First Mortgage Direct Mortgage Reviews & Ratings in 2022

First Mortgage Direct Mortgage Reviews & Ratings in 2022

First Mortgage Direct Mortgage Reviews & Ratings in 2022

Definition: A first mortgage is a primary loan on a property. A first mortgage has priority over any other claim on the property’s title in the event of default. First Mortgage Direct is the online lending division of First Mortgage Solutions. … Specializing in Refinance, Purchase, Home Equity, and Debt Consolidation loans.

They are also a Bankrate Select Lender for 2020 and have a 4.8-star rating on Bankrate based on 126 customer reviews. First Mortgage Direct is Better Business Bureau accredited and has been since 2010 – they currently have an ‘A+’ rating.

One of the benefits of working with First Mortgage Direct for your home purchase or refinance is the lack of origination fees. Most lenders charge an origination fee, which typically cost between 0.5% to 1% of the loan amount. This fee is charged by a lender as compensation for processing a loan application, but First Mortgage Direct doesn’t charge it. That helps you save money on your mortgage loan.

First Mortgage Direct prides itself on bringing honesty and integrity to the mortgage process through its experienced and knowledgeable loan officers, and the reviews prove it. Reviewers across the internet note the transparency throughout the loan process as a perk of using this lender. This transparency extends to the lack of hidden fees — First Mortgage Direct is upfront with what they’re charging rather than slipping in unexpected costs.

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About

First Mortgage Solutions is a locally operated and family-owned mortgage company founded on the principles of honesty, integrity, and experience. First Mortgage Direct is the online loan division of First Mortgage Solutions.

Friends, First Mortgage Solutions is licensed in California, Colorado, Connecticut, Florida, Georgia, Illinois, Kansas, Missouri, New Jersey, Oregon, Pennsylvania, South Carolina, North Carolina, Tennessee, Texas, Virginia, and Washington, as well as with Housing Federal. Authority (FHA), the Veterans Administration (VA), and the United States Department of Agriculture (USDA).

We specialize in refinance, purchase, home equity, and debt consolidation loans, and our goal is to get all of our clients through our quick and painless loan process and the best possible loan program.

First Mortgage Direct prides itself on bringing honesty and integrity to the mortgage process through its experienced and knowledgeable loan officers, and the reviews prove it. Reviewers across the internet note the transparency throughout the loan process as a perk of using this lender. This transparency extends to the lack of hidden fees — First Mortgage Direct is upfront with what they’re charging rather than slipping in unexpected costs.

First Mortgage Direct Fast Facts

  • Direct-to-consumer mortgage lender founded in 2007
  • Family-owned and headquartered in Kansas City, Missouri
  • Offer home purchase loans and mortgage refinances
  • Licensed in lend in 17 states nationwide
  • A DBA of First Mortgage Solutions, LLC
  • Their lending team boasts over 75 years of experience in the mortgage industry

First Mortgage Direct, which is actually a dba of First Mortgage Solutions, LLC, has been around since 2007. Combining your first and second mortgage can decrease monthly payments and interest rates substantially. … One benefit of consolidating your mortgages is that it can result in lower monthly payments and even reduce your loan rate.

First Mortgage Direct Mortgage Reviews & Ratings in 2022

Location:

First Mortgage Solutions, based in Kansas City, Missouri, is focused on finding the best possible loan program for each individual homeowner.

We are aware that each of our clients has a unique financial situation and goals, so it is imperative for us that these situations are taken into account and those goals are met when choosing the right loan program for each person.

At First Mortgage Solutions, we do not offer limited-time specials or charge hidden fees. We simply take a consultative approach to lend to find the perfect loan program, for every homeowner, every time.

Physical Address:

  1. FIRST MORTGAGE SOLUTIONS
    9237 Ward Parkway, Suite 300
    Kansas City, MO 64114
  2. Telephone: 855.222.5102
  3. Email: info@fmdloans.com.com
  4. Facebook Page
  5. Linkedin Profile

First Mortgage Direct Mortgage Reviews & Ratings in 2021

As the name implies, a first mortgage is a mortgage in the first lien position on the property that is secured by the mortgage. … A second mortgage, also known as a piggyback mortgage, is done at the same time as the first mortgage and takes the second lien position on the property.

Though First Mortgage Direct only operates in 17 states, this lender has a broad range of mortgage loan types and programs. Whether you’re buying a new home, refinancing, renovating your existing home, or investing in a new property, First Mortgage offers a loan to fit your needs.

It is also licensed for conventional, FHA, USDA, and VA loan types, providing well-qualified borrowers with different loan options. One major downside to using First Mortgage Direct as a lender is that it has a limited service area of just 17 states.

Unless you live in one of the following states, you won’t be able to get a mortgage loan from First Mortgage Direct:

  1. California
  2. Colorado
  3. Connecticut
  4. Florida
  5. Georgia
  6. Illinois
  7. Kansas
  8. Missouri
  9. New Jersey
  10. North Carolina
  11. Oregon 
  12. Pennsylvania
  13. South Carolina
  14. Tennessee
  15. Texas
  16. Virginia
  17. Washington

That greatly limits who can take advantage of the loans this lender offers. If you’re buying in one of the states above, this lender could be a great option. If you’re in another state, you’ll have to look elsewhere.

What is DDA Debit

First Mortgage Direct Rates

While they don’t advertise their mortgage rates on their own website, you can often see them at large if you compare the lenders in the Zillow marketplace. And they tend to offer the lowest rates of all the listed lenders, at least for the sample scenarios I ran on the engine.

That tells us that they are competitive lenders compared to other online mortgage lenders, who appear to offer lower interest rates than the larger traditional banks and newer lenders that you are probably more familiar with.

Ultimately, you should get a discount when you use an online-only lender because your costs should be lower and the savings will be passed on to consumers.

If they are not competitive and you have not heard of them, it would be quite difficult for them to argue to use them in front of a company they know and are comfortable with. So my guess is that their rates are probably pretty good relative to other options. But you will have to contact us for prices.

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How to Apply for a Home Loan with First Mortgage Direct

As an online-only mortgage lender, the application process is fairly straightforward and straightforward. Just visit their website and click “Apply Now”.

Your digital mortgage app is powered by Ellie Mae, which is one of the most common and popular forms out there.

It allows you to complete much of the process from your computer or smartphone in just minutes, including ordering a credit report and electronic signature documents.

Once your loan is approved, you will be able to log in through their website to track the progress of the loan and see your updated to-do list.

A loan officer and loan processor will assist you as you inch closer to the finish line. They do not have physical branches, but you can call or email them directly if you need assistance or loan pricing.

Must fill out online application or call for rates and fees

If interested in working with First Mortgage Direct, you have to fill out an application to get a loan estimate with rate and fee breakdowns. You can apply over the phone or online.

‎614 votes and 5 Star Review

Educate Yourself to Make Your First Mortgage a Success

Your first mortgage can be more interesting if you have acquired enough mortgage knowledge. But if you don’t know much about mortgage rules, there are possibilities that you may not get a better mortgage deal.

Most of the mortgage lenders will be more interested in earning profit from you rather than helping you find a home that exactly matches your income. Below are some steps that should be taken to make your first mortgage a successful venture.

Earlier, borrowers used to compare mortgage rates, find the lender, make the large down payment, and just move in. Today, there is a variety of options, and going through all the options could be even more stressful.

You should educate yourself before shopping for a mortgage deal. Then you should assess your own financial situation.

How much you can earn? How secure is your job?

Normally, mortgages are repaid in fifteen to thirty years. Therefore, you should choose for a mortgage only if you can afford it.

If you think that you can afford a mortgage then the next thing will be that how much you can afford. You should have a sufficient amount as a down payment. Because interest rates of your first mortgage will depend on down payment also.

Another important factor that will affect the interest rate is your credit record. If you have a good track record of repayment, mortgage lenders will offer a decent rate of interest on the first mortgage.

When you begin your search for the lender, you will encounter two types of lenders-direct lenders and mortgage brokers. Direct lenders are the ones who provide you with mortgages directly.

But a direct lender will have a limited number of loans available, whereas a mortgage broker will have access to multiple lenders simultaneously.

Mortgage brokers will either charge a certain percentage of the mortgage or they will not take money from you. At times, they charge their fees from the lenders only. So, you can also get the help of mortgage brokers to make your first mortgage a huge success.

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his master’s in Business Administration and is currently assisting your-Mortgages. as a finance specialist.

What banks check when you apply for a mortgage

When you buy a house or an apartment, you need foreign capital. Your bank will gladly lend you this capital if you meet certain conditions. The object and especially your economic and personal situation are decisive.

Credit capacity analysis should determine whether a person can repay credit and pay interest on it with income.

(RH) To check the credit capacity, banks calculate viability. Mortgage interest, depreciation and charges should not exceed 35% of income. Alimony and leasing drafts are deducted from income. Two payments are subjected to a detailed analysis since revenue could be completely or partially missed depending on the family’s plans. The calculation of financial capacity must therefore also consider the fact that, where applicable, a single income will be sufficient to cover ongoing costs. Certain caution is in order about the variable elements of the salary, such as bonuses, as they are not guaranteed in any way. Many banks check their solvency with the associations(credit information centre). The ZEK notably collects data on consumer loans or leasing contracts.

However, the greatest personal risk is not linked to professional factors, but the private environment: a divorce often leads to the sale of the house or apartment. Particularly when contingency funds are committed, homeownership becomes a financial burden in the event of divorce. While no one is immune to separation or divorce, the risks and economic consequences must be addressed as part of the counselling.

Take into account renovation funds.

When calculating the borrower’s financial capacity in the case of a two-story property, one should not underestimate the payments into the renovation fund. Many storey owners forgo putting money into the renewal fund in the first few years. This choice has consequences later; construction defects appear after the warranty period has expired or when expensive equipment, such as an elevator or a swimming pool, needs to be renovated or replaced. The Swiss Association of Co-Owners recommends an annual investment of at least 0.3% of the building’s insurance value. In the long term, the renewal fund should endow with 6 to 8% of the sum of the building’s insurance value. In addition, floor owners should also remember that they will also need to save money for their apartments.

Risk of rate changes

Mortgage rates are still at an all-time low. Especially young owners, who have known nothing but this phase of low interest, mistakenly think that this is a normal situation. However, in Switzerland, the average long-term mortgage interest rate is 5%. Banks, therefore, calculate viability based on a theoretical interest rate of 4.5 or 5%. It makes sense to protect against rising interest rates, especially when the math is tight. For example, with a long-term fixed-rate mortgage, homeowners can safely budget for eight years or more and pay only a small premium over short and medium-term mortgages.

The risk associated with the object

A prerequisite for assessing the risks associated with the object of real estate is the property assessment. The banks estimate the value of each house or apartment. In this context, they always rely more on the hedonistic method. It is based on the prices realized during changes in the owners of comparable objects, which are listed in the interbank database of the company CIFI. However, when it comes to amateurish, non-standard things, this method is not adequate. Old or luxury properties, for which few transactions occur and therefore have no reference value, are appraised on-site by a specialist.

Be careful with old buildings.

The value of new buildings is relatively easy to estimate since it corresponds to the capital costs in the case of standard properties. The situation is quite different from the old buildings. Determining the value is more difficult because often, there is a lack of construction descriptions or detailed documentation of maintenance work. In the case of special objects, subjective factors play a role. In addition, the often underestimated need for maintenance, accumulated over the years, harbours unknown risks. Particularly in the case of older single-family homes, it is wise to estimate the investment before the purchase and consider this in the financing.

Location risk

Location plays an important role in determining value, for example, regional infrastructure development, noise and odour emissions or mobile phone antennas. It is not always clear from the documentation whether a power line passes next to the building. Therefore, it can be useful for a local real estate expert to get an idea of ​​the situation on the spot. In practice, the location risk is included in the price of the land, but the market presses and often anticipate such developments.

Market risk

The valuation of real estate is important for the calculation of financial capacity and the financing model. For customers, the value of a property is its purchase price. As for the banks, they orient themselves to the result of the estimate. If the purchase price is higher than their estimate, they draw the customer’s attention to the fact that the high purchase price could result from a real estate bubble. They also calculate the collateral based on the estimate. It can mean that the first mortgage is not enough, and the client has to take a second mortgage or borrow more money than expected through the second mortgage. In the worst case, capital is not enough if the customer has made a fast calculation and the purchase price is significantly higher than the appraisal.

Stricter mortgage guidelines

The authorities are closely monitoring the mortgage market and real estate. They want to prevent the needs from overheating and the banks from getting into trouble because of the risk of interest rate fluctuations. That is why, on their initiative, banks have proposed new guidelines for mortgage lending.

Although the situation has eased, banks have slightly stepped up their voluntary self-regulation and are significantly curbing mortgage lending. The main measure is a faster amortization. Until now, debtors had up to 20 years to pay off their second mortgage. This period has been shortened by five years to 15 years. In addition, debtors must amortize on a straight-line basis, that is to say, in instalments of equal amounts. Until now, it was possible to pay nothing for several years or to repay the full payment at the end of the amortization period. You can read more about the consequences in our article ” The advantages of direct amortization “. Existing mortgages and extensions are not affected by these changes.

Strengthening collateral and sustainability guidelines

The Swiss Bankers Association has taken the thinking even further to minimize the risk of overheating. From now on, real estate is pledged according to the principle of lower value. When the purchase price is set above the market value, as in the past, the bank relies on the market value for collateral and vice versa when the purchase price is lower than the market value. Buyers who get a good deal and buy a residential property below market value can pledge their property up to 80% of the lower purchase price, not the higher market value. In addition, a second income is only taken into account for the viability calculation if the debtors are jointly and severally liable. Couples with two incomes can therefore no longer agree to the separation of property for mortgage debts.

The consequences for landowners

These measures have consequences only for buyers. Existing mortgages and extensions are not affected. In addition, banks have given up on tightening capital requirements. People wishing to become homeowners must always finance at least 20% of the purchase price themselves – and at least 10% must not come from a pension fund. Banks subsidize homeownership only if the purchase price is appropriate and the customer is solvent and creditworthy. Many banks work with a rating system and offer better terms to customers with higher creditworthiness and credit capacity. Generally, the client-advisor has some leeway and can make a gesture for the client on the interest rate, especially for the second mortgage, if, for example, the client entrusts his securities accounts to the bank.

In Switzerland, 3.1% of mortgage loans are currently contracted online, compared to 45% in Germany and 75% in the United Kingdom. It should change with new platforms such askey4 by UBS, which offer their mortgages and those of third-party institutes. It will put pressure on the traditional mortgage lending business of banks.

Conclusion:

If you’re in the market for a new mortgage, First Direct Mortgage may be a good option. This lender is known for charging borrowers no origination fees. It also has excellent customer service, streamlined applications, and quick closings, but it isn’t the right fit for everyone. Here’s what you need to know about First Direct Mortgage.

To determine how First Mortgage Direct stacks up against the competition, we used our proprietary SimpleScore methodology to compare mortgage lenders’ customer satisfaction, customer support, fees, interest rates, and perks.

The entire experience was very stressful. No phone call communication between the loan processor and officer. Email method was only used. The underwriting department does not seem to have a clear picture of my investment income and assets. They kept me in the dark for nearly 4 months..

They kept increasing the discount point without discussing it with me. The rate is not always locked. I know all lenders deal with high volume these days but they also need to respect potential borrowers’ time. I went ahead with another lender who wants my business.

A great choice if you’re looking to avoid paying for origination fees and want excellent customer service and a streamlined application process.

First Mortgage Direct offers no origination fees, a streamlined online application process without sacrificing the small-town touch, and excellent customer service means borrowers can depend on this lender when purchasing or refinancing their home.

Who owns First Mortgage Direct?

Image result for First Mortgage Direct
Ryan Wiebe
Hello! I’m Ryan Wiebe, the founder, president, and CEO of First Mortgage Direct. My wife, Maureen, and I, and our four beautiful children, reside in Kansas City, MO.

What does direct mortgage lender mean?

Direct mortgage lenders are considered financial institutions that can provide mortgages directly to borrowers without intermediaries, such as investment banks, mortgage brokers, and private equity firms.

What is the first mortgage program?
CalHFA Conventional Loan Program

This CalHFA Conventional program is a first mortgage loan insured through private mortgage insurance in the conventional market. The CalHFA Conventional interest rate is fixed over the 30-year term.

What is the smartest mortgage for a first-time buyer

An FHA loan has lower down payment requirements or is more accessible to qualify than a conventional loan. FHA loans are outstanding for first-time homebuyers because, in addition to lower upfront loan costs or less stringent credit requirements, you can make a down payment as low as 3.5%

First Mortgage Direct Mortgage Reviews & Ratings in 2022

First Mortgage Direct Mortgage Reviews & Ratings in 2022

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