FAQ'S - REQUENTLY ASKED QUESTIONS ABOUT MY LOAN
What happens if I apply online?
You'll create a login on our secure server. Your information is sent to us securely. We will contact you and go over your application, run a credit report, and obtain a pre-approval.
It's fast and easy.
How do I know which loan or mortgage product is the best for me?
During the pre qualification process we are going to ask questions like:
- How much are you looking to come up with out of your pocket?
- How long do you want to be in the house or have your mortgage?
- What is the max payment you are looking to make?
These are a few of the key questions to get started on putting together some financing options that are best for you.
How are interest rates determined?
Interest rates are determined by the credit markets, and change every day - sometimes several times a day.
What if I lock my rate and rates go down?
Once you lock your loan you will be protected against rising interest rates and will be closing at the rate in which you locked in.
In some instances, if there is enough change in the market (typically .25%), we may be able to lower your rate.
What is the difference between a fixed-rate loan and an adjustable-rate loan?
With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index.
While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change.
We do offer 3/1, 5/1, 7/1 & 10/1 hybrid ARMS that have a longer period in which the rates are fixed before they adjust.
Are there any fees to apply?
Unlike many lenders, we don't charge any up-front fees or deposits. We even pay for a credit report. We typically collect the appraisal fee prior to ordering the appraisal.
How do I cancel Private Mortgage Insurance?
Send link to flier!
What does my mortgage payment include?
For most homeowners, the monthly mortgage payments include three separate parts:
- Principal: Repayment on the amount borrowed
- Interest: Payment to the lender for the amount borrowed
- Taxes, Insurances & Mortgage Insurance: Monthly payments are normally made into a special escrow / impound account for items like mortgage insurance (if applicable), hazard insurance, and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company
How much cash will I need to purchase a home?
The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
- Earnest Money Deposit: The deposit that is supplied when you make an offer on the house. This amount will be deducted from your total cost when you close.
- Down Payment: A percentage of the sales price of the home that is due at settlement.
- Closing Costs: This will include your lender fees, title fees, appraisal and any points if you chose to buy the interest rate down.
- Escrow: This will be paying your taxes and insurance into an impound account.
What is a "Loan To Value" ratio?
The loan-to-value (LTV) ratio the amount of a first mortgage as a percentage of the home's appraised value or sales price. If a borrower borrows $160,000 to purchase a house worth $200,000, the LTV ratio is $160,000/$200,000 or 80% (LTV).
Loan to value is one of the risk factors that lenders assess when qualifying borrowers for a mortgage. Lenders can require borrowers of higher LTV loans to obtain mortgage insurance in conjunction with obtaining a loan.
How quickly can I get a loan approved and close escrow?
If you provide us with the documentation we need up front, we can often receive preliminary loan approval within hours, and in many instances can close as quickly as two weeks. We'll work with you to get your loan done on time.
What if I'm self-employed?
We believe that success starts with you and there's no one better to manage the processing of your files than someone sitting right in your office! Of course, we'll ensure your processor has all of the training and resources necessary to make the transition as seamless as possible.
In the even there are extenuating circumstances or you need a different arrangement based on your branch set-up, we can speak about alternative options for you.
What is an appraisal?
A real estate appraisal is a professional written analysis of a property's market value.
It helps establish the likely sales price of the property in a competitive real estate market. Mortgage lenders require an appraisal when a property will be used as collateral for a loan, to make sure that the property could potentially be sold for at least the amount of the loan.
What is your appraisal process?
We have an internal management team that oversees the ordering and status process with a panel of Appraisers.
Once we have an executed contract we will order the appraisal. Some people like to wait until the home inspection has been completed before ordering the appraisal. Most properties only require one appraisal but in certain circumstances we may need a 2nd appraisal or a field review.
What is private mortgage insurance?
Private mortgage insurance (PMI) is insurance designed to protect the lender from losses in the event that the borrower defaults on a mortgage.
Purchased by the buyer from a private insurance company, PMI is usually required when the down payment is less than 20% of the purchase price or appraised value, whichever is less.
What is underwriting?
Mortgage underwriting is the process a lender uses to determine if the risk of lending to a particular borrower is acceptable. Most of the risks and terms that underwriters evaluate are related to a borrower's credit, the borrower's ability to pay, and the value of the home or property that will be held as collateral for the loan.
How long does the loan process take?
The length of time between the submission of a loan application and the funding of the loan can vary depending on a variety of factors, such as your credit score, income and debt levels, the loan-to-value ratio, the completeness of your supporting personal documents, the findings of the home appraisal and inspection, and so on. Sales contracts are generally written with a closing date approximately 30 days out, and most purchase loans can be completed within 30 days. Refinance transactions can typically close more quickly than a purchase transaction because fewer parties are involved in the transaction
How long do I have to wait after having a Foreclosure, Short Sale or Bankruptcy?
Please call for more information