1. What is the difference between being pre-qualified and pre-approved?
Pre-qualifying is the process through which a loan officer determines the dollar amount that a buyer can qualify for based on their income, debts, and...
2. What is the difference between a fixed-rate and an adjustable-rate mortgage?
A fixed rate mortgage is an interest rate which remains the same for the life of the loan (usually 15 to 30 years), An adjustable rate mortgage can more up or down for the life of the loan...
3. What if I own a home, but want to take advantage of lower rates?
A re-mortgage involves a switch of lenders or mortgage products. For example, you could change mortgage lender and/or you could take on a different m...
4. What is APR (Annual Percentage Rate)?
APR stands for annual percentage rate and reflects the actual interest rate including other finance charges such as private mortgage insurance premium
5. Can I have my mortgage payment deducted automatically from my checking account each month?
Typically, after closing your mortgage loan, you will have the option of enrolling in an automatic mortgage payment program. You may be asked to provide copy of blank check...
6. What are some factors that raise my credit score?
Both negative and positive factors influence your credit score. The most important factors that raise your score are listed below, in order of important...
7. How large of a loan will I be able to get?
A general rule is that you usually can qualify for a mortgage loan of two to two and one-half times your household's income. For example, if your family...
8. How much money will I need for a down payment and closing costs?
Lenders usually expect you to be able to make a down payment of between 0 to 20 percent of the house's price and to pay closing costs, often three thousand or more.
9. How do I shop for a mortgage loan?
Mortgage packages vary widely, and it is important to investigate several options to find the one best for you. Using a mortgage broker simplifies the process because they will have more options than your local bank.
10. What is an LTV (Loan-to-Value)?
Loan to value, or LTV as it is commonly referred to, is the ratio of Loan Amount to the purchase price or value of the property. For example, a loan o...
11. What is Title Insurance?
Title Insurance is an insurance policy, issued by a Title Insurance Company, which insures a home owner against claims made due to errors or omissions...
12. What is private mortgage insurance (PMI)?
Private mortgage insurance is a policy which protects the lender from loss due to payment default by the borrower. It is used in conventional loans an...
13. What is an appraisal and how is it calculated?
An appraisal is a determination of property value made by an independent, professional appraiser based on the recent sales prices of comparable homes ...
14. What does it cost to submit an online loan application?
Nothing! You can submit your online loan application and become pre-approved for a loan without incurring any charges. Later on, fees may be incurred ...
15. Do I need to pick the property I want to buy before I fill out the application?
No, you can fill out the application first, and once your loan is approved you can make changes to it up until the time that your loan rate is locked....
16. After I submit my loan application, what happens next?
Once your loan has been submitted, you can return to the Online Loan Center and log in to retrieve information concerning the status of your loan apply...
17. Do I have to prove my income?
Not always. There are several different loan programs which allow you to buy a home without proving your income. Some programs require only 5 percent ...
18. What kind of mortgage should I select?
There are two major types of mortgage loans — those with fixed interest rates and monthly payments and those with changing rates and payments. However...
19. What is an escrow account?
An escrow account is typically established at the time you close your mortgage loan. This account is held by the lender for the future payments of record
20. Where do I go for more information?
Contact our experienced financial experts to find out more about mortgages and home financing. To find out how, click the "Contact Us"