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Is your mortgage ARMed and dangerous! Convert now to a low fixed rate for your Peace of Mind!
Veterans! Lower your payments with a streamline rate and term refinance. No lender's fees, No credit report, No Appraisal. |
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| 1. |
Why is the APR different than the note rate? Answer |
| 2. |
Can I have a copy of my credit report? Answer |
| 3. |
What should I expect when a lender designates specific settlement service providers? Answer |
| 4. |
I was referred to a lender by my Realtor, will my Realtor receive a kickback? Answer |
| 5. |
What defines a second home? Answer |
| 6. |
Why are some lender's interest rates higher than others? Answer |
| 7. |
Do I need to create an account to fill out a Loan Application? Answer |
| 8. |
Do I need to fill out the form entirely? Answer |
| 9. |
What documents do I need to start my loan process? Answer |
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Q
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Why is the APR different than the note rate? |
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The lender is required, usually, within three days of receiving your application, to give you or place in the mail to you a Truth-in-Lending statement that will disclose the "annual percentage rate" (APR). The APR reflects the cost of your mortgage loan as a yearly rate. This rate may be higher than the rate stated in your mortgage or deed of trust note because the APR includes, in addition to interest, loan discount or points, fees, and other credit costs. The Truth-in-Lending statement also discloses other useful information, such as the finance charge, schedule of payments, late payment charges, and whether or not additional charges will be assessed if you pay of the balance of your loan before it is due (prepayment penalty).
Some of the information that the lender is required to disclose many not be certain at the time the lender is required to give you the Truth-in-Lending statement. If so, the lender will indicate that the uncertain disclosures are estimates. Should the actual APR differ by more than a small amount from the lender's estimate, the lender must give you a corrected Truth-in-Lending statement no later than at settlement. However, if the estimated APR proves to be correct, the lender need not give you a new Truth-in-Lending statement, even if other disclosures have changed. For this reason, you may want to ask the lender shortly before settlement if all the Truth-in-Lending disclosures are still accurate. For more detailed information regarding Truth-in-Lending, contact the Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, Washington, D.C. 20551 |
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Can I have a copy of my credit report? |
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The Fair Credit Reporting Act does not give you the right to inspect or physically handle your actual report at the credit reporting agency, nor to receive an exact copy of the report. But you are entitled to a summary of the report, showing the nature, substance, and sources of the information it contains. If the terms of your financing have been adversely affected by a credit report, you have the right to inspect the summary of that report free of charge or for a small fee. The accuracy of the report can be challenged, and corrections required to be made. For more detailed information on your credit report rights, contact the Federal Trade Commission (FTC) in Washington, D.C. or the nearest FTC regional office. |
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What should I expect when a lender designates specific settlement service providers? |
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Where this occurs the Good Faith Estimate must clearly state the use of the particular provider is required and that the estimate is based on charges of the particular provider, give the name, address and telephone number of each designated provider, and describe the nature of any relationship between each provider and the lender. While designated firms often provide the service needed, a conflict of interest may exist. Take, for example, the situation where the provider must shoose between your interests and those of the lender. Where legal services are involved, it is wise to employ your own attorney to ensure that your interest are properly protected. It is wise for you to contact other firms to determine whether their costs are competitive and their services are comparable. A lender may not require use of a provider if the lender and provider are part of a "controlled business arrangement", which is discussed further under "Kickbacks" |
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I was referred to a lender by my Realtor, will my Realtor receive a kickback? |
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Kickbacks and referral of business for gain are often tied together. The law prohibits anyone from giving or taking a fee, kickback, or anything of value under an agreement that business will be referred to a specific person or organization. It is also illegal to charge or accept a fee or part of a fee where no service has actually been performed. This requirement does not prevent title companies, attorneys, or others actually performing a sevice in connection with the mortgage loan or settlement transaction, from receiving compensation for their work. It alsos does not prohibit payments persuant to cooperative brokerage, such as a multiple listing service, and referral arrangements or arrangements between real estate agents and brokers. The prohibition is aimed primarly at eliminating the kind of arrangement in which one party agree to return part of its fee in order to obtain business from the referring party. The danger is that some settlement fees can be inflated to cover payments to this additional party, resulting in a higher total cost to you. There are criminal penalties of both fine and imprisonment for any violation of these provisions of law and the Government may also seek injunctions against violators. There are also provisions for you to recover three times the amount of the charge for any settlement service, through a private lawsuit. In any successful action to enforce your right, the court may award you court costs together with a fee for your attorney. In 1983, RESPA was amended to address "controlled business arrangements" which are arrangements in which the party referring a homebuyer to a particular provider of settlement services has a relationship with the provider which involves an ownership or franchise arrangement. Payments made by parties to a controlled business arrangements, such as dividends, may have the same effect as referral fees. Congress recognized a special status for such payment, however, and the law provides that such payments will not be illegal kickbacks or referral fees if the controlled business arrangement is disclosed, a written estimate of charges of the provider given and the borrower is not required to use that particular provider. |
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What defines a second home? |
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According to the IRS, if you use a property for a minimum of 2 weeks in any given year, the property qualifies as a second home providing you aren't claiming another property as your second home. When you rent a property for long term where you do not have access or use in a given year, then that property is converted to investment property. |
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Why are some lender's interest rates higher than others? |
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Rates are quoted on the market with positive and negative discount points. A point is equal to 1% of the loan amount. Some lenders will include this discount when quoting rates. If you are willing to pay positve discount points, you are actually paying a premium to get a lower rate. In certain cases, it's necessary to "buy" a lower rate so you may qualify for the loan based upon your income and current liabilities. At other times you may want to accept a higher interest rate and get negative discount points rebated to you for use in your closing costs. Other lenders may charge an origination fee and derive their income from this fee which enables them to quote a lower rate also. The most common quoted rate to see will be a PAR rate to the consumer, meaning there are no other hidden fees (Discount points, origination fees, Mortgage broker fees) associated with the loan. |
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Do I need to create an account to fill out a Loan Application? |
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Yes, in order to fill out a Loan Application you will need to create an Account, this way you can log in at anytime and check the status of
your loans progress. |
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Do I need to fill out the form entirely? |
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Not exactly, fill out everything you can, the more that is filled out the Faster we can process your loan.
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What documents do I need to start my loan process? |
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(for a printable needs letter click here)
IF SELF EMPLOYED, OWN INVESTMENT PROPERTY OR ARE PAID WITH A 1099 FORM:
1. 2007 and 2006 personal 1040 Federal tax returns with all schedules.
2. 2007 and 2006 corporate (1120) Federal tax returns with all schedules if applicable.
3. Last two months personal and business account(s) bank statements.
4. Last statement for any Stocks, Mutual Funds, IRA’s or CD’s.
IF SALARIED OR PAID HOURLY:
1. 2007 and 2006 Federal W2 forms.
2. Most current paycheck stub showing YTD amounts
3. Last two months statements of checking / savings accounts.
4. Last statement for any Stocks, Mutual Funds, IRA’s or CD’s.
IF RETIRED
1. Award letter for pension
2. Award letter for Social Security
3. Proof of any other income
4. Last two months statements of checking / savings accounts.
5. 2007 and 2006 W2’s
IF REFINANCE
1. Copy of property tax bill
2. Copy of current hazard insurance policy and info of agent.
3. Copy of survey
4. Copy of existing mortgage coupon or statement
5. Copy of current Title Policy |
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