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:
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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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