Colonial Credit Company

Real estate and RESCOM Mortgage FAQ

Q- Why should I choose the lender/broker link to Rescom that Colonial Credit is showing here instead of my bank, or a TV or radio-ad company?

Simple Really. Like us, Rescom does not have to pay for expensive marketing, and the savings are passed on to you.

OK, some details:

Most of the "other" companies don't care about a lasting relationship. They typically say or do ANYTHING in their ads to get your phone call or application. After making you wait for many weeks, they say you "don't qualify" for the advertised rate and costs. A classic bait and switch, and they do it ALL THE TIME.

WE NEED LASTING RELATIONSHIPS and REPEAT BUSINESS which is why Colonial Credit does not violate your trust. Our customers...YOU...and the repeated business and referrals are the reason we have made it through the most difficult times ever faced by the real estate industry!

Q- Why do I hear about so many different rates? It gets confusing.

The LOWEST RATES AVAILABLE from Fannie Mae and Freddie Mac are available to virtually every mortgage company and bank at the SAME BASIC WHOLESALE COST. So why the variance in advertisements?

TV and RADIO AD COMPANIES KNOWINGLY ADVERTISE PROGRAMS ONLY ABOUT 10% OF THEIR CALLERS QUALIFY FOR. That means up to 90% of people who call these companies either get approved for a much higher rate and cost, or they get DECLINED. Besides, EVERYONE who obtains a loan through these companies AND BANKS pays more. Customers pay for those TV and radio ads through higher rates.

WE DONT PLAY GAMES OR WASTE YOUR TIME in Real Estate and neither does RESCOM for mortgages.

What you see from other companies on TV or in the papers is typically misleading "low" rates WHICH SECRETLY HAVE MANY POINTS AND FEES. Try to pin them down when you call and listen to them evade specific questions about points and fees or guarantees about the rate. These companies AND THE BANKS wont guarantee ANYTHING.

Loans have varying degrees of risk, based on property types, Income levels, Credit, and loan purpose. We are extremely up-front about your options. Our customers are often surprised at how low a rate they can obtain through Rescom. CALL US WITH QUESITONS. Rescom won't push a particular program like many lenders do, because we are looking out for our best resource for future business.... YOU!

Q- Why should I believe you are different, that your company really cares about what I want?

Simple. Think about this:

Our management and people recognize a simple rule about human nature. When we become genuinely interested in what is best for our customer, when we listen to your needs and concerns, we can best educate you as to your options. People understand and appreciate this type of service. As a result, our customers get what they want, and feel good about the process. The result is,(no surprise here) more business for us. All because we did "right" by our customers.

Q- I have a question that isn't discussed here. I want answers, and hate to wait. What can you do to help me?

If you E-Mail us HERE, a representative will give you a DETAILED and SPECIFIC response (not automated) in 24 hours. (Once you are in the system, if you use the RESCOM loan update system, an autoresponder will first apply, followed by a detailed response from a qualified agent.)





MORE DETAILED and HELPFUL INFORMATION fo those wanting to learn as much as possible:

Is there any way to speed up the loan approval process?

  • Becoming either pre-qualified (a preliminary analysis of your debt-to-income ratio), pre-approved (NOT a loan guarantee-but analysis of credit report and income and a correlating maximum loan amount and interest options), or obtaining a loan commitment (guaranteed under pre-set conditions) will help speed up the loan process. Pre-qualifications indicate that you are a more solid buyer. However, only a loan commitment is a guarantee that you will get the loan.
  • Another way to help speed up the loan approval process is to get your paperwork ready in advance.
    • Check your credit score and clean up any old items. Have explanations for any remaining questions on your credit report.
    • Gather any needed documentation such as personal identification, income verification and tax returns, employment history, and insurance commitments.
  • And, most important, when the loan officer asks for any information, always respond promptly.

What is the difference between a mortgage broker, a lender, and a loan officer?

A mortgage broker covers a broad basis, linking buyers with appropriate lenders, counseling borrowers, and even processing loans.

A lender is the institution or agency that will actually loan the money.

A loan officer is an employee of either a lender or a mortgage broker, generally finding borrowers, counseling, taking applications, and often, being involved in the loan processing.

What documents will be required to close a loan?

Documents required vary from loan to loan, but generally the following are required, often for up to two years back:

  • statements of income such as W-2's, pay stubs, financial statements
  • bank statements
  • a list of any assets that you own
  • rental or mortgage history
  • employment history and current information
  • personal identification, including Green Card if applicable
  • purchase contract
  • Other pertinent items such as: Bankruptcy Discharge Notice or Divorce Decree
  • loan application


Why do I need to check my credit prior to buying a house?

The lender will obtain a credit report. If you look at it prior to a loan application, you have a chance to clean up detrimental items before you have to explain them to the lender. Also, if your score is low, you can do specific things to increase your score such as paying down debt, increasing cash in the bank, and making payments consistently on time, over a period of time.

What is the difference between conforming and non-conforming loans?

Conforming loans are mortgage loans that meet specific, uniform national standards (most commonly referred to as Fannie Mae and Freddie Mac requirements) that deal with document specs, debt-to-income ratio limits, maximum loan amounts, and interest rates.

Non-conforming loans are loans that do not meet banking qualifications generally due to borrower's financial status or property that does not meet required criteria. These types of loans are funded by private money and usually have a much higher interest rate than conforming loans. Loans that exceed Fannie Mae limits are called "Jumbo" loans.

Where do the names Fannie Mae and Freddie Mac (loan regulating entities) originate?

The Fannie Mae entity was created in 1938 under President Franklin D. Roosevelt to help the home buying economy which was floundering at that time. In 1968, Freddie Mac was chartered to provide competition. These are not government funded entities, only government sponsored, with the idea of creating national standards and guidelines to ensure a long-term healthy housing market.

They operate by borrowing foreign, low-interest money that, in turn, allows them to provide local banks with money to offer affordable housing loans. Together these two entities control about 90% of the secondary mortgage market.

They were dubbed these names from the acronyms of their respective government sponsored entities:

  • Federal National Mortgage Association (FNMA): Fannie Mae
  • Federal Home Loan Mortgage Corporation (FHLMC): Freddie Mac

What are points?

Points are a fee that is expressed as a percentage of the loan amount: one point is 1% of the loan amount.


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