Thank you for choosing our mortgage brokerage for your home financing needs. We are committed to providing you with exceptional service and guidance throughout the mortgage process. To help ensure a transparent and mutually beneficial business relationship, we have prepared this letter of understanding, which outlines our service level agreement and the costs associated with our services as well as our compensation as your mortgage broker that we will outline and discuss in detail below.
Services Provided: As your mortgage broker, our services will include 6 different levels of our client for life commitment and a breakdown of our compensation options:
The Pre-Approval Stage (verbal conversations, gathering, reviewing, and analyzing all the required documents)
The Consulting Stage (documents, borrower’s intentions and loan programs and loan terms including length of time and interest rate options)
Contract Stage
Processing Stage
Closing & Funding Stage
The Post-Closed Loan Stage including future communications (Homebot, breaking news updates, real estate and mortgage market news, and Financial Reviews & Equity Analysis quarterly reviews, ACN products and services, Privacy policy - TCPA policy, along with the benefits you, your family and any referrals receive when doing future business with AMS.
The Pre-Approval Stage:
Credit analysis & rescore management as well credit repair options with some of our trusted partners (2-3 hours)
Gathering, reviewing, and analyzing all your personal documents including but not limited to pay stubs, tax returns that include w-2’s, 1099’s, K-1’s, interest & dividend income, fixed income analysis for social security, disability, pension and IRA and 401-K distributions. (3-4 hours)
We work with over 250 banks and lenders so based on your personal unique circumstances we will find you the perfect lender with the best rates and term available in the market today. We will put a loan analysis together of several mortgage payment options based on your long and short terms goals while considering the current market conditions with regards to the Real Estate market and interest rate trends. reports and we will, if not, weekly the daily numbers that are considered be impactful that influence the short-term and long-term goals with have discussed. (5-7 hours)
Preparation and distribution of your loan pre-approval accompanied by a letter outlining all the details, a video to the listing agent outlining why our deal is the best, personal phone calls to the listing agent and seller, if necessary. We would never discuss anything with anyone your personal financial information, just what is necessary for the seller to make an educated decision. (4-5 hours)
The Contract, Processing, and Closing/Funding Stages:
We will review and determine the final analysis and prepare your specific deal for processing and coordinate with the lender, bank, or institution the following:
Loan or scenario preparation and submission form (2-3 hours)
Appraisal coordination with our processing team: this includes working with the lender of choice and reviewing all the AMC (Appraisal Management Companies and their approved appraiser) (1-2 hours)
Prepare all the required disclosures needed for the initial submission to lender along with the intent to proceed. (2-3 hours for one lender so if we are working with 2 or 3 it could be between 6-9 hours)
Upload all the required Documents to the lender in their specific format. (2-4 hours depending on the lender)
Following up on any trailing or new documents needed (2-5 hours depending on what it is)
Renegotiations with the current lender or moving your deal to another lender (if necessary) to ensure you receive the best deal and lowest rates available. (3-6 hours depending on the extent of what we decide to do)
Discussing Rate locks, time frames and all options available as well rate lock extensions or loan term renegotiations, if needed (1-3 hours)
Homeowners Insurance policy negotiations along with coordination of the home inspections, wind mitigation and 4-point report. Based on our findings we will help you and your real estate agent determine our next steps and if a renegotiation of the contract is required (2-3 hours)
Coordination with the Title company, closing attorney or closing agent for the initial title review for any potential clouds on title, property liens or any issues or challenges that would prevent us from having clear title and be able to close in time with a full owner’s title policy package. This policy will be used for when we refinance to ensure you get a reduced promulgated rate.
We will work with the HOA, COA or property manager or management company to get us all documents needed for review for the current health, stability and status of the community and coordinate the filling out of any documents needed for any approvals, questionnaires, potential future assessments, or any planned increases in the amounts being paid monthly, quarterly, or yearly.
Post-Closing commitment to you based on our “Client for Life” agreement:
Financial Reviews & Equity Analysis- Quarterly reviews (2-4 hours)
Homebot (free monthly report)
ACN products and services: ACN products and services: we offer this as another free resource.
Compensation explanation
EPO - you must make 6 payments before we can refinance.
Future business with AMS
Privacy policy - TCPA policy
Financial Reviews & Equity Analysis: We will have a separate document being sent out to you that will fill in some of the gaps in information we did not discuss during the loan application process. This will help us make sure you are making the best decisions for you and your family by planning out your future and getting continual advice and guidance on how to navigate your personal real estate and finances. Based on our assessment we’ll generate a personalized and holistic plan for you, so you can be confident in any decisions you make. We will then follow up with you quarterly to help ensure you are on pace to achieve your goals.
The Equity Analysis focuses on 5 key areas:
Homebot: You will receive a free subscription to analyze your home’s value, interest and principal paid to determine your actual net value every single month.
Protection - Determine whether you have the appropriate level of insurance, including home, auto, umbrella, medical, disability, and life insurance. We will review your homeowner’s policy declaration page and make sure you have the correct coverages, and the annual premium are in line with the current market. We will review any post-closing wind mitigation or 4-point reports to determine any challenges. We will pay special attention to the age of the roof to determine if it has less than 10/years or 3/years left. Insurance companies use this as a reason to drop your coverage. So, we will help make sure you are with the best insurance company and have the best insurance and coverage available at the lowest cost.
Financial Planning - Is your real estate helping you towards your retirement goals? Feel confident that you are using budgeting, savings, retirement, investment, and tax planning tools to your maximum benefit.
Generational Wealth - Rest assured knowing that you have a plan for your parents and your children.
Real Estate Planning -Let us help you make smarter decisions about the real estate you own and the real estate that you may want to own. Our goal is not to tell you to buy or sell a home, it’s simply to ensure you have all the information and education necessary to make confident decisions about real estate.
Credit & Debt Management - We’ll help you better understand how to use leverage in a responsible and productive way. You’ll know when and how to pay off or pay down debt over time and when not to.
Free ACN products and services
Compensation, Future business, and mortgage loans
Our compensation is based on the time invested in you and your unique specific situation and associated cost & fees. We will always maintain transparency with you at every step of the way as well as it is related to our time invested and our fees will be clearly outlined and discussed so we both in the Loan Estimate provided to you. This may include costs for credit reports, appraisal fees, and any other associated fees.
Average Costs: Our team, comprised of brokers, loan partners, processors, and operations staff, provides top-quality service. We will provide you with a breakdown of the average costs associated with our services, including the hourly rate for each team member and the average cost of client acquisition. The agreed upon compensation is considered earned, due upon Bank and/or Lender’s loan approval and paid at the closing/funding of the mortgage loan.
A. For example: On average we negotiate with all our banks, lenders and mortgage company to ensure you always get the best terms and rate that are associated with our compensation that will be in the range of 1% to 3% depending on your specific deal and situation. We calculate this based on the average amount of time spent on your specific mortgage details and loan program based on an hourly rate that will range between $50 - $500 an hour.
Best Deal Commitment: We will continuously monitor market rates and keep you informed of any changes. Our commitment is to ensure you receive the best deal possible throughout the mortgage process. We will deem all information and documentation highly confidential.
A. Negotiate or Re-Negotiations: We will always be in contact with all lenders we work with to ensure you will always have the best terms and rate at any given time during the transaction with the time frame and closing date taken into consideration.
Future Mortgage Business with (AMS) America’s Mortgage Solutions: Refinancing Requirements and Incentives: We require a minimum of six payments (or per the lender's requirement) before you become eligible for refinancing. As a returning client, we will offer incentives such as discounted fees or priority service, a free appraisal and even zero lender closing costs to show our appreciation for your continued business.
Early Payoff (EPO) Costs: We will also have a standalone document for this to also be acknowledged: If you decide to pay off your loan early before 6 monthly payments are made there may be costs associated with an Early Payoff. We will clearly outline these potential costs for both our business and you as the client.
B. For example, if you closed January 10th and your first payment was made in March then you would have to wait until you make six payments which would take you to August. We can start the process and get you ready prior to the 6th payment but we just can’t close, or they would consider that an EPO and charge me back all compensation earned plus penalties
Privacy Policy - TCPA Policy: We will have a separate agreement for this that will be attached to this document as well as the quarterly review reports.
This is a Letter of Understanding and supports the transparency it provides. We believe this clarity will help foster trust and loyalty throughout our business relationship. If you have any questions or require further clarification, please do not hesitate to reach out to us.
Thank you once again for choosing us as your mortgage broker. We look forward to a successful and transparent working relationship with you and we will give you our “Client for Life Commitment”.
Sincerely,
Christian Penner, CMA
President | CEO | Mortgage Broker
America’s Mortgage Solutions Inc.
NMLS 368289 | NMLS 2009420 FL, CO, DE, MD, PA
Approval Hotline/SMS/efax: 561-316-6800
Cell/SMS: 561-373-0987
www.AmericasMortgageSolutions.com
Schedule an Appointment with me: Click Here
Please let me know if I can help any of your friends or family members with a Purchase, Refinance or a Reverse Mortgage. A referral is the best compliment, and always appreciated!!!