What is Pre-qualification?
The process of determining how much money a prospective homebuyer will be eligible to borrow before a loan is applied for.

What is a Pre-approval?
This allows you the ability to get approved for a specific loan amount prior to finding the home you want to purchase. The loan is underwritten and the lender commits to a specific loan amount. This can give you a great advantage with a homeowner or realtor if someone else is interested in the same home at the same time.

What information do I need to provide when I apply?
When you're ready to apply, you need the most current information on your monthly income and debt, a total of your assets, your social security number, and employment information.

Is there a cost to apply?
This varies from lender to lender. Some lenders charge an application fee to cover actual out of pocket expenses and money for their efforts. Other lenders charge a reasonable credit report and appraisal fee, which cover out of pocket expenses.

Where do I close and sign for my loan?
Typically your closing will take place at a title closing agent’s or attorney’s office.

What documents will I receive at closing?
At closing you will sign and receive copies of all legal documents that will be recorded and placed on record regarding the property that you are purchasing or refinancing. Also, you receive all pertinent information regarding your mortgage payment and servicing information for your new loan.

How long will the loan process take?
Loan approval and funding time frames vary depending on the type of transaction and the complexity of your personal finances. The process can take, on average, anywhere from 14–60 days.

What is a lock-in?
The lock-in represents the interest rate you choose and will be the interest rate used to factor your monthly payment. The lock-in secures the interest rate during the process of your loan approval as long as your loan is processed and closed prior to the rate expiration date. This date is given to you when you lock-in the rate.

When can I lock-in my rate?
You can lock or float your interest rate at any time during the process of your loan. The loan officer will discuss these options with you upon taking your loan application. If you are submitting your loan application via the Internet, a loan officer will be contacting you to discuss your interest rate lock or float options.

Can I pay my loan off early, can I pay extra each month?
Yes, you can make principal payments at anytime during your loan term or pay the loan in full. You can also pay a set amount each month above the normal payment due or make lump sum payments periodically.

What is an escrow account?
An account maintained by the lender to collect funds from the borrower in order to pay the taxes and property insurance due on the loan.

How do I know what loan is best for me?
Review your current situation and future goals, then answer the following questions to help determine the direction you may wish to take. Also, discuss these questions with your loan officer to help determine the type of loan you need.
How long do you expect to stay in the house?
Which is more important, low monthly payments, or low closing costs?
Will my income increase or decrease in the next three years?
How comfortable are you with your monthly payment potentially increasing?

What is the difference between a fixed rate and adjustable rate mortgage?
With a fixed rate mortgage, the interest rate and payment remains constant over the life of the loan. Whereas, with an adjustable rate mortgage, the interest rate can either increase or decrease, based upon the terms of the loan. This could cause the monthly payments to increase in order to have the loan paid in full by maturity.

What is a conventional loan?
A mortgage not guaranteed by VA or insured by FHA, FMHA or State Bond Agencies.

What is PMI?
This stands for Private Mortgage Insurance. On a conventional loan PMI is required if you borrow over 79.99% of your appraised value. This protects the lender against financial loss if the loan is defaulted.

What are points?
Points represent an origination fee charged by the lender and loan discount points sometimes charged on the note rate to lower the interest rate.

What are closing costs?
Fees and costs that both buyer and seller must pay at closing. They generally include: origination fee, discount point, appraisal fee, credit report, title search, recording fees, and other costs described in the HUD I at settlement.

What is an Adjustable Rate Mortgage?
An Adjustable Rate Mortgage (ARM) is a loan under which the interest rate is periodically adjusted to more closely coincide with current rates. The amounts and times of adjustment are agreed to in the Adjustable Rate Note signed by the homeowner.

How is my new interest rate determined?
Most Adjustable Rate Mortgages require that an index be taken on a specific date, then a margin is added to the index and the result is rounded to determine the new interest rate.

Why is my interest rate going up but my payment going down?
If you have remitted extra money in addition to your regular payment, you will have lowered your principal balance ahead of the normal amortization. At your interest rate change cycle, we will determine your new payment amount by using your current principal balance, new interest rate and remaining term. If you have remitted enough extra money, it is possible to lower your payment even though your interest rate