Associate Banner
 

Questions About Applying

 

The property I plan to buy has 5 units, what do I do?

How do I change the downpayment amount on the application form?

What does it mean when I'm asked to select a specific rate/point combination?

Can I lock in a loan program and interest rate online?

What amount homeowner's insurance is required?

How do I know if I need flood insurance?

How are my property tax bills paid?

What paperwork will be necessary during the mortgage process?

How do you use the personal information I enter on this site? Can you guarantee my privacy?

Why is an appraisal necessary? Can't I just use the tax value of the home?

How much of a downpayment will I need?

Why is the Annual Percentage Rate (APR) different from the interest rate?

Who can tell me what my property taxes will be?

What is a Good Faith Estimate?


Can I apply for a loan before I've found a property?

I found a great house but I don't have much money for a downpayment. What are my options?

What is a VA loan and who can qualify for it?

Is there any way I could be approved for a loan if I have credit problems?

How often do interest rates change?

Are discount points tax deductible?

What happens if my loan does not close before the lock expiration date?

What are points?

Why is the number of points associated with a rate sometimes a negative number?

What is a balloon mortgage?

The Mortgage Consultant says that I can only include an average of overtime, commission or bonus pay based on the most recent 24 month history of receiving that income. Are there any exceptions?

What are Pending Savings?

What is an Investment Account?

What do you mean by Life Insurance Net Cash Value?

What's the difference between installment and revolving debt?

What documents do I need to complete my loan application?

What does a mortgage lender consider when reviewing a loan application?

After I apply for a loan online, what will happen next?

How long will it take to get my mortgage approved?

How much does it cost to apply for a loan?

Can I change the loan amount or program after I've applied for a loan?

What is a Truth in Lending statement?

What amount homeowner's insurance is required?

How do I know if I need flood insurance?


 
The property I plan to buy has 5 units, what do I do?
We provide financing for properties up to and including 4 units only. A 5-unit property is considered commercial property so you will need to apply for a commercial loan with a commercial lender.

Return to questions


 
How do I change the downpayment amount on the application form?
If you have not yet submitted your application form, you can change your downpayment by going back into the asset screens in the Personal Information section of the application form. You need to indicate which asset the additional funds will be coming from and adjust the amount. If you have already submitted your application form please call the toll-free number listed on this site. One of our loan consultants will be happy to help you with any changes.

Return to questions


 
What does it mean when I'm asked to select a specific rate/point combination?
You have already specified your preferred mortgage scenario that identifies the term of the loan you’d like to apply for. Each loan program may be available at several different interest rates with a corresponding number of points. You may be interested in a lower interest with higher points or a higher interest with lower points or somewhere in between. Select the option that best fits your financial situation including your cash available for closing and your desired monthly repayment amount. An interest rate is not locked in until you request to lock the rate by speaking with one of our mortgage consultants by phone.

Return to questions


 
Can I lock in a loan program and interest rate online?
Due to market fluctuations, interest rates are subject to change daily. The interest rates shown on this site are not updated daily at this time. But rates are updated by 2 p.m. most days and requests to lock rates can be made up until 6:00 p.m. with a mortgage loan consultant via telephone, these rates are typically for 21 days but can be given for longer lock periods. Please call us to inquire about interest rates on loans that will close more than 21 days from now. Rates on loans closing more than 21 to 35 days from now may be higher. By submitting your loan information to us via this Internet site, you are not selecting and locking-in to a specific interest rate.

Return to questions


 
What amount homeowner's insurance is required?
Your homeowner’s insurance policy should cover the cost to rebuild the home. This insured amount may be higher or lower than the actual purchase price as long as it meets the program requirements. The insurance company you choose can give you an actual quote based on specific information about the property.

Return to questions


 
How do I know if I need flood insurance?
Most standard homeowner’s insurance policies do not cover loss due to flood. The law requires that if your home is located in a Flood Hazard Area you must purchase flood insurance. If you choose, you can obtain flood insurance coverage even if you are not required to do so by the lender. The law requires lenders to do a flood hazard determination on all properties securing a mortgage.

Return to questions


 
How are my property tax bills paid?
Depending on your loan program and state restrictions, your monthly mortgage payment may or may not include funds to pay your property taxes. If your payment includes money for property taxes these funds are held in escrow by the lender and the lender pays your property taxes as they are due. If your payment does not include property taxes, you are responsible for paying them by the due date.

Return to questions


 
What paperwork will be necessary during the mortgage process?
Once you have submitted your application form, we will send you a complete loan package including documents for your review and signature. All you need to do is review the application for accuracy, sign where indicated and return the package, along with any requested documentation.

Return to questions


 
How do you use the personal information I enter on this site? Can you guarantee my privacy?
We respect the fact that a mortgage loan application contains confidential information which needs to be treated responsibly and with care, just as we would treat private information entrusted to us by a close friend or relative. For that reason, we use the most advanced security system available in all of our Internet based communications, and in the management of personal records. For details on the information we collect and the reason we collect it, how we protect your information, and the security methods we use, visit the "privacy and security" link on our home page.

Return to questions


 
Why is an appraisal necessary? Can't I just use the tax value of the home?
Appraisals compare your home to other homes in your area that have recently sold. Tax values obtained from your taxing authority can sometimes be higher or lower and may not reflect the actual appraised value of the home. An appraisal is necessary for the lender to justify the loan amount being requested, as required by secondary investors. You should not rely on the appraisal for assurance about the condition of your home.

Return to questions


 
How much of a downpayment will I need?
The minimum downpayment required depends on the program you select. We offer loans with various downpayment options, including no downpayment and low downpayment programs.

Return to questions


 
Why is the Annual Percentage Rate (APR) different from the interest rate?
The annual percentage rate is a rate that reflects the total cost of your mortgage loan expressed in terms of an annual interest rate. The APR reflects factors including the interest rate on your mortgage loan, the term of the loan, and the other applicable costs of financing such as points, fees and certain closing costs. Your monthly payment is calculated based on the mortgage note rate, not the APR. The APR will be higher than your interest rate, especially if you are paying any points.

Return to questions


 
Who can tell me what my property taxes will be?
The seller and/or your realtor should be able to provide you with the current property taxes for the property. Property taxes are reassessed every year so this amount may change. You may also be able to access this information online.

Return to questions


 
What is a Good Faith Estimate?
The Good Faith Estimate (GFE) discloses estimated costs associated with your mortgage transaction. The GFE, by Federal law, estimates the lender’s charges along with the local closing agent's charges and fees. The GFE also includes estimated amounts for real estate and property taxes and homeowner's insurance. Your mortgage representative is required to provide this to you within 3 days of receiving your application.

Return to questions


 
Can I apply for a loan before I've found a property?
Yes! You have the opportunity to get pre-approved for a mortgage today. A pre-approval will take into consideration your personal information such as income, debt and credit history. If you receive a pre-approval, we will use this information to determine your maximum loan amount. Once you find a property we can complete the remaining pieces of the application.

Return to questions


 
I found a great house but I don't have much money for a downpayment. What are my options?
There are a variety of programs that require a minimal downpayment and we even offer a program that requires no money down. When you’re going through the pre-qualification make sure you click the boxes for low and no downpayment. You may also want to look at an FHA loan. These loans typically require a lower downpayment than conventional loans.

Return to questions


 
What is a VA loan and who can qualify for it?
The Veterans Administration (VA) created a loan program to help military veterans purchase homes. VA loans require no downpayment. Veterans, current military personnel and spouses of veterans who died of service-related injuries may apply for VA loans. Certification of eligibility is required. If you choose to apply for a VA loan, please make sure that the person with VA eligibility is listed as the primary borrower.

Return to questions


 
Is there any way I could be approved for a loan if I have credit problems?
Our special Credit Solutions programs offer mortgage loan options to customers who may not have perfect credit. Once you have completed the pre-approval section of our site we will look at your credit history and help you determine if one of our Credit Solutions programs will fit your needs.

Return to questions


 
How often do interest rates change?
Due to market fluctuations, interest rates are subject to change daily. The interest rates shown on this site are not updated daily at this time. But rates are updated by 2 p.m. most days and requests to lock rates can be made up until 6:00 p.m. with a mortgage loan consultant via telephone, these rates are typically for 21 days but can be given for longer lock periods. Please call us to inquire about interest rates on loans that will close more than 21 days from now. Rates on loans closing more than 21 to 35 days from now may be higher. By submitting your loan information to us via this Internet site, you are not selecting and locking-in to a specific interest rate.

Return to questions


 
Are discount points tax deductible?
In many cases they are. We recommend that you contact your tax preparer or the IRS to obtain a qualified opinion on the deductibility of points.

Return to questions


 
What happens if my loan does not close before the lock expiration date?
When you lock-in your interest rate, you are guaranteed to receive that interest rate as long as you close your loan by the specified expiration date. If your loan closes after the specified expiration date, you are no longer guaranteed your locked-in interest rate. Instead, you will receive the higher of the current market rate or your locked-in rate. Note that you can not receive a lower rate by allowing your lock to expire.

Return to questions


 
What are points?
One point is one percent of the loan amount (for example, on a $100,000 loan, 1 point = $1,000).

Return to questions


 
Why is the number of points associated with a rate sometimes a negative number?
If the number of points associated with a rate is negative, this means that the lender will pay those points to the borrower at closing instead of the borrower paying points to the lender. These funds are then applied toward closing costs. These funds for closing are offered in exchange for a slightly higher interest rate.

Return to questions


 
What is a balloon mortgage?
A balloon mortgage is a mortgage that is amortized over the full term of the loan repayment period but at the end of a specified period the balance of the mortgage comes due. Thus, a balloon payment needs to be made. For example, with a 7-year balloon you would make monthly payments for seven years that have been calculated based on a 30-year mortgage payment. At the end of the 7 years, the remaining principal balance would be due and payable in full.

Return to questions


 
The Mortgage Consultant says that I can only include an average of overtime, commission or bonus pay based on the most recent 24 month history of receiving that income. Are there any exceptions?
Sometimes there are extenuating circumstances with these types of income. If you feel this applies to you or if you are relying on this income to qualify for your mortgage loan, you can call one of our loan consultants to discuss possible options.

Return to questions


 
What are Pending Savings?
If you will be saving additional funds between now and the time you plan to close your loan, you can enter the amount you plan to save as an asset in the personal information section. Choose Pending Savings as the type of asset.

Return to questions


 
What is an Investment Account?
Investment accounts are accounts other than a checking or savings account such as IRAs, mutual funds, stocks, bonds and CDs.

Return to questions


 
What do you mean by Life Insurance Net Cash Value?
If you have a Whole life insurance policy you can include the current value of this policy as an asset. Term life insurance does not have a net cash value.

Return to questions


 
What's the difference between installment and revolving debt?
Installment debt refers to a loan in which you repay a set amount on a regular basis that will pay off the entire loan in a specified amount of time. This may be a car loan, student loan etc. Revolving debt has no set term or payment, i.e. credit cards.

Return to questions


 
What documents do I need to complete my loan application?
Depending on the loan program you are applying for you may be asked to provide a variety of documents. Documents may include but are not limited to: a fully executed agreement of sale for the property being purchased, two months bank statements for all accounts, a HUD1 settlement statement on the property you are selling, copy of your recent pay stub, previous W2s, divorce decree, copy of a rental lease, homeowner’s insurance policy, flood insurance policy, and any other documents that may be required to approve your loan.

Return to questions


 
What does a mortgage lender consider when reviewing a loan application?
There are three categories of information we look at when reviewing a loan application. The applicant's personal information, the subject property information and the mortgage program information.

· Personal Information: We will look at your income, assets, debts and credit history to help determine your ability to repay the loan

· Property Information: We will look at the market value of the home you want to buy and the general condition of the property to determine that the loan amount being requested is appropriate.

· Mortgage Information: We offer a wide variety of mortgage programs to help you with your home financing. Our programs vary based on factors such as downpayment required, repayment terms and length, points, and interest rates. We look at the program you selected as a preferred scenario and verify that you meet all the program criteria.

Return to questions


 
After I apply for a loan online, what will happen next?
Once you have transmitted your loan application form, we will review your information and your credit history. One of our loan consultants will contact you within 24 hours of your online application form submission provided complete pre-approval or application information is submitted online two and a half hours before the end of normal business hours.

Return to questions


 
How long will it take to get my mortgage approved?
We will either give you a loan decision or contact you to gather any additional information required to process your approval within 24 hours of your online application form submission provided complete pre-approval or application information is submitted online two and a half hours before the end of normal business hours.

Return to questions


 
How much does it cost to apply for a loan?
While it doesn’t cost anything to apply for a loan, when you choose to accept our mortgage offer we will collect a deposit, chargeable to a credit card. This deposit covers expenses we incur to begin processing the application.

Return to questions


 
Can I change the loan amount or program after I've applied for a loan?
Yes as long as you meet the criteria for the new loan amount or new program you’ve selected. Your loan consultant can help you determine if you meet the requirements.

Return to questions


 
What is a Truth in Lending statement?
The Truth in Lending statement provides detailed information about the interest charges that you will incur. It defines the cost of your loan expressed as the APR, the amount of interest you’ll pay in dollars, and the total of your payments if you make the minimum payment required over the life of the loan.

Return to questions


 
What amount homeowner's insurance is required?
Your homeowner’s insurance policy should cover the cost to rebuild the home. This insured amount may be higher or lower than the actual purchase price as long as it meets the program requirements. The insurance company you choose can give you an actual quote based on specific information about the property.

Return to questions


 
How do I know if I need flood insurance?
Most standard homeowner’s insurance policies do not cover loss due to flood. The law requires that if your home is located in a Flood Hazard Area you must purchase flood insurance. If you choose, you can obtain flood insurance coverage even if you are not required to do so by the lender. The law requires lenders to do a flood hazard determination on all properties securing a mortgage.

Return to questions