Education

Why Joseph|Scott?

Buying real estate is likely the largest investment you will make in your lifetime. Your mortgage should be handled by a company built by professionals with financial backgrounds and education. Does your current mortgage broker understand the financial markets? What's the difference between LIBOR, COFI and USTs? What causes rates to move? What the best program for you really is? At Joseph Scott, we do and we can explain it to you in simple terms BEFORE you make a decision on your mortgage.

Tips to protect you from becoming a victim of Mortgage Fraud

Get referral for real estate and mortgage professionals. Check the licenses of the industry professionals with state, county, or city regulatory agencies.
If it sounds too good to be true, it probably is. An outrageous promise of extraordinary profit in a short period of time signals a problem.
Be wary of strangers and unsolicited contacts, as well as high-pressure sales techniques.
Look at written information to include recent comparable sales in the area, and other documents such as tax assessments to verify the value of the property.
Understand what you are signing and agreeing to--If you do not understand, re-read the documents, or seek assistance from an attorney.
Make sure the name on your application matches the name on your identification.
Review the title history to determine if the property has been sold multiple times within a short period--It could mean that this property has been "flipped" and the value falsely inflated.
Know and understand the terms of your mortgage--Check your information against the information in the loan documents to ensure they are accurate and complete.
Never sign any loan documents that contain blanks--This leaves you vulnerable to fraud.
Check out the tips on the Mortgage Bankers Association's (MBA) website for additional advice on avoiding mortgage fraud.
Mortgage Fraud is a Federal Crime. Notice regarding Fraud.

Important Questions to ask your Lender / Broker

What is my rate, and how long is that rate fixed for?
Will I have a pre-payment penalty? What are the terms of that penalty?
When will my first payment be due?
If your loan is an "option ARM", what is my INTEREST Rate, as opposed to my PAYMENT Rate?
What is my APR?

There are many other important aspects of your loan that can greatly effect your payment and financial responsibility. We recommend that you ALWAYS have a real estate attorney review your loan docs prior to closing. A real estate attorney will usually charge less then $1,000.00 but can save you many times that if your mortgage is not the right deal for you.

Understanding your Construction Loan

Joseph Scott offers construction and construction to perm loan programs for owner occupied, second home and non-owner occupied properties.
In some loans, we are able to roll closing costs and a construction interest allowance into the loan amount.
If you choose to incorporate a construction interest allowance into your loan, we will ESTIMATE the amount needed to cover your interest payments through completion of your home based on several factors.
This ESTIMATE is based on; Builers anticipated time needed to complete the home; the interest rate adjustments over the life of your construction loan, which is typically floating and tied to the Prime Rate; your loan amount and the term of your loan (typically 12-18 months depending on the lender). Because Joseph Scott has no control over several of these factors, your interest reserve may run out prior to your home being completed.
If your interest reserve runs out prior to completion of your home, YOU WILL BE RESPONSIBLE FOR MAKING YOUR MONTHLY INTEREST PAYMENTS TO YOUR LENDER! You should seek regular updates from your builder or realtor on the progress of your home.
Your Loan Officer has been instructed to send a copy of your appraisal to you via email, fax or mail. If you do not receive a copy of your appraisal, please contact your Loan Officer and request that it be resent.
Joseph Scott will most likely broker your construction loan to a lender. When this is done, Joseph Scott's FEE will be paid by you AT CLOSING. Joseph Scott is paid a fee for assisting with the placement of your loan. Our fee is not subject to the performance of any of the related parties to the transaction including the builder, realtor, title agent, lender etc.
Referrals made by any Joseph Scott employee or Loan Officer are simply referral suggestions. Joseph Scott urges you to research these referrals, obtain references from them, and obtain any answers that you may have about them. Joseph Scott does not guarantee or warrant any of the work or services or statements made by the companies referred to you.
Joseph Scott is a mortgage company. We are responsible for placing and/or assisting you in obtaining a mortgage loan. We ARE NOT RESPONSIBLE FOR: The progress of construction on your home, assisting with the sale or rental of your home, determining the market value of your home, advising you on market conditions or investment strategies.
Your construction to perm loan will most likely have a PRE PAYMENT PENALTY which is usually required by the lender. If you pay off your loan early, you may have to pay this fee. Please ask your mortgage broker about this feature on your loan!
LISTING YOUR HOME: IF YOU DECIDE TO LIST YOUR HOME FOR SALE BEFORE IT IS COMPLETED, AND YOU DO NOT HAVE IT SOLD BY THE TIME IT CO'S, YOU MAY NOT BE ABLE TO MODIFY OR REFINANCE YOUR CONSTRUCTION LOAN INTO AN END LOAN. IF WE ARE ABLE TO REFINANCE YOUR LOAN, IT WILL MOST LIKELY BE AT A HIGHER THEN MARKET RATE, DUE TO THE FACT THAT MANY LENDERS WILL NOT FINANCE A HOME THAT IS OR HAS BEEN ON THE MARKET WITHIN 6 MONTHS OF THAT DATE. THIS MEANS THAT IF YOU CAN'T REFINANCE OR MODIFY, YOU WILL BE RESPONSIBLE FOR PAYING OFF YOUR LOAN IN CASH! PLEASE CONSIDER THIS WHEN SPEAKING TO YOUR REALTOR!
IF YOU DO NOT UNDERSTAND ANY OF THE FEATURES OF YOUR LOAN, OR HAVE QUESTIONS ABOUT ANY PART OF YOUR LOAN, DO NOT SIGN YOUR CLOSING DOCUMENTS UNTIL YOUR QUESTIONS ARE ANSWERED BY AN ATTORNEY, YOUR LOAN OFFICER, TITLE AGENT, OR LENDER AND YOU ARE COMFORTABLE WITH THE INFORMATION.
JOSEPH SCOTT RECOMMENDS THAT YOU RETAIN THE SERVICES OF A QUALIFIED REAL ESTATE ATTORNEY WHEN TAKING PART IN THE PURCHASE OR SALE OF REAL ESTATE AND OBTAINING A MORTGAGE.

Avoid Foreclosure Rescue Scams

Don't be the next victim to lose your house to "consultants" who claims they will pay your mortgage. (CNN article)