How do I know what type of mortgage is best for me?
The ultimate answer to this questions will be obtained through one of our mortgage specialists. That person will help you arrive at the “best” answers; here are some items to consider in helping you address this question:
- Your current financial picture
- How long you intend to keep your house
- Do you expect your finances to change
What is pre-qualification?
Initial establishment of a borrower’s qualification for a mortgage loan amount is based on the borrower’s assets, debts and income.
What are closing costs?
Closing costs are costs payable by both seller and buyer at the time of loan settlement when the purchase or
sale of a property is finalized. The closing costs usually include but are not limited to the following:
- Title search and insurance, escrow fees
- Sales commissions to the Realtor
- Origination fee
- Recording fees
- Courier fees
- Processing and document preparation fees
What is an escrow account?
When borrowers make their monthly mortgage payments, they usually also make a payment toward the anticipated annual amount needed to pay the insurance premium and property taxes. These funds are placed in an escrow account until the lender pays the actual taxes and insurance as they are due.
What is the difference between a fixed-rate mortgage and an adjustable-rate mortgage?
A fixed-rate mortgage has an interest rate that stays the same for the life of the loan. An adjustable-rate Mortgage has an interest rate that changes based upon a specific financial index (such as Government Treasury rates) and payments go up or down based upon the movement of that index.
What is private mortgage insurance?
This insurance protects lenders against loss due to Foreclosure or loan default. Mortgage insurance is required on conventional loans with less than 10% down payment or equity at closing of less than 80% loan-to-value.
How long will the loan process take?
Once you apply, we begin to verify all the information you provided. This process can take anywhere from a week plus. Other factors include self-employment, title clearance, ect. Time delays can also occur if outside sources or you do not provide documents to the lender in a timely manner. Be sure to respond promptly to requests for information while processing is taking place.
Will my loan be sold?
The servicing on your loan (the right to collect payments for a fee) is a marketable asset which your lender can sell to other sources. As part of your documentation, you will sign a form that recognizes the fact that the servicing of your loan may be sold. Most fixed-rate loans are in fact sold.
What documents need to be provided to initiate the loan application process?
Please provide copy’s of:
- 2 most recent pay stubs
- 2 years W-2’s (all jobs)
- Bank statement showing direct deposit
- Homeowners Insurance declaration page
- Recent mortgage statement (Including 2nd mortgages)
- Retirement or investment statements showing 2 months PITI reserves
- Copy of marriage license (if name differ)
- Social Security award letter (if applicable)
- Pension award letter (if applicable)
Self Employed (Additional Documents)
- 2 years tax returns
- 12 months bank statements or 6 months with a DBA license
Purchase (Additional documents)
- Sales Contract
- Proof of deposit (copy of check)
- Bank statement showing proof of funds to close
Investment Property (Additional documents)
- Copy of all leases
- 12 month bank statements
- 2 year tax returns
- P&L statement (4 or more properties)
Additional documents (Special circumstances)
- Chapter 7 Bankruptcy
- Copy of discharge
- List of creditors discharged (if less than 1 year)
- Chapter 13 Bankruptcy
- Complete copy of Bankruptcy documents
- Copy of payment history from Trustee
- Written permission with a pay off amount from trustee
- Consumer Credit Counseling Service (Or like agency or company)
- List of all creditors included
- Pay off amount
- 12 month payment history