WHAT CLIENTS ASK THE MOST
Your Questions Answered
FEES, FEES, FEES - WHAT KIND OF FEES AM I LOOKING AT?
The borrower should be aware of the fees typically associated with alternative lending. There are four main fees associated with any lending products.
Appraisal Fee: In order to determine the current market value of the property, we have to order an appraisal from an accredited appraisal company. Appraisal cost typically varies between $300 - $800 depending on the type of property, location, rush request, purchase price, etc.
Legal Fee: On a typical real estate transaction, there are usually two lawyers involved - one acting for the borrower and the other acting for the lender. Usually, the borrower is responsible for both fees. The typical legal fee is usually between $1,300 - $2,700 depending on complexity, payouts, location, rush request, etc.
Lender Fee: For alternative lending transactions, the lender will typically charge a fee. For 1st mortgage requests, the fee is usually 1.50% to 3%; and for 2nd mortgages requests, the fee is usually 2% to 6% of the loan amount. The fee can vary significantly depending on the property type, request amount, complexity, credit score, loan term, etc.
Broker Fee: This is where we make our money. The typical broker fee is usually only 1% of the loan amount. However, this fee can vary depending on the loan amount, complexity, rush request, etc.
I DON'T DECLARE ANY INCOME, CAN I GET A MORTGAGE?
Yes, many of our lenders specialize in providing equity-based solutions. Please send in your mortgage request.
HOW MUCH DOWN PAYMENT DO I NEED?
Ideally, you would want to have at least 20% down payment. However, our lenders can finance your property up to 85% to 90% of the current market value. Obviously, some restrictions apply if you are going higher on the loan to value. Please send in your request for a case by case review.
I NEEDED A MORTGAGE YESTERDAY, HOW QUICKLY CAN YOU ARRANGE SOMETHING?
In order for a mortgage to close on time, a few things must be done - appraisal, approval from the lender, lawyer document preparation, etc. The sooner we can complete these, the sooner the mortgage can close. As a rush, we can close mortgages within 2-5 business days given the appraisal report is on hand.
I HAVE PURCHASED A PROPERTY FROM THE BUILDER, CAN I BORROW BASED ON THE CURRENT MARKET VALUE?
Yes, we do have lenders who would provide mortgages based on the current market value instead of the original purchase price. Please send in your request.