Our Services
At WS Lending, Inc. we offer a wide range of financial services to meet your needs. Our services include Traditional Documentation, No-Income Verification, Cash-Out Refinancing for Stated-Income, Rate & Term Refinancin, Line of Credit. We are committed to helping our clients achieve their financial goals.
A mortgage loan is a type of loan specifically used to purchase real estate. It typically involves borrowing a large sum of money from a lender, which is then repaid over time with interest. The property itself serves as collateral for the loan, meaning if the borrower fails to make payments, the lender can seize the property through foreclosure. Mortgage loans come in various types and terms, catering to different financial situations and preferences.
Amortization
process of paying off a debt over time through regular payments. In the context of mortgages, it refers to the gradual repayment of the loan principal along with interest. Each payment you make is divided between paying off interest and reducing the principal balance. At the beginning of the loan term, a larger portion of your payment goes toward interest, while as time goes on, more of your payment goes toward reducing the principal. This gradual reduction of the debt is what amortization entails. It's a common method used in loans to ensure the debt is fully paid off by the end of the term.
15 and 30 Years Fixed Loans
A fixed-rate mortgage is a type of home loan where the interest rate remains constant throughout the entire term of the loan. This means your monthly mortgage payments stay the same over time, providing stability and predictability. Fixed-rate mortgages are popular because they offer protection against rising interest rates, providing borrowers with peace of mind knowing that their housing costs won't increase. Typically, fixed-rate mortgages are available in terms ranging from 10 to 30 years, with the most common being 15- and 30-year terms.
ARM Rate
Adjustable-rate mortgage, is a type of mortgage where the interest rate can change periodically, usually in response to changes in a specific financial index, such as the LIBOR (London Interbank Offered Rate) or the Treasury Bill rate. These changes in interest rates can result in fluctuations in your monthly mortgage payments. Typically, ARMs have an initial fixed-rate period, during which the interest rate remains stable, followed by a period where the rate adjusts periodically based on market conditions.
Appraisal
Once the borrower's loan application is submitted, the lender orders an appraisal of the property to determine its value. This appraisal is typically conducted by a licensed appraiser who is independent of the lender and the borrower. The appraiser researches recent sales of comparable properties (comps) in the area to determine the property's market value. They consider factors such as the size, condition, age, and location of the comps to arrive at an estimate of the subject property's value. Once the appraisal is complete, the appraiser prepares a detailed report outlining their findings and the rationale for the property's valuation. This report is submitted to the lender for review.
Final Approval and Commitment
Once all conditions are met and the underwriter approves the loan, the lender issues a formal commitment letter. This letter confirms the lender's commitment to provide financing under the specified terms and conditions.
Closing
During the closing meeting, the buyer, seller, and sometimes their respective real estate agents and attorneys gather to sign all the necessary documents. The buyer signs the mortgage note, which is the legal agreement to repay the loan, as well as the deed of trust or mortgage, which secures the loan against the property. Once all documents are signed and funds are collected, the lender disburses the loan funds to the seller, and ownership of the property is officially transferred to the buyer. Finally, the buyer receives the keys to the property and officially takes possession.
