FREQUENTLY ASKED QUESTIONS
What Documents Do I Need?
What type of mortgage is best for me?
What is a low down payment?
What are closing costs and what will they include?
Why refinance?
What Documents Do I Need?
Items that you need to provide will support the information stated on your application. Some of these items are:
1. Personal tax returns for the past two years (self employed/commissions).
2. Business tax returns for the past two years (self employed).
3. Most recent 2 paystubs and W-2's for past two years.
4. Credit explanations: may be required if you have been any past or present delinquencies.
5. Cancelled checks: may be required to prove that you are or are not responsible for a credit liability or to prove that your business pays a certain debt that may be listed on your personal credit report.
6. Bank statements: two most recent months.
7. Bankruptcy papers: If you have had a bankruptcy in the past seven years, you will need to provide us with a complete copy of the bankruptcy papers including a copy of the discharge document.
8. Divorce decree: it will be necessary to provide a copy of your divorce decree and Property Settlement Agreement (if applicable) as these documents will provide details of the division of assets and liabilities, as well as any monthly income or debt that has been ordered by the court.
9. Purchase transactions: a complete copy of your contract from your realtor and/or builder including all addendums to the contract.
What type of mortgage is best for me?
A fixed rate loan may be right for you if you plan on staying in your house for the long term. The interest rate is fixed for the life of the loan and therefore your principal and interest on your mortgage payment will remain the same.
If you are trying to get the lowest possible initial mortgage payment, then you may want to consider an adjustable rate mortgage (ARM). This loan type may allow you to purchase more house because the initial interest rate is generally lower than a fixed rate loan. Before you choose an ARM product, it is critical to anticipate the length of time you plan to stay in the house so we can correctly "match" the program that fits your needs. Keep in mind that although your intial rate is low, there will be an adjustment period when your payment can change. Depending on market conditions, the interest rate could increase or decrease, therefore affecting your monthly mortgage payment when the adjustment period occurs.
What is a low down payment?
Anything less than the standard 20% can be considered a low down payment. Many borrowers obtain a mortgage loan with less than 20% down payment by entering into a Private Mortgage Insurance, also known as PMI or by taking a second mortgage.
What are closing costs and what will they include?
Closing costs are required fees paid at closing, including but not limited to origination and discount points; appraisal and credit reports, underwriting fees, title insurance, survey, recording documents, and state and local taxes.
There may be other fees as well, including the prepayment of real estate taxes and homeowners insurance premiums. Your mortgage representative will provide you with a detailed estimate of these fees.
Why refinance?
While there are many reasons to refinance your existing mortgage loan, the most common reasons are lower interest rate, combining of monthly debt, lowering monthly payments and obtaining extra cash for whatever purpose.
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