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1. Why Use a Mortgage Broker? Answer
2. What is a Mortgage Broker? Answer
3. What do Mortgage Brokers do? Answer
4. How is a Mortgage Broker Paid? Answer
5. How do I know how much house I can afford? Answer
6. What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
7. How is an index and margin used in an ARM? Answer
8. How do I know which type of mortgage is best for me? Answer
9. What does my mortgage payment include? Answer
10. How much cash will I need to purchase a home? Answer
11. Click here for more information from our blog: Answer

Q : Why Use a Mortgage Broker?
A : A broker is an independent mortgage professional who is working hard to save you time and money on your loan, and to keep you educated and informed throughout the loan process.  This help will continue after the loan closing, as well.  Savvy borrowers will use MDI Mortgage for the value we add to the loan process (see more detail below).
 
Q : What is a Mortgage Broker?
A : A mortgage broker is an independent loan originator who specializes in residential mortgage loans.  The fact that we ARE independent allows us to work with different lenders, which then enables us to have many different loan programs and pricing structures to offer our clients.  We are sometimes provided with access to pricing specials which may help you.  Our sole focus is residential lending, and by having no other business distractions, we can fully concentrate on you and your loan.  As your broker, we provide an efficient way to obtain the financing which is most beneficial for you.
 
Q : What do Mortgage Brokers do?
A : Our job as a professional mortgage broker is to continually research the mortgage markets, local and national housing trends, pricing, and loan program guides so that we can be a knowledgeable market leader in our industry.  We act as a liaison between all the different parties involved in the loan process such as; real estate agents, home builders, title attorneys, appraisers, credit agencies, insurance agents, etc.

As your mortgage broker, we will handle all these details to guide you through your loan application:

  • Pre-approval
  • Educating and discussing all the different loan options and discovering which one will be the best match for you
  • Explaining the loan process, from application to closing and beyond
  • Providing you with a comprehensive estimate of costs to expect at your loan closing
  • Completing the loan application form and thoroughly explaining all the loan disclosures
  • Requesting and reviewing the documentation which may be needed for loan approval
  • Providing interest rate lock options (MDI Mortgage does not charge, and has never charged, for a lock-in)
  • Communicating with you and your authorized agents in a timely manner
  • Ordering the appraisal
  • Ordering the title work
  • Helping you acquire homeowner's insurance
  • Coordinating the loan closing and attending the closing, by your side
  • Answering all your questions which may arise during the process

We will be there for you each step of the way. 

 
Q : How is a Mortgage Broker Paid?
A : Typically, a mortgage broker is paid at closing, and by the lender.  Lenders enjoy working with a skilled loan broker, and they pay them to do this work instead of having to cover the expenses of their own staff for originating and processing the loan applications.  The mortgage broker is not paid if the loan does not close.  MDI Mortgage also provides preapproval services at no charge, and we do not collect any type of application fee.
 
Q : How do I know how much house I can afford?
A : Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value.

Because you can often be qualified for much more than you actually want, we view the most important factor in determining how much you should borrow as your own personal comfort level and budget.  Give us a call, and we can help you determine how much you can afford.

 
Q : What is the difference between a fixed-rate loan and an adjustable-rate loan?
A : With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.
 
Q : How is an index and margin used in an ARM?
A : An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).
 
Q : How do I know which type of mortgage is best for me?
A : There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. MDI Mortgage Group can help you evaluate your choices and help you make the most appropriate decision.
 
Q : What does my mortgage payment include?
A : For most homeowners, the monthly mortgage payments include three separate parts:
  • Principal: Repayment on the amount borrowed
  • Interest: Payment to the lender for the amount borrowed
  • Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
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    Q : How much cash will I need to purchase a home?
    A : The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
  • Earnest Money: The deposit that is supplied when you make an offer on the house
  • Down Payment: A percentage of the cost of the home that is due at settlement, less any earnest deposit you have paid.  There are programs available that do not require any down payment.  We will discuss these options when you contact us.
  • Closing Costs: Costs associated with the title search, appraisal, taxes, recording costs and processing paperwork to purchase or refinance real estate.  A loan specific, comprehensive estimate will be provided as part of your loan application process.
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    Q : Click here for more information from our blog:
    A : Get Inside:  Solving the Mortgage Mystery