FAQ

Q: What is required for application?
A: Please refer to the Mortgage Application Checklist.

Q: How long does the process take?
A: For most loans, the credit approval is granted within 24-48 hours from the date the items referred to in “question one” are received. The next step would be property appraisal, which takes approximately one week. Assuming property approval and contract compliance closing may be scheduled.

Q: What is the best way to compare lenders when shopping for a mortgage loan?
A: Request a “good faith estimate” and a truth-in-lending disclosure from each lender based on your individual needs. With these two disclosures in hand, you can compare not only the interest rate and terms but also the closing costs that will be charged.

Q: What are closing costs?
A: Closing costs are generally out-of-pocket fees paid at loan closing that are charged by lenders and other third parties, for their services in connection with processing your loan application. Examples of lender fees would be origination, discount points, underwriting, processing, credit reports, appraisal, flood certification and tax service fees. Examples of third party fees would be attorney, title insurance, recording, termite report and survey and home warranty fees.

Q: What are prepaids?
A: Prepaids refer to those items paid in advance at the time the loan is closed. These items include prepaid interest, homeowners insurance premiums, real estate taxes and, depending on loan type, may include private mortgage insurance (PMI), mortgage insurance premium (MIP), USDA Rural Housing Participation fee or Veterans’ Administration Funding fee. Please call for details.

Q: Who pays for closing costs and/or prepaids?
A: For purchase transactions, seller or buyer may pay for closing costs and/or prepaids. On some programs, there are limits on how much the seller may pay. In addition to negotiating sales price, closing costs and/or prepaids should be determined and stated clearly in your sales contract. For refinance transactions, the borrower would pay all closing costs and/or prepaids. Lenders will generally pay some closing costs and/or prepaids in return for a slightly higher interest rate.