QUESTIONS:  

1.

Is there a fee to apply for a loan?

Yes - there is a $75.00 application along with a $300 (residential) appraisal fee.

2.

Can I apply over the phone?

Yes, you can apply over the phone in a call lasting 15 minutes or less. Just call us at (561) 255 1635.

3.

Can I apply over the internet?

Absolutely, just complete the simple no-obligation Loan Application and a Licensed Mortgage Broker will contact you within 24 hours to review your situation and determine the best program for you.

4.

What if I have credit problems?

We help people all the time with late payments, or even those with a bankruptcy or foreclosure.  Turn your credit around - it's so easy to qualify.

5.

What secures the loan?

Because your loan is secured by your home, you can receive all the benefits that go along with home loans.

6.

Are there tax benefits?

You bet! Unlike the interest you pay on credit cards or installment loans, the interest paid on a home loan could be fully tax-deductible.  Talk to your local tax consultant to find out how much you could save.

7.

Should we pay points?

A "point" is equal to 1% of the loan amount. When a borrower pays a point it can reduce the interest rate by 1/8 to 1/4 of one percent.  Borrowers who do not pay points will reduce their "out of pocket" expense of getting a mortgage.  However this may cause the monthly payment to be slightly higher since no effort was made to "buy down" the interest rate.

8.

What is title insurance?

Title insurance protects you from any claim that can be made against the ownership of your home from previous debts that may have not been resolved with prior owners.  Title insurance protects you and your lender.  When a lender grants credit they are using your home as security for the loan amount.  Title insurance protects you today and tomorrow from events that may have previously occurred.  The need for a borrower to renew title insurance only occurs when there is a change in a claim against the ownership such as a new mortgage or a change in ownership.

9.

What are closing costs?

Closing costs are the legitimate costs associated with the processing and the closing of a loan.  They include underwriting, processing, tax service, title insurance, document preparation and commitment.  Fees may vary in amount and type from lender to lender.  Please note that you can negotiate some of these fees from time to time.  Ask us what your individual closing costs will be and what they are for.

10.

Is it better to use a bank or a broker?

A borrower should compare product and price between a broker and bank of their choice.  Generally the broker will be able to offer a better deal.  Make sure you compare all aspects including closing fees, application fees and the term of the loan.

11.

After the loan application - what is next?

After the loan application has been completed, it will be turned over to our loan processing department and then to the underwriter, where the decision to approve or reject the loan will be made.  Loan processors send out the Verifications of Employment and Deposit and order the credit report, property appraisal and other documents.  The time it takes to receive these documents affects the length of time required for approval of the loan.  If you are transferring from out of the local community, it may take longer to receive the credit and employment information.  Processing times vary from one lender to another, but a Certified Loan Broker should be able to give you an idea of the processing time for your application.

Within three business days after completing the application, we will provide you with a "Good Faith Estimate" of the anticipated closing costs.  It will show costs associated with the loan settlement, such as origination fees, mortgage insurance, title insurance, escrow reserves and hazard insurance.

Within the same three days you will also receive a Truth-in-Lending Disclosure statement.  This statement shows, among other things, the estimated monthly payment.  The total cost of all finance charges on your loan is also shown, stated as an annual percentage rate (APR). The APR represents the dollar amount of finance charges you pay either up front or over the life of the loan, converted to an annual interest rate.  Since the APR includes origination fees and other charges as well as interest on the mortgage loan, the APR is usually higher than the interest rate on the loan.

After our lender has approved the loan, you will usually receive a commitment letter which sets out the terms of the loan and the length of time for which those terms are offered.  If the loan does not close within the specified commitment period, the terms are subject to change.  You usually must accept the commitment by returning a signed copy to the lender within five to ten days and may have to pay part or all of the origination fees at this time.  The commitment may contain conditions that you will still have to satisfy, so you should read it carefully.  A Certified Loan Broker will be glad to answer any questions you might have.

12.

What can I do to help my mortgage loan to close?

For many home buyers, the period of time between the submission of the loan application and receipt of the commitment letter is one of uncertainty and concern.  Request for additional information, unexpected delays and lack of communication all serve to increase the time.  There are a number of things that you can do to reduce the stress.

Keep in mind that our lenders want to make the loan.  Loan underwriters are looking for ways to approve loans, not reject them.  If you are fully prepared and have provided good documentation, you have done a great deal to assure prompt processing of your application and approval of your loan.

We need to make sure that lines of communication are kept open.  Your contact person may be your Licensed Mortgage Broker, but often it might be someone in the lender's loan processing department who can tell you the status of your application.  Remember, however, that it may take several weeks to process the application and frequent inquiries from you prior to that time will not speed things up.

You should be accessible if we need additional information or documents during processing.  Use your real estate agent as a contact if necessary. Quick response to our requests helps keep the process on schedule.  In order to protect both you and the lender, mortgage loans require much more paperwork and legal documentation than an automobile or other installment loan. However, lenders do not ask for more than is absolutely necessary.