70s and ’80s.

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Documentation for a Mortgage Loan

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SEBASTOPOL — Today’s mortgage lenders are more rigorous than ever about vetting borrowers, which is why they require a considerable amount of documentation. To keep the loan process rolling along smoothly, be sure to provide everything that’s requested. Here are… Read more

Expert Video Tip

Video: Home Loan Documentation Tip

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Complete Video Transcription:

SEBASTOPOL — Host, Sarah Rutan: When it comes to applying for a home loan, don’t overlook the importance of complete documentation. Today we’re in Sebastopol with Diamond… Read more

SELECTED PHOTOS FROM THESE TOP RATED COMPANIES

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INDUSTRY INFORMATION AND RESEARCHED ARTICLES BY THE DIAMOND CERTIFIED RESOURCE

American Home Mortgage
GMAC Financial Services
Indymac Bank Mortgage Services
CitiMortgage
New Century Mortgage Corporation
Weichert Financial Services
Countrywide Financial
Wells Fargo Mortgage Services
Wachovia Mortgage Company
Countrywide Mortgage Company
AEGIS Mortgage Corporation
Bank of America Mortgage Services
Golden West Financial Mortgage Services
Synovus Financial Mortgage Company
Ditech Mortgage Services
Chase Bank Mortgage
Ameriquest Mortgage Company (AMC)

commercial building mortgages
home refinancing
mortgage rate comparisons
first-time home buyer mortgages
30-year fixed mortgages
interest-only mortgages
mortgage insurance
5-year fixed rates
home equity mortgages
mortgage calculator services
current mortgage rate services
new mortgage financing
home mortgages
15-year fixed mortgages
reverse mortgages
adjustable rate mortgages (ARM)
10-year fixed mortgages

Agua Caliente
Alexander Valley
Annapolis
Asti
Bloomfield
Bodega
Bodega Bay
Boyes Hot Springs
Camp Meeker
Cazadero
Cloverdale
Cotati
Duncans Mills
El Verano
Eldridge
Fallon
Fetters Hot Springs
Forestville
Fort Ross
Freestone
Fulton
Geyserville
Glen Ellen
Graton
Guerneville
Guernewood
Healdsburg
Jenner
Kenwood
Lakeville
Larkfield
Lytton
Mark West
Monte Rio
Occidental
Penngrove
Petaluma
Rio Nido
Rohnert Park
Roseland
Russian River
Russian River Meadows
Salmon Creek
Santa Rosa
Schellville
Sebastopol
Sheridan
Sonoma
Stewarts Point Rancheria
Temelec
the Geysers
Sea Ranch
Two Rock
Valley Ford
Villa Grande
Vineburg
Windsor

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Know What You Want
When Is a Mortgage Broker a Good Idea in Sonoma County?

Home ownership can represent a big investment, no matter where you are looking in Sonoma County, whether in Windsor, Santa Rosa, Rohnert Park, Petaluma, or Healdsburg, or in Cloverdale or Schellville. A big concern for many people is getting financing, which can be stressful. To make sure you are approaching your search practically, it might help to draw up a list of questions to ask yourself about your search.

  1. Do I want a Diamond Certified company that is rated best in quality and backed by the Diamond Certified Guarantee?
  2. If I have reason to work with an out-of-state mortgage broker, does that broker have a relationship with a California mortgage broker so that the California broker can perform the work in California?
  3. Does the local bank offer an attractive loan or do I need to look elsewhere for a more attractive rate and terms?
  4. Do I want a local mortgage broker who understands the local area, its peculiarities, and its vernacular and can explain these to the lender, if necessary?
  5. What is my credit rating and history like? Will I need to find a lender who accepts less than perfect credit?
  6. Am I comfortable working with lenders without a mortgage broker? Do I want to try to find loans on my own? 
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What To Ask In Person
Talk to Your Sonoma County Mortgage Broker in Person

A personal meeting with a potential broker makes good sense, whether your search takes you to Santa Rosa, Windsor, Petaluma, Healdsburg, or Rohnert Park. Meeting in person can give you a better sense of the person you are going to work with. Remember to shop around and ask different mortgage brokers to work with you. You are looking for the person who can connect you to the best loan. As you speak with mortgage broker, here are some questions you might want to keep in mind.

  1. Will you agree to lowering my interest rate during the lock if a better interest rate occurs?
  2. Besides your fees, what other costs will this loan incur?
  3. Will my loan be completely amortized, or will it include a balloon payment?
  4. I want to get a HUD settlement statement prior to closing – how do I do that?
  5. What compensation are you receiving and from whom – just from me as the borrower, or also from the lender?
  6. Will I be paying for the credit report and appraisal?
  7. What are the chances my loan will be sold?
  8. Are you looking for both fixed and variable rate loans for me?
  9. What is the final annual percentage rate (APR) for my loan? (Be careful – an APR that is three-quarters of a percent to one percent higher than the rate you were first quoted means that heavy fees are being added.)
  10. Who will my lender be? What information can you give me about the firm actually making the loan?
  11. Is my interest rate locked in? When does that lock start and end?
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  • What To Ask References
    Questions for References

    If you can’t find a Diamond Certified mortgage broker within reach, you’ll have to do some research on your own. If you do, it’s wise to call some references provided by your mortgage broker. Keep in mind, though, that references provided to you by the mortgage broker are not equal in value to the large random sample of customers surveyed during the Diamond Certified ratings process. That’s because references given to customers from companies are cherry-picked instead of randomly selected from all their customers. So the companies will likely give you a few customers to call that they know are satisfied.

    If you do call references on your own, specifically ask for a list of the company’s 10 most recent customers. This will help avoid them giving you the names of only customers they know were satisfied.

    1. Did you end up paying for the credit report and property appraisal?
    2. Were you pressured about advance fees by the mortgage broker?
    3. Was the mortgage broker compensated only through fees or also by the lenders?
    4. During the loan processing, did your mortgage broker ask for documents in a timely manner and meet the lender’s deadlines?
    5. Did the mortgage broker have a large network of lenders to choose from or were there only a few options?
    6. Did you feel that the mortgage broker was familiar with the local area?
    7. Were you working with any out-of-state mortgage brokers, and did your California mortgage broker work smoothly with them?
    8. Did you think the mortgage broker dealt with you fairly and honestly?
    9. Did you find the mortgage broker’s fees competitive with others you researched?
    10. Were you able to negotiate with the mortgage broker about fees? About when loan rates were locked in? Did there seem to be flexibility?
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  • Review Your Options
    Find and Hire a Good Mortgage Brokers in Sonoma County

    The Diamond Certified symbol has been awarded to companies that scored Highest in Quality in an accurate ratings process.

    Your choice of mortgage broker … So before deciding on the best mortgage broker in Sonoma County for you, it’s important to consider the following questions.

    1. Does the mortgage broker have a reputation for charging fair fees?
    2. Will the mortgage broker respond in a timely fashion both to my questions and when the lender makes requests to me through the mortgage broker?
    3. Is the mortgage broker dedicated to finding a loan with the best terms for me?
    4. Can the mortgage broker communicate well with me, explaining the different terms and consequences of the loan?
    5. Does the mortgage broker seem familiar with the local market and able to explain that market to the lender?
    6. Does the mortgage broker have a large network of legitimate lenders so I can find the best loan?
    7. Is the mortgage broker licensed by the state of California, and if so, which license does he or she have?
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  • How To Work With
    Deciding to Work With a Sonoma County Mortgage Broker

    No matter where in Sonoma County you are looking, whether you are searching in Healdsburg, Santa Rosa, Rohnert Park, Windsor, or Petaluma, you need to decide if you want to work with a mortgage broker. Check with your local bank about available loans, including interest rate and terms. Also ask what kind of credit rating they require for approval. This will give you some idea if you need to look for a mortgage broker. Of course, you may want to go to a mortgage broker simply because they work with a broader network of lenders. Be sure you know who you are talking to. It is a mortgage broker, a mortgage banker, a lender? Just what role is the person playing?

    When you work with a mortgage broker, generally you want to be assured that their fees and offers are in line with the market. Ask for fee information so you can see if the broker falls in line with others. For the terms of the loan itself, you can check in on the different interest rates so you know how the markets are trending and are aware of how competitive the rates offered to you are. You should check the actual interest rates – loans are often tied to specific indices. You can look at APR’s and the like online and in newspapers, but beware of deceptive advertising.

    Look for brokers who are straightforward. You also want someone who speak in a way that you are comfortable with – make sure that you find someone who can explain things so that you understand them. An honest broker is the best kind. Be sure your mortgage broker is licensed by the state of California. Find out which license your mortgage broker operates under. Look for a broker who has no qualms about providing written agreements and who is willing to document any areas where you agree to negotiate.

    Easing the Loan Process With Your Sonoma County Mortgage Broker
    Once you’ve found your mortgage broker in Sonoma County, whether in Windsor, Santa Rosa, Petaluma, Healdsburg, Rohnert Park, or Guerneville, Sonoma, or Cloverdale, be sure it is a good fit because you will be working with your mortgage broker though the entire loan processing and loan closing. By being organized, prepared, and willing to keep your mortgage broker on schedule, you can have a smoother loan process.

    The loan application and processing probably generate the most anxiety for borrowers. Gather together financial and employment history, since a loan application will ask for that kind of information. As the loan processing starts, be prepared for documentation requests. Tell your mortgage broker that you would like as much notice as possible when documents are required. If you don’t have a document on hand, communicate how long it will take you to get it. Ask your mortgage broker about the lender’s deadlines. Check with your mortgage broker to be sure the broker is meeting the lender’s deadlines.

    You need to provide some advance notice if you want a HUD settlement statement. The HUD statement outlines the costs of the loan. You need to ask for it in writing early on. It is required for all federally related real estate loans and frequently used. Ask your mortgage broker how to obtain the settlement statement. You will receive the HUD statement 24 hours before the loan close – as long as you have previously asked for it in writing, so don’t put off the request for the statement.

    Ask your mortgage broker questions all along the way. Even without the HUD statement, your mortgage broker is required to give you state and federal documents disclosing the fees associated with the loan. Don’t shy away from asking about those fees and negotiating where possible. Document all agreements in writing. Keep in mind that you may want an attorney to actually examine the loan documents before signing.

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  • Be a Good Customer
    How Can You Be a Good Mortgage Broker Customer?

    It’s the mortgage broker’s responsibility to connect you with a reputable lender offering the best loan for you. But you play a big part in the success of your mortgage broker, too. Here are a few simple steps you can take to be a good customer when hiring a Sonoma County mortgage broker.

    • Be clear and upfront with the mortgage broker. Let them know what you want from your mortgage broker, the long-term outcome you’re expecting and specific ways they can satisfy your expectations.
    • Remember, a friendly smile goes a long way!
    • Before you hire a mortgage broker in Sonoma County, restate your expectations and goals, and reiterate to the mortgage broker’s representative your understanding of the agreement. Most problems with local mortgage brokers occur because of a breakdown in communication. By being clear about your expectations and theirs, you can avoid most conflicts.
    • Ask your mortgage broker if you should call to check on the progress or if he will call you with updates.
    • Be sure your service representative has a phone number where they can reach you at all times while they’re working with you. The work will move along more smoothly if your mortgage brokers can reach you for any necessary updates, questions or work authorizations.
    • When your contractor contacts you, return calls promptly to keep the mortgage broker on schedule.
    • Pay for the mortgage broker’s work promptly.

    Why would you want to be a good customer? Mortgage brokers in Sonoma County appreciate customers who are straightforward, honest and easy to work with. Your good customer behavior sets the tone from your end and creates an environment conducive to a good relationship. Things may very well go smoother and any problems may be more easily resolved.

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Written Warranties
The Diamond Certified Performance Guarantee

Diamond Certified mortgage brokers are backed by the Diamond Certified Performance Guarantee. If the window company is Diamond Certified and you can’t resolve the issue by talking with the owner, contact the mediation department at [email protected] or call 800-738-1138.

How to Manage Conflict with Sonoma County Mortgage Brokers
Wherever in Sonoma County, you are working with your mortgage broker, whether in Healdsburg, Windsor, Petaluma, Rohnert Park, Santa Rosa, Sonoma, or Graton, both state and federal laws exist to try to reduce conflict between broker and borrower.  Federal law implements the Good Faith Estimate. The Mortgage Loan Disclosure Statement is required by the California Department of Real Estate. The California Department of Corporations also requires that borrowers be notified of changes to the fees. The federal HUD settlement statement outlines the terms of the loans. You should read all such disclosure documents carefully and understand them before signing.

Always try to work out disagreements with your broker between yourselves. When you cannot agree on a solution, there are other remedies. You can complain about the mortgage broker to the Better Business Bureau.

Depending on which department licenses your broker, you can file a complaint at the California Department of Real Estate Web site or the Department of Corporations Web site. Both departments recommend that if you want to recover money or cancel a contract, you should consult an attorney. The Department of Real Estate will investigate claims where they have jurisdiction. Their sanctions include suspending or revoking a license. The Department of Corporations usually conducts confidential investigations where they have jurisdiction, but they may send the complaint the licensee in some cases. Both departments encourage you to file a complaint, even if you are using an attorney or other method of pursuing the claim.

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Top 10 Requests
Top Service Requests

Mortgage brokers typically look for loans for borrowers. They find the right interest rate and loan terms for an individual’s situation. In California, the mortgage broker has a responsibility to represent the best interests of the borrower. Borrowers come to mortgage brokers for some of the following reasons.

New Loan
Borrowers need a new loan to complete a residential property purchase.

Refinance home
When interest rates drop or when other changes make it desirable, you may use a mortgage broker to find a new loan to refinance your house.

More Attractive Loans
Because mortgage lenders work with a wide variety of lenders, they may have access to loans that the local bank or local bank branch do not. Borrowers may be able to find more attractive loans by using the mortgage broker to explore the many different options out there.

Less Than Perfect Credit
Local banks and local branches of commercial banks may not accept borrowers with less than perfect credit. In this case, a mortgage broker can help find lenders willing to loan to these borrowers.

Intermediary with Lenders
Many borrowers would find it daunting to work with lenders directly, and many lenders only offer their best loans through their network of brokers. Having the mortgage broker negotiate on the borrower’s behalf for the best rate is attractive to many borrowers.

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Glossary Of Terms
Glossary of Terms for Clients of Mortgage Brokers

Real estate and mortgages are a world that many of us enter only occasionally and usually along with a great deal of pressure. Use the definitions below to help understand this world.

A-Credit
Refers to borrowers with the best credit rating. This means they can get the best loans. If you do not have A-credit, you may have to pay more for your loan. Typically, you would need a FICO score above 720 to qualify.

acceleration
In a loan, an acceleration clause allows the lender to specify conditions in the contract, and if these conditions are not met, the lender can demand that the loan be paid in full at once.

adjustable rate mortgage
An adjustable rate mortgage is one for which the interest rate can adjusted. In the US, many ARM loans are tied to an interest rate index and scheduled to change at a specified period of time.

Also known as: ARM

Alt-A
Alt-A refers to a borrower’s credit worthiness. It is less than A-credit, but higher than subprime.

amortization
Amortization refers to paying down the principal balance of the loan. For many loans, the scheduled payment includes a portion that covers interest and a portion that also reduces the actual amount of the loan balance.

Annual Percentage Rate
The cost you are charged for the credit – it includes all finance charges as well the interest rate.

Also known as: APR

appraisal
An appraisal is an evaluation of the real estate’s current value. In California, the appraiser must be licensed by the state.

assumption
Assumption occurs when a buyer takes over the repayment of loan already held on the property, or assumes the loan payments. However, unless the lender agrees, the person selling the loan to the buyer is still responsible for the full amount of the loan.

balance
The amount of the original loan that has yet to be paid.

Also known as: loan balance, principal

balloon
A balloon situation occurs when the loan balance is not completely paid off at the end of the loan term. In many loans, the payments are designed so that at the end of the term, the loan balance is paid off. For some loans, only a specified period of regular payments occurs, and after that, the rest of the entire loan balance is due.

Also known as: balloon mortgage, balloon payment

bridge loan
A bridge loan allows a person to sell one house and buy another. The bridge loan covers the period between when the purchase closes and the sale closes. A secured bridge loan occurs when the existing house is under a confirmed contract to sell. If the borrower does not have a confirmed contract for the house he or she is selling, the bridge loan is unsecured.

buy-down
In a buy-down, the borrower pays points so that the interest rate on the loan is reduced. A permanent buy-down covers the life of the loan. A temporary buy-down only reduces the interest for the early years of the loan.

Also known as: permanent buy-down, temporary buy-down

Good Faith Estimate
A federally mandated document that outlines the fees for a loan, which fees may change, a cap on certain fee changes, and which fees may change without a cap.

Also known as: GFE

HUD settlement statement
A document that outlines the costs of the loan. If requested in writing previously, must be given to the borrower 24 hours before the loan closes. Mandatory for all federally related mortgage loans.

lender
The lender is the person or entity that provides the funds to make the loan. The lender may be a bank, credit union, savings and loan or other financial institution, or can be companies, private companies, and private parties. Mortgage brokers most often work with borrowers to find the appropriate lenders

lien
The lien is the hold or claim that the lender has on the property. The lender can take the property if the borrower fails to repay the loan.

maturity
When the last payment is due on the loan.

maximum lock
Sometimes lenders will guarantee a loan’s terms for a specific period. This period is referred to as the lock. The maximum lock is the longest time for which the lender will guarantee the loan’s terms. It ranges from 30-90 days, usually, with 60 being very common.

Mortgage Loan Disclosure Statement
A document that licensees of the California Department of Real Estate are required to give borrowers that outlines the costs of the loan.

Also known as: MLDS

NMLS
A national resource that consumers can use to ensure their mortgage industry professional is licensed.

Also known as: Nationwide Mortgage Licensing System

negative points
Sometimes, lenders pay points above the quoted rate of the loan. If the negative points go to the borrowers, the money can be used for settlement costs. If the negative points go to the mortgage broker, they are called the yield spread premium.

Net jumping
When borrowers work with a broker to gain understanding of the market and improve their creditworthiness, then actually go to the Internet to get a loan.

option fee
An option fee occurs when a lease-to-own situation happens. The option fee allows the buyer to pay money that will go toward the purchase price if the buyer opts to buy. If the purchaser does not choose to buy, the option fee is lost.

overage
Lenders may provide a price for a loan to mortgage brokers. The price for a loan that is quote to buyers is higher than this quoted price. The difference is called the overage.

Also known as: mortgage overage

Piggyback mortgage
A piggyback mortgage is a mortgage that is taken out to cover any outstanding purchase price after the initial mortgage covers 80% of the purchase price. Piggyback loans may cover the remaining 20% of the price. They may be a single loan for the 20%, or they may be divided into even smaller loans to make the total 100%. Piggybacks allow borrowers to avoid mortgage insurance which is often required when borrowers cannot put 20% of the purchase price down.

PITI
PITI refers to the components that make up regular housing expenses.

Also known as: Principal, Interest, Taxes, Insurance

points
A point is equal to one percent of the loan balance. Borrowers pay points up front in cash to lower the interest rate on their loans.

Real Estate Settlement Procedures Act
A federal law designed to better regulate real estate practices. Passed after the financial industry collapse, it is designed to give consumers the protection of documents that explain loan terms.

Also known as: RESPA

term
The period used to calculate the mortgage payment. For example, a 30-year fixed rate loan has a 30-year term, and payments are calculated so at the end of 30 years, the loan is paid off.

yield spread premium
Fees paid by the lender to the mortgage broker that increase the interest rate the borrower would otherwise have paid for the loan. It’s not illegal, but in California it must be disclosed.

Also known as: YSP, commission, back-end fee

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Frequently Asked Questions
Frequently Asked Questions for Mortgage Brokers

Q: Why choose a Diamond Certified Mortgage Broker?
A: Diamond Certified helps you choose a mortgage broker with confidence by offering a list of top-rated local companies who have passed the country’s most in-depth rating process. Only mortgage brokers rated Highest in Quality earn the prestigious Diamond Certified award. Most companies can’t pass the ratings. American Ratings Corporation also monitors every Diamond Certified company with ongoing research and ratings. And your purchase is backed by the Diamond Certified Performance Guarantee. So you’ll feel confident choosing a Diamond Certified

Q: Why choose a Diamond Certified Mortgage Broker?
A: Diamond Certified helps you choose a mortgage broker with confidence by offering a list of top-rated local companies who have passed the country’s most in-depth rating process. Only mortgage brokers rated Highest in Quality earn the prestigious Diamond Certified award. Most companies can’t pass the ratings. American Ratings Corporation also monitors every Diamond Certified company with ongoing research and ratings. And your purchase is backed by the Diamond Certified Performance Guarantee. So you’ll feel confident choosing a Diamond Certified mortgage broker.

Q: What exactly is a mortgage broker and why would I use one?
A: A mortgage broker acts works with a borrower to find loans from many lenders. A mortgage broker has access to a whole network of lenders – whoever they have built relationships with. The bigger the network, the more options a borrower may find. A borrower may work with a mortgage broker when they do like a bank’s offerings, when the bank will not loan to a borrower, or in any case where the borrower wants to look for more loan options than the bank offers. Borrowers can work directly with any lender, of course, as long as they comfortable and the lender will work with them.

Q: What protections do I have as a consumer?
A: Recent laws at both the federal and state level seek to protect consumers in the wake of the financial industry slump caused in part by subprime loan securities. At a federal level, whenever a federal loan is involved, you can request a HUD settlement statement, which outlines the costs of the loan. In California, if your agent is licensed by the Department of Real Estate, your agent must give you a Mortgage Loan Disclosure Statement that discloses the costs of getting the loan. At the federal level, the Good Faith Estimate tells what the loan costs will be and which ones may change, the changes allowed for certain charges, and which fees may change without a cap.

Q: My mortgage broker is a friend. Do I really have to get everything in writing?
A: You will not be able uphold your claims if you don’t get them in writing. Some things during the mortgage search are negotiable – you might be able to negotiate fees with your broker, you might be able to negotiate title fees, you might negotiate a locked in rate and how long that lock-in will last. You might even want to be able to negotiate a change in rate during the lock period if rates fall. No matter what, get everything in writing, and be sure you capture agreed points of negotiation and any changes over time.

Q: My real estate agent says she can help me find a loan. Is this ok?
A: In California, there is no distinction between the real estate license and the mortgage broker license. If the agent is licensed as a real estate broker, she can also broker mortgages.

Q: I am moving to California and I have a broker in my current state whom I like to work with. Can I use my current broker in California?
A: California requires all mortgage brokers to be licensed in the state of California and does not have reciprocity agreements with other states. However, an out-of-state broker can work with a California broker and share the fees.

Q: How much should I expect to pay my mortgage broker?
A: Mortgage brokers are compensated by fees paid by the borrower, fees or commissions paid from the lender, or a combination of the two. You should ask you mortgage broker not only what the fees are, but who is paying them – both you and the lender or just you? As you work through the loan process, you can pay fees for the mortgage broker’s commission, for a credit report, for appraisals, for title searches, for loan applications, and the like. You should check with several mortgage brokers to make sure fees are in the same general ballpark. You should also look at the fee disclosures and question any fees you do not understand. Sometimes fees pass under different names, so it’s impossible to compile a full list of the fees you may be charged.

Q: Are there any benefits to going with a local broker?
A: A local mortgage broker may have some expertise that benefits you. For example, appraisers in your area may use certain terms or categories. A local broker familiar with these terms will be able to explain them to the lender. Also, a local mortgage broker may know that it is common for properties in your area to have private septic tanks and will be able to explain this to the lender, as well. If your area has any local idiosyncrasies, a local mortgage broker may be able to help.

Q: Why do I care who licenses my mortgage broker?
A: In California, mortgage brokers can be licensed by the Department of Real Estate or the Department of Corporations, and the latter has two licenses. You need to know which license your mortgage broker has because it changes the requirement for how they deal with you. For example, if licensed by the Department of Real Estate, the broker must give you a Mortgage Loan Disclosure Statement. Similarly, the Department of Real Estate requires the broker to have an advance fee agreement on file with the department before the broker can charge you any advance fees except the credit report and appraisal. The Department of Corporations requires a written agreement between broker and borrower before advance fees can be charged.

Q: Who is my lender?
A: The mortgage broker most often brokers the loan – that is, finds a lender who will loan under terms the borrower will accept. So your mortgage broker is not the lender. Find out what company or entity is actually loaning you the money and do research on them as well to ensure they are a reputable firm.

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