Frequently Asked Questions

The Loan Estimate is a form the lender is required to provide to the consumer within three business days of an application being received. It provides a precise breakdown of estimated closing costs. A Loan Estimate replaces the Truth-in-Lending and Good Faith Estimate provided previously.

In the mortgage industry, we use co-borrowers more often than co-signers. This means your parents will go through a full application procedure and qualify alongside you. Each investor has a different policy on this practice. Consult with your Loan Officer to ensure you follow the correct guidelines.

The number one tip—do not pack your personal papers! Mortgage loans are very precise and require documentation furnished by the borrower. Keep your financial records with you until your loan closes.

Be prepared by knowing the exact details of your relocation package. Here are a few essential questions to ask:

•Will your company buy your present home or issue an equity advance?

•If your home does not sell, will your company make the payments for you until it does sell?

•Will your company pay your closing costs on your purchase? If so, will they advance the funds or reimburse you after closing?

•It is important to keep copies of any advance checks you may receive, as well as all documentation on your move. It’s much easier to keep extra unused paperwork than to try to find additional paperwork when you’re trying to close.

The easiest way is to request your Certificate of Eligibility from the DEPARTMENT OF VETERANS AFFAIRS (VA).

When you are discharged, you receive a very important document called a DD-214. If you send a copy of this form, along with a request for determination of eligibility (form number 1880), to the VA you should receive an answer within a week or two.

It’s not a law—just different investor rules. FHA, VA and other state housing programs require impound accounts for all loans they insure and guarantee. For all other loans, you may be eligible to waive the impound account, if desired—subject to review and approval.

Interest rates are derived from a complex formula driven by economic factors, the bond market and the Federal Reserve as well as investor and consumer demand. These factors all contribute to changes in interest rates. Although interest rates usually have long periods of decline or increase, there are many days when rates may fluctuate dramatically—just as the bond market can. These are often referred to as “hiccups.” Let your Loan Officer know if you would like to know more about the market.

Constantly. Interest rates change regularly with the fluctuation of the market, as described above. Once you lock or protect your rate, it will not increase as long as you close your loan before the rate expiration date.

Taking good care of your credit will reward you with a lower interest rate. The loan-to-value, as well as your credit score, and occupancy of the property will also be factors in the interest rate equation.

One point is equal to 1% of the loan amount. This amount, like the interest rate, can vary. You can “buy” the interest rate down to a lower rate by paying more points.

Loans with buy-down plans require that a certain percentage is paid by the buyer or seller to reduce the interest rate over the initial portion of the loan term or for the whole term. Buy-downs can either be temporary or permanent.

By locking your rate, you have committed to a specific loan that guarantees the rate and fees that have been presented to you. Once the rate is locked, it will not change as long as you close on or before the rate lock expiration date.

Float means you are not guaranteed any rate—everything presented to you is an estimate. Your rate is subject to the fluctuations in the market until you decide to lock.

Your real estate agent will typically call you, though every once in a while your settlement agent will call you to make arrangements for your signing.

Please allow between 45 minutes and one hour for your signing appointment.

Upon receipt of loan documents and preparation of your escrow instructions, contact your Loan Officer so they can tell you the amount of funds you’ll need to close escrow.

You will need to bring a valid driver’s license, state ID card or valid passport, along with your cashier’s check, if a wire was not already sent. Please confirm whether a cashier’s check or wire is required before withdrawing funds.

They’ll go over any and all loan documents drawn by the lender of your choice; escrow instructions with terms of sale, per your purchase contract; the Closing Disclosure; preliminary report; etc. The settlement agent will explain any reports and inspections that may be required on the property. They will also provide you with a complete package of all documents you have signed that you can take home for further review. Should you have any questions after reviewing your package, don’t hesitate to contact your escrow officer.

The day escrow closes is the day the deed records with the county and you become the owner of your home. It could take six to 10 weeks from that date for the County Recorder to mail you the original signed and recorded deed. Keep copies of your signed loan documents and items received in the mail in a safe place.