What is a mortgage loan pre-approval?

Pre-approval allows you to get pre-approved for a specific loan amount prior to finding the home you want to purchase. The loan documents are reviewed, and the lender commits to a specific loan amount. A strong pre-approval can provide an advantage if someone else is interested in the same home simultaneously.

2019-08-21T16:18:23-07:00August 2nd, 2018|

What is a mortgage loan pre-qualification?

Pre-qualification is the method of determining how much money you will be eligible to borrow before the loan application process occurs. A pre-qualification letter does not hold much weight when making an offer on a home. Buyers are strongly encouraged to go thru the pre-approval process.

2019-08-21T16:18:23-07:00August 2nd, 2018|

Is there a cost to apply for a home loan?

Initially, there is no fee collected for a pre-approval. All up-front fees such as an appraisal or credit report fee that may apply to your request will be collected if you choose to move forward with your loan.

2019-08-21T16:18:23-07:00August 2nd, 2018|

When can I lock in my interest rate?

You can lock or float your interest rate at any time during the process of your loan.  Your loan officer will discuss these options with you upon taking your loan application.

2019-08-21T16:18:23-07:00August 2nd, 2018|

What is PMI?

PMI is Private Mortgage Insurance. On a conventional loan, PMI is required if you borrow over 80% of your appraised value or purchase price (whichever is lower). This protects the lender against financial loss if the loan is defaulted.

2019-08-21T16:18:23-07:00August 2nd, 2018|

What are points?

Points represent any loan discount points sometimes charged to lower the interest rate.

2019-08-21T16:18:23-07:00August 2nd, 2018|

What is an escrow account?

An escrow account is maintained by the lender to collect funds from the borrower in order to pay the taxes and property insurance due on the loan.

2019-08-21T16:18:23-07:00August 2nd, 2018|

What is an adjustable rate mortgage (ARM)?

There are numerous types of ARM loans, with the most popular having a fixed term for a specified number of years (such as 5, 7, or 10 years) and can then be adjusted each year thereafter, up or down. These types of ARMs are referred to as 5/1 ARM, 7/1 ARM, 10/1 ARM, etc.

2019-08-21T16:18:23-07:00August 2nd, 2018|

What is the difference between Fixed and ARM loans?

A Fixed loan has an interest rate that does not change for the duration of the loan, so your mortgage principal and interest payments stay the same.  Whereas, with an adjustable rate mortgage (ARM) the interest rates are typically fixed for a specified number of years (5, 7, or 10 years) and can vary up or down after that period, based on an index.

2019-08-21T16:18:23-07:00August 2nd, 2018|
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