Frequently Asked Questions

General - FAQs

What is the difference between a fixed rate and adjustable rate loan?

With a fixed rate mortgage, the interest rate and payment remains constant over the life of the loan. With an adjustable rate mortgage, the...
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Is there a cost to apply?

Initially, the only fee that is legally allowed to be collected is the cost of a credit report. Any other up-front fees, such as an appraisal...
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How long will the loan process take?

The loan approval and funding time frames vary depending on the type of transaction and the complexity of your personal finances. On average,...
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Can I pay my loan off early or pay extra each month?

You can make principal payments at anytime during your loan term or pay the loan in full. You can also pay a set amount each month above the...
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What is an escrow account?

An escrow account is maintained by the lender to collect funds from the borrower as part of their monthly payment so that the lender can pay the...
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How do I know what loan is best for me?

Review your current situation and future goals, and then answer these questions with your loan officer to help determine the route you may want...
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What is PMI?

PMI stands for Private Mortgage Insurance. On a conventional loan, PMI is required if you borrow over 80% of your appraised value. This protects...
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What is hazard insurance?

Hazard insurance protects your investment in your home, providing compensation to the insured in case of property loss or damage.
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What are points?

Points represent an origination fee charged by the lender and/or loan discount points sometimes charged to lower the interest rate. One point is...
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What is a buy down?

A buy-down is a fee paid to lower the interest rate on a mortgage. Typically, the buyer, seller or any other interested party may pay it. A...
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What is a Good Faith Estimate?

Required by federal law, the Good Faith Estimate (GFE) is a written list of the estimated closing costs associated with your mortgage...
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What is the Truth-In-Lending (TIL)?

Required by federal Law, the Truth-in-Lending statement provides detailed information about the total charges that you will incur over the life...
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Why is the Annual Percentage Rate (APR) different from the interest rate?

The annual percentage rate is intended to reflect the total cost of your mortgage loan. To calculate the APR, lenders consider the interest rate...
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How does my credit score affect my application?

Your credit score plays a significant role when you apply for a loan. Higher credit scores allow you more loan options and better interest...
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When can I lock my 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...
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What is a conventional loan?

A conventional loan is one not guaranteed by the Federal government. Instead, conventional loans are purchased on the secondary market by the...
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What is a jumbo loan?

Jumbo, or non-conforming, is a term used to describe a loan that does not conform to Fannie Mae or Freddie Mac guidelines. The typical Jumbo...
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What is a locked rate?

A locked rate represents the interest rate you choose and will be the interest rate used to factor your monthly payment. When the rate is...
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How long is my rate lock good for?

Depending on the type of transaction and the time you need, there are lock periods anywhere from 12 to 180 days.
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What is PITI?

PITI represents the various components of your monthly loan payment, broken down as follows: P = Principal I = Interest T = Taxes I = Insurance
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What can I do if I have credit problems?

Having credit problems doesn’t automatically mean you can’t become a homeowner or refinance your existing home loan. Our loan officers will help...
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Purchase - FAQs

When should you pay discount points?

When you pay a discount point, you are essentially paying part of your interest to the lender up front. This will lower your interest rate — as...
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How much do I need for a down payment?

Your down payment requirement is most affected by whether your purchase will be owner or non-owner occupied. If you are buying your primary...
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What should I consider in my decision to rent or purchase a home?

This decision is based on both financial and lifestyle choices. From a lifestyle standpoint, consider whether or not you want to commit to...
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