Your Questions Answered
Whatever your questions or concerns, we’re here to help.
We know the mortgage process can be confusing at times. To help you navigate the process, we’ve outlined the most commonly asked questions from our borrowers.
Our mortgage dictionary is a great resource for defining any terms or phrases you may be unfamiliar with. If you have additional questions not addressed here, please contact one of our experienced loan officers today. We can guide the way.
Purchase Mortgage ApplicationView All Answers
You will need to provide a variety of documents that will assist with verifying your employment and income, your assets and your monthly obligations. The financial documentation should include pay stubs, W-2s, tax returns and complete account statements. See our loan checklist for a full list of the typical documents that will be required. Preparing these documents up-front during your application process will reduce your loan approval time and help you focus on what truly counts: the excitement of purchasing your new home.
Mortgage rates are influenced by credit score, debt-to-income ratio, loan product selection and down payment, among other factors. Interest rates can fluctuate daily or even more frequently. When you and your loan officer determine it is time to lock your interest rate, your rate for closing purposes will be established. Use our calculators to estimate your monthly mortgage payment, or contact a loan officer to get pre-approved for a specific loan amount now.
Your rate can be improved by increasing your credit score, your down payment or by changing the mortgage option you’ve chosen. Paying discount points up-front can also impact your interest rate. Learn about points on our mortgage dictionary page, or get in touch with a loan officer to learn more about lowering your monthly payment.
Typical pre-qualification means your lender has reviewed your preliminary credit report, as well as the income and asset details you’ve provided, and thinks you are a good candidate for a mortgage. It should not be confused with a pre-approval. Under a pre-approval process, the details of your loan application will be verified to safely establish your qualifications against appropriate underwriting guidelines.
ClosingView All Answers
In general terms, closing costs are the combination of fees associated with obtaining your mortgage loan. A few examples of closing costs include the appraisal fee, title insurance, title company’s fee for closing your loan, document preparation fees and government taxes. Your total closing costs are the summation of costs incurred related to the origination, processing, and closing of your mortgage loan, in addition to other loan-related tasks.
Prepaids are associated with homeownership and include items such as your first year’s homeowner’s insurance premium, per diem interest from the date of closing to the end of the month, and the set up of your monthly escrow account to pay for property taxes and homeowner’s insurance as they come due.
Typically, it takes the lender from 21 to 30 days to close on a home. Closing may take longer if additional documentation is required or if issues related to the appraisal or title arise. To prevent these delays, make sure to gather your financial paperwork early and communicate with your loan officer often. When circumstances require a quick closing, in many cases, we can make it happen.
Your down payment will depend on the type of loan you’ve secured, your total monthly debt obligations as well as how much you want your monthly payment to be. Down payment requirements typically vary, starting at a minimum of 3 percent, however, you can increase this amount at your discretion. Each person’s financial situation and preferences vary, so be sure to talk with your loan officer to discuss other options that may be available to meet your needs.
It’s customary that you’re present for your closing, but under some circumstances, a power of attorney may be acceptable. Mobile notary services may also be an option. If you’ll anticipate that attending your closing personally may be an issue, talk to your closing agent and loan officer early in the process so that if a power of attorney is allowed, the required documentation can be initiated.
Managing Your MortgageView All Answers
Private mortgage insurance, also known as PMI, is a type of mortgage insurance that protects your lender in the event you default on your loan. It is generally required on loan programs when a borrower puts less than 20 percent down towards the loan transaction. It may be included in your monthly payment or paid up-front as an additional closing cost.
You may be able to cancel your monthly mortgage insurance premium once you have accumulated a certain amount of equity in your home. This is subject to the type of mortgage loan and mortgage insurance you choose as well as you demonstrating you have met the cancellation policies. The Federal Homeowners Protection Act (HPA) provides rights to remove Private Mortgage Insurance under certain circumstances and is the best resource to consult regarding canceling private mortgage insurance.
Refinances are prudent options if mortgage rates drop below your current loan’s interest rate. Home equity lines of credit (HELOCs), as well as cash-out refinances, may be an option when you have significant equity in your home and need a low-interest line of credit to pull from.