What loan products/programs are available? 

Bison is a full-service mortgage company that caters to borrowers at every stage in their homeownership journey.  We provide prospective and current homeowners the opportunity to find the best mortgage loan for their unique needs.  Our approach is consultative, as we strive to educate our borrowers on the mortgage process, while arming them with information and options, which should allow them to make the best decision for their situation.  We call our approach informed lending.  To ensure the best outcome for our clients, we offer a full suite of products including Conforming conventional (FNMA / FHLMC), Jumbo, Government (FHA, VA, & USDA), Bond, 2nd mortgages, and non-QM loans. 

When should I consider refinancing?

Refinancing your mortgage can serve several purposes, including lowering your interest rate, lowering your monthly payment, extending, or reducing your repayment time frame or pulling cash out of your property.  Since no two situations are identical, it’s important that you consult with a licensed professional, who can help to diagnose your specific situation and objectives.  After we analyze your situation, we will outline some potential solutions, which will allow you to make the most informed decision.  We’d love to help, so please call or email if you like to discuss your options.

What type of documentation do I need to apply for a mortgage?

Do you need 20% down to buy a house?

The truth is that many loan programs require low or no down payments, so we advise exploring your options with one of our Bison Ventures loan officers. For example, conventional loans can require as little as 3% down, FHA loans as little as 3.5%, and VA loans often allow for zero down payment when the house in question meets the guidelines set by the Department of Veterans Affairs.

What is mortgage insurance?

Typically, borrowers making a down payment of less than 20% of the purchase price of the home will need to pay for mortgage insurance. Mortgage insurance is also typically required on FHA and USDA loans. Mortgage insurance lowers the risk to the lender of making a loan to you, so you can qualify for a loan that you might not otherwise be able to obtain. If you are required to pay mortgage insurance, it will be included in your monthly payment, closing costs, or both.

What is DTI?

Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income. This number is one way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow.

To calculate your debt-to-income ratio, you add up all your monthly debt payments and divide them by your gross monthly income. Your gross monthly income is generally the amount of money you have earned before your taxes and other deductions are taken out. 

What is a discount point?

Discount points are a type of prepaid interest or fee that borrowers can purchase to lower the amount of interest on their subsequent monthly payments—spending more up front to pay less later, in effect. Discount points are tax deductible.

What are cash reserves?

Reserves are savings balances that will be there after you close on your home. Mortgage companies require that you have emergency funds in place to cover your housing expenses, even if your income stops. Reserves are measured in months.

What other costs will I pay at closing?

Closing costs include the myriad fees for the services and expenses required to finalize a mortgage. You’ll have to pay closing costs whether you buy a home or refinance. Average closing costs for the buyer run between about 2% and 5% of the loan amount.

What is the difference between prequalified and preapproved?

Loan Preapproval and prequalification are two similar terms with notable differences. A pre-qualification is an estimate of the potential loan amount a borrower could receive based on basic information provided by the loan applicant. A pre-qualification is an evaluation of a potential borrower by a lender to determine whether they can be given a loan or not and, if so, for what amount. A borrower can be pre-qualified and not receive loan approval.

What is an escrow account, and how does it work?

In a real estate transaction, a trusted third party is hired to hold all documents and funds for both buyer and seller. This third party can be a law firm, title company, or escrow company, and the documents and funds are held “in escrow.” The escrow provider safeguards your funds and protects all parties by ensuring the terms of the purchase contract and mortgage agreement are carried out.

What does my mortgage payment include?

  • PITI – Principal, Interest, Taxes, Insurance
  • PMI – Private Mortgage Insurance

What is a cash-out refinance?

A cash-out refinance replaces your current mortgage with a new, larger loan, paying you in cash the difference between the amount borrowed and what you owe on the home. With a cash-out refinance, you’re getting a new home loan for more than you currently owe on your house. The difference between that new mortgage amount and the balance on your previous mortgage goes to you at closing in cash, which you can spend on home improvements, debt consolidation or other financial needs.

What is prepaid interest?

Prepaid interest charges are charges due at closing for any daily interest that accrues on your loan between the date you close on your mortgage loan and the period covered by your first monthly mortgage payment. This amount is listed in both your Loan Estimate and Closing Disclosure

What is the difference between a mortgage banker and a mortgage broker?

Bison is a mortgage banker, which means we work with banks and similar lending institutions to provide you money for your loan. A mortgage broker doesn’t represent one institution but works with any to shop for a loan for a specific individual. The banker is a direct lender while the broker is a middleman between the borrower and the lender.  

 How is HOA factored in on your DTI?

While HOA dues aren’t technically included in your monthly mortgage payment, they can affect your ability to qualify for a home. Even though homeowners pay dues directly to the association and not their lender, they are still taken into consideration during underwriting.

What is a second mortgage?

A second mortgage lets you convert some of your equity into money you can use today without refinancing or selling your home. Unlike a refinance, a second mortgage does not alter your primary mortgage one bit — it’s a completely separate loan.

What is the difference between APR and interest rate?

  • APR is the annual cost of a loan to a borrower — including fees. Like an interest rate, the APR is expressed as a percentage. Unlike an interest rate, however, it includes other charges or fees such as mortgage insurance, most closing costs, discount points and loan origination fees. The APR is intended to give you more information about what you’re really paying.
  • Interest rate refers to the annual cost of a loan to a borrower and is expressed as a percentage. Your monthly payment is not based on APR, it’s based on the interest rate on your promissory note.

What is the difference between conventional and jumbo loans? 

In short, conventional loans are backed by Freddie Mac and Fannie Mae whereas Jumbo loans are not. Jumbo loans are large loans that fall above the federal loan limit. These loans tend to be harder to qualify for than conforming loans but offer competitive interest rates, fixed or variable rates, and no PMU payments. Conventional loans tend to be smaller and more in line with the needs of the borrower. 

Can I “lock in” my interest rate? 

Yes! Locking in your interest rate protects you from higher rates. Once the interest rate is locked, it will not change (barring any changes on your application details). You are protected from higher rates, but you also won’t be able to receive a lower rate.

Can I pay off my loan early?

In most cases, you can pay off your mortgage early and in its entirety without any penalties. If your mortgage does have a prepayment penalty, you will have to pay an additional fee if you pay off your mortgage ahead of schedule.

How will applying affect my credit?

Applying for a mortgage may cause a small dip on your overall credit score, but making your mortgage payments on time and as agreed will offset that dip overtime.

Why should I work with Bison Ventures?

Bison Ventures represents the long-standing dreams of industry veterans; to create a company where the customer comes before anything else. Bison offers a large library of programs and products, giving every borrower an option to fit each of their unique financial situations. Bison is also committed to having a positive influence on the communities in which they operate and support a variety of charitable causes. Giving back is part of their everyday culture!

Do you work with all types of borrowers?

Yes! From first time homebuyers to borrowers purchasing their 20th home, Bison works with all types of borrowers, from A-Z. In fact, with over 100 years of combined lending experience, there is not a scenario or situation that Bison hasn’t worked with!

What are the benefits to working with a lender team as opposed to a single person?

A streamlined lending team provides a more comprehensive service approach as opposed to working with a single person. The team approach enables quick responses even on nights and weekends, as we understand that real estate is a time sensitive industry. We utilize a custom built CRM to document all client communication, so that any team member is able to quickly access all notes and updates.

When should I consider refinancing?

Refinancing your mortgage can serve several purposes, including lowering your interest rate, lowering your monthly payment, extending, or reducing your repayment time frame or pulling cash out of your property.  Since no two situations are identical, it’s important that you consult with a licensed professional, who can help to diagnose your specific situation and objectives.  After we analyze your situation, we will outline some potential solutions, which will allow you to make the most informed decision.  We’d love to help, so please call or email if you like to discuss your options.

Do you have special loan programs for veterans?

Yes, we are proud to support our veterans with the full suites of VA loan programs.

Why is my rate different than my friend/neighbor/mom’s?

Interest rates depend on so many reasons that trying to compare yours to anybody else’s is like comparing cats to dogs. Your interest rate depends on your credit score, your income, your employment history, your down payment, and many, many other different aspects. Your interest rate is unique to your personal situation and cannot be compared!