Welcome!
I would like to welcome you to LoanStar Financial Corp. As a Mortgage Professional, it is my pleasure to assist you in finding the best mortgage to meet your short and long-term financial goals. Our commitment is to be your lender for life and we look forward to a life-long relationship.
The purpose of this letter is to introduce you to LoanStar Financial Corp. as well as to discuss "The Next Steps" of the loan process.
We believe in the team concept. Each and every person on our staff is here to make certain that your transaction is smooth and enjoyable. We feel strongly that a smooth closing is the result of effort from us and also from you. It is important, that you have turned in your "Item Needs" list as soon as possible and have followed any instructions that you have been given in a timely manner.
IMPORTANT NOTES TO REMEMBER DURING YOUR LOAN PROCESS
- Do NOT have your credit pulled numerous times (i.e. apply for a credit card, a new loan, co-sign for someone else, etc.)
- Do NOT make a large credit purchase
- Do NOT make undocumented large deposits into your bank account
- Do NOT obtain cash advances on your credit card(s)
- DO follow through quickly if our team contacts you for information or documentation.
- DO contact our office if there is a major employment or income change.
- DO contact our office if there is a major change in your monthly debt (i.e., sold a vehicle, paid off a large credit card or installment loan, etc.)
- DO enjoy your home purchase experience.
During the loan process there are a number of companies that are involved in your transaction; our job is to coordinate with each of these companies to make certain that each area is covered. Once a contract is signed or a refinance is needed, we will order an appraisal, title search, and flood certificate as well as work with the title and escrow companies. You will be receiving escrow documents which must be completed and returned to escrow as soon as possible. If this is a refinance, an appraiser will be contacting you to schedule an appoinment for inspection of your property. Again, we need your help in making certain that you have given us the information that we need including which company you will be using for your homeowners insurance. Ensure that your inspections are done during the option period and that all items on your needs list are given to us on or before the due date.
You should have already received a Federal Truth and Lending Report (also called a TIL) along with a copy of a Good Faith Estimate. If not, you will receive it within the next few days. It is very improtant to understand that your TIL will show your APR. Please keep in mind that the stated APR (Annual Percentage Rate) is NOT your interest rate. It is a federally required calculation of what your rate would be if you rolled all your cost into your loan (with the exception of your down payment). Please keep in mind that the APR is NOT how your payment is calculated. You will also receive a Good Faith Estimate that will give you an approximate cost of closing and house payment.
Upon receipt of a contract, we can secure your interest rate. As a Broker, we have the availability to the most competitive rates in the market. We also watch the market all day and subscribe to several services that update us with market movement. Although we do not have a "crystal ball" (it would be nice), we will be able to discuss with you what the market is indicating.
Frequently asked questions:
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Could anything delay approval of my loan? If you provide us with complete, accurate information, everything should go smoothly. You could face a delay if there are issues that come up concerning the appraisal, insurance or title commitment. We wil contact you should this happen.
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What do the closing costs include? Closing Costs are the fees paid to the numerous companies that are involved in your real estate transaction (i.e. appraiser, title company, flood certification, courier, recording fees, underwriter, loan origination, etc.)
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What are prepaids? Generally prepaids are the costs paid upfront, for instance 12 months of hazard insurance, prorated property taxes and mortgage interest.
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When do mortgage payments start? Approximately 30 days after the month on which you close. For example, if you close in August, your first payment is due on October 1 (skipping September). Payments are not late until the 15th of the month, but you should send your payment by the 4th to make certain you don't incur late fees.
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What's included in my house payment? This is dependent on the loan product and will also depend on whether you choose to pay taxes and insurance monthly.
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Can I prepay my mortgage off early or make additional payments? Yes. However, some higher risk loans do have pre-payment penalties. If your loan has a pre-payment penalty, it will be discussed with you in detail by us.
Within approximately 5-10 days prior to closing, you will hear from us to review with you all final information. In the mean time, if we have any questions or information that we need from you, we will be in contact at that time. We do however send E-Mail updates throughout the loan process. What we like to tell our clients is no news from us is good news. We take each and every transaction seriously and do whatever it takes to close on time with as little impact to you as possible.
And finally, the greatest compliment that we can receive from you is a referral from you to your friends and family who are looking to purchase or refinance a home. Our team averages over 95% of our business from referrals or from our past clients. It is extremely important for us that you are highly satisfied with our job performance.
Thanks again for choosing LoanStar Financial.
All the Best,
Carl Spiteri
Mortgage Consultant
Certified Liability Advisor
