A pre-qualification is a quick snapshot of information that we would collect, including your income, debts, assets, and length of employment. We would use this information to calculate a rough debt-to-income ratio, the amount of down payment available or the amount needed, and the likelihood that you could qualify for a particular loan. A pre-qualification should not be used to submit an offer as it’s not the same as being fully pre-approved.
Obtaining a pre−approval is a much more detailed process and carries more weight with a listing agent when trying to get an offer accepted. To get pre-approved, you would complete an application and we would order credit. In addition, you would supply copies of your income and asset documentation that would be used to determine your debt-to-income calculation. Your file would also be processed through an automated underwriting system which would confirm that you are pre-approved based on the guidelines for the chosen loan program.
A pre-underwritten file is the strongest type of approval. This means all the documentation you provided has been submitted to an underwriter for review before getting into escrow. They would provide full approval that will make your offer as strong as possible.

There are no fees to meet with us and once you do, it does not mean that you are obligated to submit your loan with us. Your consultation is used to see if we could help you accomplish your short and long-term financial goals, discuss what your expectations are from our Team, and see what loan programs would be right for you. If a loan is already in process, but you withdraw the loan or it is not approved, you are not obligated to any lender fees since the loan did not close.

Closing costs consist of three categories: non-recurring closing costs, recurring closing costs, and origination discount points.
The first category is non-recurring closing costs. This category includes the fees for escrow, title, underwriting, processing, appraisal, and some other small items. These are fees that are included in every loan that is obtained by a borrower and are only paid once at the close of escrow.
Recurring closing costs are fees that the borrower would pay regardless of whether they obtain a new loan. The difference is that the lender requires several of these to be paid a few months upfront to set up a reserve. Now they could include property taxes, mortgage insurance, hazard insurance, and interest that will be due on the new loan, up to your first payment date.
The third category is origination discount points, which we’ll cover in question 7. On a purchase, closing costs are included in the cash-to-close needed from the buyer at the time of closing. On a refinance, the closing costs can be paid out of pocket by the borrower at the time of close or added to the loan balance.

An impound account or escrow account is the same thing. They each are a reserve account that is used to pay the borrower’s taxes and insurance. This is part of the recurring closing costs. Some mortgage lenders require impounds with certain programs, but for the most part, the borrower can choose whether or not to have impounds. When impound accounts are formed, a certain number of months’ taxes and insurance will be collected through escrow at the time of closing. This money is set aside in an account out of which the taxes and insurance are paid. The term escrow account is separate from the escrow company you will have as a third-party intermediary on your transaction.