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What does it mean to Pre-Approve and what are the benefits?

What happens if my Pre-Approval is not accurate?

How long is my letter of approval valid?

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 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?

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?

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

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

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 down payment. 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?

Do you provide loans for properties in all 50 states?

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?

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

 
What does it mean to Pre-Approve and what are the benefits?

We can help you determine what loan programs will work for you before you even have a property. Once you go through the pre-approval section of our site or via fax or phone, provide us with some information about yourself, we pull and analyze a credit report after your giving us permission. We use this information to determine the maximum loan amount you qualify for and, if you meet the guidelines of our mortgage programs, we will issue a pre-approval letter. This demonstrates your financial ability to purchase a home and can be instrumental to you during your home buying process. Final approval is subject to applicable secondary market credit and property requirements.

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How long is my letter of approval valid?

Assuming all the information provided to us remains the same, the letter of pre-approval will remain valid for as long as it takes for you to find a home. If any of the information you provided to us changes, such as your income or debt, you can request an updated approval letter from your loan consultant. If the program you are interested in changes we may need to re-evaluate your information and we may need to rerun your credit.

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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.

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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.

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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.

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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.

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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. Read more...

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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: An appraiser will compare your home to other similar homes in your area to determine that the loan amount being requested is acceptable to our investors.

· 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 down payment 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. Read more...

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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, phone or faxed application form is completed provided complete pre-approval or application information is submitted online two and a half hours before the end of normal business hours. Read more...

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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 may collect a deposit, though not typically. If a deposit is required this deposit covers expenses we incur to process the application.

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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.

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What is a Truth in Lending statement?
The Truth in Lending statement provides detailed information about the interest charges and finance 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.

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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" page.

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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. Read more...

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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 lender or broker is required by law to give you a GFE within 3 days of your completing your application.
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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.

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I found a great house but I don't have much money for a down payment. What are my options?
There are a variety of programs that require a minimal down payment 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 down payment. You may also want to look at an FHA loan. These loans typically require a lower down payment than conventional loans.

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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 down payment. 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.

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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. Read more...

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Do you provide loans for properties in all 50 states?
No. Our primary territory is the state of Florida. If you need a loan in another state please call, email or fax us with your needs and we will assist you in finding a reputable, professional mortgage broker in your area.

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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.

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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.

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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.

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

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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.

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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.

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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" page.

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Apply Now OnLine: Secure Mortgage Application for Purchase or Refinance of Real Estate in Florida and New York

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Page Updated: 07/31/2007

First Published: 2001


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