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Q
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What information do I need to provide when I apply for a loan? |
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We will need a copy of your driver license, copies of your two most current pay stubs, w-2's for the past two years, your last two bank statements and the most current statement on any 401K, IRA, life insurance, stocks or bonds. If you are purchasing a home, we will need a copy of the purchase agreement. |
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Q
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How long will the loan process take? |
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The time frame will vary depending on your loan type and your personal situation. |
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Q
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What is the difference between a fixed rate and adjustable rate mortgage? |
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With a fixed rate mortgage, the interest rate and payment remains the same over the life of the loan. With an adjustable rate mortgage, the interest rate can either increase or decrease, based on the loan terms. This could cause your monthly payments to increase or decrease. |
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Q
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Does my loan require homeowner's insurance? |
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Yes. Prior to closing, you are required to take out a homeowner's insurance policy and prepay one year's premium. If the loan is a refinance, we require a copy of your current policy. |
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What is an escrow account? |
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An account maintained by the lender to collect funds from the borrower in order to pay the taxes and property insurance due on the loan. |
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What is PITI? |
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PITI is an acronym for monthly housing expenses: principal, interest, taxes and insurance. |
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Q
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What is PMI? |
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PMI stands for private mortgage insurance. In some cases, if your first mortgage is greater than 80% of the property's value, the lender will obtain private mortgage insurance to safeguard its investment against the possibility of default. The PMI premium is collected monthy with the mortgage payment. |
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