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America's Wholesale Mortgage Broker TM
There are a variety of loan closing costs that may be applied to your loan. All of these costs will be part of one of the below listed components. The type and amount of the charge depends on the type of loan, loan-to-value, loan amount, property type, and others. This section discusses most of the types of charges that could, depending on the type of financing needed, be applied to a residential home loan. The THREE COMPONENTS that create closing costs related to your loan are: MORTGAGE BROKER FEE: We charge a "FLAT RATE FEE" for this service. Although banks and other banking lenders don't charge a mortgage broker fee, they charge a "loan origination fee" which is the same thing. WHOLESALE LENDER FUNDING FEES: These fees are charged by the wholesale lender that will actually provide the funds necessary to close your loan. We do not participate in, control, or influence these charges in any way. THIRD PARTY SERVICE FEES: These charges include your escrow service fee, credit report fee, appraisal fee, and any other required but not part of your loan. From this page, you can Request A Good Faith Estimate, which will give you the costs specific to your needs. When you receive our Good Faith Estimate, you will also receive a detailed letter explaining how to read and evaluate it. You'll also get a form that will let you do side-by-side loan quote evaluations.
You should NEVER rely on a verbal quote of loan costs. Keep all of your WRITTEN estimates handy for comparison purposes right up until the time you sign your loan closing documents. As an added safety precaution, after you have opened escrow, ask your Escrow Officer to prepare a "PRE-AUDIT HUD" (an advanced settlement statement) as soon as they have adequate information. Give them a copy of your Good Faith Estimate and don't take "NO" for an answer. They can do it! Don't wait until your loan is processed. GET IT RIGHT AWAY!! A good escrow officer can help you protect yourself from loan fraud. A good escrow officer will gladly prepared multiple HUDs right up front so you can analyze what lenders are telling you.
The following links will direct you to the three information booklets that are required by State and Federal law to be provided with every loan application package. While we will mail them to you after you have applied for your loan, we are also making them available here for your convenience. All three brochures can be printed.
A wholesale mortgage has two basic components: The wholesale interest rate and the wholesale discount (points) required to purchase the rate. You cannot obtain wholesale financing on your own, however, by paying a very low service fee to San Juan Mortgage, you can get one - verified and documented as wholesale. For your agreement to pay our low fee, you'll pick the wholesale interest rate and discount right off the wholesale rate sheet. You'll also see the full assortment of optional loan adjustments available only to loan officers. Essentially, you'll have all the loan pricing information at your disposal that lenders keep secret. San Juan Mortgage Loan Pricing Retail Lenders' Loan Pricing Wholesale Interest Rate Wholesale Interest Rate + Lender Funding Fees + Lender Funding Fees + Wholesale Discount + Wholesale Discount + Mortgage Broker Fee + Lender or Broker Fee $ YOUR LOAN COST + Interest Rate Markup + Yield-Spread-Rebate + Loan Processing Fee + Application Fee + Broker Courier Fee + Other Retail "Junk" Fees
$ YOUR LOAN COST
The fee for our service in bringing true wholesale mortgage rates to the general public is based on a GUARANTEED FLAT RATE FEE. Our fees are structured on a "sliding scale" so higher loan amounts are even more affordable than those offered by retail lenders who have fixed loan origination fees - most at 1%. So, while most retail lenders would charge you a $12,000 loan origination fee for a $1,200,000 loan, we charge only $6,000.
Our mortgage broker service fee is calculated as a percentage of
The Calculated Dollar Amount From The Above Rates
 NO BROKER LOAN PROCESSING FEE
Lenders charge "as much as they can get" for their mortgage loan origination compensation. Their "total lender compensation" from loan originations includes every penny that they "receive" (not necessarily "earn") on a loan, including all of their "junk" fees and Yield-Spread-Rebates. Industry surveys analyze lender settlement statements regularly to monitor the loan origination fees collected by various groups of lenders. An industry database of statistics on the loan origination compensations collected on both the largest home loan sizes (1.86% lender compensation), as well as the smallest home loan sizes (2.53% lender compensation) have been reported as follows:
Now Take Another Look At Our Broker Fees Above ! You'll see how great our fees are compared to the 2.20% database average. When you look at these percentages in terms of the DOLLARS that your loan will cost, if you're lucky you'll pay only the 2.20% lender compensation average. If so, a $250,000 home loan would cost you $250,000 X 2.20% = $5,500.00. That loan from San Juan Mortgage would cost $250,000 X 1.00% = $2,500.00. Thats a savings of $3,000.00 compared to the statistical lender average or a:
Huge Discounts Make Huge Savings...
Mortgage Lender Funding Fees are the loan costs that are charged by the wholesale mortgage lender that will actually fund your new loan. NONE of these charges are paid to San Juan Mortgage. These loan fees DO NOT INCLUDE THE "POINTS" charged to "buy" a specific interest rate. Once your loan is approved and all funding conditions have been satisfied, your loan documents will be sent to the escrow company for you to review and sign. The signed document package is then sent back to the lender for funding. After the "funder" confirms that all the documents were properly signed and all of the numbers on your "pre-audit" HUD-1 Settlement Statement are correct, your loan proceeds are wire transferred to escrow. Once received by escrow and the "audited" HUD-1 is prepared, they send a recording package to the County Recorder where your property is located and once recorded, your loan is complete. Your escrow officer will give you copies of everything you signed. The types of lender charges and the approximate range of costs that you may see on your GOOD FAITH ESTIMATE OF BORROWER'S SETTLEMENT COSTS as well as your HUD-1 SETTLEMENT STATEMENT are listed below. Some wholesale lenders combine many of their fees into an "Administration Fee", some itemize their charges. YOUR LOAN WILL NOT INCLUDE ALL OF THESE CHARGES - JUST SOME...
The actual types of charges and costs of your loan will
Title and Escrow Charges Once you have opened an ESCROW ACCOUNT for your new loan, you will receive your ESCROW INSTRUCTIONS, which will itemize a variety of charges to be paid at or before closing, including:
The actual types of charges and costs will depend on the escrow Click below to get an estimate of your possible escrow costs: Chicago Title Insurance Company
Establishing the market value of your home using a REAL ESTATE APPRAISAL is an essential element in the purchase of your home. You, your lender, insurance company and others will need to know what your home is worth. For that reason you need an experienced and reliable appraiser. Lenders have "approved appraiser" lists that we must choose from before ordering your appraisal. The best appraisers are on most of these lists. Appraisal fees depend on a number of factors including the type, value, size and location of the home. Because there are so many variables affecting this fee, we will gather the pertinent information about the property and obtain a quote for you. Most appraisals range between $400 and $1,200. If you have a favorite appraiser, we can use their services if they are already approved by the lender we choose to fund your loan. However, San Juan Mortgage must order the appraisal directly so, DO NOT ORDER YOUR OWN APPRAISAL ! If you already have a new appraisal on the property you are buying or refinancing, we may still be able to use it, presuming the appraiser is on the approved list of the lender we have chosen to fund your loan. In this case, we can usually have the appraiser retype the report using our name. They will generally charge you a small fee for the retype.
Married couples will be charged approximately $55.00 for a joint credit report. Individual co-borrowers must purchase individual credit reports, each costing approximately $45.00. Upon receipt of your credit report, we will forward a copy to you for your review. Refer to our SECURITY PROTOCOLS section for more information about this important topic. BUREAU EXPRESS credit reports can be purchased through our website by just giving us a call. This type of report can be used to help us evaluate your credit for the purposes of a LOAN PREQUALIFICATION. The cost for this report is: Individual 3 Bureau Merged with Credit Scores: $9.00 Joint 3 Bureau Merged with Credit Scores: $15.50 Please be aware that you will still be charged for the credit report required for your final loan approval as listed above. If you prefer, you can also order your own confidential credit report online by typing "credit reports" in your favorite search engine. In this case, you should order the report that includes data from all three bureaus as well as your credit scores.
There are other expenses, some optional, that are related to the financing of your home. These expenses will depend on the type and location of your property, as well as the type of home loan chosen. All appropriate and known issues that can generate an expense will be listed on your Good Faith Estimate. These expenses can include the following: PRIVATE MORTGAGE INSURANCE (PMI): If you finance more than 80% of your purchase price or appraised value on a conventional loan, you will be required to buy PMI, which is a policy of financial insurance that protects the lender against a loss in the event of a default by the borrower. If you are applying for an FHA loan, you need what is called MI. We do not originate FHA loans. If your loan requires PMI, you can find out how much it will cost by clicking on the following MGIC link. Remember that we can suggest alternatives to PMI... EXTENDED COVERAGE: Your title insurance policy may list certain exceptions to your coverages, such as boundary line disputes, mechanic's liens, etc. If you feel any of the stated exceptions may create an exposure to financial risk, you may be able to pay an additional fee to have certain named exclusions covered in your policy. Discuss the options with your escrow agent. PREPAID INTEREST: This payment covers the interest on your new loan that accrues between the day your loan closes and the date of your first payment. Usually, the later you close in a calendar month, the lower this payment will be. Accrued interest, however, must be paid in order for your loan to remain current. ESCROW IMPOUND WAIVER: To protect your mortgage account from a possible tax and/or insurance shortage, lenders require that the amounts are collected and paid by your escrow company. However, for a fee usually equal to 0.25% of your loan amount paid at closing, they will waive the requirement and you will be responsible for the regular taxes and insurance payment. HOMEOWNER'S INSURANCE: You will need to obtain a policy of homeowner's insurance prior to the close of your escrow. The minimum amount of coverage generally required will be the purchase price minus the stated value of the land. If your loan is for a refinance, it will be the appraised value minus the land value. Your loan approval commitment letter will specify the required amount. The selection of the insurance carrier is yours alone. FLOOD INSURANCE: If your property is located in an area designated as a FEMA flood plain, you will need to purchase flood insurance. Even if your lender doesn't require flood insurance, you may purchase it anyway if you believe your home is at risk for flooding. EARTHQUAKE INSURANCE: This is an optional insurance coverage and not required by your lender. It can be an expensive form of coverage but not compared to what you would have to spend should your home be destroyed by an earthquake. Your standard homeowner's insurance policy will not cover earthquake damage. HOME INSPECTION: Although lenders don't require that you have the home you are buying inspected, most consider it money well spent. It can give you a measure of confidence that the house is in good shape. Ask your realtor to recommend a local inspector if you choose to get an inspection. Depending on the type of loan needed, other loan costs may apply.
 461 Cascade Way - Eastsound, WA 98245 Office Phone: (360) 376-5194 E-Mail: terrydonovan@sanjuanmortgage.com America's Wholesale Mortgage Broker TM 
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