OUR SERVICE

Your Pena Lending Group consultant will conduct a thorough initial consultation that goes far beyond your ordinary loan application experience. Our Residential Mortgage Planning service takes into consideration your current financial situation as well as your future goals, and tailor makes recommendations based on current and projected real estate and financial market conditions. Once a strategy is drawn (using a suite of proprietary tools), your specific loan scenario is run through automated loan search and underwriting tools to find the best execution. After the closing of your loan, we also offer free active monitoring of your entire mortgage portfolio for life to capitalize on changes in the market and ensure your mortgage strategy is optimized.

INFORMATION ON SUBPRIME MORTGAGES FOR YOUR HOME

A subprime loan refers to a high-risk (and thus high rate and fee) mortgage given to borrowers with a derogatory credit profile. They can be used to purchase or refinance a home. The current mortgage crisis is blamed on these loans due to their high rate of default, and many subprime lenders have gone out of business. Their are still subprime loans available, although they are not as easy to obtain as they were even six months ago. The Pena Lending Group has relationships with hundreds of lenders nationwide. If there is a loan in existence, we have access to it, and we also have the ability to reshop the loan until all avenues are exhausted. Even if you have been turned down before, you should apply with us and either get approved or make a plan to be qualified in teh near future.

Here are some things you can expect when searching for a subprime mortgage:

Tough Underwriting. These loans have gotten much harder to qualify for. All i's must be dotted and t's crossed, and expect many requests for explanations, more documentation, etc. The days of easy money are gone and your deal must make sense.

Higher Fees & Rates. The higher fees and rates associated with these loans are a function of their difficulty in getting approved and the high default rate. From a broker's point of view they are simply a lot of work to get funded and often involve placing with two or three lenders before getting closed. The lenders themselves charge more due to the risk involved (justifiably so, as witness the recent statistics showing many borrowers on these loans not making their payments and foreclosing).

Prepayment Penalties. Most subprime loans come with prepayment penalties. You can "buy out" of a prepayment penalty by paying a fee or getting a higher rate.

Read the fine print! It is critical that you know what you are getting into with a subprime loan. That pile of documents the broker and lender provide are not just a bunch of legalese, they are binding documents that disclose very important things about your loan. As brokers, we have many strict rules placed upon us regarding disclosing loan terms, and those rules are there to protect you. Please don't waste the efforts of hundreds of consumer advocacy groups, legislators, banks, etc by not reading these important disclosures and then being surprised at the loan you end up with. if you have any doubts whatsoever about your loan, please contact us right away, even if you have it placed with a competitor. We are happy to provide a free second look at your loan and explain the terms you are getting.