Frequently Asked Questions
If your specific question is not answered in the following question and answer section, please contact me by phone or email and I will promptly provide you with an answer!
Can I apply for a mortgage loan before I find a property?
Yes. I highly recommend that you apply for a pre-approval. A pre-approval will evaluate your financial situation and determine what purchase price and loan amount you qualify for based on the information that you have provided in your application. A pre-approval gives you better flexibility and leverage while you conduct your home search. Nancy will contact your Realtor and will provide a "lender letter" on your behalf. Please note that you cannot lock in on an interest rate until you specify a property address.
How do I apply for my mortgage loan pre-approval?
You may apply by any one of the following methods. You may apply by calling me, drop in, or apply on-line.
Does it cost anything to apply for a mortgage loan?
No. Nancy Deane does not charge any up front fees.
How quickly can I apply?
The application time will take you approximately 15 minutes by phone and 5-10 minutes on-line.
Who will I contact if I need answers to questions?
Nancy Deane will be your own personal loan officer who will assist you from your first phone call to your closing day and beyond. During your loan process, you and all parties involved in the transaction (realtors, attorneys, and title) will be contacted on a weekly basis, by your loan officer for an update on the progress of your loan.
What does the processing/underwriting of my loan mean?
Processing/underwriting is the verification of the documentation and information that you have provided to qualify for the specific loan program for which you have applied.
What is Hazard Insurance?
Hazard Insurance is the same as Homeowners Insurance. It is necessary for the purchase of a single-family residence. Hazard Insurance protects the structure and the contents inside your home.
Do I have to have an escrow account?
In most cases, an escrow account is required. The funds are a combination of property taxes and hazard insurance collected monthly by the lender to be paid to the county in which you live and to the insurance company that you have chosen. You can in some cases waive the escrow account with the lender and chose to pay these fees direct, however, a fee is usually assessed.
What is pre-paid interest?
Pre-paid interest is also known as "per diem interest." It is the interest that you will owe to the lender for the remaining days of the month in which you are closing.
What is the difference between the interest rate stated in the Note and APR?
The interest rate shown in the Note is the rate of the interest being charged for the amount of money that you are borrowing. The APR, Annual Percentage Rate, is the rate, which the lender can realize with all the finance charges, including closing costs, over the life of the loan.
Can I change my loan amount after I have submitted my application?
In most cases you can change your loan amount after you have submitted your loan application. However, it will depend on your loan program and the specific guidelines attached to that program. Contact Nancy Deane and she will re-qualify you at the new loan amount and make sure you are within the program guidelines.
How long may I lock my interest rate?
Interest rate lock time periods are guaranteed by the lender for a certain number of days; 15, 30, 45 and 60 day locks are typically free; 75, 90, 120, 180 and 360 day locks may have a fee or a higher interest rate. Nancy can provide you with additional information on locking your loan.
Do I have to lock my interest rate?
Your interest rate needs to be locked 5 days prior to your close date. You may however choose to float your rate until that time. Floating means that your rate is not "locked in" or guaranteed by the lender and you are subject to market changes, up or down, until the rate is required to be locked or set.
Who will schedule my closing?
For a purchase, the seller's realtor will schedule the closing with the title company. For a refinance, we will contact you when the loan is ready to close and will schedule a time and location with the title company that is most convenient for you.
When will I know the amount of money that I am required to bring to the closing, if any?
You will review your final figures for the closing with Nancy typically 2 days before closing.
What form of payment is acceptable for the closing?
You will need to get a certified check if the amount is greater than $500.00. You may also choose to have your funds wired to the closing.
How long will my closing take?
For a purchase, you should be done in about one hour and for a refinance about 30 minutes.
What is a 3-day right of rescission?
When you refinance a primary residence you are given three business days (Sundays and federal holidays excluded) to review your closing package. If you do not rescind the loan within the three day period, the title company will disburse the funds pursuant to the HUD-1 settlement statement.
When is my first payment due?
Typically, your first payment is due on the first day of the month two months after your loan closes. For example if your loan closes on December 15th your first payment is due February 1st. If your loan closes January 30th, your first payment is due March 1st.
May I fax additional documentation to you?
Any additional documentation that does not require an original signature may be faxed. For example, bank statements and paycheck stubs may be faxed.
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