Common Questions
1. How do I get started?
Our process is super user friendly and efficient. Please simply complete an online application or call our office so we can take an application over the phone. The process is very simple and we guarantee it will be the easiest and most efficient mortgage experience of your life.
2. Why use a small broker?
Price, selection, transparency and service. As a broker, Axel Mortgage is contracted with some of the best priced lenders in the country. Our rates and closing costs are some of the lowest you will find in the industry and are often ½ point below national averages. Because we work with multiple lenders we often have products that large lenders or banks do not carry giving you a much larger product menu. Our process is streamlined and super simple resulting in average underwriting turn times of less than 2 weeks. Your loan will be professionally managed by Jim Merrill (The Broker) and not handed off to an hourly employee.
3. What is your application fee?
Zero, we have never charged an application fee.
4. Do your loans have pre-payment penalties?
Nope, Never.
5. What does it cost for a prequalification letter?
Zero, we gladly perform the analysis for free. We even pay for the cost of the initial credit report to save you money upfront.
6. Are Large Brick and Mortar Banks Safer and More Secure to do business with:
This is an absolute myth. The Loan Officer you would work with at the bank is not licensed, they are registered. They have not had to undergo the scrutiny of licensing and bonding that a mortgage broker has gone through. Banks and Large banker employees are usually fresh to the business and very unseasoned. The average underwriting turn times at a bank are 3 times longer than you will find at Axel Mortgage and their rates and closing costs are substantially higher. Why pay more for substandard service?
7. What are your closing costs?
At Axel Mortgage, you can control your closing cost structure by the rate you chose. The lower the rate, the higher the cost structure. The higher the rate, the lower the structure. You will be presented with several proposals and pricing models to help you determine the best option for you. A simple .125% hike in the interest rate could provide you with thousands of dollars in closing cost credits so we want you to be educated about all options available. Our no cost loans usually have a lower rate than a bank or large banker that is charging points.
8. Do you offer no cost loans?
Absolutely. In fact, the majority of the loans we have closed the last few years were no cost. Please remember you chose your pricing with us and you always have a choice in how the loan is structured.
9. How does Axel Mortgage get paid?
We get paid directly from the lender on 99.9% of the loans we process.
10. Does your lender offer Bi Weekly Payment and Auto pay options?
Our lenders offer every option available in mortgage servicing (Automatic Payments, Bi Weekly etc). I never advise a client to pay for the Bi Weekly set up fees all servicers charge. This is something the client can do themselves for free. Please remember the concept of bi weekly payments will simply add one extra payment per year to your plan, thus paying down the principal balance at an accelerated pace. Simply take one payment per year and divide it by 12. Add this figure to your regular monthly mortgage payment and you have just set up a bi weekly plan for free.
11. What is your minimum down payment for a home purchase?
We have 1st time homebuyer programs that only require 1% down. Most programs require 3-5% down for qualification. We are happy to design a program around your budget.
12. If I put down less than 20% will I have to pay expensive monthly mortgage insurance?
Nope. We have many programs that have no monthly mortgage insurance with down payments as little as 1%. The lender pays the cost for the mortgage insurance upfront so you don’t get stuck with the monthly payment. The tradeoff is the rate is slightly higher for these programs, but the monthly mortgage payment is usually dramatically less per month than if you had a lower rate with monthly mortgage insurance. We will gladly provide you proposals with and without monthly mortgage insurance so you can make an educated decision on how to proceed.
13. Will I need to liquidate my savings to purchase a home?
Not necessarily. Most of our programs will allow a gift to be received for the down payment and to cover closing costs. Also, many times a seller will give a closing cost credit to the buyer high enough to cover the closing costs. We have had many clients purchase homes with no money out of their own pocket. Please call so we can explain how these programs work.
14. Do I need good credit to qualify?
Nope. We have fresh start/portfolio programs that are geared toward borrowers with recent bankruptcy’s or foreclosures. Please call so we can discuss your individual scenario.