FREQUENTLY

ASKED

QUESTIONS

Q: Does Preferred Rate Mortgage charge any up front fees?

A: No. At no time will you be asked to send any money to Preferred Rate Mortgage, costs like credit reports will be included in the loan. Therefore, if you don’t take the loan, you have not spent any money.

Q: Some loan companies ask for up front fees before processing a loan, is that legal?

A: Yes. Many companies require a non-refundable credit report fee and an upfront appraisal fee. Some even ask for an application fee. These fees generally cost the borrower $300.00 to $500.00. If the loan doesn’t go through, the borrower is out the money.

Q: Do I have to pay for an appraisal?

A: At Preferred Rate Mortgage, we get you pre-approved before ordering an appraisal. In most cases the appraiser will know whether or not the value is there BEFORE he goes out to your home. If there is not enough value the appraiser will not go out and you will be charged no money. If he does come to your home, you will pay him directly.

Q: Can I choose my own appraiser?

A: Yes! As long as the appraiser is an approved licensed appraiser. If you don’t know an appraiser, Preferred Rate Mortgage will handle that for you.

Q: I already have had an appraisal done on my home. Can Preferred Rate Mortgage use that appraisal?

A: In many cases if the appraisal is less than six months old and it is done by an approved licensed appraiser we can use it.

Q: Once I fill out an application with Preferred Rate Mortgage am I obligated to take out a loan?

A: ABSOLUTELY NOT, and we have no cancellation fee.

Q: How quickly will my loan be approved?

A: Once your completed application and any requested documentation is received, you should receive an answer within 3 business days.

Q: How can I find out what the most current interest rates are from Preferred Rate Mortgage?

A: Simple!! Just pick up the phone and call our toll free phone number 888-CASH-411. Be prepared to answer some questions about yourself because your rate may be different than another borrowers. Our rates depend on things like your credit (good or poor, we can help), income (lots of income or no proof of income, we can help), and the amount of equity in your home (lots of equity or no equity, chances are we can help). Or fill out the quick form on the Contact us! page and we will contact you.

Q: What is a balloon payment?

A: A balloon payment comes from a loan where the schedule of payments made is insufficient to fully pay off the loan when it comes due. The remaining balance is all due and payable at one time.

Q: Do Preferred Rate Mortgage loans have balloon payments?

A: No, all of our loans are fully amortized; that is to say that your last payment will be pretty much the same as your first payment on the loan.

Q: What is the difference between a Mortgage Banker and a Mortgage Broker?

A: A Mortgage Banker profits from the interest rate that they offer the borrower so when they offer you a rate, the Bankers benefit also. A Mortgage Broker can work with many lenders and bankers and therefore offer a wider selection of loan programs and interest rates.

Q: How do I know if I am getting the preferred interest rate based on my situation?

A: Preferred Rate Mortgage does not profit from the interest rate. We work directly for you, the borrower. Therefore it is to our advantage (and yours) to offer you the VERY BEST interest rate that you can qualify for.

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