1 Sep

What does the APR on some of the documents mean and how is it different from my mortgage rate?

General

Posted by: Joel Olson

On some of our forms you will see an interest rate and an annual percentage rate. This two numbers are not the same.

:The definition of an APR is  the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loanmortgage loancredit card, etc. It is a finance charge expressed as an annual rate”

In other words, your APR includes the cost of your mortgage for the year, For example should you pay $1000 in legal fees and $1000 in interest fees for one year on the mortgage, and your mortgage is $100,000. Your APR would be 2%.

In most cases, in terms of a mortgage this is an irrelevant number. However, if you were given a credit card with a 30% APR and 5% interest rate, you would know there is a a fee you are paying that you are not aware of.

1 Sep

How long will it take to get an approval?

General

Posted by: Joel Olson

A single individual at a lender with the computing power of a Commodore 64 surrounded stacks of paper files is expected to review and approve not only all of your files documents, but those of 16 other files within a single workday.

 

The process depends on a complete documents package being submitted on day one and that will receive the fastest response, and even then that response may well be two, three, or even five business days away is vital.

 

i.e.

Switch – Submit 45 days in advance – ‘File Complete’ 30 days prior to maturity

Refinance – 10 business days for review, 30 days to fund from date of submission

Purchase (no conditions) 5-10 business days for review – ‘File Complete‘ 15 days prior to funding

Purchase (with conditions) 3-5 business days for review – ‘File Complete‘ 15 days prior to funding