For the Fall Season… Limited Edition Pumpkin Spice Mortgage! It smells like vanilla pumpkin hot cocoa with just a hint of apple pie, feels like crisp crackle of the fireplace and looks like the picturesque color changing leaves making a fall colored rainbow.Verify my mortgage eligibility (Feb 29th, 2024)
If Fall is your favorite season, THIS will be your favorite Mortgage Program EVER! celebrate move in day with a fall worthy celebration sooner than you can get to The Coffee Mill for a pumpkin spice latte!
Don't FALL for Fake Mortgage Programs-
For the most part, mortgage programs are all based around the same guidelines. Qualified Mortgages (standard like FHA, VA, USDA, and Confirming) and Non-Qualified (more accurately non-standard) have specific required guidelines all loans must be underwritten to. Underwriting is when the lender verifies all of the information submitted such as income, assets, debt and the property details to determine if your loan can be approved. The Underwriter compares your loan application and submitted documents to the loan program guidelines and any internal company overlays. A company overlay is an extra guideline or requirement that is not standard for the loan program itself, but company specific.Verify my mortgage eligibility (Feb 29th, 2024)
Often mortgage companies will announce or market a "niche" products claiming to have a new or proprietary program. Although the unique marketing of the program may seem proprietary, the loan program is generally still the same basic loan available with most all lenders. This is very misleading because unless the company is keeping the loan as a portfolio program in house, in reality they just channeled their inner Fancy Nancy and used a fancy word for a common mortgage program.
Why does this matter? When a company dresses up a program they give you the impression you won't find a better option elsewhere and stop your from exploring your options OR if giving credits and perks, typically they are building in those costs to the fees or the rate. Which means you are potentially falling for fake credits or a fake program. This is very common when purchasing a new build and using a builders lender. Often there are extra fees built in that cancel out the credit, but most of the time without an unbiased review you wouldn't know.
Know upfront "Lender Fees" are NOT… repeat after me "NOT" and industry standard. Companies that automatically charge fees in section A of a loan estimate are typically a retail model with built in fees. If you ask to pay no fees, which you shouldn't have to, likely they will say it's required or give you a higher rate to cover them. Why does this matter? Well to start, why pay fees if you shouldn't? Second, when companies market special programs or credits it is typically built into these rates and fees. Knowing this, you can seek that unbiased review of your loan estimate. I provide free evaluations of loan estimates and have helped many borrowers feel confident they were in the right hands … as well as called out some lender who were causing them to over paying by thousands.
Now back to that Pumpkin Spice Mortgage, other than sipping a Latte in your new home sweet home, sorry to say there is no special mortgage for it! One can only dream… Happy Fall! Wondering if this is a great season to buy or sale? Reach out for a free consultation and market update review.