The Reasons Behind The Costs Of Mortgage Loans In Eugene Oregon | Mortgage

The Reasons Behind The Costs Of Mortgage Loans In Eugene Oregon

by BrandonAtterberry

Hoping to refinance your Eugene Oregon home? A great way to find a Mortgage Loan Officer in Eugene Oregon is to use the internet! Simply type in "Mortgage Loans,Eugene Oregon", and take a look at the loan officers available in Eugene. Then, just make a few phone calls until you find that Mortgage Loan Officer who will work to find you a Mortgage Loan that you can be confident is the right choice for your needs.

The common opinion seems to be that those who work on a commission are shifty, dishonest people. They are often portrayed as money hungry, willing to use high pressure tactics, even outright lying to the customer in order to "close the deal" and make that money. However true this may be of SOME commission-based employees, there are many(such as Mortgage Loan Officers, who do not fit this stereotype.

At times, this perception of the commission worker as dishonest can have a negative impact on the officer's relationship with the client.

Anyway, if you are confident in your choice of loan officer, the next thing to do in applying for your loan is to supply your information by filling out the documents and application provided to you by the officer.

You and your loan officer are clear to embark on refinancing your home, as soon as she has completed two important tasks: pulling your credit score, and checking the paperwork to be sure that the information you've given is correct.

After your information is given over to the Loan Processor, it is checked again to make sure there are no mistakes made by the applicant or the MLO. The info is then organized and placed into a file. The LP prepares a disclosure packet, runs your pre-qualification to find out whether Freddie Mac, Fannie Mae, or other will concur that your loan is doable based on the "non-verified" paperwork, and then opens escrow with a local title company.

When you come back to the office about 48 hours after you first apply, it will be to sign your disclosure packet. This will be when you find out how much you will owe in fees related to processing the loan.

There are a multitude of fees charged: title fees, origination fees, appraisal costs, lender fees and more. It is at this point that may applicants are taken by surprise by so many fees, and may become suspicious about how much they are paying to process this loan, and why.

"Why so much money?", the client invariably asks, when presented with the "Good Faith Estimate". Generally totaling about $10,000, the amount can seem excessive, but there are good reasons for this. Most clients simply do not realize how much effort it takes on the part on many paid employees to process the loan.

To illustrate this point, the following is a list of the people who are working to successfully complete your loan: Mortgage Loan Officer, Mortgage Loan Processor, Title Officer & Assistant, Escrow Officer & Assistant, Underwriter, Document Drawer, Funder and Appraiser. These people are all working for you and your loan over the next 4-6+ weeks. These are all needed services to complete the loan and these are all employees who must be paid for their work completed.

Another factor which drives up the price on this Good Faith Estimate is the need to pre-pay the property taxes and insurance reserves. For most people, their property taxes and insurance are lumped in with their principle and interest payment, which creates a reserve account which pays for these taxes and insurance when they are due. However, when you refinance, you must stock your reserve account in order to cover the payments which won't be made on the new loan before your insurance and taxes are due. You will get your old reserve account back, but in the meantime you must pay to "restock" this account before you can get this money back again.

If all goes well, and the loan goes through, then it's good news all around: You get your refinance, and the employees all get paid in exchange for the work they've done. However, if the loan falls through because you aren't approved to refinance after all, then those same employees who have spent weeks working on your loan end up with nothing. Working for free is certainly a loss to the worker as an individual, but also to the companies who have to pay for the other employees who are paid an hourly wage. So, as many applicants don't know, the workers who are processing the loan may wind up working for free.

To put it another way, knowing that their payment is contingent on the success of your loan, what sense does it make to raise a fuss over paying the necessary fees involved?

Most people would not work for free, so why would you expect those who are handling your loan to go without payment? The very same individuals who get upset at the 2% pay cut for the loan officer who is processing the loan for weeks at a time, might pay double or even triple that to the real estate agent who is trying to help them buy or sell their home!

Would you work for free? Probably not, and it would be unfair to expect your Mortgage Officer to do so. Paying them 2% is not an unreasonable fee for the amount of time and hard work that they have put forth toward your success in getting a mortgage loan.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

Want to find out more about Mortgage Loans Eugene Oregon, then visit OMT Mortgage's site on how to choose the best Eugene Oregon Mortgage Loan for your needs.