Does Bayside Funding Corporation offer mortgages in my state?
We currently offer home loans through our 3rd party lenders in 42 U.S. states and we are growing this list all the time. If we do not yet offer mortgages in your state, please let us know and we can give you an estimate of when we expect our approval.
Today you can apply for CONVENTIONAL, FHA, VA, AND USDA HOME LOANS with Bayside Funding Corporation in 2 states:
Florida (FL) - approved - MBR4604
Today you can apply for NONCONFORMING BUSINESS PURPOSE HOME LOANS (DSCR, Bank Statement, Hard Money, etc.) with Bayside Funding Corporation in 42 states:
ALABAMA
ARKANSAS
COLORADO
CONNECTICUT
DELAWARE
DISTRICT OF COLUMBIA
FLORIDA
GEORGIA
HAWAII
ILLINOIS
INDIANA
KENTUCKY
LOUSIANA
MAINE
MARYLAND
MASSACHUSETTS
MISSISSIPPI
MISSOURI
NEBRASKA
NEW JERSEY
NEW HAMPSHIRE
NEW YORK
NORTH CAROLINA
OKLAHOMA
PENNSYLVANIA
RHODE ISLAND
SOUTH CAROLINA
TENNESSEE
TEXAS
VIRGINIA
WASHINGTON
WEST VIRGINIA
WISCONSIN
WYOMING
How does Bayside Funding Corporation make money?
Bayside Funding Corporation’s commissions or fees are typically paid for by the lender after a loan has closed, so working with a broker should not ultimately affect how much your loan will cost.
Brokers’ commissions vary, although typically range from 0.50 percent to 2.75 percent of the loan principal. Federal law caps broker fees at 3 percent and requires these fees not be linked to any interest rates associated with a loan.
Compensation paid to the broker by the lender is typically included in the cost of the loan, just like the compensation paid by any bank or lender to their loan originators. This is why we provide Lender Paid options on every loan.
Further, most borrowers are not aware that some mortgage brokers, like Bayside Funding Corporation, have access to Wholesale Lenders; Wholesale lenders can have mortgage products that are not typically available to the general public and some work just with brokers. This means Bayside Funding Corporation can have access to mortgage products that few borrowers can see.
In addition to access to wholesale lenders, brokers can also work with MULTIPLE lenders of ALL types in order to find you the right deal. Direct lenders typically cannot shop other lenders to find you a better price, usually brokers like Bayside Funding Corporation have this significant advantage.
What is a Non-warrantable condominium and why is it important to know before putting an offer in?
Condominiums are great homes due to the homeownership flexibility as well as affordability. They are great for living in cities as well as living in a vacation spot without having to buy an entire house. Plus, no worrying about maintaining the outside of your home like a lawn or driveway. However, during the process of financing a condominium, you could run into an issue with the condo being flagged as non-warrantable.
If a condo is flagged as non-warrantable, it means that it doesn’t meet conventional guidelines and won’t be bought by a government-backed entity. It is a risky form of financing and many lenders, most, will not entertain the thought of financing. Condos are flagged as unwarrantable for many reasons including the project being new / incomplete, HOA issues, a high percentage of units being occupied by non-owners (condo-tel), the condominium’s short term rental policy as well as a single person or entity owning more than 10% of the units. When purchasing a condominium, the lender will require the HOA to fill out a questionnaire asking important questions regarding its policies as well as the ins and outs of the building ownership.
Luckily, if you are absolutely dead set on a non-warrantable condo, there are lenders who will work with them. The fact that the asset is non-warrantable WILL adversely affect your interest rate as there is added risk to financing these properties. Reach out to the Bayside team and we will go over your options before putting an offer in!
Why does pricing sometimes change from when I was quoted over the phone?
When a broker or banker quotes you over the phone, they are giving you an estimate of what the pricing is at that exact moment. What many people don’t know is that the mortgage market moves just like the stock market moves.
Every day, every hour, every minute the mortgage pricing engines are adjusting themselves to what is happening in the live market. Not only does the market move, but until pricing is locked in… it is only an estimate. For most lenders, to lock in pricing they need your income documents (W2, pay stubs, Tax returns etc.), your approval to run credit AND receive signed e-disclosures. These are especially important because without income documents, there is no verification of employment or income. Without running credit, which takes your SSN and DOB, there is no guarantee that you will qualify for the loan requested and this is a great way to verify your identity. Your e-disclosures are giving the lender permission to work on your loan and to lock your pricing.
The longer it takes for the client to get the needed information over to their mortgage professional, the longer your pricing is floating (not locked), therefore constantly changing. If you are quoted on a Wednesday, but lock in pricing on a Friday, most likely it will be for different pricing than what you originally reviewed with your mortgage professional.
Even after locking my pricing, although the interest rate does not change, why do some costs change from what I was quoted on the phone?
When a mortgage professional is going over what your costs will be, they are estimating your county, government and tax fees, your escrow collection costs and your origination fees. Mortgage professionals are not title agents, they are not processors, and they are not tax experts. Most have tools, like we do at Bayside Funding Corporation, to calculate most accurately what these costs will be, however until a processor reaches out to the state and county, they will be only an estimate.
The collection of your escrow account, which is generally 3 months of taxes and 3 months of insurance, is estimated by your mortgage professional based on what you are currently paying in taxes and insurance, however we all know that taxes tend to go up. A processor will reach out to your county to check on a tax amount change and if your taxes have gone up, then so will your escrow collection.
How do you calculate my credit score? What Bureau do you use? Can you give me a quote without running my credit?
At Bayside Funding Corporation, we calculate your credit by using an official credit report through the three credit bureaus, Equifax, Experian, and Transunion. When you fill out an application for us, it will ask for your SSN and Date of birth. These are the two pieces of information we need in order to verify your credit. We are also more than happy to collect that information over the phone if that makes you more comfortable.
Once we pull your credit, we will receive three credit scores, one for each credit bureau. We then take the median of your three credit scores, or your middle score. This is industry standard for every lender or broker you may go through.
We are more than happy to offer pricing without pulling your credit, and can use whatever FICO score that you feel is most accurate. However, please understand that if your official FICO is different than what you provide to us, your pricing WILL change. No offer for credit is firm until an official credit report and official credit scores have been received and collected.
Closing Costs: What are they and how much will you pay?
Your down payment is not the only costs associated with purchasing a new property. Closing costs are expenses that you pay to your lender as well as other third parties such as a title or inspection company and the state and county. Many first-time home buyers will underestimate just how much they will need to pay in closing costs and understanding closing costs can be somewhat difficult, however we will give you a thorough overview of everything that you need to know!
Closing costs typically can make up about 3 - 6% of the price of the home. For example, if you take out a mortgage for $400,000, you can expect closing costs to be anywhere from $13,000 - 26,000. Closing costs do not include your down payment and can depend on the market that you find yourself in. For example, the average closing costs in Florida, including taxes, are $8,213, whereas the average closing costs in Delaware are $17,727. Closing costs can include your appraisal, closing fees, processing / underwriting fees, escrow funds, origination fees, title insurance and many more! Call a professional at Bayside Funding Corporation today with any questions regarding closing costs!