Q: Does it benefit me to shop around before committing to DMA?
- That's the beauty of working with DMA. We are a full-service brokerage, meaning we do not work with any one particular lender. We do the shopping for you, and then we match you with the best available lender & rate.
- Your interest rate will move up and down with the market until you decide to 'lock' the current rate. Once you 'lock' the rate, it is protected for anywhere between 30-60 days depending on the amount of time needed to complete the process. A rate lock is always advised in order to protect you from market fluctuations.
- There are two different loan category's – Conforming and Jumbo. Your loan amount will determine which category you belong to.
- There are several product types including 10/15/20/30 year fixed rate loans, or 5/7/10 year adjustable rate loans. Fixed rate loans are fixed for the entire term of the loan. Adjustable rate loans are fixed for a shorter specified period of time, and then become adjustable after the fixed rate period expires.
- There are benefits to both products, depending on your specific situation. Divorce Mortgage Advisors can assess your current scenario and advise you on whether a fixed or adjustable rate product is right for you.
- When you pay a discount point, you are essentially paying part of your interest to the lender up front. This will lower your interest rate—as well as your monthly payment—over the life of the loan. One discount point is always equal to 1% of the loan amount. For example, one point on a $100,000 loan would require payment of $1,000 at closing. Generally speaking, the longer you plan to remain in a property or hold your mortgage, the more advantageous it is to pay points. There is no requirement to pay discount points; whether or not you decide to pay points is completely up to you.
Q: How long does it take to get pre approved?
- Once we receive all of the documentation that we need, we commit to a 24-hour turnaround with your preapproval. If you are diligent about providing the info we request, then we can quickly get you the answers you are looking for.
- Taking an application can be done over the phone in 10 minutes or less. You should reach out to us to confirm once you are ready to lock your rate and move forward with next steps.
- This can vary lender to lender, but generally, the process takes anywhere from 30-60 days, start to finish. DMA has a proven track record of closing loans faster than expected, and your DMA advisor will keep you informed of status throughout.
- Our goal is always to make the process as streamlined and efficient as possible. However, lenders in today's world require a full file including income, assets, credit, etc. If a 'reduced documentation' loan ever becomes available, you will be the first to know.
Q: How much do your services cost me?
- Working with DMA is completely free. We do not charge anything for your analysis or mortgage application. DMA is paid directly by the lender that originates your mortgage. Every lender pays us the same – so getting you the best rate is the only incentive we have to use any particular lender.
- You are not required to pay anything up front. All 3rd party closing costs are paid at closing once you sign the final loan doc package.
- Closing costs vary depending on the size of the loan and the type of transaction. As a general rule of thumb, closing costs can be anywhere between $2500-$4000. You should check with your DMA advisor to obtain an accurate fee quote prior to applying.
- Remember, you don't get something for nothing. In other words – if you want a lender credit for closing costs, you will have to accept a higher interest rate. If you want a lower interest rate, you will have to be prepared to pay additional closing costs. Your DMA advisor can help with the cost comparison and explain your various options.
Q: How does DMA differ from a bank lender?
- We work for you, not the bank. Therefore, our goal is to do all the leg work up-front and then find you the best lender to work with. This helps save you the time of going through the same process over and over with various lenders. We also offer you creative solutions to getting approved, something that a bank lender will never do.
- Although appraisals related to your divorce as valuable, they are not accepted by bank lenders. Every lender has their own appraisal management company that borrowers are required to use for mortgage purposes.
- Similar to the appraisal process, every lender needs a credit report run by your mortgage professional. A credit inquiry is only a soft hit on your credit, meaning that it is temporary and has a very minimal impact on your score - if any at all.
- There's nothing that DMA takes more serious than your privacy. We have processes and procedures in place to ensure everything is fully confidential. We don't relay any information to 3rd parties without your verbal or written consent, and we respect your desire to keep everything private.