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FAQs
What is the advantage of
using a mortgage broker instead
of a bank?
When a bank is used you are
limited to the rates and terms
that they offer. Mortgage
Brokers have access to numerous
investors with different rates
and terms. This insures that
you are getting the best loan
for you without all the legwork.
l
never be displeased with our
service to you.
Why get pre-qualified?
Purchasing a new home can
be an overwhelming process.
Getting pre-qualified can
ease some of the process by
giving you the peace of mind
that you can be approved for
your purchase. Also, you can
get an idea of what your payments
will be before you write your
contract.
I've applied, what's next?
The information that you have
provided along with additional
information/documentation
will be used to get you formally
approved. An appraisal will
be ordered to insure the property's
value. Title is researched
to insure it is clear. A survey
will be ordered, if needed,
then reviewed. The file will
be submitted to the investor
for formal approval. Additional
items may be requested at
this time to insure the approval.
After the loan is completely
approved, closing documents
are prepared for you to sign
at your closing.
What is MI? How can it
be avoided?
MI stands for mortgage insurance.
This is insurance the lender
requires the borrower to pay
that protects the lender in
the event of default on the
loan. Traditionally speaking,
mortgage insurance is required
on all conventional loans
when the loan amount exceeds
80% of the total property
value. That means a 20% down
payment is required to avoid
the MI. A second lien can
be used to cover the 20% down
payment or to cover the amount
the borrower is not going
to put down.
What is an escrow account?
Can I manage my own?
An escrow account is an account
the lender sets up on the
borrower's behalf to pay for
the property taxes and insurance.
The lender collects a monthly
amount to put in the account
to cover the taxes and insurance
when they are due. Yes, the
borrower can manage the account
themselves, but only if the
mortgage does not exceed 80%
of the value.
What information do I need to provide for the loan application?
- Paycheck stubs covering most recent 4 week period.
- W-2s for the last two years.
- Copies (all pages) of last two bank statements.
- Copies (all pages) of most recent IRA, 401K, or Mutual Fund statements.
- If self-employed, last two Federal Tax Returns (all pages) with page 2 signed in blue ink.
- Copies (all pages) of court orders regarding child support paid or received.
- Proof of receipt of child support for the last 12 months, if applicable.
- If you are veteran applying for a VA loan, copy of DD214 (must show "honorable discharge"). If you are active duty, provide a "Statement of Service" on letterhead from Finance Dept.
- If receiving income from Social Security, VA Disability, retirement, etc., provide proof of receipt (Annual Awards Letter, last year's 1099, etc.).
- If you are renting, a list of landlord's names, addresses, and phone numbers, for most recent two year period.
- Copy of Driver's License and Social Security Card.
Have a question you need answered and don't see it here? Ask the experts at Harbor Financial Mortgage. Email us.
