AFFILIATED BUSINESS ARRANGEMENT DISCLOSURE STATEMENT

Paragon Realty & HomeReady Lending

Paragon Realty has a business relationship with HomeReady Lending.

Yep.

Paragon Realty and HomeReady Lending are affiliated through common ownership.
Paragon Realty is 100% owned by Dwayne Coburn.
HomeReady Lending is 50% owned by Dwayne Coburn.
Because of this ownership interest, a referral from Paragon to HomeReady may provide Dwayne Coburn and/or Paragon Realty with financial or other benefits.

This is a good thing for you. Read on…

Dynamic Duo

Because lending has such a major influence upon whether or not the deal you want to make on a home comes together, Dwayne Coburn, through his company, Paragon Realty, wanted to hand-pick who he works with for financing, to increase the likelihood of your success in obtaining financing at competitive terms, on time, and on budget.

Of all the lenders in the land, Dwayne selected HomeReady Lending for the rave customer reviews and for his own experience with the HomeReady. He even decided to go a step further and buy into the company.

How Does This Arrangement Help You?

Lenders and Real Estate Companies don’t usually have the degree of communication and collaboration that exists between Paragon and HomeReady. Being partners takes our communication and cooperation to the next level, and you benefit because everything we do for you is transparent to you, to Paragon, and to HomeReady. There are no surprises, no missing information, nothing forgotten or overlooked.

Lending has challenges, presents obstacles, and requires a lot of paper chasing. Working together to beat back challenges your deal faces makes this process just work.

What Fees does HomeReady Lending charge?

Fees vary with loan type. For example, construction lending is much more involved than, say, a simple refinance so the fees for a construction loan will be significantly higher. The best way to get informed is to ask for our fees for your specific transaction. We are happy to show you everything!

But here are some realistic ranges:

For Purchase & Refinance Loans
Origination Fee: in most cases, zero. Otherwise 0 to 1.75%

Underwriting: $995 to $1,495.
Processing: $0 to $995 This is for all the paper chasing and reporting. Tons of it.
Credit Report: $132 per report (this fee comes to us from the Bureaus, like Transunion and Equifax. We don’t upcharge anything. We can’t do anything about this fee but Congress can. Good luck with that, though.)

Title & Escrow: $1,100 - $1,700 This is not a lender fee so we’re not defending it here, and it varies with sale price. You can shop for this. The choice of T&E, also referred to as the Settlement Agent, is usually made by one of the Realtors in the deal.

We need the services of a Title & Escrow company to provide both a Title report and settlement services.
Title is just what it sounds like; we want to make sure you’re buying a home and property and not someone else’s past legal problems, to name one purpose of title services.

And escrow is the function of acting like a mediator in the deal; holding the money, getting everything signed & recorded,…etc.

Taken together, these two functions are known as “title & escrow,” (T&E), or “Settlement services.”
The choice of T&E is usually made by one of the Realtors in the deal, and so it was with your deal. I’m usually just told where the transaction is closing, and then I reach out to them for their fees.
Title & Escrow Fees for a refinance are higher because there’s no Seller to share the fees with: $1,500 to $3,500, typically. Higher loan amounts move this fee up the ladder.

Appraisal: $550-$750 for owner-occupied properties. Investment property where a rent analysis is also required, will be significantly higher. We don’t set these fees. Local appraisers do, hence the range provided.

Interest: there will be a number of days of interest due at closing equal to the days remaining in the month we close. So, if we close on September 10th, for example, there will be 20 days of interest collected, at closing, to get us to the end of the month.

Taxes and Insurance: Also, at closing, we will need to have homeowner’s insurance paid for the first year. You provide the insurance agent information and we get a quote and commitment to insure from your chosen agent.

The above fees do not include the purely optional expense to “buy down” the interest rate, that is, secure for yourself a below-market interest rate. This topic—choosing an interest rate—deserves its own discussion with estimates to compare and an explanation of how it works. We’re glad to show you everything.

Construction Lending has all the same fees as above, but more, too. They are:
Title Updates and Lien Monitoring: $2,500 to $3,500
Draw inspections: $1,500 to $2,500
Final Inspection: $250 to $500
Survey (if needed): $500 to $2,500
Budget Review and Due Diligence: $250 to $750
Construction Management Fee: $995 to $1,995

Shop Around!

YOU ARE NOT REQUIRED TO USE HOME READY LENDING AS A CONDITION FOR THE PURCHASE, SALE, OR REFINANCE OF THE SUBJECT PROPERTY.

THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES.

But we are super confident you will return to HomeReady Lending after you look around and compare our numbers to the competition.