If you have visited other real estate financing web sites, then you already know about FAQs and how they all have the same ho-hum questions and answers. It's enough to make you fall asleep! We, however, have the NOT So FAQs. Shoot, it's the stuff you DON"T know and hear about that can hurt you the most, not the common information that's found everywhere!

Here are some important Not So FAQs that you need to be aware of because failure to know this stuff can unknowingly harm you.

I keep getting e-mail solicitations for home loans. What's the story behind all of them? These folks are in the "lead generation" business. They could be students, they could be little companies, they could be foreigners in other countries. Yup, it's true. They are all trying to get information about you so they can sell you to the highest bidder. Who knows what happens with the information you provide. Best advice: Stay away by not responding. Good straightforward companies don't use bizarre e-mail addresses to conduct business.

I heard the Federal Reserve Bank changed interest rates. Will mortgage interest rates change too? Interest rates for mortgages are usually priced in before the announcements by the Fed. So rate changes usually occur several weeks before any announced rate change. Bond traders, the key people behind mortgage interest rates, keep a close eye on Ben Bernanke and the Fed governors and act quickly to their actions and comments. By the way, it's the ten-year Treasury note that is tracked for mortgages.

How do online lenders offering competing loan quotes work? Any mortgage company, good ones and bad ones, can pay a high fee to "join the club" in order to be referred to you. They have no obligation to deliver on their rate quotes and they try to recoup their high "club" fee through you. Most of our business, however, is from referrals based on past superior customer service and low interest rates so it is not necessary for us to join an online costly lead generation system.

My good payment history can't be found on my credit report, why? Could it be that...? Yes, it is! It's a financial company that could be trying to hide you from competitors on future offers for mortgages and credit cards. This usually happens to consumers with previous credit problems that have turned around their low credit scores. A company will not report your timely payments for fear of solicitations from competing companies. Solution: Call the company and DEMAND they report your good payment history. Be nice, it could be an honest mistake. If necessary, call the state attorney general's office and the Federal Trade Commission to file a complaint.

My agent says they can do the sale and the loan. Is this in my best interest? Probably not. Think about it. There's enough for a good real estate agent to do in one sales transaction without having to handle a loan for a client as well. The lending side of the business takes a full-time professional to keep up with the day-to-day changes that constantly occur. It's a complicated business. Loan programs are always evolving. You'll get the best service when someone does one thing very well, not two things with mediocrity. I have never met an agent or a mortgage broker that did both sides of a transaction very well, period.

Is it a good idea to lock my interest rate with my application? While some direct lenders require you to lock your rate when you make application, it certainly may not be wise. Here's why. If rates are likely to rise before the close of escrow, then locking in a lower rate is an obvious choice. However, if there's a chance rates could decline, you don't want be locked-in and miss out on a possible decline in rates before your loan closes. Work with someone that understands how the economy effects interest rates and which way they are like to go during your escrow.

Are consumer debt agencies helpful? They can be, but be sure to read this report before signing up with one. You want to be sure you know what you are getting into and then choose carefully. Know this: signing up with these agencies can effect your credit just like a bankruptcy. Most people don't realize that.

Shouldn't I just use the same lender I have now when I refinance or make a purchase? If any one lender always had the best loan programs, the lowest interest rates, and the lowest costs, everyone would go to them. There would be no competition. The truth is, lenders go through hot and cold spells. One week lender A has the lowest rates and quick approvals. A few weeks later their rates aren't as aggressive and just getting an approval is difficult, let alone a quick approval. In the mean time, lender B now has lower interest rates than lender A and seems to be approving everything with few conditions. Not to be left out, lender C makes some loan program changes and is now much more competitive. This is how the real world of real estate financing works. Also, most lenders are only rate and cost competitive with a very few of their loan products. They're good for this but not for that. If you want the best, you should always go through a mortgage broker who keeps a watchful eye out for the 'hot' and best lender for the loan program you need. If you just keep returning to the same lender, you could be making a big and costly mistake. Know your lender options by using a mortgage broker.

In a weak moment I co-signed for a home loan for a friend. Can I still qualify for my own home loan now? Maybe. This problem can usually be remedied by documenting that your friend has been making the payments on time for a reasonable period. The lender in such case will probably remove the debt from your loan application. You remain a co-signer, but the lender is ignoring your obligation to the other lender in assessing your ability to repay a new loan in your name. Be careful about co-signing for others and think ahead how it may affect you later.

Will lenders count my deferred student loans when qualifying for a home loan? The general rule is that deferred payments will be included as an expense if they begin within the first year of the mortgage. If the payments are deferred more than a year, they won't be counted unless the amount involved is very large, or the borrower's credit is weak. This is a judgment call on the part of the underwriter

How can you close my loan if you are not in my area? The Internet, fax machines and overnight mail services have eliminated the need for proximity to process and close a loan. We use preferred local appraisers in your area. On purchase transactions, we work with the local escrow company you and the seller have agreed upon. On refinance transactions, we utilize a professional signing service to bring the loan documents to your home or business for signing.

Have a question that you would like to have answered? Write us and we'll respond promptly.

4715 Viewridge Ave., Suite 200, San Diego, CA 92123
Office: 858-292-6731 / Toll Free: 800-420-8004 Ext.131
Fax: 858-292-6720

California DRE #01216829

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