Jessica Lanning - Residential Real Estate Financing for the San Francisco Bay Area

Buying a home is one of the largest and most important financial transactions you will ever make. While you might do this only four or five times in your entire life, we do this every single day. That’s why we encourage you to be smart, ask questions, and get answers.

Why should I use a mortgage consultant to obtain my home financing?
Better service, better rates, access to a greater variety of mortgage programs, personalized service and advice, and ongoing equity- and debt-management tools. Our priority is ensuring clients are happy versus selling a particular lender’s loan products. We build our business on referrals, and we hope your experience with us will have you recommend us to your friends, family, and colleagues.

How do I choose a good mortgage consultant?
Whether you work with me or not, I want you to have a lending experience in which you feel supported. You’re making a big decision, and you have to work with someone you trust. Following are some guidelines to help you find the right person. If you don’t get the right answer or don’t feel comfortable with what you’ve heard, find someone else. Trust your instincts. We believe excellent mortgage consultants:

Have at least five years’ experience and work full-time in the industry.

Are personally licensed by the Department of Real Estate.

Are members of NAMB/CAMB and abide by that code of ethics.

Own a home and have been through the financing process personally.

Listen to what you have to say.

Genuinely care about helping you make the right loan choice.

Never rush you into completing a loan application or locking a rate.

Never push you toward a particular loan type.

Have a solid knowledge base of the purchase market and how the process works, various loan programs and how they work, interest rates and how they are priced, and how to evaluate good refinancing opportunities.

Help their clients manage debt and equity after the loan closes.

Do you handle loans all over the country?
No. While we can do loans all over California and in many other states, we prefer to do loans in the nine-county San Francisco Bay Area and its popular vacation spots such as Tahoe, Mendocino, Palm Springs, Mammoth, etc. Our relationships with real estate agents, title companies, and appraisers allow us to provide great service. When we step into other states, we don’t have the same relationships and risk providing sub-standard service, which we don’t like to do. If we can provide you a referral, we certainly will.

What is the difference between prequalification and preapproval?
Prequalification is a lender’s opinion of your ability to qualify for a loan. Preapproval is an underwriter’s decision that you are qualified. Preapproval letters that accompany offers to purchase real estate are much stronger than prequalification letters. We can provide you with a preapproval letter once you have returned your application, disclosures, and documentation to us.

Why is there nothing on your site about interest rates?
Here’s the truth about rates:

Your interest rate is heavily dependent upon your ability to borrow (the composite picture of your income, assets, credit, debts, and choice of properties). To quote you a rate without knowing your particular situation is like a doctor prescribing medicine without doing an examination.

Getting you the best rate we have available is inherent in our services. We even have a “personal shopper” who specializes in monitoring the market and our lenders’ pricing.

You will be surprised to learn that rates change all the time, sometimes even several times within the same day. In fact, lenders can re-price their loans within seconds of a significant mortgage-backed securities market move. In short: Published rates are too quickly outdated.

We can always give you a sense of where rates are, given your situation. Rates can be locked over the phone, without a fee, with your permission, after application.

What are your fees?
To get you preapproved, we charge a credit report fee that goes directly to our vendor. That’s it. Credit reports are $17 per individual or married couple. We believe that’s an excellent investment of your money. If your loan closes, we charge a $499 processing fee on first loans and a $250 processing fee on second loans. These fees cover our processor, who makes sure your loan closes on time and as smoothly as possible. The rest of our compensation is provided to us by the lender.

Do you do no-cost and/or no-points loans?
Yes, when it’s in your best interest. We frequently do no-cost refinances for clients as we monitor their loans and help them manage their equity and debt.

Be aware of ads promoting no-cost and no-point loans. If you are not paying fees in one place, you are paying for it somewhere else. Interest rates and closing costs go hand in hand, so it is important to look at the overall loan package, not just one individual item that seems discounted. We all work off the same financial markets with essentially the same profit margins. Do we make money when we do your loan? Certainly we do, just like you get paid for working at your job. What we seek for you is the best balance between a great interest rate and reasonable closing costs.

What is an annual percentage rate (APR)?
The annual percentage rate (APR) was designed by the federal government to help you compare loan and finance charges between lenders. It is not the interest rate of your loan (although it can sometimes match the rate). Because different lending institutions calculate it differently, we find that APR is not a useful tool. To compare loans meaningfully, get the actual note rate and a good faith estimate of closing costs.

If I sign the application and disclosures, am I committed to borrowing the money?
No. You are only committed to paying any third-party fees we incur in approving your loan should you choose to move forward or not. Typically, the only fee incurred in getting preapproved is your credit report fee.

When and how do I lock my interest rate?
Locking your interest rate refers to guaranteeing a specific interest rate for a specific period of time. The lock guarantees your rate as long as your loan closes and funds prior to the expiration date. If your closing is delayed, you could be exposed to higher interest rates or be charged a fee to extend that lock period. On a purchase transaction, you may only lock your rate if you have a fully executed purchase agreement. On a refinance transaction, you may only lock your rate if we have a completed application from you. Once either event has occurred, we will call you regarding locking your rate. We do not charge a fee to lock your rate.

Depending on the lender, rates can be locked from seven to 180 days. Generally, the shorter the time period, the better the interest rate. We provide insight as to what we believe the mortgage-backed securities market is doing and whether we think you should lock in your interest rate. Ultimately, the decision is yours. Once the decision is made, Scott Hershberger, our production chief and team’s "personal shopper" for interest rates, locks it in.

What are points?
Points are prepaid interest to the lender in exchange for a reduced interest rate. One point costs one percent of the loan amount (one point on a $500K loan amount is $5K). One point will generally reduce your interest rate by about a quarter on fixed rate loans and three-eighths on adjustable rate mortgages. Paid at closing, points can be tax deductible.

How will I be kept updated on the status of my loan?
Scott Hershberger, our production chief, keeps you informed of the status of your loan and what you need to do next.