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Cherry Creek vs. Internet Lenders

Even though we have an internet presence, it is offered as a convenience to our bonafide clients. We advise caution with all internet transactions, especially those that try to cover all states. Our question is: when you can get excellent rates and personal service right here at Cherry Creek Mortgage, why go all over the countryside looking for money? 

How do we compete? Pricing available from the major wholesale institutions has many variables. Cherry Creek is uniformly at the top tier, obtaining the best wholesale price from each institution, for a variety of reasons:

We are a direct lender. Cherry Creek funds the mortgages it arranges and sells them after the closing. We get improved pricing in the wholesale market because we take on this responsibility.

We have high net worth. Because we can accept greater risk on a loan-by-loan basis we earn better wholesale pricing.

We have low fallout. Our excellent 15-year history allows correspondent wholesale institutions to trust that the loans we say we will close will, in fact, close. Some major online lenders close just 10%-25% of applications. Industry-wide the average is under 75%. We close more than 80% of applications. 

We use technology to cut costs. We've streamlined the processing and focused cost-cutting technology on the underwriting and closing of a mortgage. This leaves the mortgage consultant time to work with you. He/she will help you choose the mortgage that's right for you personally, take responsibility for the mortgage from application to closing, and then manage the mortgage for you for as long as you have it. We want to be your "lender for life".

Let's define some key terms used to compare lenders.

What you see as your interest rate is the note rate of your mortgage. The note rate is used to calculate your payment. It's what you think of as your mortgage rate. Be careful of "billboard" quotes that are based on very low note rates. Even though the rate may be lower, the costs are very high. The higher the difference between the note rate and the APR, the higher the true costs for that loan.

The APR, or annual percentage rate, is critical. The Federal Trade Commission requires an accurate APR and we all have to use the same formula. APR includes lender fees, such as points and loan origination fees along with other costs in addition to the note rate. The APR makes the comparison as close to level as possible. However, the APR does not include all loan costs. For example, title insurance is excluded from the APR calculation as well as courier and overnight fees. 

Remember, working with an Internet lender is a do-it-yourself process. They want you to believe that working with a mortgage consultant adds to the cost of getting a mortgage, and that they cut out the loan officer commission. It just isn't true. The Wall Street Journal reported on June 2 that promises of the "best rate" on the Internet can go unfulfilled and that pricing can be confusing over the Internet. 

Ask yourself if these are important to you:
• Getting the right advice. 
• Developing a financing strategy. 
• Working with a local presence. 
• A lender who has been in business since 1971. 
• Impecable reputation. 
• The Moveup Homebuyers Tax Analysis. 
• Power HomeBuying, so you get more home on the same payment. 
• Refinance savings certificate to every customer. 

These are just some of the benefits of financing through Cherry Creek Mortgage Company. Call
us today to learn more.

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