Frequently Asked Questions Do I have to be a US citizen to apply for a loan? No, However the property you want to Mortgage must be in the United States. What is the difference between a Mortgage Banker and a Mortgage Broker? A Mortgage Banker only lends their money and they are limited to the loan types and rates that their bank specify. A Mortgage Broker works on behalf of the borrower with many lending sources and has many types of loans and rates available to offer their customers. How do I find out what my interest rate will be? After completing an application, a Mortgage Broker will contact you to collect additional information. With the information they collect they will be able to assess your information to determine the best rate available for your needs. The interest rates will be determined by your credit history, loan amount, loan-to-value ratio, property specifics, the term of the loan and any rate reduction options that you select. How do I know if a Refinance Loan will save me money? After reviewing your application, the Mortgage Broker will compare what you are paying now on your existing mortgage and or second mortgage and along with any high-rate debt you may want to consolidate. They will then calculate the payment for your new loan. You will be able to see the monthly savings and the total savings by comparing the new loan and the existing loan/loans. If I am purchasing a new home should I apply for my loan before I make an offer on a home? Yes, there are several reason that make it better to apply for a loan before you make an offer to purchase a new home. 1st. you will know exactly how much of a loan you can qualify for. This will help you chose the right price range to purchase. 2nd. If you have been pre-qualified for a loan you have a better chance of having your offer accepted by a seller because they know that you are qualified to buy their home. Is the interest tax deductible? Interest paid on your new loan should be tax deductible. Always consult with a tax advisor regarding your particular situation. Does filling out an application obligate me to complete a loan with your Mortgage Broker? No. Filling out an application does not obligate you to anything more than accepting a mortgage quote. What are the advantages of a fixed-rate loan? With a fixed-rate loan, the interest rate will be guaranteed for the life of your loan. The payments are fully amortizing so when your loan is paid off, so is your debt. What are the advantages of a variable-rate loan? A variable rate loan offers reduced monthly payments at the beginning of your loan. This may help you obtain a larger loan on the same property or may help you qualify for a more expensive home. If you are planning on moving in a specific time frame an adjustable-rate loan may save money over a fixed loan. The Mortgage Broker will explain the choices to you. How does the loan process work? A qualified Lender will work with you to determine the best loan and interest rates available to you after they review your personal information and your credit report. You will receive a list of the documentation needed to complete your loan. Once your loan is approved, in most states, the Lender will make arrangements for an appraisal of the property as needed and the final loan papers will be signed by you and you will have a date when the loan will be completed. What documents will I have to provide? Be prepared to provide verification of income (including a pay stub and the previous two years tax returns), bank account numbers and details of your long-term debt (credit cards, auto loans, child support, etc.). If you are self employed you may also be required to provide financial statements for your business. Lenders want specific information. For example, the origin of your down payment will be queried.