Many people are surprised to learn that rates change on a daily and sometimes hourly basis. Interest rates fluctuate in response to changes in the financial markets. The bond market is generally a good indicator of the general trend of interest rates.
Once you have been pre-approved, we will determine which documentation we need to proceed. Once that documentation has been provided, we will submit your loan to the lender who will then begin the underwriting process. When the lender has sufficiently underwritten the file, they will send the necessary documentation to the selected title company who will then contact you to arrange a time for you to sign the appropriate documents.
An origination fee is a fee for establishing a new loan. This fee is paid to the bank or your loan broker for his or her services in originating the loan.
The fee usually varies from 0.5% (half a point) to 2% (two points) of the loan amount, depending whether the loan was originated in the prime or the subprime market. You can avoid all or part of this fee by paying a higher interest rate.
It is a policy provided by the title company guaranteeing the accuracy of the title work done on your home at the time of purchase. As a buyer, you are required to purchase a lenders policy of title insurance as part of your standard closing costs, which only protects the mortgage company. You may also choose to purchase an owners policy, which would protect you against any loss in the event of any legal issues relating to the title of your home.
This is generally required in one form or another when the down payment is less than 20% and protects the lender in the event of loan default. The lower the down payment, the higher the risk for the lender, and thus the higher the monthly premium. Depending on your particulars, there are ways in which mortgage insurance can sometimes be avoided at purchase, or dropped altogether at some point in the future.
WHATS INVOLVED WITH GETTING APPROVED FOR A MORTGAGE LOAN?
First you’ll need to fill out the loan application. America's Mortgage Store makes it simple by offering the entire application process online. After you take a few moments to fill it out, we’ll evaluate your debt to income ratio, credit history and assets. We’ll take the necessary loan documents right to your door for signing and proceed from there. It’s really quite simple. The entire process typically takes approximately 4 weeks, but if you’re in a rush, let us know. We can typically fund mortgages more quickly if necessary.
WHAT COSTS ARE ASSOCIATED IWTH GETTING A MORTGAGE?
There are three different types of costs associated with getting a mortgage. The origination fee represents a fee paid to the broker or bank for services performed. The discount points represent the prepayment of interest. It’s used to buy down your rate. And non-recurring closing costs represent costs paid to the bank, broker and/or third parties to cover the costs of getting your loan approved. However, when you work with America's Mortgage Store, you usually won’t pay closing costs
WHAT'S A REASONABLE AMOUNT OF CLOISNG COSTS TO PAY FOR A MORTGAGE?
It’s always difficult to determine what is reasonable or what makes sense. The easiest way to avoid making a mistake is to get a No Fee mortgage and then shop for the lowest No Fee mortgage rate. Only America’s Mortgage Store offers both
SHOULD I CHOOSE A FIXED OR ADJUSTABLE RATE MORTGAGE?
The two factors that should be considered are 1) how long you think you will live in the house and probability of this prediction holding and 2) the difference between a Fixed and Adjustable Rate mortgage. If you’re unsure, please don’t hesitate to call one of our seasoned mortgage professionals at 480.850.6501
