 |
What steps do I take to apply for a loan? |
Contact an Everyloan Financial loan officer to discuss your financial situation.
Within 24 hours, you will be quoted an interest rate and the loan amount you are likely to qualify for.
If you decide to apply, your loan officer will request financial documents from you and set an appointment for an appraiser to assess the value of your home.
When your application is complete, your loan officer will notify you when your loan is approved. You will receive your funds approximately 10 to 14 Business days following the loan application. |
|
Can I still get a loan if my credit isn't perfect? |
Everyloan Financial can help you secure a loan even if you have a past bankruptcy or poor credit history.
We offer a variety of easy qualification programs that have competitive interest rates. |
|
What types of information is contained in a credit profile (or credit report)? |
| It typically contains your present and past employment, any public records, credit established, identification data, and recent credit inquiries. |
|
How can I correct errors in my credit file? |
Get a copy of your credit report and review it. If you find errors, contact the credit reporting agency that sent you the report and explain the error.
They must research the information and correct it in your file.
You are allowed to state a reason for why you had the credit problem (illness, losing your job, divorce, nature's devastation, etc), which gets placed into your file to be seen by future inquirers.You should request your credit report in advance of making a loan application to be prepared to discuss any derogatory data. |
|
What can I do to improve my credit rating? |
Keep credit card use to a minimum and pay your bills on time.
Pay off balances if possible.
Debt consolidation is another way to improve your credit rating and can result in a lower interest rate, and provide a larger tax benefit. |
|
What are FICO scores and how do they influence my getting the loan? |
FICO scores can determine if a loan application is approved and the interest rate offered.
They are calculated from information contained in your credit file.
They include your payment history, the amount of recent inquiries for credit, the kinds of credit you use (revolving credit, loan types, etc.), how long credit has been used, current balances versus highest previous credit. |
|
What are 'Points'? |
Points are prepaid interest assessed at closing by the lender. One point is equal to 1 percent of the loan amount. For example, two points on a $100,000 mortgage would cost $2,000.
You can lower your interest rate by paying more points.
Paying points is not a requirement.
It's simply an option lenders offer to accommodate their home mortgage customers. |
|
What is involved in an appraisal? |
An appraisal is an estimate of the value of property made by a qualified, state licensed appraiser.
The appraiser will measure and inspect your home, take photographs of your home, as well as photos of other 'comparable' homes in the neighborhood. |
|
What happens at closing? |
By this time the loan documents have been prepared and are ready to be signed. A meeting will be set between the escrow company or one of their contracted employees and the homeowner.
Depending on the situation, the meeting can take place at the escrow office or the owner's home. |
|
What are the closing costs? |
Closing costs can be as low as zero and depend on the loan package as a whole.
Depending on the situation, fees can include an origination fee, discount points, appraisal fee, title search and insurance, survey, taxes, deed recording fee, credit report and notary fees. |
|
What is equity? |
The value an owner has in real estate over and above the obligation against the property.
Put another way, equity is the difference between the fair market value of your home and what you currently owe. |
|
What is APR? |
Annual percentage rate, or APR, is an interest rate reflecting the cost of a mortgage as a yearly rate, allowing borrowers to compare different types of mortgages based on the annual cost for each loan.
The APR includes the interest rate of the loan plus other finance charges such as mortgage insurance, points and credit costs. |
|
What is a pre-approval and how can it help me? |
Pre-approval is a written commitment from a lender, subject to a property appraisal and other stated conditions, that lets you know exactly how much home you can afford.
Not only will real estate agents perceive you as a serious home buyer, but sellers are much more apt to accept offers from pre-approved buyers.
Finally, it makes the mortgage process go more quickly, since much of the information is in place. |
|
What are Combination Loans? |
| Multiple loans on one property |
|
Who offers Combination Loans? |
| All lenders, brokers, and banks. |
|
Why do lenders, broker, and banks sell Combination Loans? |
| Combination loans are sold when people can’t afford the traditional 20% down payment when purchasing a property. |
|
What’s good about Combination Loans? |
| Combination Loan programs allow buyers access to properties they normally couldn’t afford. |
|
What is the LIBOR? |
| The LIBOR is an index used to calculate the interest rate on your mortgage note, which in turn affects your monthly payment amount. |
|
Where did the LIBOR originate? |
| The LIBOR is the rate that banks in London, England charge one another for short-term loans. The LIBOR is similar to the U.S. Federal Funds rate. |
|
What is the Prime rate? |
| The Prime rate is the rate at which banks charge their best customers. |
|
What types of mortgages use the Prime rate? |
| Home Equity Lines of Credit (HELOCs) |
|
What is a Home Equity Line of Credit (HELOC)? |
| A HELOC is a mortgage loan, usually in second position, that allows the borrower to obtain cash drawn against the equity of their home, up to a predetermined amount. |
|
How do I know how much house I can afford? |
Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford. |
|
What is the difference between a fixed-rate loan and an adjustable-rate loan? |
With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us. |
|
How is an index and margin used in an ARM? |
An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR). |
|
How do I know which type of mortgage is best for me? |
There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Access Mortgage Group can help you evaluate your choices and help you make the most appropriate decision. |
|
What does my mortgage payment include? |
For most homeowners, the monthly mortgage payments include three separate parts: - Principal: Repayment on the amount borrowed
- Interest: Payment to the lender for the amount borrowed
- Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
|
|
How much cash will I need to purchase a home? |
The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply: - Earnest Money: The deposit that is supplied when you make an offer on the house
- Down Payment: A percentage of the cost of the home that is due at settlement
- Closing Costs: Costs associated with processing paperwork to purchase or refinance a house
|
