What is the difference between a pre-qualification letter and a pre-approval letter?
A prequalification letter shows you what you can afford and a pre-approval letter is confirmed with bank statements, pay-stubs and a credit report evidencing what you have provided verbally for the sake of a full loan approval.
Is it okay to use (send in), on-line bank statements?
Only if the statements have the bank logo, name and correctly reflect your complete account number.
What is meant by locking in my interest rate and when do I lock?
It means that a commitment has been made between my company and the investor on your behalf regarding the interest rate in your mortgage loan. Your loan officer watches the market on a daily basis to make sure that when we lock your interest rate, it is in the best interest for you and your loan.
What is the Annual Percentage Rate?
The Annual Percentage Rate or A.P.R., is the cost of your credit expressed in terms of an annual rate. Because you may be paying “points” and other closing costs, the A.P.R. can be compared to other loans for which you may have applied and give you a fair method of comparing price.
What is a Truth N Lending disclosure statement and why do I receive it?
Your Disclosure Statement contains information which Federal law requires us to provide. The purpose of the statement is to give you information about your loan and help you compare us to other lenders.
What is PMI (Private Mortgage Insurance)?
Private Mortgage Insurance is required on conventional loans and may allow you to purchase a home for as little as 5% down. This coverage requires a monthly insurance fee to be paid. PMI is only required if your loan to value is 80% and above.
How will I be updated on my loans?
An Evergreen Anchor Capital representative will contact you with anything prior to the completion of your application and we will contact you after the application has been originated. Once your loan is approved and the appraisal is in, we will contact you regarding any pertinent information. Finally, you will be contacted 5 to 7 days prior to closing for confirmation of details and 3-5 days before closing to go over final figures.
What does my monthly mortgage payment include?
Every loan is unique but most mortgages have principal, interest, property taxes, homeowners insurance and if applicable, PMI (private mortgage insurance).
What happens to my file once I have signed the paperwork and handed in my initial paperwork?
The loan officer will send the file on to your mortgage processor. The processor then prepares the file for underwriting by performing a serious of various tasks that include ordering appraisal, title, verifying employment and other internal requirements as well. The underwriter is the person that approves the file with conditions that may need to be satisfied before the loan can go to closing. Once your processor tells you that your loan is Clear To Close (CTC), the file will then be transferred to the closing department. At this point in time a scheduled date and time will be set for you to close your loan at a time and day that is most convenient for all parties involved.
How will I know how much money I need to wire for closing or if I will get any funds back at closing and what I should bring to closing?
The closing attorney prepares all of the final closing documents that need to be signed by all parties on the day of closing. Your loan officer will review with you the amount of money that needs to be wired and your processor will give you the wiring instructions to be brought to your bank. It is best practice to always bring a copy of your valid driver’s license/ photo to closing.