Mortgages

Before you apply for a Mortgage Loan see an attorney at Klein and Fortune!

It is only on the rarest occassions that someone goes to their lawyer before applying for a mortgage loan. Usually, once they have applied for a mortgage loan they seek the attorney to act as the closing and title agent to close on the mortgage loan, or they close on the transaction completely uninformed as to the lowest interest rates and closing costs because they let the mortgage lender select the closing and title agent. Once you have applied for the mortgage and paid the lender the application fee, it may be to late for us to save you on closing costs and obtain for you the lowest rate of interest. Why use a an attorney at Klein and Fortune to assist you in finding the best mortgage loan for you instead of a traditional Loan Officer?

1. Understanding

Disclosure is not the same as understanding. When applying for a mortgage loan the government requires the lender to provide a number of disclosure documents to insure that borrowers understand the different options and costs. The large number of documents which contain terms like APRs and Yield Spread Premiums, make the process all but impossible to understand.

As a Mortgage Law Attorney I can explain these terms to you and guide and protect you throughout the mortgage process.

2. Representation

Loan officers do not represent your best interest. As a Mortgage Law Attorney I legally represent your best interest in the transaction. Loan officers are Independent Contractors and do not have the duty to protect your interests. They are selling a product and seek to make the most money they can on the transaction. Therefore, they may recommend a loan program that benefits the loan officer rather than you.

3. Advice Not Driven by Commission

When you seek the advice of a loan officer, you are requesting the officer to guide you through the mortgage transaction. Different types of loans pay different amounts of commission to the loan officer. Unfortunately, many times the advice you will receive is based upon the commission paid to the loan officer which is not always in your best interest.

As your Mortgage Law Attorney I cannot receive any monies from the lender, commissions or fees for placing the loan. Therefore the advice I give is based upon what is in your best interest not the lender.

4. Cost

Most clients are unaware that loan officers earn extra fees by "selling" you a loan at an interest rate higher than necessary, even though you may be told that the rate of interest quoted is the lowest possible rate available. These extra fees are called the "Yield Spread Premium" and average between $1,000 and $2,500 per mortgage transaction. Most clients are unaware of these payments because the lender receives them after the closing, and they are not usually disclosed at time of application.

By using a Mortgage Law Attorney in the transaction you can elect to keep these extra fees and apply them to your closing costs or you can elect a lower interest rate, thus saving you money. For example: Lets say you want to borrower $200,000.00. The loan officer quotes you an interest rate of 4.75%, however, the loan officer did not tell you that the lowest interest rate available in the market place is 4.25%. If the loan officer had quoted 4.25% he makes no Yield Spread Premium, and therefore has no incentive to make you the loan. By quoting you 4.75%, the lender is now making 0.5% on the $200,000.00 or $1,000.00, which is money you can save by seeing us first. We can advise you as to the lowest rate of interest available in the market place. You can keep the Yield Spread Premium and apply the savings to closing costs or take the lower rate of interest and reduce your monthly payment.

Before you seek your next mortgage loan, see us first. Let us review your needs, and place you with the best mortgage loan and the lowest interest rate and costs. We receive the mortgage interest rates daily, so we know the lowest rate available each day.

There is no charge for your first consultation, so you have nothing to loose. If I cannot place you with the best mortgage loan at the lowest interest rate and costs, you are always free to go anywhere you like. Give us a try. You will not regret it.