Frequently
Asked Questions
| ° How is Aaron Mortgage Company
Different than other Mortgage Companies? ° How does the loan process work? ° From start to finish, how long does it normally take to close a loan? ° When does refinancing make sense? ° What's the main difference between Ownership vs. Renting? ° What is a Pre-Approval? ° Main Reasons borrower(s) are initially approved and later denied. ° I have negative credit issues. ° What Is the problem with most internet based loan origination sites? ° How can I compare mortgage loan quotes? |
| How is Aaron Mortgage Company Different than other Mortgage Companies? |
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Aaron Mortgage Company has developed a unique setup that permits clients to use the internet when applying for a loan, while providing branch offices for personal contact. Internet-only based mortgage loan origination services do not work in general. They are too slow, too expensive, and clients have no where to go when there is a problem. With our design, the client always has a real person they can talk with and stop to see at one of our multiple offices.
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You can fax, call, or email us your information.
Or go to "Loan Application" and complete the application
on-line and submit it via the secure website. We evaluate the
information and contact you with our analysis. We strive to do
this WITHIN HOURS...NOT DAYS. It is important to be accurate when
supplying your information, as this initial information is used
to determine our conclusions. Ultimately, all the information
submitted is verified. Any changes from the original information
you provide could alter or void our initial analysis. |
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From start to finish, how long does it normally take to close a loan? |
| We strive to close most loans within 2-3 weeks. |
People primarily refinance to pay off existing
equity lines of credit, get cash out for various reasons, obtain
lower interest rates or convert an Adjustable Rate Mortgage to
a Fixed. Depending on your own circumstances and needs, there
are several reasons, all of which may make sense. Our favorite
program: If you can lower your monthly payment, pay no closing
costs, and cut your mortgage payoff time, refinance every week!
It's not only FREE, but it's good money management. The theory
that you need an interest rate of 2% below your current rate,
and pay thousands in closing costs, is simply untrue. |
Did you know that a rental rate today of $700.00 per month, with historical 7% annual increases, your rent twenty years from now would be over $2,700 per month? Whereas, if you purchased a house for $105,000, at 6.87% over 30 year amortization, your monthly principal and interest payment would be $690 per month. If renting, thirty years later your monthly rent would be over $5,300 per month and your mortgage payment would be 0. Sounds unbelievable, ask your parents what they paid in rent thirty years ago. Home ownership is more than "The American Dream", it is a very wise financial investment. |
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Pre-Approvals are initial qualification of borrower(s) based on monthly income, monthly payments, amount of cash available for closing (if needed), and credit history. With accurate information we can determine your maximum monthly payment along with maximum loan amount. Every borrower should go through this process prior to signing a sales contract.VERY IMPORTANT--Pre-Approvals are not loan commitments. Any changes in your income,credit or current debt could void previous pre-approvals.
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Main Reasons borrower(s) are initially approved and later denied. |
We were unable to verify wages, employment history, or cash reserves required for closing, as presented on the initial application. Or, borrower(s) credit history changed. Borrower(s) should not apply for, nor agree to, any additional debt prior to closing. New inquiries (which show up instantly) on your credit report cause several problems, even those "12 month (no payments) same as cash" promotions, will be scrutinized prior to closing. |
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Depending on the nature of the issues, some are considered more relevant than others, we are able to assist most of our applicants in obtaining a home loan. If a loan is not possible at this time, we can outline a constructive plan, if followed, that should permit mortgage financing in the future. |
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As a mortgage broker, our only business is making mortgage loans. No auto loans. No credit cards. No furniture loans. And, you won't have to set up a bank account in order to get our best interest rates. Also, we do not shop your loan request with three or four banks in order to get you the best rate. We have 100's of sources, with 100's of programs to meet your individual needs. |
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What Is the problem with most internet based loan origination sites? |
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Most Internet-based loan origination sites have overall higher closing costs / interest rates, time delays, and unhappy customers. It appears fairly simple, but these sites cannot compete effectively, nor can they deliver fast service from their vendors, or have a face-to-face conversation with a customer. Aaron Mortgage Company has combined the Internet convenience with local offices and real people to interact with you. We provide timely, personal support coupled with competitive prices so our clients experience the benefit of both.
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Ask three questions. What is the interest rate? How many "points" (or origination fees)? And, what are the closing costs? Many companies have changed the definition of closing costs and leave off fees, such as legal services that can be as much as 50% of the total closing cost. Be aware and ask questions--you have a right to know! |
Aaron
Mortgage Company is an Equal Opportunity Housing Lender.© 2004 Aaron Mortgage All Rights Reserved