Can I be pre-approved for a loan before I’ve found a property?
Absolutely! We not only support the idea, but strongly encourage it. By getting pre-approved now, you will know exactly what you qualify for before you begin shopping. Realtors and sellers will know you are a serious buyer because your financing is already arranged. This may be an advantage when making an offer. We take into account your current income, debt and credit history in order to pre-approve you and determine the amount for which you qualify. Once you find a property, and sign a sales agreement, we can continue processing your loan.
Why is an appraisal necessary? Can I use the tax value of the home?
Appraisals compare the current market value of your home to other homes in your area that have recently been sold. Tax values can sometimes be higher or lower and may not reflect the actual appraised value of the home. A current appraisal is necessary for the lender to justify the loan amount you’ve requested and is required by our secondary investors. You should not, however, rely on the appraisal for assurance about the condition of your home or as a guarantee of the value of your home.
How is the appraisal obtained?
After you have reserved your funds, we will arrange a date and time for the property appraisal. You will be asked to provide a contact name after you have reserved your funds. The appraiser will call the contact person you list for access to the property. If you are purchasing a home, you can list either your real estate agent or the seller’s agent. Once the appraisal is complete, the appraiser will send us the results, and your personal mortgage processor will contact you.
Who can tell me what my property taxes will be?
The seller and/or your Realtor should provide you with the current taxes for the property. Property taxes are reassessed from time to time, so this amount may change. If you would like to confirm what your taxes would be, you can contact the county Recording Office.
What is a Good Faith Estimate?
Required by federal law, the Good Faith Estimate (GFE) is a written list of the estimated closing costs associated with your mortgage transaction, including the lender’s charges along with the local closing agent’s charges and fees. It also includes estimated amounts for real estate property taxes and homeowner’s insurance. Once you’ve been pre-approved, you can access your GFE online from your “My Loan Status” page.
What is a Truth-in-Lending statement?
Required by federal Law, the Truth-in-Lending statement provides detailed information about the total charges that you will incur over the life of the loan. It includes the Annual Percentage Rate (APR), the amount of interest you’ll pay, the amount financed and schedule of payments, the total of your payments, and late payment charges.
What is a home equity line of credit?
Also known as HELOC, a HELOC is a secure line of credit using the available equity in the applicant’s residence as collateral.
How do interest only products work?
A customer pays interest only payments for the first three, five, seven, or ten years of the loan. During the Interest Only period, the loan will be re-amortized at the remaining principal balance each month, allowing the customer to benefit from any principal curtailments made during the interest only timeframe.
After the fixed interest only period, the loan payments become fully amortized payments of both Principle and Interest for the remaining term. During this time, the interest rate adjusts every year, based on the one-year LIBOR index plus a margin.