How long does it take to close
my loan?
What information do I need to bring to my application?
What is an ARM?
What is the APR and why is it higher than my interest rate?
What are closing costs?
What is the appraisal?
What is a Foreclosure?
What is Equity?
What is Loan-to-value?
How
long does it take to close my loan?
Usually a pre-approval is issued within 24-48 hours after an application
is taken and the actual closing can takeplace
20 business days.
What
information do I need to bring to my application?
2 year W-2 statements; recent paystub and a copy of your homeowner's insurance.
What is an ARM?
A loan that allows the interest rate to adjust periodically during the
life of the loan. The monthly payment may increase or decrease depending
on interest rate caps, the margin and fluctuations in the market.
What
is the APR and why is it higher than my interest rate?
The APR is NOT the interest rate you are paying on the mortgage. The APR
is the annual percentage rate is the rate that represents the relationship
of the total finance charges (i.e. interest, origination fee etc.) to
the amount of the loan.
What
are closing costs?
Closing costs are the fees incurred in order to close the mortgage. Typically
these include an appraisal fee, credit report fee, document prep fee,
closing fee, title insurance fee, recording fee, survey fee, origiantion
and discount points, underwriting fee, tax service fee and flood insurance.
What
is the appraisal?
An appraisal is a certified opinion by a third party which indicates the
value of the property.
What
is a Foreclosure?
The legal process by which a mortgaged property may be sold when a mortgage
is in default.
What is Equity?
Equity is the difference between a property's worth and the amount owed
on the mortgage.
What
is Loan-to-value?
The relationship between the unpaid principal balance of the mortgage
and a property's appraised value. For example, if a house is appraised
at $100,000.00 and a loan of $75,000 is being made the Loan-to value or
LTV is 75%.
