Q: How does the process work?
A: Once you have a signed loan application, have received a conditional approval and have ordered the appraisal, complete our online application. We will fax or email you several documents for signatures. Once you have returned them (along with some supporting documentation), we will wire the advance directly into the bank account you designate. Or you may choose overnight delivery. When the mortgage loan funds, the commission comes to Langbert Financial, and we return any balance to you by wire transfer ($29) or mail (no charge).
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Q: How much can I get?
A: If your share of the commission is between $1,500 and $2,500, you can be advanced $1,000. If your share is between $2,500 and $3,750, you can receive $2,000. And if your share is over $3,750, you can receive $3,000. All of the additional commission dollars that are not advanced are paid to you as usual, at funding, after deducting the advance fee. Some limits do apply.
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Q: How much does it cost?
A: You pay nothing up-front. Our fee is $199 for a $1,000 advance, $299 for a $2,000 advance and $399 for a $3000 advance. The advance fee is paid when the mortgage commission funds. And Langbert Financial never charges an application fee.
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Q: How quickly can I receive my advance?
A: Once you’ve submitted your online application, you can expect to receive your documents by the end of the following business day. After you return them along with any other necessary items, your advance will fund that same day, if before 2PM. Otherwise, it will fund the following business day. Langbert Financial does offer a special same-day rush service for an additional $79, where your application jumps to the front of the line, and you will receive your documents within two hours. Once returned, your advance will fund the same day if we receive everything before 4PM.
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Q: What do I need?
A: Just a few things:
- Completed and signed loan application
- Appraisal ordered
- Copy of your driver’s license (new customers only)
- Copy of your prior year’s production report from your office (new customers only)
- Copy of real estate contract (not required for refinancing)
- Conditional approval letter
- Your broker’s signature. There is a place for this on the paperwork we will fax to you.
- A signature from the party disbursing the mortgage commission acknowledging that they will send the commission to Langbert Financial at settlement. There is a place for this on the paperwork we will fax to you. This is typically the settlement agent (title company rep or lawyer).
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Q: Do other real estate professionals use this service?
A: Yes – lots of them. Langbert Financial purchases about $5 million in commissions every year.
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Q: Is there a credit check?
A: Yes – Langbert Financial does a brief credit and background check. However, we understand the challenge of working a commission-based career, so our program is designed to be more accessible than bank loans or credit cards. Over 98% of advance requests are approved.
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Q: Is your fee tax-deductible?
A: It often is, when the advance is used for your business. Check with your tax professional. Also, Langbert Financial will provide you with a complete account summary at your request, at any time, at no charge.
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Q: What is this service called?
A: Technically, our service is called “factoring.” Essentially, Langbert Financial is buying your commission from you at a discount. That discount is our fee, which we receive when the mortgage commission funds. You can advance either before or after the underlying real estate transaction or refinancing closes.
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Q: What happens if the transaction is delayed or falls through?
A: On your application is a scheduled closing date. Langbert Financial gives you a two-week grace period after that date in which the transaction can fund with no penalties at all.Thereafter, there is a late charge of $169 for a $1000 advance, $269 for a $2000 advance and $369 for a $3000 advance plus 0.35% weekly (18%annual) on the balance due, which includes the amount advanced plus all fees. We will set up a repayment plan beginning two weeks later (minimum of 5% of balance paid bi-weekly) until your advance is paid off or you have another closing to repay the advance (and any fees.).
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Q: What is a back-up transaction?
A: A back-up transaction is a second loan you are processing that is scheduled to fund after the one you have already submitted. Sometimes we will ask that you go back online and submit a "Back-up" so that we may get your advance completed. This could be for any number of reasons (e.g. a prior transaction redeemed late, credit issues, there is missing or incomplete paperwork on the first transaction, etc.). There is no fee for submitting a back-up. It is just there to give added strength to your file so that we may better meet your needs. Whichever transaction closes first, the original file or the back-up transaction, will be the one used to repay your advance.
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Q: How can I make a credit card payment on my account?
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