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you financially. This page is dedicated to weeding through the marketing noise and hype and
seeing things for what they are, and whether or not there is real value in what is being offered.
I will continue updating this page as new items arise and also based on your responses. If there is
a specific item you would like to see added or would like more information please email me.
As with any financial undertaking, it is always important to ask questions about anything you don't
understand and keep asking until your question is answered. It is also very important to get it in
writing or be shown where it is in your paperwork that addresses your concerns.
Picking your own lender:
When looking at a property and in particular when looking at a new home, you are free to choose
the lender of your choice. Some new subdivisions and builders have made arrangements with
certain lenders to help market their properties and tend to "strongly encourage" buyers to use
those lenders. There may also be incentives to use those lenders but, if you prefer to use someone
of your choosing that is your right. Also, other lenders may be willing to match the incentive!
Changing to another lender:
As a general rule you are not obligated to complete a transaction if you are unsatisfied with any
lender, broker or bank until you have signed your closing documents. You may however, be
responsible for the costs of a credit report and or appraisal if you decide to go elsewhere to
complete your loan. If you have paid for an appraisal and subsequently use another lender, the
appraisal should be transferable to the new lender. Be aware that there may be a small fee to the
appraiser for the transfer.
If you are planning to change lenders during a purchase transaction talk to your agent to see if this
will result in a conflict with the terms of your purchase agreement or seek legal advise.
No Cost Refinances:
The costs involved in a refinance differ very little from a purchase loan other than down payment.
So if someone is offering a no cost refinance, you are probably getting a higher than market rate in
order to compensate for the lower fees. This is okay if you are not planning to keep the property
for more than a year or two, But it can be expensive if you are planning to stay longer or plan to
retire in the home. From a dollars and cents standpoint you need to consider the effect of a lower
rate and some closing costs in contrast to a higher rate and lower or no closing costs.
In addition, most no cost refinance offers refer only to the lenders costs, such as origination fee,
processing fee, doc fee, etc and not to third party costs such as Ecrow, Title insurance and other
closing costs. In general these are added to the loan amount. The bottom line is, compare costs
over the long run. At Pacific Mortgage we will provide a print out of the life of loan costs so that
you can clearly determine which product and closing cost option is right for you.