Frequently Asked Questions

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A mortgage broker (mortgage consultant) is a real estate financing professional who links you with the appropriate lender for mortgage or home equity transactions. Mortgage brokers work closely with lenders (mortgage companies, banks, credit unions, etc.) to provide you with a wide selection of mortgages. In the Commonwealth of Massachusetts, which is where Westchester Mortgage operates out of, mortgage brokers need to be licensed. The official term is “mortgage loan originator license.”

A mortgage broker will save you time and money. The Internet is full of potential lenders claiming to offer the lowest rate. This "low-ball" and switch approach is fraught with risk as lenders try to get you in the door with rates they can never honor. These rates come with hidden fees and exorbitant expenses.

A mortgage broker can help you sort fact from fiction and find the best financing solution for you.

Because Westchester Mortgage is not affiliated with only one lender, I can offer an unbiased recommendation on which program is best for you. Since I deal with hundreds of lenders, I can find you the best rate and options based on your needs.

There are other benefits to working with mortgage brokers. Typically, we are…

• Knowledgeable. Our experience with the entire loan process and our desire to learn about your current financial situation, as well as short- and long-term goals, allow us to match you with the best program for your needs.
• Responsive. We do all the running around for you. We stay on top of the loan process and keep you informed each step of the way.
• Highly Specialized. Unlike other loan officers, mortgage brokers only deal with mortgages, allowing us to be highly specialized.

On April 1, 2011, there was a change in how mortgage brokers/licensed loan originators get paid. Currently, a loan origination fee is paid by the lender or bank to the loan originator who initiates and completes the loan transaction with the homeowner. This is paid out only if and when the loan funds. Mortgage loan originators may not be paid based on the terms and conditions of the loan. The new rule also prohibits “steering” a consumer to lenders offering less favorable terms in order to increase the loan originator’s compensation. Mortgage brokers/licensed loan originators have a set percentage that they receive on the loans. So the percentage is the same for a $50K loan and a $500K loan. It is the same whether it is an adjustable-rate or a fixed-rate.

We offer a range of mortgage services, including assistance with home loan applications, refinancing, and finding the right loan programs that suit your specific needs.

A fixed-rate mortgage maintains the same interest rate throughout the loan term, providing consistent monthly payments. An adjustable-rate mortgage (ARM) has a variable interest rate that may change over time, often with initial fixed-rate periods.

Absolutely! We specialize in assisting first-time homebuyers, providing guidance on available loan programs, down payment options, and helping navigate the entire homebuying process.

Several factors impact interest rates, including the overall economy, credit score, loan amount, and the type of loan. Our team keeps a close eye on market trends to provide you with the most competitive rates.

The down payment requirement varies depending on the loan program. We can help you explore options that align with your financial situation, including programs with lower down payment requirements.

Yes, we offer pre-approval services. Getting pre-approved provides you with a clearer understanding of your budget and enhances your credibility as a buyer in the real estate market.

In addition to the down payment, there are closing costs, which include fees for services like appraisals, title searches, inspections, and insurance. We provide transparent information about all associated cost.

Closing costs and down payments are distinct components in the process of securing a mortgage, each serving a different purpose.

1. Down Payment:
   
   • Purpose: The down payment is a initial lump sum payment made by the homebuyer toward the purchase price of the property.
   • Function: It represents the buyer's equity in the home and is a percentage of the total purchase price. The down payment amount can vary but is typically a percentage of the home's value (e.g., 3%, 5%, 10%, or more).
   • Impact: A larger down payment often results in a smaller loan amount, potentially leading to lower monthly mortgage payments and better loan terms.

1. Closing Costs:
   
   • Purpose: Closing costs are the various fees and expenses associated with finalizing the mortgage loan and the home purchase transaction.
   • Components: Closing costs encompass a range of expenses, including loan origination fees, appraisal fees, title insurance, attorney fees, property taxes, and other miscellaneous charges.
   • Payment: Unlike the down payment, closing costs are not a lump sum paid directly toward the home's purchase. Instead, they are paid at the closing table when the home sale is finalized.
   • Range: Closing costs typically range from 2% to 5% of the home's purchase price.

In summary, the down payment is a direct payment toward the purchase price of the home, representing the buyer's initial stake in the property. On the other hand, closing costs are the various fees associated with processing the mortgage and completing the real estate transaction. Both down payments and closing costs are important considerations for homebuyers, and understanding the distinctions helps in planning and budgeting for the overall cost of purchasing a home.

The timeline can vary, but our team works efficiently to streamline the process. Factors such as documentation completeness and loan complexity can impact the overall duration.

Yes, we offer refinancing services to help you explore opportunities for a lower interest rate, change in loan terms, or access equity in your home. Contact us to discuss your refinancing goals.