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- When
should I start the mortgage process and how do I know what I can afford?
- Who
can tell me what my property taxes will be?
- What
is a Good Faith Estimate?
- Can
I apply for a loan before I've found a property?
- What
does it mean to be Pre-Approved and what are the benefits?
- How
long is my letter of approval valid?
- Is
there any way I could be approved for a loan if I have credit problems?
- What
does a mortgage lender consider when reviewing a loan application?
- Can
I change the loan amount or program after I've applied for a loan?
- Do
you provide loans for properties in all 50 states?
- What
is an Investment Account?
- What
documents do I need to complete my loan application?
- What's
the difference between installment and revolving debt?
- How
often do interest rates change?
- Are
discount points tax deductible?
- What
happens if my loan does not close before the lock expiration date?
- What
are points?
- What
is a balloon mortgage?
- How
much of a downpayment will I need?
- The
property I plan to buy has 5 units, what do I do?
- What
amount homeowner'sinsurance is required?
- How
do I know if I need flood insurance?
- How
are my property tax bills paid?
- Why
is an appraisal necessary? Can't I just use the tax value of the home?
- What
does it mean to have a floating rate and what does it mean to lock-in
a rate?
- What
if interest rates fall after I lock my rate?
- How
much title insurance do I need?
- Where
do we go to close the loan?
- Who
chooses the Title company?
- When
will the appraiser complete the appraisal?
- Can
I bring a personal check to the closing?
- What
is a 4506 form?
- I
already put earnest money down on the property.
-
Is this included on the good faithestimate?
- What
is a Truth in Lending statement?
- How
long does it take to receive a coupon book from the time of closing?
- If
I have selected Automatic Direct Debit as my payment option, when is
my payment draft date ?
- Can
I make additional principal payments on Automatic Direct Debit?
- What
is your turnaround time for posting payments?
- How
do I stop my Automatic Direct Debit of payments before the next draft
date?
- If
I am in the process of prepaying my loan in full, should I notify Customer
Service to stop my Automatic Direct Debit payment?
- If
I don't make my mortgage payment on time, will I be reported to the
credit bureaus?
- May
I overnight my payment to you?
- If
I bounce a check, will the check be presented to my bank a second time?
- Do
you offer an online or phone payment?
- I
recently utilized Western Union to make a payment, but forgot your Western
Union code city. What is it?
- My
HUD1 Settlement Statement reflects moneys collected for a tax service.
What is a tax service and how does it work?
- When
are taxes paid?
- How
do you know what amount to pay for my taxes?
- Why
would I receive a tax bill if I was escrowed for taxes?
- Do
I receive a paid receipt for taxes paid from an escrow account?
- If
my homeowner's insurance premium has already been paid from escrow and
I change insurance companies, will you pay for the new insurance?
- You
recently sent me a letter stating that I need flood insurance, why?
- I
am required to have flood insurance, but I have lived in my house for
years and have never been flooded. Is there anyway I can remove my house
from being in a flood zone?
- How
do I go about filing a LOMA/LOMR?
- If
my house is on a hill (above the base flood level), does this mean flood
insurance is not required?
- How
much coverage do I need for flood insurance?
- I
have proof I am not in a required flood zone. What can I do?
- What
is an escrow account?
- When
is an escrow analysis performed?
- What
law establishes escrow account guidelines?
- If
my escrow account has a shortage, what are my options?
- If
my escrow account has an overage when will I receive the overage check?
- When
can I convert my ARM Loan?
- What
happens at the Balloon Maturity Date?
- How
do I order a payoff statement?
- Why
is the amount of payoff higher than the principal balance?
- Once
my loan is paid in full, when will I receive my escrow account balance?
When should I start the mortgage process and how do I
know what I can afford?
The best time to look for a mortgage is before you look for a house. This
enables you to determine the amount of money you can borrow and how much
house you can afford.
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to questions
Who
can tell me what my property taxes will be?
The seller and/or your realtor should be able to provide you with the
current property taxes for the property. Property taxes are reassessed
from time to time so this amount may change.
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to questions
What
is a Good Faith Estimate?
The Good Faith Estimate (GFE) discloses estimated costs associated with
your mortgage transaction. The GFE, by Federal law, estimates the lender's
charges along with the local closing agent's charges and fees. The GFE
also includes estimated amounts for real estate and property taxes and
homeowner's insurance.
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to questions
Can
I apply for a loan before I've found a property?
Yes! You have the opportunity to get pre-approved for a mortgage today.
A pre-approval will take into consideration your personal information
such as income, debt and credit history. If you receive a pre-approval,
we will use this information to determine your maximum loan amount.
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to questions
What
does it mean to be Pre-Approved and what are the benefits?
We can help you determine what loan programs will work for you before
you even have a property. Once you go through the pre-approval section
of our site and provide us with some information about yourself, we pull
and analyze a credit report. We use this information to determine the
maximum loan amount you qualify for and, if you meet the guidelines of
our mortgage programs, we will issue a pre-approval letter. This demonstrates
your financial ability to purchase a home and can be instrumental to you
during your home buying process. Final approval is subject to applicable
secondary market credit and property requirements.
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to questions
How
long is my letter of approval valid?
Assuming all the information provided to us remains the same, the letter
of pre-approval will remain valid for as long as it takes for you to find
a home. If any of the information you provided to us changes, such as
your income or debt, you can request an updated approval letter from your
loan consultant. If the program you are interested in changes we may need
to re-evaluate your information and we may need to rerun your credit.
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to questions
Is
there any way I could be approved for a loan if I have credit problems?
Our special Credit Solutions programs offer mortgage loan options to customers
who may not have perfect credit. Once you have completed the pre-approval
section of our site we will look at your credit history and help you determine
if one of our Credit Solutions programs will fit your needs.
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to questions
What
does a mortgage lender consider when reviewing a loan application?
There are three categories of information we look at when reviewing a
loan application. The applicant's personal information, the subject property
information and the mortgage program information.
Personal Information:
We will look at your income, assets, debts and credit history to help
determine your ability to repay the loan.
Property Information:
An appraiser will compare your home to other similar homes in your area
to determine that the loan amount being requested is acceptable to our
investors.
Mortgage Information:
We offer a wide variety of mortgage programs to help you with your home
financing. Our programs vary based on factors such as downpayment required,
repayment terms and length, points, and interest rates. We look at the
program you selected as a preferred scenario and verify that you meet
all the program criteria.
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to questions
Can
I change the loan amount or program after I've applied for a loan?
Yes, as long as you meet the criteria for the new loan amount or new program
you've selected. Your loan consultant can help you determine if you meet
the requirements.
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to questions
Do
you provide loans for properties in all 50 states?
Yes.
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to questions
What
is an Investment Account?
Investment accounts are accounts other than a checking or savings account
such as IRAs, mutual funds, stocks, bonds and CDs.
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to questions
What
documents do I need to complete my loan application?
Depending on the loan program you are applying for you may be asked to
provide a variety of documents. Documents may include but are not limited
to: a fully executed agreement of sale for the property being purchased,
two months bank statements for all accounts, a HUD1 settlement statement
on the property you are selling, copy of your recent pay stub, previous
W2s, divorce decree, copy of a rental lease, homeowner's insurance policy,
flood insurance policy, and any other documents that may be required to
approve your loan.
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to questions
What's
the difference between installment and revolving debt?
Installment debt refers to a loan in which you repay a set amount on a
regular basis that will pay off the entire loan in a specified amount
of time. This may be a car loan, student loan etc. Revolving debt has
no set term or payment, i.e. credit cards.
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to questions
How
often do interest rates change?
Due to market fluctuations, interest rates are subject to change daily.
The interest rates shown on this site are only applicable to loans that
are locked-in with a mortgage loan consultant via telephone, by 9:30 am
Eastern Time and that will close within 60 days of the date the loan is
locked. Please call us to inquire about interest rates on loans that will
close more than 60 days from now. Rates on loans closing more than 60
days from now may be higher. By submitting your loan information to us
via this Internet site, you are not selecting and locking-in to a specific
interest rate.
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to questions
Are
discount points tax deductible?
In many cases they are. We recommend that you contact your tax preparer
or the IRS to obtain a qualified opinion on the deductibility of points.
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to questions
What
happens if my loan does not close before the lock expiration date?
When you lock-in your interest rate, you are guaranteed to receive that
interest rate as long as you close your loan by the specified expiration
date. If your loan closes after the specified expiration date, you are
no longer guaranteed your locked-in interest rate. Instead, you will receive
the higher of the current market rate or your locked-in rate. Note that
you can not receive a lower rate by allowing your lock to expire.
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to questions
What
are points?
One point is one percent of the loan amount (for example, on a $100,000
loan, 1 point = $1,000).
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to questions
What
is a balloon mortgage?
A balloon mortgage is a mortgage that is amortized over the full term
of the loan repayment period but at the end of a specified period the
balance of the mortgage comes due. Thus, a balloon payment needs to be
made. For example, with a 7-year balloon you would make monthly payments
for seven years that have been calculated based on a 30-year mortgage
payment. At the end of the 7 years, the remaining principal balance would
be due and payable in full.
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to questions
How
much of a downpayment will I need?
The minimum downpayment required depends on the program you select. We
offer loans with various downpayment options, including no downpayment
and low downpayment programs.
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to questions
The
property I plan to buy has 5 units, what do I do?
We provide financing for properties up to and including 4 units only.
A 5-unit property is considered commercial property so you will need to
apply for a commercial loan with a commercial lender.
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to questions
What
amount homeowner's insurance is required?
Your homeowner's insurance policy should cover the cost to rebuild the
home. This insured amount may be higher or lower than the actual purchase
price as long as it meets the program requirements. The insurance company
you choose can give you an actual quote based on specific information
about the property.
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to questions
How do I know if I need flood
insurance?
Most standard homeowner's insurance policies do not cover loss due to
flood. The law requires that if your home is located in a Flood Hazard
Area you must purchase flood insurance. If you choose, you can obtain
flood insurance coverage even if you are not required to do so by the
lender. The law requires lenders to do a flood hazard determination on
all properties securing a mortgage.
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to questions
How
are my property tax bills paid?
Depending on your loan program and state restrictions, your monthly mortgage
payment may or may not include funds to pay your property taxes. If your
payment includes money for property taxes these funds are held in escrow
by the lender and the lender pays your property taxes as they are due.
If your payment does not include property taxes, you are responsible for
paying them by the due date.
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to questions
Why
is an appraisal necessary? Can't I just use the tax value of the home?
Appraisals compare your home to other homes in your area that have recently
sold. Tax values obtained from your taxing authority can sometimes be
higher or lower and may not reflect the actual appraised value of the
home. An appraisal is necessary for the lender to justify the loan amount
being requested, as required by secondary investors. You should not rely
on the appraisal for assurance about the condition of your home.
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to questions
What
does it mean to have a floating rate and what does it mean to lock-in
a rate?
Due to market fluctuations, interest rates are subject to change daily.
In order to obtain a specific rate/point combination you must "lock
in" your rate by speaking to your loan consultant or loan counselor.
When you choose to lock-in the interest rate, you select the current rate
and point combination for a particular product. You are locked into that
rate as long as your loan closes by the predetermined expiration date.
Your monthly mortgage payments will be calculated based on your locked
in interest rate.
Until you lock
in your interest rate you can monitor the current floating rates displayed
on this site. The rates displayed on this site are for loans that are
locked in and will close within 60 days
The earliest
date you can lock in varies from program to program. However, with all
programs you must lock-in at least five days prior to closing. You can
not lock-in a rate until you have a purchase agreement on a property.
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to questions
What
if interest rates fall after I lock my rate?
Once you lock the rate, it can't be changed. For that reason, it's important
to consider carefully the timing of your rate lock, study the market and
be sure you're comfortable with the trends you see before you lock. You
may want to consider our rate protection program to help safeguard against
changes in interest rates.
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to questions
How
much title insurance do I need?
The amount of title insurance needed is based on the value of your home
and the amount of your mortgage. Title insurance guarantees the lender
and/or the owner against the possibility that there may be an unknown
lien or discrepancies in ownership on the property they are purchasing.
Lenders need to be covered for the full value of the mortgage; this policy
is required and will vary from state to state. There is a one-time fee
for the policy that is paid at closing. You can obtain a separate owner's
insurance policy to cover the full value of your home. However, this additional
policy is not required.
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to questions
Where
do we go to close the loan?
You will go to a local title company or attorney who will perform the
closing. All your mortgage documents will be waiting for you at closing.
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to questions
Who
chooses the Title company?
We have a network of title companies that we work closely with. We can
select one from that list or you can choose one yourself. In some states,
the seller selects the title company.
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to questions
When
will the appraiser complete the appraisal?
We will arrange a date and time for the property appraisal after receiving
your deposit. If you are refinancing your home, the appraiser will contact
you directly in order to gain access to your house. If you are purchasing
a home the appraiser will contact the real estate agent to gain access
to the home. Once the appraisal is complete, the appraiser will send us
the results, and your loan counselor will contact you. This generally
happens 7-10 days after the appraisal date.
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to questions
Can
I bring a personal check to the closing?
You will need a cashier's check or certified check for closing.
Return
to questions
What
is a 4506 form?
A 4506 form is an IRS form that authorizes the mortgage lender to obtain
copies of tax returns directly from the IRS on the borrower.
Return
to questions
I
already put earnest money down on the property. Is this included on the
good faith estimate?
Yes. Any earnest money paid is listed under "Prepaid deposit for
property" on the GFE. If you notice any discrepancies between the
amount you paid and the amount showing, notify your loan counselor, who
can make any necessary adjustments.
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to questions
What
is a Truth in Lending statement?
The Truth in Lending statement provides detailed information about the
interest charges that you will incur. It defines the cost of your loan
expressed as the APR, the amount of interest you'll pay in dollars, and
the total of your payments if you make the minimum payment required over
the life of the loan.
Return
to questions
How
long does it take to receive a coupon book from the time of closing?
You should receive your coupon book before your second payment is due.
If you have not received your coupon book, please e-mail us at payments@mortgagequestions.com.
You can also log into the existing customer section of this site and request
your coupon book online.
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to questions
If
I have selected Automatic Direct Debit as my payment option, when is my
payment draft date?
Your payments will be drafted from your designated bank account on the
first or fifth (whichever day you choose) calendar day of the month. If
the first or fifth of the month falls on a weekend or holiday, your payment
will be drafted on the next business day. We also give you the option
to have drafting occur after the fifth for a fee. Should you be interested
in drafting between the fifth and the sixteenth of the month, please e-mail
payments@mortgagequestions.com.
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to questions
Can
I make additional principal payments on Automatic Direct Debit?
Additional principal payments can be drafted on a monthly basis along
with your regular monthly payment. The additional principal amount must
be the same amount each month. Please notify us of your desire to do this
by e-mailing us at payments@mortgagequestions.com. If you wish to occasionally
make additional payments to your principal, your check should be mailed
to The Mortgage Service Center, P.O. Box 5457, Mt Laurel, NJ 08054-5457,
Attn: Payment Processing SV-19. You may also make a principal curtailment
for a small fee after your account drafts for the month by visiting www.MortgageQuestions.com;
the amount will be automatically taken from your bank account.
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to questions
What
is your turnaround time for posting payments?
All payments
are posted to your account within 24 hours of receipt at our Payment Processing
Center.
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to questions
How
do I stop my Automatic Direct Debit of payments before the next draft
date?
If you wish to discontinue automatic payment, e-mail us at payments@mortgagequestions.com
at least 15 days prior to the next draft date. We will send you payment
coupons for future payments.
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to questions
If
I am in the process of prepaying my loan in full, should I notify Customer
Service to stop my Automatic Direct Debit payment?
Yes, please e-mail us at payments@mortgagequestions.com to cancel your
automatic payment 15 days prior to the payoff date of your loan. If your
mortgage payment due date occurs before the payoff date, you are still
responsible to make this monthly mortgage payment.
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to questions
If
I don't make my mortgage payment on time, will I be reported to the credit
bureaus?
Payments are typically due on the first day of each month. However, we
do offer you a 16-day grace period before late charges are accessed. If
your payment is not received by the last business day of the month, you
may risk being reported to the credit agencies.
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to questions
May
I overnight my payment to you?
Yes, you may
overnight any payment to us.
If you typically
send your payments to our Pennsylvania address, you can overnight your
payment to: Mortgage Service Center, Att. Box 371458, 500 Ross Street
154-0470, Pittsburgh, PA 15250-7458.
If you typically
send your payments to our Wisconsin or California payment addresses, you
can overnight your payment to The Mortgage Service Center, 1200 West 7th
St, MAC#2801-525, Los
Angeles, CA 90017.
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to questions
If
I bounce a check, will the check be presented to my bank a second time?
It is not guaranteed that we will present your check a second time. Please
check with your bank regarding their procedures.
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to questions
Do
you offer an online or phone payment?
Yes, in a joint venture with Speed Pay Inc, we allow a one time ACH from
your banking account for a payment or for additional/sole principal or
escrow amounts once your current payment is made. The number of 877-PAY-EASE
is used for phone payments, 24 hours per day, 7 days per week. All payments
must be received by 6:00 pm EST each business day to be processed overnight
for that business day. Fees for this service are $1.50 for payments received
through the fifth day past the due date, $7.50 for payments received from
the sixth day through the tenth day past the due date and $10.00 for payments
received past the tenth day from the due date. If the current month's
payment has already been made and you desire to pay escrow or principal
alone, a $1.50 fee will apply to this transaction regardless of date.
Return
to questions
I
recently utilized Western Union to make a payment, but forgot your Western
Union code city. What is it?
The Code City is PHHUSNJ.
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to questions
My
HUD1 Settlement Statement reflects moneys collected for a tax service.
What is a tax service and how does it work?
We utilize First American Real Estate Tax Service (FARETS) to procure
all tax information from
your taxing authority.
This process is done electronically. We submit all pertinent information
about your property to FARETS who in turn submits this information to
the taxing authority electronically. The taxing authority responds with
the tax due amounts. These amounts are then forwarded to us electronically
and the tax payments are processed when due.
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to questions
When
are taxes paid?
Taxes are paid the month they are due based on the due date established
by your local taxing authority.
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to questions
How
do you know what amount to pay for my taxes?
The taxing authority provides the amount of the taxes.
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to questions
Why
would I receive a tax bill if I was escrowed for taxes?
If the loan closed within 30 days of the tax due date, it is likely the
taxing authority will send the
bill directly
to you. That bill should be forwarded to us to be processed promptly.
You may fax the bill to 856-917-8281 or mail it to Mortgage Service Center,
Attn: Tax Department, P.O. Box 5455, Mt Laurel, NJ 08054-5455.
Some states are called a "homeowner area." The taxing authority
will not give the bill or any tax information to anyone except the homeowner.
In this case, the homeowner must forward the bill to us immediately as
taxes cannot be paid without the bill.
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to questions
Do
I receive a paid receipt for taxes paid from an escrow account?
Only in the state
of N.Y. are we required to provide a paid receipt to the homeowner. However,
both your quarterly and year-end statements will provide you with taxes
paid.
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to questions
If
my homeowner's insurance premium has already been paid from escrow and
I change insurance companies, will you pay for the new insurance?
No, we will only make one disbursement from escrow for insurance per year.
You will be responsible to cancel your previous insurance policy, obtain
any refund due to you and then pay your new carrier. If the refund is
sent to us, we will deposit it into your escrow account.
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to questions
You
recently sent me a letter stating that I need flood insurance, why?
Our Federal Mapping Company has made a flood zone determination based
on the Flood Insurance Rate Map (FIRM) published by Federal Emergency
Management Agency (FEMA) for your community and has indicated the property
now lies on a flood plain.
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to questions
I
am required to have flood insurance, but I have lived in my house for
years and have never been flooded. Is there anyway I can remove my house
from being in a flood zone?
Your house may be above the base flood elevation (flooding level) in which
case you may want to file a Letter Of Map Amendment or Revision (LOMA/LOMR).
If this is approved by Federal Emergency Management Agency (FEMA), you
may not be required to maintain flood insurance or your premium may be
reduced.
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to questions
How
do I go about filing a LOMA/LOMR?
Contact your city hall, tax assessor or zoning and planning office. Or
you may contact FEMA at 800-638-6620.
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to questions
If
my house is on a hill (above the base flood level), does this mean flood
insurance is not required?
No. Regardless of the elevation of your property, if your dwelling is
in an "A" or "V" zone, flood insurance is required.
However, elevation information can be used to get a lower flood premium
and/or to file
a Letter Of Map Amendment or Revision (LOMA/LOMR). While the LOMA/LOMR
is being reviewed by FEMA, flood insurance is still required.
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to questions
How
much coverage do I need for flood insurance?
You are required to have coverage for at least 80% of the replacement
cost of your house or the loan balance, whichever is LESS.
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to questions
I
have proof I am not in a required flood zone. What can I do?
Fax any documentation (survey, LOMA/LOMR, revised map) to ATTN: Flood
Insurance Department at 856-917-8301 or mail it to Mortgage Service Center,
Attn Insurance Dept. P.O. Box 5453, Mt Laurel, NJ 08054. We will have
our mapping company review it. You will receive written notification of
the outcome of our research.
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to questions
What
is an escrow account?
An escrow account
is an account that is established to pay your real estate taxes, homeowner's
insurance and mortgage insurance.
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to questions
When
is an escrow analysis performed?
An escrow analysis is performed annually, to ensure sufficient funds are
being collected to avoid escrow shortages and overages. During an analysis
we will obtain verification of your current required payments from your
taxing authority or insurance authority, which may result in a reduction
or an increase in the required monthly escrow amount.
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to questions
What
law establishes escrow account guidelines?
Real Estate Settlement Procedures Act (RESPA) is a federal law that, in
general, dictates how lenders establish and maintain an escrow account
for you. A few states also have regulations regarding an escrow account
for a homeowner within their state; if the state does not have a regulation,
the governing of your escrow account falls back to RESPA regulations.
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to questions
If
my escrow account has a shortage, what are my options?
We automatically spread the shortage over 12 months, but you also have
the option to pay the shortage in one lump payment. If you choose to pay
your shortage in one lump payment, your account will be re-analyzed and
your payment will be reduced to principal and interest and the required
monthly escrow amount.
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to questions
If
my escrow account has an overage when will I receive the overage check?
Once the escrow
analysis is performed the escrow overage check is mailed within 10-14
days.
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to questions
When
can I convert my ARM Loan?
Not all adjustable rate mortgage (ARM) loans include a conversion option.
Please refer to your ARM Note and/or Mortgage Rider for details regarding
your conversion. Please be aware that every Conversion Option has an expiration
date, which is detailed in your ARM Note and/or Mortgage Rider.
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to questions
What
happens at the Balloon Maturity Date?
Sixteen Months prior to the Balloon Maturity Date, we will forward an
"Early Notice" to you. This notice outlines the conditions necessary
to reset your loan. This information can also be found in your Balloon
Rider. Approximately four months prior to maturity we will forward a "Required
Notice" which includes the instructions and time frames for resetting
your loan or paying your loan in full.
Return
to questions
How
do I order a payoff statement?
You may e-mail us at statements@mortgagequestions.com to request a written
payoff statement or fax your request to 856-917-8283. Upon receipt of
your request, a payoff statement will be mailed to you within 48 hours.
To request a payoff statement to be immediately faxed back to you, please
put the word "Rush" on your request; you will be assessed a
$15.00 priority statement fee on any rush requests, as permitted by state
laws. You can also log into the existing customer section of this site
and request your payoff statement online.
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to questions
Why
is the amount of payoff higher than the principal balance?
The payoff statement reflects your unpaid principal balance, interest
due and any outstanding fees, (i.e. priority statement fee, late charge,
escrow advances, recoverable balances, attorney fees).
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to questions
Once
my loan is paid in full, when will I receive my escrow account balance?
Escrows are disbursed approximately ten business days after the loan is
paid in full. We ask that you allow additional mail time to receive this
check at your current mailing address.
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