FAQ's

How do I know what type of mortgage meets my financial needs?
The final answer to this question will be found by working with one of our experienced mortgage specialists, who will assist each client in achieving their personal financial goals by analyzing their credit situation and educating them on the best loan for them.

What is pre-qualification?
Pre-qualification is the initial placement of a borrower in a specified loan program based on their assets, debts, and income. Here we establish the borrower’s capacity to pay back the amount they borrow within a given time period.

What is LTV?
LTV is the acronym used for Loan-to-Value. It expresses the relationship between the amount of the loan and the property’s value, or sales price. For example, if a client borrows $50,000 on a $100,000 property, they are borrowing at a 50% Loan-to-Value, or LTV.
           
What does your credit score mean?
A credit score is a numeric interpretation of a borrower’s credit history. Candidates with higher scores are presumed to be better risks by the lending institutions that fund loans and are given certain benefits based on their scores. 
             
What are closing costs?
Closing costs are expenses paid by both the buyer and seller at the time the loan is finalized. They usually include but are not limited to title fees, sales commissions, origination fees, discount points, recording fees, courier charges, processing fees, and documentation preparation fees.

What is the APR?
APR stands for Annual Percentage Rate. It refers to the actual interest rate for the projected life of the loan and is required to be disclosed by the Truth-in-Lending Law.            

What is the difference between a Fixed Rate and an Adjustable Rate Mortgage?
In a fixed rate loan, the interest rate stays fixed for the life of the loan. With an adjustable rate mortgage, the interest rate changes based upon certain financial indexes and are subject to change based on the variance of these indices.             

What is hazard insurance?
Hazard insurance is a type of property insurance that is issued to insure property against physical damage. Lending institutions generally require homeowners to maintain a hazard insurance policy that is at least equal to the amount of the loan.

What is Private Mortgage Insurance, a.k.a. PMI, and who generally pays it?
PMI is a type of mortgage insurance paid by homeowners to protect lending institutions against loss due to foreclosure or loan default. It is required on conventional loans with less than twenty percent down.

What is an escrow or an impound?
It is the amount that can be included in a borrower’s monthly payment that goes towards the estimated annual fees for taxes and insurance to be held in an escrow account until the fees are called due and payable.

Will my loan be sold?
It is a very common practice for loans to be sold in the “secondary market” to investment companies, who then pool or package millions to billions of dollars worth of loans together. Shares of these packages are then sold to individual investors, whose investment in them helps contribute to lower interest rates for the general public.