Obtaining a Proposal for Refinancing Your Current Mortgage with a New Mortgage
To obtain a proposal from me is simple.
It takes only 2-3 items from you.
First we have a quick initial conversion in which you explain your situation and what you are trying to accomplish. We may have already done that. Initially, I make the assumption that since you own the home you can qualify for a loan, just for proposal and quoting purposes.
The second or next thing I need is for you to send me a copy of your most recent mortgage statement(s). Normally everyone has a first mortgage but some people also have a HELOC (Home Equity Line of Credit) or Traditional Fixed 2 nd mortgage. So if that is the case please send a copy of both of your most recent statements.
You can send me your mortgage statement(s) by scan/printing it to PDF and emailing it to firstname.lastname@example.org or fax it to 360-222-3240. You can bring it to me or ask me to come get it if you do not have access to such equipment. Or just mail it in normal mail to:
Robert Fulton 3790 Shorewood Ave Greenbank, WA 98253.
I prefer a PDF in email.
Generally, since I am fortunate to be working with existing clients most of the time, due to my time in this business, or at least very strongly positioned referrals there is no resistance to forwarding me their mortgage statement. So, if you are doing that there is little reason to keep reading, unless you what some insight on what information is covered in my proposal from having received your mortgage statement.
However when I do not know someone yet, once in a while I do get some some resistance, so below I will list my reasons to ask for your mortgage statements, as a onetime presentation to get your business.
There are many purposes of me receiving these statements, I will share some of them.
As they say a photo is worth a thousand words and I often think of it as an X-Ray of what you have now. Receiving it in email not only demonstrates cooperation by my prospective borrower but shows me they have the familiarity with computer technology and own the equipment to use email to send things I need throughout the transaction timeline. This may give me insight to the interest rate locking period needed to protect the rate, if we do business. This will help me quote the Rate/Fee Blend with the proper rate lock period.
Receiving the mortgage statement give me the information to make a complete, compliant, meaningful and more accurate proposal.
Escrow: Ultimately, if you accept my proposal and we proceed with the refinance transaction and it will not be long before I am opening Escrow on your behalf and I will then need the mortgage statement(s) to identify the loan(s) so they can get a payoff from that lender(s).
Protects file from slowdowns: I learn up front how your name is on title, (your exact name on the DOT) and see how the DOT has your property address which may not be the exact same as the postal address. This protects us from building file for you to later find out I pulled a credit report, (or ordered more items) using a name for you that is one letter off from matching how you are on title.
It tells me the exact break down of Principal and Interest. I can understand how much goes to equity. I can show you the exact reduction in interest cost. It will allow me to use an Amortization Schedule as part of my proposal.
It tells me the exact about the lender is impounding in the reserve account monthly (if any) for Property Taxes and Insurance. It will tell me how much your currently have in your escrow impound account, held by your current lender on your behalf to pay for future taxes and insurance. This will be refunded about three weeks after it is paid off by the refinance. Then, I can then cross reference this against the county records to help confirm if it is the proper amount. This information will help me teach you your configuration options. All this will help us transition for one lender to the other from a cash flow point of view.
It will tell me if the current loan has MIP or PMI on it and what the monthly cost is. It lets me know the total PITI payment.
It gives me the principal balance (which is not the payoff) but help me estimate and project the payoff amount, and therefore help estimate how much the new loan should be to match your file configuration objectives which we will soon review. So having this information will allow me to calculate the approximate funds needed to close escrow. My normal objective is not to increase the new loan amount more than necessary and keep the funds to close equal or less than you normal monthly payment. But will will end up configuring the transaction on your objectives not mine. In need to at least tentatively establish a loan amount to do a proposal and having the correct amount to begining can be very helpful.
It lets me know who the current lender is and their loan number so I can match it against the credit report when and after I pull your credit. But it provides me information that will allow me to delay pulling your credit report as part of the presentation and sales process like so many lenders try to get you to do, as a time management tool for them. They may not be good for your credit scores. Please try to select the lender, using the assumption you can qualify for a loan with a lower payment than the one you have now, before the pull credit.
When I review the statement it often triggers more questions I need to ask that I missed in the beginning.
My proposal will be multiple pages in a PDF and will include giving you back a copy of your mortgage statement which I will be adding notes to with a pen. This will help you understand the process and make a comparison with what you have now and more quickly understand the different file configurations which I think you should consider.
Regulatory Compliance: Requires all my close loan files are documented for audit whereby I can prove all my transactions offered a net material financial benefit and were in the best interest of my borrower, so I need to completely understand what you have now and document the comparison to what I am offering you, in my file.
Regulatory Compliance / Law: Requires Mortgage Brokers and Banks to have a compliant Red Flags Rule Policy, which is to prevent and mitigate crime associated with identity theft in connection with opening a refinance. This is the being of the papertrail to protect the public. Per my regulatories, I must shut down any transaction until all such issues are resolved.
Time management: I will learn quickly if I should stop working on any file not in the best interest of the borrower to proceed.
I said at the top there was 2-3 items to send me. The 3 rd would be if you have other proposals from other lenders I encourage you to send them too.
I look forward to doing you proposal as soon as I receive your mortgage statement.
This Site is Not Tax or Legal Advice. Always consult Legal Counsel and Your Tax Advisor. Content of website are the sole opinions of Robert Fulton & does not necessarily reflect those of Fulton Financial Consultants, Inc.'s Investor/Lenders or insurance companies or other product vendors. Because one of my product lines is that of Reverse Mortgages I must state the following: If the borrower does not meet loan obligations such as taxes and insurance, then the reverse mortgage will have to be repaid." The Terms, benefits and features shared as accurately as possible on best efforts basis and subject to change without notice. Therefore please discuss any decision making specifics with Robert Fulton 360-222-3236. "This material is not from HUD or FHA and has not been approved by HUD or any government agency."