Home Loans

Tips to Keeping Your Loan Process on Track:

As members of your team, our mutual goal is to work with you to meet your desired closing date for this transaction. Once you’ve submitted your application, follow these tips to keep your loan on track by avoiding sudden changes in your employment, credit, and cash flow.

• Notify your loan officer if you are considering a job change.

• Consult with your loan officer before making substantial financial decisions.

• Wait until after your loan is complete to open any new lines of credit or make large purchases.

• If you make any large cash deposits, ensure that they are documented properly.

• Continue making current loan payments in a timely manner.

• Closely monitor your bank account to avoid an overdraft.

• Keep your records nearby in case we request any additional documentation.

Terms to Know:

Adjustable Rate Mortgage (ARM) – A mortgage in which the interest rate is adjusted up or down periodically based on a pre-selected index; also known as a re-negotiable rate mortgage or a variable rate mortgage. ARM products have interest rates that may increase after loan consummation.

Amortization – Repayment of debt with periodic payments of both principal and interest, calculated to pay off the loan obligation at the end of a fixed period.

Annual Percentage Rate (APR) – APR includes the origination fee and other finance charges in addition to the interest on the mortgage. The APR will be higher than the interest rate.

Appraisal – A report by a professional appraiser featuring comparable property values and details of the subject property.

Buy-Down – An interest rate subsidy in the form of additional discount points paid by a builder, seller, lender, or buyer which results in either a permanent or temporary below market interest rate. Both temporary and permanent buy-down options are available.

Closing – The meeting between the buyer, seller, title company’s escrow agent, and real estate agents to finalize the sale.

Closing Disclosure – This form is a statement of final loan terms and closing costs. Compare this document with your Loan Estimate.

Credit Report – A report reflecting an individual’s payment history and public records of bankruptcies, liens, or judgments.

Debt to Income Ratio (DTI) – The ratio, expressed as a percentage, results when a borrower’s monthly payment obligation on long term debts is divided by his or her gross monthly income.

Discount Points – A fee paid by the buyer to decrease the interest rate of the mortgage. One point is equal to 1% of the loan amount.

Escrow – An account set up through the mortgage lending process for the buyer’s payment of future property taxes and one year of homeowner’s insurance.

Flood Certification – A process in which the location of a property is examined to determine whether it falls within an area that is at special risk for flooding as determined by the Federal Emergency Management Agency.

Loan Estimate (LE) – A Loan Estimate is a three page document that explains details about the loan you have requested. Lenders must provide the LE within three business days of receiving your application.

Loan to Value Ratio (LTV) – The ratio, expressed as a percentage, which results from dividing the amount being borrowed by the appraised value or selling price of the house.

Loan Origination – The fee for mortgage financing services.

Loan Origination Points – A fee paid by the buyer to the lender above loan origination. One point is equal to 1% of the loan amount.

Hazard Insurance – An insurance policy insuring against multiple perils, commonly called a package policy, and made available to owners of private dwellings. There are wide variations in the coverage of such policies, which generally insure the dwelling and its contents.

Prepaids – The property taxes, homeowner’s insurance, and interest paid outside of the closing or included in the fees of the mortgage loan.

Principal – The true balance amount of the mortgage, not including the interest.

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