FAQ

How do I get general information about Care-Mor's services?
You will find our website full of information about us and our services or please call at (408) 243-3155 between 8:30am and 5:00pm Pacific Standard Time.

Do I have a human contact in my loan process?
Every loan package is assigned to a team of Loan Counselors and a File Manager. File Managers can answer most questions regarding the status of the loan. You can contact them via their e-mail or phone at (408) 243-3155. Loan Counselors can quote rates, assist you in selecting a type of loan and rates best suited for you.

How does Care-Mor keep my personal information secure?
Care-Mor understands the sensitive nature of your personal information. Our online loan application resides on secure server which prevents anyone else over the internet from reading your information. Our LoanTracker is Loan # and password protected. You will be the only one to receive that information.

Does Care-Mor share client information with other companies?
Care-Mor is committed to your right to privacy. We do not share your personal data with anyone outside of the purpose of processing your loan.

Is there someone to work with my Realtor®?
Yes. Each loan is assigned to a team of Loan Counselors and a File Manager. File manager will typically assist you and/or your Realtor® via e-mail, phone and fax.

How can I check rates?
Our rates are posted on-line on a daily basis. Additionally, we update them as needed. You can also setup a Rate Watch to send you an e-mail if the rate meets your criteria.

Can I get rate quotes by phone?
Please note that our File Managers can't quote interest rates over the phone due to State licensing requirements. However, you can get rate quotes from the Loan Counselors.

What is my cost for a pre-approval?
We can pre-underwrite or review loans only when the credit report fee of $50 has been paid.

What is my cost for a full loan application?
Our loan application fee is $350 to be paid upfront with a credit card or personal check. This fee is non-refundable even if the loan doesn't close for any reason.

What is a rate lock?
A rate lock freezes your interest rate and points associated with it. A lock also commits you to close the loan at the rate and the fee. This locks you in even if rates decline prior to closing.

When should I lock a rate?
You can lock a rate anytime after we receive and review your signed loan application and supporting documents. Whether you should lock a rate or not depends on how long you need to lock it, the additional costs to lock for longer periods, your expectation of what will happen to the rates. Your Loan Counselor can assist you with many of your questions.

Please note: You can only lock a rate once you've found a property.

What rate lock period should I choose?
Your choice of rate lock periods will vary from lender to lender. You can usually choose 30, 45 or 60 days - longer is possible, but can be expensive. To select the right lock period for you, please talk with your Loan Counselor to get an estimate of how long it will take to close your loan.

Be sure to consider the time it takes to complete an appraisal and title search, and to satisfy all of the lender's conditions before your final loan documents can be prepared.

How does the rate lock period affect a loan's interest rate and points?
Normally, the longer the rate lock period, the more points that you have to pay. The lender is taking a greater risk when they guarantee a rate for a long period of time, so they charge more points.

How do I lock a rate?

1. Select a rate for your specific loan.

2. You may lock your rate by:

a. Lock Rate On-Line. See Rate Lock Instructions

b. Call your Loan Counselor to request a rate lock.

3. Please keep in mind that some lenders have an early afternoon deadline for rate lock requests.

4. We confirm the rate with you before locking it.

5. We'll send you an email as soon as we receive final confirmation from the lender.

6. Once you receive your confirmation, your rate is guaranteed by the lender for the rate lock period.

Can I change a rate after I've locked it?
No. Once you commit to a rate, a lender doesn't allow you to change it. It's a two-way-street the lender commits to your rate even if market interest rates go up, and you commit to the loan rate as well, even if rates fall.

What is a "floating" rate?

You may have the option to let the rate "float," getting the final rate and fees set nearer the settlement date. If you believe rates are declining and are willing to run the risk that interest rates could rise during the processing of your loan, you may select this alternative. Before you take a floating rate, make sure that the rise in interest rates will not create a problem for you because you have insufficient income to cover the higher mortgage payments. In either case, make sure you understand exactly the terms of the lock-in agreement.

Is the best rate the lowest rate?

Points take two forms - origination and discount . Origination points are meant to cover the cost of originating the loan.

The more discount points you pay, the lower your rate will be.

That's why we have so many pricing options to choose from.

Avoid paying points when

You need all the cash you have to pay off bills to qualify
You're short on cash reserves or cash to close
You don't intend on keeping the property for more than about 7 years
You think you might refinance within the next 7 years

While this is an important decision to make, you can always change your mind later on, when your loan is in processing. Just let us know in plenty of time so we can make the appropriate changes to your application.

What are the cost savings with an on-line loan application?

The on-line loan application is much faster for you -- and for us too. As a result, we can pass on substantial savings to you.

The up-front loan fees will be lower by about 1/2 point.

In a no-point, no-fee loan, the rate will be lower by about 1/8 point.

For some loans your credit report will be less than $25 per individual or married couple.

Underwriting and processing fees may be lower by as much as $250 each.

And, depending on which loan program you choose, your appraisal may cost as little as $200, rather than $300 or more.

What will an underwriter look for?

Underwriters work for the lender and must decide to approve your loan -- or not. They will evaluate your loan application and documentation to see if your criteria meet the minimum guidelines for the specific loan program you are requesting.

In general, they will look at three general areas:

1. Your Income and Employment: Sufficient income to cover your proposed total debt load. Do you make enough money to actually pay for all this debt you're taking on, after paying for taxes and living expenses and going out for dinner and a movie once in a while?

2. Your Assets: Sufficient assets to cover contingencies. If you lost your job tomorrow, would you default on all your debt the next day, or can you carry yourself for a while?

3. Your Credit History: Is the amount of proposed total debt reasonable for your income and lifestyle? Have you somehow found a way to pay all your obligations in the past no matter what?

Why should I use a mortgage broker instead of a mortgage banker or a bank?

Brokers have dozens and even hundreds of lenders to whom that they can broker your loan, and from which they can shop for your program with the best rate. If you have challenges in your file, your broker is your advocate who does not get paid until he sells your file to a lender. If your loan is turned down by one lender, the broker can take the package back and shop your loan another lender.

Remember: Your broker doesn't get paid until your loan closes. Your broker works for you.

Mortgage bankers have only their own source of money. Once your turned down, that's it for that mortgage banker.?

Doesn't it cost more to go to a broker rather than going directly to the lender?

Most unlikely! As a mortgage broker we process, market & pre-underwrite for the lenders, saving them valuable time & money. Often their cost of performing the same functions would be much higher.

Why would banks & mortgage bankers allow brokers to bring them loans?

The mortgage process involves:

1) Origination

2) Processing

3) Underwriting

4) Servicing

Marketing programs, counseling customers and processing loans is an expensive segment of the business. It is also a very volatile segment. Lenders who offer their loans through brokers avoid the risks of market fluctuations. In fact they typically do more business through brokers.

What happens after I apply for a loan?
Care-Mor will inform you that your loan application has been received whether online or by mail. We will setup your file and within 3 business days mail you a list of items that we will need to complete your loan application and any other loan documents that may require your signature.