An appraisal report is a written description and estimate of the value of the property. National standards govern not only the format for the appraisal; they also specify the appraiser's qualifications and credentials. In addition, most states now have licensing requirements for appraisers evaluating properties located within their states.

Usually the appraiser will inspect both the interior and exterior of the home. After the appraiser inspects the property, they will compare the qualities of your home with other homes that have sold recently in the same neighborhood. These homes are called "comparables" and play a significant role in the appraisal process. Using industry guidelines, the appraiser will try to weigh the major components of these properties (i.e., design, square footage, number of rooms, lot size, age, etc.) to the components of your home to come up with an estimated value of your home. The appraiser adjusts the price of each comparable sale (up or down) depending on how it compares (better or worse) with your property.

In addition to verifying that your home's value supports your loan request, we'll also verify that your home is as marketable as others in the area. We'll want to be confident that if you decide to sell your home, it will be as easy to market as other homes in the area.

We'll review the features of your home and compare them to the features of other homes in the neighborhood. We'll want to make sure that there are other homes in the area on similar size lots or with similar outbuildings. It is hard to place a value on unique features if we can't see what other buyers are willing to pay for them. In some areas, additional acreage or outbuildings could actually be a detriment to a future sale. Finding comparable properties can be more challenging in rural areas where it is more difficult to find homes that have similar features.

We'll look to see if the value of your home is in the same range as other homes in the area. If the value of your home is substantially more than other homes in the neighborhood, it could affect the market acceptance of the home if you decide to sell.

We'll also review the market statistics about your neighborhood. We'll look at the time on the market for homes that have sold recently and verify that values are steady or increasing.

Yes, you will get a copy of your appraisal.

There are other requirements when purchasing a condominium.  The condo association must be approved by the underwriters.  Your loan officer can discuss this process and the information needed with you.

No, only an appraisal is required by the bank.  The choice to have a home inspection would be up to you.  We do require a termite inspection and, if applicable, a septic inspection.

Both a home inspection and an appraisal are designed to protect you against potential issues with your new home. Although they have totally different purposes, it makes the most sense to rely on each to help confirm that you've found the perfect home.

The appraiser should make note of obvious construction problems such as termite damage, dry rot or leaking roofs or basements. Other obvious interior or exterior damage that could affect the salability of the property should also be reported.

However, appraisers are not construction experts and may not find or report items that are not obvious. They may not turn on every light switch, run every faucet or inspect the attic or mechanicals. That's where the home inspector comes in. Home inspectors generally perform a detailed inspection and can educate you about possible concerns or defects with the home.

If possible, accompany the inspector during the home inspection. This is your opportunity to gain knowledge of major systems, appliances and fixtures, learn maintenance schedules and tips, and to ask questions about the condition of the home.

Federal Law requires all lenders to investigate whether or not each home they finance is in a special flood hazard area as defined by FEMA, the Federal Emergency Management Agency.  If your home is located in a flood area, then flood insurance coverage will be required, since standard homeowner's insurance doesn't protect you against damages from flooding.

Licensed appraisers who are familiar with home values in your area perform appraisals. We order the appraisal as soon as the early disclosures are signed and the application deposit is paid. Generally, it takes 10-14 days before the written report is sent to us. We follow up with the appraiser to insure that it is completed as soon as possible.

We do have a loan program for manufactured homes.

We define manufactured housing as housing units that are factory built with a steel undercarriage that remains as a structural component and limits the structure to a single story. These types of manufactured homes are sometimes known as mobile homes. We do not consider other factory-built housing (not built on a permanent chassis), such as modular, prefabricated, panelized, or sectional housing, to be manufactured housing. If your home is one of these types, please complete the application indicating that your home is a single family home.

In order to qualify for our loan programs a manufactured home must meet specific requirements.  Please contact your loan officer to go over the requirements in more detail.

An adjustable rate mortgage, or an "ARM" as they are commonly called, is a loan type that offers a lower initial interest rate than most fixed rate loans. The trade off is that the interest rate can change periodically, usually in relation to an index, and the monthly payment will go up or down accordingly.

Against the advantage of the lower payment at the beginning of the loan, you should weigh the risk that an increase in interest rates would lead to higher monthly payments in the future. It's a trade-off. You get a lower rate with an ARM in exchange for assuming more risk.

For many people in a variety of situations, an ARM is the right mortgage choice, particularly if your income is likely to increase in the future or if you only plan on being in the home for three to five years.

Here's some detailed information explaining how ARM's work.

Adjustment Period

With most ARMs, the interest rate and monthly payment are fixed for an initial time period such as one year, three years, five years, or seven years. After the initial fixed period, the interest rate can change every year. For example, our adjustable rate mortgage is a three-year ARM. The interest rate will not change for the first three years (the initial adjustment period) but can change every three years after the first three years.

Index

Our ARM interest rate changes are tied to changes in an index rate. Using an index to determine future rate adjustments provides you with assurance that rate adjustments will be based on actual market conditions at the time of the adjustment. The current value of most indices is published weekly in the Wall Street Journal. If the index rate moves up so does your mortgage interest rate, and you will probably have to make a higher monthly payment. On the other hand, if the index rate goes down your monthly payment may decrease.

Margin

To determine the interest rate on an ARM, we'll add a pre-disclosed amount to the index called the "margin." If you're still shopping, comparing one lender's margin to another's can be more important than comparing the initial interest rate, since it will be used to calculate the interest rate you will pay in the future.

Interest-Rate Caps

An interest-rate cap places a limit on the amount your interest rate can increase or decrease. There are two types of caps:

1. Periodic or adjustment caps, which limit the interest rate increase or decrease from one adjustment period to the next.

2. Overall or lifetime caps, which limit the interest rate increase over the life of the loan.

As you can imagine, interest rate caps are very important since no one knows what can happen in the future. The ARM product we offer has both adjustment and lifetime caps. Please see the product description for full details.

Negative Amortization

"Negative Amortization" occurs when your monthly payment changes to an amount less than the amount required to pay interest due. If a loan has negative amortization, you might end up owing more than you originally borrowed. The ARM product we offer does not allow for negative amortization.

Prepayment Penalties

Some lenders may require you to pay special fees or penalties if you pay off the ARM early. We never charge a penalty for prepayment.

Contact a Loan Officer

Selecting a mortgage may be the most important financial decision you will make and you are entitled to all the information you need to make the right decision. Don't hesitate to contact a Loan Officer if you have questions about the features of our adjustable rate mortgage.

You can use the APR as a guideline to shop for loans but you should not depend solely on the APR in choosing the loan program that's best for you. Look at total fees, possible rate adjustments in the future if you're comparing adjustable rate mortgages, and consider the length of time that you plan on having the mortgage.

Don't forget that the APR is an effective interest rate--not the actual interest rate. Your monthly payments will be based on the actual interest rate, the amount you borrow, and the term of your loan.

Mortgage interest rate movements are as hard to predict as the stock market and no one can really know for certain whether they'll go up or down.

Your loan officer will discuss your options for locking your interest rate with you after your loan has been approved.

There's no cost for completing our application.

Your loan officer will discuss your options for locking your interest rate with you after your loan has been approved.

None of the loan programs we offer have penalties for prepayment. You can pay off your mortgage any time with no additional charges.

Please contact your loan officer.  They can discuss the closing costs specific to your application.

The purchase of a home is most likely one of the most expensive and important purchases you will ever make. You want to make sure the property is indeed yours: That no individual or government entity has any right, lien, claim, or encumbrance on your property.

The function of a title insurance company is to make sure your rights and interests to the property are clear, that transfer of title takes place efficiently and correctly, and that your interests as a homebuyer are fully protected.

Before issuing a policy, the title company performs an in-depth search of the public records to determine if anyone other than you has an interest in the property.

After a thorough examination of the records, any title problems are usually found and can be cleared up prior to your purchase of the property. Once a title policy is issued, if any claim covered under your policy is ever filed against your property, the title company will pay the legal fees involved in the defense of your rights. They are also responsible to cover losses arising from a valid claim. This protection remains in effect as long as you or your heirs own the property.

Buying a home is a big step emotionally and financially. With title insurance you are assured that any valid claim against your property will be borne by the title company.

There are times when mortgage insurance is important.  Your loan officer can discuss with you how mortgage insurance works and when it is required.

The purpose of your loan, how you use the property, and the loan type you choose are all factored into determining the maximum percentage.  Your loan officer can go over these various scenarios with you.

The purpose of your home equity loan doesn't make a difference as long as you have the required equity in the home.

FHA loans are mortgages issued by government-approved lenders and insured and administered by the U.S. Department of Housing and Urban Development HUD. FHA mortgage loans generally require less of a down payment. Any borrower of legal age is eligible to apply for an FHA mortgage loan regardless of income level, including non-U.S. citizens. However, FHA does limit the maximum amount an individual can borrow under this program based on the location of the property.

If you are looking for a loan that requires less of a down payment, you should compare both Conventional and FHA loan types to determine which financing type is best for you.

The VA charges a Funding Fee to most veterans who obtain VA mortgage loans to help sustain the program. Although the full amount can usually be financed as part of the loan amount or paid in cash, most people finance it as part of their mortgage. We’ve automatically added the maximum VA Funding Fee amount and have included it as part of your Total Loan Amount. If you choose to pay the VA Funding Fee instead of financing it, your loan amount will decrease and the amount of cash required at closing will increase.

FHA charges the borrower an Upfront Mortgage Insurance Premium (Upfront MIP) for all FHA purchase transactions to financially support the FHA program. Although the full amount can be financed as part of the loan amount or paid in cash, most people choose to finance it as part of their mortgage. We’ve automatically added the Upfront MIP and have included it as part of your Total Loan Amount. If you choose to pay the Upfront MIP instead of financing it, your loan amount will decrease and the amount of cash required at closing will increase.

Your loan officer will discuss your options for locking your interest rate with you after your loan has been approved.

USDA stands for United States Department of Agriculture. Loans backed by USDA are also called Rural Housing or Rural Development loans. A USDA mortgage might be right for you if you want to purchase a home with no down payment and low monthly mortgage insurance.

USDA Loans are a "budget neutral" loan program offered through the U.S. Department of Agriculture. This means that the loan doesn't rely on U.S. tax payers for funding or assistance. Instead the program is self-funded through the "Guarantee Fee".

This fee is intended to support the Rural Housing program and to maintain it as a "budget neutral" loan program.  The Annual Fee is based on a percentage of the loan amount and is paid monthly by the borrower over the life of the loan. 

A home equity loan often can involve fees, such as the appraisal fee, title charges, recording fees and other fees needed to process your loan. 

If you have any other questions about fees, please contact one of our Loan Officers - they would be happy to help!

A home equity loan is generally a second mortgage against your home, meaning it is a loan that you take out using your home as collateral without paying off your first mortgage.  A refinance typically means that you'll be paying off your existing mortgage and replacing it with a new first mortgage.

You should consider contacting your loan officer to determine which option makes the most sense for you. 

Credit scores are based on information collected by credit bureaus and information reported each month by your creditors about the balances you owe and the timing of your payments. A credit score is a compilation of all this information converted into a number that helps a lender to determine the likelihood that you will repay the loan on schedule. The credit score is calculated by the credit bureau, not by the lender. They have proven to be a very effective way of determining credit worthiness.

Some of the things that affect your credit score include your payment history, your outstanding obligations, the length of time you have had outstanding credit, the types of credit you use, and the number of inquiries that have been made about your credit history in the recent past.

Credit scores used for mortgage loan decisions range from approximately 300 to 900.

Using credit scores to evaluate your credit history allows us to quickly and objectively evaluate your credit history when reviewing your loan application. However, there are many other factors when making a loan decision and we never evaluate an application without looking at the total financial picture of a customer.

An abundance of credit inquiries can sometimes affect your credit scores since it may indicate that your use of credit is increasing.

There is no charge to you for the credit information we will access with your permission to evaluate your application online. You will be charged for a credit report if you decide to complete the application process after your loan is approved.

Whether you're purchasing or refinancing, we are certain you'll find our service amazing!

If you'll be purchasing but haven't found the perfect home yet, contact one of our highly trained mortgage lenders today! 

Yes, you can borrow funds to use as your down payment! However, any loans that you take out must be secured by an asset that you own. If you own something of value that you could borrow funds against such as a car or another home, it's a perfectly acceptable source of funds. If you are planning on obtaining a loan, make sure to include the details of this loan in the Expenses section of the application because we will need to consider this payment when making your loan decision.

We will need to verify income and asset information from you.  This may be in the form of W-2's, 1099's, tax returns, pay stubs, bank statements, etc.  Your loan officer will let you know if other documentation is needed based on your application.

The income of self-employed borrowers is verified by obtaining copies of personal (and business, if applicable) federal tax returns for the most recent two-year period.

We'll review and average the net income from self-employment that's reported on your tax returns to determine the income that can be used to qualify. We won't be able to consider any income that hasn't been reported as such on your tax returns.

In order for bonus, overtime, or commission income to be considered, you must have a history of receiving it and it must be likely to continue. We will need to obtain copies of W-2 statements for the previous two years and recent pay stubs to verify this type of income. If a major part of your income is commission earnings, we may need to obtain copies of recent tax returns to verify the amount of business-related expenses, if any. We'll average the amounts you have received over the past two years to calculate the amount that can be considered as a regular part of your income.

We will ask for copies of your recent pension check stubs, or bank statement if your pension or retirement income is deposited directly in your bank account. Sometimes it may be necessary to verify that this income will continue for at least three years since some pension or retirement plans do not provide income for life. For social security income, we will need a copy of your award letter.

Yes, simply call or email a Loan Officer to complete the pre-approval process.

Generally, only income that is reported on your tax return can be considered when applying for a mortgage. Unless, of course, the income is legally tax-free and isn't required to be reported.

If you own rental properties, we'll generally ask for the most recent year's federal tax return to verify your rental income. We'll review the Schedule E of the tax return to verify your net rental income.

If you haven't owned the rental property for a complete tax year, we'll ask for a copy of any leases you've executed and we'll estimate the expenses of ownership.

Generally, two years personal tax returns are required to verify the amount of your dividend and/or interest income so that an average of the amounts you receive can be calculated. In addition, we will need to verify your ownership of the assets that generate the income using copies of statements from your financial institution, brokerage statements, stock certificates or Promissory Notes.

Typically, income from dividends and/or interest must be expected to continue for at least three years to be considered for repayment.

Information about child support, alimony, or separate maintenance income does not need to be provided unless you wish to have it considered for repaying this mortgage loan.

Typically, income from a second job will be considered if a one-year history of secondary employment can be verified and if you wish to have it considered for repaying this mortgage loan.

First, you'll complete our online application!

The application will ask you questions about the home and your finances. After you've finished the application we'll review your request for approval.

After completing your application, a Loan Officer will contact you to introduce himself or herself and to answer any questions you may have. Your Loan Officer is a mortgage expert and will provide help and guidance along the way. If your request wasn't approved, he or she will ask you for any information required to make a decision about your loan.

We'll send you an application package.

The application package will be sent to you and will contain papers for you to sign and a list of items we'll need to verify the information you provided about your finances during the online application.

We'll order the appraisal from a licensed appraiser who is familiar with home values in your area.

Title insurance will be necessary. If you're purchasing a home, we'll work with the real estate broker or seller to ensure the title work is ordered as soon as possible. If you are refinancing we'll take care of ordering the title work for you. We'll use the title insurance to confirm the legal status of your property and to prepare the closing documents.

We'll contact you to coordinate your closing date.

After we received the application package back from you and the appraisal and title work, we'll contact you to schedule your loan closing. If you are purchasing a home, we'll also schedule the closing with the real estate broker and the seller.

The closing will take place at one of our offices or the office of a title company or attorney. A few days before closing, your Loan Officer will contact you to walk through the final information.

That's all there is to it! You're on your way to the most convenient home loan ever!

Having changed employers frequently is typically not a hindrance to obtaining a new mortgage loan. We will look closely to see if there are any employment gaps between jobs.  We'll also look at your income advancements as you have changed employment.

If you're paid on a commission basis, a recent job change may be an issue since we'll have a difficult time of predicting your earnings without a history with your new employer.

If you were in school before your current job, enter the name of the school you attended and the length of time you were in school in the "length of employment" fields. You can enter a position of "student" and income of "0."

Unfortunately, if you are purchasing a home, we'll have to use the lower of the appraised value or the sales price to determine your down payment requirement.

It's still a great benefit for your financial situation if you are able to purchase a home for less than the appraised value, but our investors don't allow us to use this "instant equity" when making our loan decision.

Gifts are an acceptable source of down payment, if the gift giver is related to you or your co-borrower. We'll ask you for the name, address, and phone number of the gift giver, as well as the donor's relationship to you.

Prior to closing, we'll need proof that the gift funds have been transferred to you by obtaining a copy of your bank receipt, the gift check and  deposit slip to verify that you have deposited the gift funds into your account.

If you're selling your current home to purchase your new home, we'll ask you to provide a copy of the settlement or closing statement you'll receive at the closing to verify that your current mortgage has been paid in full and that you'll have sufficient funds for our closing. Often the closing of your current home is scheduled for the same day as the closing of your new home. If that's the case, we'll just ask you to bring your settlement statement with you to your new mortgage closing.

Congratulations on your new job! If you will be working for the same employer, complete the application as such but enter the income you anticipate you'll be receiving at your new location.

If your employment is with a new employer, complete the application as if this were your current employer and indicate that you have been there for one month. The information about the employment you'll be leaving should be entered as a previous employer. We'll sort out the details after you submit your loan for approval.

A co-signed debt is considered when determining your qualifications for a mortgage. Any debts of this type should be included in your Liabilities section.

Yes, we include all student loan payments even if your loan is currently deferred.

If you've had a bankruptcy or foreclosure in the past, it may affect your ability to get a new mortgage. Unless the bankruptcy or foreclosure was caused by extenuating circumstances, we will require that two to four years have passed since the bankruptcy or foreclosure. It is also important that you've re-established an acceptable credit history with new loans or credit cards.

An installment debt is a loan that you make payments on, such as an auto loan, a student loan or a debt consolidation loan. This does not need to include payments on other living expenses, such as insurance costs or medical bill payments.

Most closings occur at one of our locations or the office of a title company or attorney in your area who will act as our agent. If you are purchasing a new home, the seller may also be at the closing to transfer ownership to you.

During the closing you will be reviewing and signing several loan papers. The loan officer or closing agent conducting the closing should be able to answer any questions you have.  If your contract gives you possession of the property at closing, you will receive the keys to the home.

Your Loan Officer will contact you a few days before closing to review your final fees, loan amount, first payment date, etc.

It is not required to have an attorney, but it is your choice if you would like one present.  Please contact your loan officer or closing agent if you have questions about attorney representation. 

If you would like copies of the completed documents to be sent to you after they are prepared, please contact your Loan Officer.

If you won't be able to attend the loan closing, contact your Loan Officer to discuss other options. We will work with you to create a solution that will work in your circumstances.

Typically, our loan closings take place in our office. On occasion, the closing may take place at a title company or an attorney's office.  Your loan officer will take care of arranging everything for you.

Automated monthly payments are absolutely available!  Be sure to ask your loan officer how you can make that happen!

We will schedule the loan closing at one of our branches.