Questions & Answers

Why don't you advertise your rates online?

A valid rate quote must be based on some knowledge of the property, borrower, and loan program. Published rates are based on a set of generic caveats regarding loan program, Loan to Value Ratio, Credit History, Income, Employment, Debt Ratio, documents available, etc. While valid, published rates probably apply to very few borrowers (like the average shoe size actually applies to a very limited group). We publish rates in some local newspapers as advertising. When a customer sees that advertising they call us and we gather the necessary information to determine whether or not the published rate is valid for them. We leverage the value of the Internet by gathering that information at the customer's convenience (e.g., a customer can provide the necessary information at 2 a.m.); and responding to the customer in the manner, and at the time, the customer prefers. We feel this is more effective than publishing what is too often a misleading rate. 

What is the difference between pre-approval and pre-qualification?

When does it make sense to refinance?

Usually people refinance to save money, either by obtaining a lower interest rate or by reducing the term of the loan. Refinancing is also a way to convert an adjustable loan to a fixed loan or to consolidate debts. Sometimes a borrower with a significant equity position in their home will refinance in order to cash out some of that equity. Those funds are then used for other investment options. The decision to refinance can be difficult, since there are several reasons to refinance. If you are looking to save money, try this calculation first:

1.   Calculate the total cost of the refinance

2.   Calculate the monthly savings

3.   Divide the total cost of the refinance (#1) by the monthly savings (#2). This is the "break even" time. If you own the house longer than this, you will save money by refinancing.

Since refinancing is a complex topic, consult a mortgage professional.

What is a rate lock?

A rate lock is a contractual agreement between the lender and buyer. There are four components to a rate lock: loan program, interest rate, points, and the length of the lock.

Should I lock the rate?

No one can give an honest answer to this question because no one can predict whether rates will go up, go down, or remain the same. Keep in mind that, with most mortgage programs, it costs money to lock a rate. The longer the lock period, the higher the cost. This question is further complicated by the fact that a guess that the rates will increase is not enough to justify the cost of locking. Your guess must also include how much the rate will increase. This is because the same dollar amount you could spend on a lock can be used to buy down the rate instead; so the rate increase must be greater than the buy- down rate before paying for the lock would be advantageous.

Some experts argue that the simple fact that rate locking fees are set so that the banks make money is a clear indication that it is not in the consumer's best interest to lock. They recommend locking only if a) your qualifying ratios are so borderline that an increase would disqualify you for the mortgage, and b) you can better afford to pay the locking fee than the costs associated with an alternative mortgage program. Again, seeking the advice of mortgage professional is prudent.

How much and what kind of paperwork will I need?

* 1 - 2 years of W 2's (and maybe the associated tax returns)
* 1 month of pay stubs
* 2 months of bank statements
* statements of retirement accounts

How long does the process take?

A pre-qualification or a pre-approval can usually be done the same day it is requested. A pre-approval takes more time because you need to provide the appropriate supporting documentation. So a pre-approval may take 3 hours whereas a pre-qualification may take as little as 15-30 minutes.

The time needed to complete the mortgage process depends on many factors and other professionals. Appraisals can take anywhere from 5 days to 2 weeks. Title work can take anywhere from 1-3 weeks (especially if being arranged through an attorney who might not even request the title work until after the appraisal is done).

From the time we have all the necessary documentation (title and appraisal), we can have a commitment from a lender in less than a week. You should be able to close within a couple of weeks after that. If time is a serious concern, be sure to express that concern (we may select a different funding source which may affect the fees we quote you), and ask us about saving time with respect to the Title work.

What if my credit is bad?

Weak credit can be a stumbling point. Having poor credit is only one more reason for calling Corinthian Capital Group. We can do a quick credit analysis for you and then let you know how we can help and explain exactly what needs to be done to improve your credit standing. We will work directly with you during this process. We also have access to a variety of lenders who are willing to make loans to borrowers with less than perfect or even poor credit if certain other conditions are met. 

Are you looking for an answer to a question not yet shown here?

There are no 'dumb questions', just those we haven't answered here yet.  Send us your question and we will get back to you with an answer. Check back here later to see if we added it to our growing list of commonly asked questions.