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| Using our patented technology Wholesale Home Rate has automated the mortgage process. After giving us some basic information about the loan we will show you the various rates you can obtain from different banks. Because we provide our loans wholesale, these rates are much lower than our competitors (if you don’t believe us just test it out). At Wholesale Home Rate we believe in choice, so a variety of loan options and banks are present. You can either pay a lower rate with high closing cost or a higher rate with lower closing costs. Note that negative closing costs are paid to you; we don’t pocket that money like brokers. Our only incentive is your business (fairness and privacy). |
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| After you choose the mortgage that is right for you, our technology encrypts this information and we only allow parties to access the information they need. For example, while the IRS will receive your pay stub and W2 information they will not be able to see everything, and our employees will never see your social security number. |
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| Because we have automated the above process we have eliminated the need for a mortgage broker and a commissioned loan officer, drastically reducing our costs. Furthermore we obtain the best possible rates from the bank, a guaranteed wholesale rate, and we pass this rate directly on to you. |
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| We have sponsorship deals with those present on our site with the condition that their interaction will not affect your rate or costs. |
| We take the Pre-Approval process one step further by collecting your supporting documentation (such as paystubs and bank statements), underwriting your file and issuing a Loan Commitment Letter. We encrypt your documents and only give your information to the parties who absolutely need it – data truncation prevents anyone from seeing all of your information. You can get updated pre-approval at any time. |
| We recognize the importance of delivering a high level of customer service in addition to great rates. All of our employees are committed to our philosophy. |
| We are committed to conducting business in accordance with the highest ethical standards in order to merit the complete trust of our customers, vendors, loan investors, regulators, the general public and our fellow employees. |
| Using our patented technology, Wholesale Home Rate has eliminated the need for a loan broker and highly commissioned loan officer, allowing us to drastically reduce our costs. We utilize state of the art technology, including online rate quotes, online good faith estimates, online loan applications, online disclosures and an automated underwriting system that provides you with a free online loan approval immediately upon the submission of your online application. |
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| We provide this extensive documentation to Omega Mortgage, who has worked tirelessly to create the most efficient loan origination system in the industry. Because Omega Mortgage is a tier one lender, they are able to obtain the lowest possible rates from banks. |
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| Wholesale Home Rate and Omega Mortgage pass these low rates to you at the wholesale level as if you were a mortgage broker. |
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| Because Omega Mortgage has provided banks with faithful lenders for so long (since 1988) the company was classified as a tier one lender, meaning they obtain the best rates possible. |
| Instead of getting commissions based on how large a loan ends up being or how high a rate is paid, we only collect a base rate for each loan signed. This means our only incentive is your business; we won’t see a penny more if you decide to pay a higher rate. We also the fee you are quoted is the fee you are paid, no extra last minute fees. At Wholesale Home Rate we believe the best way to make profits is to provide the best product to the consumer, which is a wholesale mortgage with no strings attached. Be sure to thoroughly research your loan and compare us to our competitors, we’re sure we’ll come out on top and that’s a little cheesy but I really can’t think of another way to phrase it. |
| At Wholesale Home Rate our goal is to provide a range of wholesale mortgage options to the consumer. We strive to be completely transparent with everything in the company. We promise to never change our fees at the last minute or to push a higher rate onto the consumer. We believe that the biggest problem with the mortgage industry is a lack of ethics, and we strive to provide the solution for that problem. |
| Customer Satisfaction is our number one priority at Wholesale Home Rate. We try to provide you with as many loan options as possible to ensure that your needs are met. Furthermore we promise to be there for you during the entire loan process in case you have any questions or any changes are needed. At Bank Depot your business is our only incentive. |
| You can make valid comparisons of one bank’s prices against those of another prior to paying any fees and prior to filling out an application. |
| Wholesale Home Rate discloses all lender fees, including points, origination fees, and any fixed-dollar fees, and guarantees them to closing. This assures borrowers that price information is complete, and that new fees won’t be added, or existing ones increased, after they have committed themselves to working with us. We further guarantee our terms to be the lowest. |
| Wholesale Home Rate does NOT employ loan officers or mortgage brokers or any other type of employee that has a financial incentive to overcharge the borrower. |
| The Est. Closing Cost encompasses all of the costs associated with your loan, including the Lender Fees. Lender fees are fees that can buy down the rate or provide you with a refund depending on the rate you choose. Lender Fees parentheses, e.g. ($500), means that $500 is paid TO you. In the typical case a mortgage broker could keep this amount, which is why they are incentivized to quote you a higher rate. |
| We take the Pre-Approval process one step further by collecting your supporting documentation (such as paystubs and bank statements), underwriting your file and issuing a Loan Commitment Letter. This is the strongest approval you can obtain and will greatly strengthen your offer. It also allows you to close your loan in just 10 days, giving you added bargaining power! |
| There's no cost for running rate and cost scenarios, completing an online application and obtaining an online loan approval. |
| Upon submission of your online application, our automated underwriting system instantly runs your credit and determines whether your application meets our guidelines for online approval. If you wish to lock your rate, you will be asked to submit a $395 application fee (which includes appraisal, credit report, and loan lock fee) by credit. These funds will be maintained in a trust account and used to pay for your appraisal, a service performed by an independent third party. |
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| You will receive an email from your personal representative with 24 hours. This email will list the supporting documentation required to close your loan (paystubs, bank statements, etc.). Attached to the email will be a fax coversheet to be used to send the documentation. |
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| You will receive a call from an appraiser no later than three business days of submitting your application. Our appraisers have agreed to a seven day turnaround on our appraisals. It is important that you schedule the appraisal inspection as quickly as possible to keep the process moving forward. |
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| The loan will be underwritten and cleared to close with the attorney. |
| You will be asked to support your income with a recent paystub and the prior year's W-2 form. Self-employed borrowers will be asked to support their income with the prior one or two years' tax returns. Funds needed to close the transaction will typically be supported with a copy of a recent bank statement. If proceeds from the sale of another property are being used for the down payment, an estimated closing statement on that transaction will be required prior to closing.5 |
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| By law, we cannot close a loan in less than seven (7) days. We are confident we will close your loan in this timeframe as long as you fax your supporting documentation within three days of request and schedule your appraisal inspection in a timely manner. Because we are a direct lender, we have control over the approval process, drawing loan documents and funding the loan. Additionally, the third party service providers we work with, such as appraisers and title insurance companies, prioritize our orders because we provide them with a high volume of quality business. |
| We offer online locks for 30, 45 and 60 day periods. Our standard lock period is 30 days. We are confident we will close your loan in this timeframe as long as you fax your supporting documentation within three days of request and schedule your appraisal inspection in a timely manner. Refinance transactions may be locked at any time. Purchase transactions may only be locked once you have an accepted offer on a property. You may apply and lock online, 24/7. |
| Go to the Pricing page, input your scenario, and select the rate you wish to lock by clicking the view details and apply button. Then go to the Lock Loan page and submit your application online. Our system will run your loan for an approval and then your personal representative will contact you letting you know you are clear to lock. Once you are satisfied with the pricing of at that particular time, you can let your personal representative know which bank you chose and send him the pricing or he will get it for you. You will be asked to pay your application fee ($395) at that time, and then you will receive a Lock Confirmation by email. In the event our Automated Underwriting System is not able to provide an instant online approval, your application will be forwarded to your personal representative who will contact you the same business day to resolve any issues with your loan application. |
| If our posted rates are at least .25% lower than the rate you locked (for the same or less points, or the same or more rebate), you may float down your rate to the current rate plus .125%. |
| If the delay is caused by us, or a third party service provider selected by us, we will extend the lock at no cost. If the delay is caused by you, you will be required to pay for the cost of the lock extension which typically costs 20 basis points for 7 days and 35 basis points for 15 days. Delays caused by you could include requesting the subordination of an existing second mortgage or home equity line, not supplying supporting documentation within three days of our request or delaying appraisal inspections or document signing appointments. |
| You may, but you will receive worse-case pricing of either the pricing you originally locked into or the current available pricing. In addition, an extra .125 points will be charged for changing your original terms. Therefore, please carefully consider the different programs and rates being offered before locking. |
| You may but you will receive worse-case pricing of either the pricing you originally locked into or the current available pricing. |
| Trying to time the bottom of an interest rate cycle is tricky, and each month you delay costs you in the form of carrying a higher interest rate on your old loan. If rates fall further, you can always refinance again. Furthermore, on a refinance transaction, if the savings you will achieve with the new lower rate will recapture the closing costs of the loan in a relatively short period of time you should probably go ahead and lock your rate and close your loan. |
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| On purchase transactions, in times of stable interest rates, most of our customers lock when they are within 30 days of closing. Locking for a period longer than 30 days increases the cost of the loan slightly but is sometimes a good idea if rates are volatile. If your closing is more than 30 days out, we recommend you compare rates and points on our website for 30, 45 and 60 day locks and make your decision accordingly |
| At the time we are ready to draw your loan documents, if our posted rates are at least .25% lower than the rate you locked (for the same or less points, or the same or more rebate), you may float down your rate to the current rate plus .125%. |
| Instead of paying taxes and hazard insurance when they come due, you may choose to place money aside in an escrow account, known as an impound or escrow account. This allows you to include taxes and insurance payments in your monthly mortgage payment. The lender then pays the taxes and insurance fees when they are due and they discount your rate for doing so. If you do not use an escrow/impound account, you will be responsible for all taxes and insurance costs when they are due. |
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| You are not required to have an escrow/impound account unless the Loan-to-Value ratio on your loan is over 80% (90% in California). However, if you decide not to have an escrow/impound account, your rate may will be .25% higher. |
| Third Party Fees |
| Third party fees are fees that we collect and pass on to the company actually performing the service. All third party fees are grouped into the following categories: appraisal, closing agent, title insurance and recording. Appraisal fees are guaranteed on both purchase and refinance transactions. Closing agent and title insurance fees are guaranteed on all refinance transactions. |
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| You will notice that our third party fees are extremely competitive due to the high volume of business that we provide to the national service providers we contract with to perform these services. |
| Some states, counties and cities charge taxes and fees when you obtain a mortgage to purchase or refinance a property. These fees will have to be paid regardless of the lender you choose. If some lenders don't quote you fees that include government taxes and fees, don't assume that you won't have to pay them. It just means that the lender hasn't done the research necessary to accurately disclose total closing costs. |
| Certain ongoing costs of homeownership must be prepaid at closing. These are sometimes referred to as prepaid items. Your mortgage payment due date will be the first of each month. If your loan is closed on any day other than the first of the month, prepaid interest or "per diem interest" will be collected, calculated from the date of closing through the end of the month. If an escrow/impound account is to be established, funds will be collected to make an initial deposit into the account so that sufficient funds will be available to pay your property taxes and homeowner's insurance when they become due. If your loan requires mortgage insurance, two months of mortgage insurance will be collected. If your loan is a purchase transaction, your first year's homeowner's insurance premium will also be collected and paid to your insurance company. |
| Our 0 point closing cost shows the rate you would pay if you didn't want to pay any closing costs (be sure to compare this rate with those of our competitors!) You may choose to pay points (which expresses the fee as a percetage of the loan amount) in order to obtain a lower monthly rate or be paid points at the beginning of the loan in exchange for a higher monthly fee. Note that points paid on a loan are often tax deductible (up to 50% in some cases) while you will be required to pay taxes on income you recieve from (negative) points. |
| You can pay off your mortgage any time with no additional charges. |
| You will receive an email and a phone call from your personal representative usually the same day, but within 24 hours at the latest. |
| FICO scores below 620 will usually not be approved by our system. |
| We do not currently offer loan programs for borrowers who are not able to document their income. However, keep in mind that your income information will be encrypted in our database and nobody at our company will be able to connect you with your income. People who need to connect you to your information (such as banks) will only have access to the information they need, minimizing your privacy and security risk. |
| Yes. You can use our sytsem to find out the financing you qualify for and to begin thinking about how you will structure you monthly payments. When you find the perfect home, you'll simply come to us to complete your application. You'll have an opportunity to lock in our great rates and fees then and we'll complete the processing of your request. |
| Begin by running your scenario in the pricing section of the website and click the view details and apply button on the far right of your selection. You will be contacted by your personal representative who can assist you with obtaining a pre-approval letter. Our turn time on pre-approval letters is same day during normal business hours. |
| What is PMI? |
| Private Mortgage Insurance (PMI) makes it possible for you to buy a home with less than a 20% down payment by protecting the lender against the additional risk associated with low down payment lending. The private mortgage insurance premium is based on the type of loan and the loan to value ratio. Usually, the premium is included in your monthly payment and one to two months of the premium is collected as a required advance at closing. |
| PMI's are removed once you have reached 80% loan to value of the initial value when financing began, though you may request to have it removed sooner. Note that PMI's aren't generally removed before two years and one must have a good payment history and or increased property value to qualify for the removal of the PMI. |
| We offer loan programs with as little as 5% down and FHA loans with as little as 3.5% down. However, significant savings may be achieved with a down payment of 10% to 25%, so we encourage you to run multiple loan scenarios on our website if you can afford a greater down payment. |
| If you are refinancing only your remaining balance you are not "cashing out" and thus would receive a better deal than if you were to "cash out". Be sure to check the cash-out option when you run a scenario if this applies to you. |
| Yes, the holder of your second mortgage or home equity line will have to sign what is known as a subordination agreement, subordinating their existing lien position to the new first mortgage. Generally, they will be willing to do so provided the amount of the new first mortgage is no more than the remaining balance of the existing first mortgage. |
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| Your second mortgage lender will ask us to provide some documentation such as a copy of the mortgage note you'll be signing and the appraisal before they provide the subordination agreement. We won't be able to schedule your loan closing until we receive the subordination agreement. |
| If your application is not approved, your personal representative will review the information you submitted and contact you within one business day to discuss your options. |
| An "ARM", or adjustable rate mortgage, starts off with a fixed rate (for three, five, seven, of ten years) and then changes month to month based off of the interest rate. For example, if the interest rate is expected to move up, initial payments may be low until the set period is up, at which point your monthly payments will be determined by the prevailing interest rate. Sometimes caps are placed on the amount your payments can rise, and these caps can be periodic (meaning they can change over a set time) or lifetime. When dealing with ARM's, it is important to check how your monthly payment is dependent upon the interest rate (different companies use different schema) and know how long you plan on staying in the house (you could sell if before the interest rate indexed payments start). |
| When refinancing a home, the second mortgage holder generally becomes the primary holder once the first mortgage is paid off. However, for a fee you can obtain a subordination agreement in which the second mortgage lender stays in second position. Note that this process can take time and therefore a longer lock period (45 days) can be helpful in obtaining a subordination agreement when purchasing your first mortgage. |
| Per Federal law you may cancel your loan up to three days after signing (including Saturdays but excluding Sundays and holidays). |
| Title insurance covers legal fees (for example if the property previously changed hands illegally) and will also cover any losses that are enumerated in the contract. Insurance can be issued to the Owner and the Lender and is usually issued to both (with only a new Lender policy needed in a refinance transaction). |
| You may choose to pay off the following month's interest when closing your loan. In this scenario you will have no interest payments the following month and you will pay the previous month's interest in all subsequent payments. |
| Your monthly payment is based off of the percentage rate, not the Annual Percentage Rate (APR). The APR is larger than the rate (or points) because it tries to capture the up front fees in order to help borrowers compare lenders. For example, a low rate with a high APR generally implies large up-front fees. Note that the calculation of the APR is very complex; it does not include some third party transactions and assumes that you will hold the loan for its entirety. |
| While the ARP is a great way to start comparing loans, it should be used only as a guide, not the final word. The ARP is very complicated and sometimes does not convey all costs, so be sure that you fully understand the monthly rate you will be paying, how long you will be paying it, and the fees that are included with the mortgage. |
| If you have any problem whatsoever with our electronic disclosures, just call our website help desk at 877-614-0240. Our technical assistants will be happy to assist you in viewing the disclosures online or they will securely e-mail the disclosures to you. |
| Please simply provide your best estimate using a site such as Zillow. Note that the appraisal or sales contract will be used in deciding the value of the property, and it is this official estimate which will determine the price and amount of your loan. |
| The general estimation for taxes on a purchase is 1.25% of the purchase price. If you are not sure about the tax rate for a refinance, please provide your best estimate; the appraiser and Title Company will find the exact rates later. |
| For pre-approvals, estimate when you will have located a propery and then add sufficient time for us to close the loan (typically 30 days after signing the contract). For a refinance transaction, estimate your closing date at three weeks from the date you are applying. On a purchase transaction, use the estimated closing date agreed upon in your purchase contract. |
| After closing your loan we need to contact your real estate broker/agent in order to discuss the items that he or she might require for closing. We'll make sure that everything necessary has been taken care of so that your closing happens as effieiciently as possible. Note that we will only provide basic information about your loan approval: what details you want to share will ultimately be left to you. |
| We'll need a copy of the settlement or closing statement that you will receive at the closing to verify that your current mortgage has been paid in full and that you will have sufficient funds for closing. If the closing of your current home is scheduled for the same day as the closing of your new home we ask that you ring your settlement statement with you to your new mortgage closing. |
| We will need a recent statement which shows that you have the funds available for the down payment. If repayment is required, we will consider that payment when making your loan decision |
| The most recent year's federal tax return will be used to verify income. If you haven't owned the rental property for a complete tax year we will need a copy of any leases you've executed and we'll estimate the expenses of ownership. |
| We'll review and average the net income from self-employment that's reported on your tax returns from the most recent two-year periods in order to determine the income that can be used to qualify you for the loan. We can not consider income that has not been reported on your tax returns. We also typically need a one or two year history of self-employment in order to verify that your self-employment income is stable. |
| Aside from the information provided in your tax returns, we will need copies of statements from your financial institution, brokerage statements, stock certificates or Promissory notes in order to verify your ownership of the assets. Typically, income from dividents and/or interest must be expected to continue for at least three years to be considered for repayment. |
| No, unless you which to have it considered for repaying this mortgage loan. |
| Yes, if we can verify a two-year history of secondary employment. |
| Only if the gift giver is related to you or your co-borrower. We will ask you for the name, address, and phone number of the gift giver as well as the donor's relationship to you. Note that if your loan request is for more than 80% of the purchase price we will need to verify that you have at least 5% of the property's value in your own assets (unless it is an FHA loan, in which case the entire down payment may be a gift from a relative). Prior to closing, we'll verify that the gift funds have been transferred to you by obtaining a copy of your bank receipt or deposit slip to verify that you have deposited the gift funds into your account. |
| Your property is included in your net worth, which is used to determine your loan price. The higher your net worth, the better deal you will receive from the bank (because they will see you as a safe investment). |
| An installment debt is a loan that you make payments on, such as an auto loan, a student loan or a debt consolidation loan. Do not include payments on other living expenses, such as insurance costs or medical bill payments. We will include any installment debts that have more than 10 months remaining when determining your qualifications for this mortgage. |
| Any student loan that will go into repayment within the next six months should be included in the application. If you are not sure exactly what the monthly payment will be at this time, enter an estimated amount. |
| Generally, a co-signed debt is considered when determining your qualifications for a mortgage, unless that debt doesn't affect your ability to obtain a new mortgage. However, if the debt does make a difference, we can ignore the monthly payment of the co-signed debt if you can provide verification that the other person responsible for the debt has made the required payments by obtaining copies of their cancelled checks for the last six months. |
| In order for bonus, overtime, or commission income to be considered, you must have a history of receiving it and it must be likely to continue. We'll usually need to obtain copies of W-2 statements for the previous two years and a recent pay stub to verify this type of income. If a major part of your income is commission earnings, we may need to obtain copies of recent tax returns to verify the amount of business-related expenses (if any). We will average the amounts you have received over the past two years to calculate the amount that can be considered as a regular part of your income. |
| We will ask for copies of your recent pension check stubs or your bank statement if your pension or retirement income is deposited directly in your bank account. Sometimes it will also be necessary to verify that this income will continue for at least three years since some pension or retirement plans do not provide income for life. This can usually be verified with a copy of your award letter. If you don't have an award letter, we can contact the source of this income directly for verification. |
| If you were in school before your current job, enter the name of the school you attended and the length of time you were in school in the "length of employment" fields. You can enter a position of "student" and income of "0." |
| On a Single Family Residence or Planned Unit Development (PUD) there must be a minimum of 60 days of coverage remaining on your policy from the time of funding. On a condo, your association Home Owners Insurance policy must be current. |
| Credit scores (FICO scores) are based on information collected by credit bureaus and information reported each month by your creditors about the balances you owe and the timing of your payments. A credit score is a compilation of all this information converted into a number that helps a lender to determine the likelihood that you will repay the loan on schedule. The credit score is calculated by the credit bureau, not by the lender. Credit scores are calculated by comparing your credit history with millions of other consumers. They have proven to be a very effective way of determining credit worthiness. |
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| Some of the things that affect your credit score include your payment history, your outstanding obligations, the length of time you have had outstanding credit, the types of credit you use, and the number of inquiries that have been made about your credit history in the recent past. |
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| Credit scores used for mortgage loan decisions range from approximately 300 to 900. Generally, the higher your credit score, the lower the risk that your payments won't be paid as agreed. |
| An abundance of credit inquiries can sometimes affect your credit scores since it may indicate that your use of credit is increasing. But don't overreact: the data used to calculate your credit score doesn't include any mortgage or auto loan credit inquiries that are made within the 30 days prior to the score being calculated. In addition, all mortgage inquiries made in any 14-day period are always considered one inquiry. Don't limit your mortgage shopping for fear of the effect on your credit score. If a lender gives you this advice, it is probably because they do not offer competitive rates and are afraid that you will discover this fact by shopping for a mortgage with other lenders. |
| If you've had a bankruptcy or foreclosure in the past it may affect your ability to get a new mortgage. Unless the bankruptcy or foreclosure was caused by situations beyond your control, we will generally require that two to four years have passed since the bankruptcy or foreclosure. It is also important that you've re-established an acceptable credit history with new loans or credit cards. |
| You must contact the credit agencies directly and dispute the reported item. Following is the information on how to contact the agencies: |
| TransUnion Consumer Relations, PO Box 1000, Chester, PA 19022 |
| 800-888-4213 https://www.transunion.com |
| Equifax Consumer Relations, PO Box 105873, Atlanta, GA 30348 |
| 800-685-1111 https://www.equifax.com |
| Experian Consumer Relations, PO Box 2002, Allen, TX 75013 |
| 888-397-3742 https://www.experian.com |
| Several non-profit agencies offer free counseling to assist you in this regard. Consult the yellow pages or the Internet under the heading Credit Counseling Services to find a counseling service in your area. |
| The Fair and Accurate Credit Transaction Act of 2003 (FACTA) provides that every consumer is entitled to a free credit report every 12 months from each of the three national repositories: Equifax, TransUnion and Experian. Customers may obtain their personal credit report through the following website: www.annualcreditreport.com |
| An appraisal will be required in order to determine the value of the property you are purchasing or refinancing. An appraisal report is a written description and estimate of the value of the property. National standards govern not only the format for the appraisal; they also specify the appraiser's qualifications and credentials. In addition, most states now have licensing requirements for appraisers evaluating properties located within their states. The appraiser will create a written report for us and you'll be given a copy prior to closing. |
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| After the appraiser inspects the property, he or she will compare the qualities of your home with other homes that have sold recently in the same neighborhood. These homes are called "comparables" and play a significant role in the appraisal process. Using industry guidelines, the appraiser will try to weigh the major components of these properties (i.e., design, square footage, number of rooms, lot size, age, etc.) to the components of your home to come up with an estimated value of your home. The appraiser adjusts the price of each comparable sale (up or down) depending on how it compares (better or worse) with your property. |
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| If your home is for investment purposes, or is a multi-unit home, the appraiser will also consider the rental income that will be generated by the property to help determine the value. |
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| It is not uncommon for the appraised value of a property to be exactly the same as the amount stated on your sales contract. This is not a coincidence, nor does it question the competence of the appraiser. Your purchase contract is the most valid sales transaction that exists: it represents what a buyer is willing to offer for the property and what the seller is willing to accept. Only when the comparable sales differ greatly from your sales contract will the appraised value differ significantly from the purchase contract. |
| A $395 Application Fee is collected by credit card at the time you lock your loan, and this appraisal fee is paid for in this fee. The funds are maintained in a trust account and are used to pay for your appraisal: a service performed by an independent third party. In the event your loan is declined or withdrawn, any funds remaining after payment of your appraisal costs will be refunded to you. You are entitled to a copy of your appraisal. |
| Licensed appraisers who are familiar with home values in your area perform appraisals. We order the appraisal as soon as the appraisal fee is paid. Generally, it takes 5-7 days before the written report is sent to us. We follow up with the appraiser to insure that it is completed as soon as possible. If you are refinancing, and an interior inspection of the home is necessary, the appraiser should contact you to schedule a viewing appointment. If you don't hear from the appraiser within three days of the order date, please inform your Loan Processor. If you are purchasing a new home, the appraiser will contact the real estate agent, if you are using one, or the seller to schedule an appointment to view the home. |
| Unfortunately, if you are purchasing a home we will have to use the lower of the appraised value or the sales price to determine your down payment requirement. |
| We will lend on a home that requires repairs. Further improvements may need to be performed before the closing of escrow for items such as broken windows, missing appliances, damaged walls and other items which may affect the value of your home. Upon receipt of your appraisal, our underwriting department will then make a determination as to which repairs are required to be made. In addition, the appraisal must indicate the condition of the home to be "Average" or better. |
| No, our quality control procedures prohibit us from using any appraisal not ordered directly by us from one of our preferred appraisers in your area. Our appraisers prioritize our work and will complete the assignment quickly |
| Yes, we will provide a copy of your appraisal prior to closing. |
| For a loan on a condominium, it is necessary that the common areas of the project, or at least the phase in which your unit is located, are complete. In the event that all common areas are not yet complete, your builder will have a program to finance your purchase. Their rates will probably not be as low as ours, so keep your closing costs to a minimum and you can refinance through us once the common areas are complete. |
| Federal Law requires all lenders to investigate whether or not each home they finance is in a special flood hazard area as defined by the Federal Emergency Management Agency (FEMA). This law exists to ensure that you will be protected from financial losses caused by flooding. |
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| We use a third party company who specializes in the reviewing of flood maps prepared by FEMA to determine if your home is located in a flood area. If it is, flood insurance coverage will be required, since standard homeowner's insurance doesn't protect you against damages from flooding. |
| No, by offering financing only on traditional 1-4 family residential properties we are able to be more efficient and offer the best possible pricing to our customers. |
| We do not currently offer land loans. |
| On a purchase transaction the closing will take place at the office of a settlement agent, attorney or Title Company in your area. On a refinance transaction, a mobile notary will be sent to the location of your choice. During the closing you will be reviewing and signing several loan documents. The closing agent, attorney or notary conducting the closing should be able to answer any questions you have, or you can feel free to contact your personal representative if you prefer. Just to make sure there are no surprises at closing, your personal representative will contact you before closing to review your final fees, loan amount, first payment date, etc. The most important documents you will be signing at the closing include: |
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| HUD-1 Settlement Statement: This document provides an itemized listing of the final fees charged in connection with your loan. If your loan is a purchase, the settlement statement will also include a listing of any fees related to the transaction between you and the seller. If your loan is a refinance, the settlement statement will show the payoff amounts of any mortgages that will be paid in full with your new loan. Most items on the statement are numbered according to a standardized system used by all lenders. These numbers will correspond to the numbers listed on the Good Faith Estimate that will be provided in your disclosure package. This document is also commonly known as the closing statement. |
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| Truth-in-Lending Statement (TIL): This document provides full written disclosure of the terms and conditions of a mortgage, including the annual percentage rate (APR) and other fees. |
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| Note: This is the document you sign to agree to repay your mortgage. The note will provide you with all of the details of your loan including the interest rate and length of time to repay the loan. It also explains the penalties that you may incur if you fall behind in making your payments. |
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| Mortgage or Deed of Trust: This document pledges a property to the lender as security for repayment of a debt. Essentially this means that you will give your property up to the lender in the event that you cannot make the mortgage payments. The Mortgage restates the basic information contained in the note, as well as details the responsibilities of the borrower. In some states, the document is called a Deed of Trust instead of a Mortgage. |
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| If your loan is a refinance, Federal Law requires that you have three days to decide positively that you want a new mortgage after you sign the documents. This means that the loan funds won't be disbursed until three business days have passed. The closing agent will provide more details at the closing. |
| To ensure the quality of the loan and your security in this transaction we have Hadlock Law Office, along with its national network of attorneys, to close the loan. |
| Loans may not be closed in the name of a Trust. The settlement agent or attorney will prepare a grant deed removing the property from the trust prior to recording your new loan. |
| Loans may not be closed in the name of an LLC. If the title of your home is vested in an LLC, the title must be changed prior to submitting a loan application. |
| On a purchase transaction or a refinance of a second home or rental property we can typically close within three days: one day to review the docs, one day to fund the loan, and one day for the loan to record. On a refinance of a primary residence there is also a three-day rescission period that must pass before your loan can fund. |
| The settlement agent or attorney will issue a check and mail it to you. You can also arrange for the settlement agent or attorney to wire the proceeds directly into your bank account. |
| Most banks allow you to set up bi-weekly payments, but you should do the math and recall that you have an extra payment option on your mortgage bill each month where you can directly control your principle balance. |
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