Every Monday Morning at 8:15am, join me on my Facebook page as I sit down with a local lender, and do a live interview and talk about a Mortgage Tip that may help YOU with your next Real Estate Purchase.
This morning I sat down with Andrew Jallo from Dacotah Bank and discussed loan estimates. You can reach Andrew at 605.692.8600 or Andrew.Jallo@dacotahbank.com. His office is located at 1441 6th St., Brookings SD 57006 or on the web at www.dacotahbank.com.
What is a Loan Estimate?
- Good morning everybody, how you doing? Shane here from the Brookings Home Team powered by Century 21. It's Monday morning, 8:15 on the dot. We're right on time, it's not a holiday, so this guy is working his regular Monday shift, so thank you for doing that. I got Andrew here from Dakota Bank, and we're gonna talk a little bit about the Monday morning mortgage tip and see what you have to educate us on today. And then this will be our first, well nevermind I won't mention that right now, so let's just go on with the Monday morning mortgage tip.
- Yeah, thank you Shane for having me on this morning. So a lot of times this time of year we're getting ready to get into the home buying season starting to pick up with spring, hopefully, maybe weather wise coming around. So a lot of times consumers will call and they'll ask questions. What are your fees? What is your annual percentage rate? And really what we want to educate consumers on is what is the loan estimate? So I can disclose fees un-formally over the phone, but with the loan estimate, we're required within three business days to give you as a consumer our best estimate of those fees. And really it helps to avoid the bait and switch that was done prior years, so if said hey I'm gonna charge 500 dollars and then all of a sudden at closing it's 1,000 I legally can't do that. So that loan estimate is to protect you as the consumer. It also makes sure that us as competitors, other financial institutions compare apples to apples. So that's where you get that legal annual percentage rate which takes into consideration your loan fees, your interest rate, divided by the term of your loan. So, that way we're all competing on the same playing field at that percent.
- Okay yeah, so, I know people kind of get that confused a little bit there, and they kind of hold you accountable a little bit.
- Correct, so yes. You as a consumer, if you can get a loan estimate, that is what you're wanting to ask from that financial institution. That loan estimate is gonna lock in, it's gonna hold those fees, unless there's a change circumstance where you change a loan product, maybe you change the terms, and then as a consumer you can ask those questions to me to say why did this change? And I then legally have to support that.
- Perfect, alright. So that is some information on that part of the mortgage process, so if you have any more questions for Andrew please feel free to get a hold of him. Information on the top, on the bottom, on the sides, wherever your device allows you to see that. So feel free to reach out to him. Did you have a special going on today you wanted to mention too?
- Yeah so really we're kinda drumming up a home show this coming weekend, the month of March we're doing Mortgage Madness here at Dakota Bank, so if you qualify, pre-qualify for a secondary market loan and close before September 30th you can win yourself a 500 dollar Visa gift card. So that really comes in handy after closing, maybe you want to do some renovations, buy some new furniture, that 500 dollars is a nice promotion. As well as right now, we're wishing, the sun is shining today, but we're hoping spring is soon upon us, we're doing a home equity promotion. So we got some introductory rates as well was waving some loan fees, so visit us at the home show or give us a call. I'd love to talk about the products that we have available right now.
- Perfect, and the home show this weekend is Saturday and Sunday so come out and see myself, see Andrew, anybody else with a whole array of individuals out there. That is obviously home related, so if you're looking to renovate your home, or remodel, build, blinds, all kinds of stuff.
- All sorts of vendors out there, so stop out, visit us, say hi.
- And yeah, we'd be happy to talk to you guys. So, that concludes this week's Monday morning mortgage tip. Thanks for watching and as always, feel free to share or tag anybody else in this video that you feel would be benefited from it as well. So, thanks again for watching. Stay warm guys, we'll see you next week.
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