Q.  HOW MUCH LOAN CAN I QUALIFY FOR? MONTHLY PAYMENT?

A.  Once we have a borrowers credit information and monthly gross income, we will be able to tell what monthly payment they can qualify for.  There are many different loans, some will allow the borrower to borrower more against their income than others.  Many times your rate will be determined based on which type financing you need.


Q.   ONCE I APPLY HOW LONG DOES IT TAKE TO GET AN APPROVAL?

A.   We can give a pre approval with 72 hours of application under normal circumstances. We allow 30 days from date of application to closing. This can vary depending on situation


Q. WHAT ARE POINTS?

A.   All rates quoted are usually considering a 1% origination fee. This is not a discount point which is included to buy a rate down. The amount to do this will vary depending on current rates, amount the customer wants to buy down and each individual lender. The dollar amount this costs the customer will depend on the above factors and loan amount.


Q. WHO PAYS CLOSING COST? THE BUYER.....OR SELLER?

A. On a purchase the seller can pay usually 3% of buyers closing costs (this is based on purchase price). On some loans, the seller can actually pay even more. On a refinance we fold the closing costs into the loan, and try to work out loan so the borrower will not have to
bring any funds to closing.


Q. WHAT IS ESCROW?

A. This is where you set up your taxes and Home owners insurance to be paid in your house payment monthly.

What does it mean to escrow? 
This is when you have your taxes and homeowners insurance added into your monthly payment.  Then when your taxes and insurance are due, your lender pays those for you. They basically keep your monthly payments in an escrow account and when due, they pay. It saves you having to come up with funds on your own.

Is there a charge if I choose not to escrow my taxes and insurance?  Yes, usually on a conventional loan, lenders will charge a one time fee of .25, which is part of your closing costs.  This charge is based on loan amount.

When refinancing can closing costs be added into my loan? 
On a refinance, we try to make it where our borrower comes to the table with nothing out of pocket.  We roll all closing costs into a loan.  On a purchase they cannot roll closing into loan, unless borrower qualifies for 103% financing.  This is based on individual credit scores.

What is the current rate?      Our rates change daily.  In recent months they have changed as many as five times a day.  We can lock a loan on a refinance as soon as we have an application.  We can lock a loan on a purchase as soon as we have a contract.  In both cases the borrower has the option to wait (float) the rate till 3 days before closing, at which time it has to be locked, regardless of interest rate at that time.

Once applied how long will the process take? Usually we say 30 days from application to closing.  In many cases we have closed alot sooner.  Unfortunately with rates being low, many lenders are very behind and underwriting has taken much longer.