Ask the Experts

Asking questions is an important part of the loan process. They clarify choices and decisions you must make during the loan process. We encourage you to read through the Frequently Asked Questions and answers listed below. If you don’t find the answer you need here, please contact us. We are happy to answer your questions.

What is the current interest rate?

Interest rates change daily–sometimes changing more than once per day. Interest rates depend on your specific financial situation. Contact our office to obtain the current rate for your scenario.

When is an interest rate locked in?

We can lock a loan on a refinance as soon as we have an application. We can lock a loan on a purchase as soon as we have a contract. In both cases the borrower has the option to wait (float) the rate till 3 days before closing, at which time it has to be locked, regardless of interest rate at that time.

How do you determine the monthly payment amount?

Once we have a borrower’s credit information and monthly gross income, we will be able to tell what payment they qualify for each month.

Once I apply how long does it take to get an approval?

We can give a pre-approval within 72 hours of application under normal circumstances. We allow 30 days from date of application to closing. This can vary depending on situation.

Who pays closing costs? The buyer or seller?

On a purchase, depending on the type of financing, the seller can pay a portion or all of the closing costs. This is based on purchase price. On a refinance, we try to fold the closing costs into the loan, so the borrower will not have to bring any funds to closing

What is escrow?

You arrange to pay a portion of your taxes and home owner’s insurance as part of your monthly house payment.

How does escrow work?

Your lender keeps your monthly tax and homeowner’s insurance payments in an escrow account. When due, your lender pays these bills from this account. It saves you from having to come up with funds on your own.

Is there a charge if I choose not to escrow my taxes and insurance?

Yes, usually on a conventional loan, lenders will charge a onetime fee as part of your closing costs. This charge is based on the loan amount.

When refinancing, can closing costs be added into my loan?

On a refinance, we try to be sure our borrower comes to the table with nothing out of pocket. We roll all closing costs into a loan.

On a purchase, can closing costs be added into my loan?

In most cases, closing costs cannot roll into loan.

Once I apply, how long will the process take?

Usually, we say 30 days from application to closing. In many cases we have closed a lot sooner. Unfortunately with rates being low, many lenders are very behind and underwriting has taken much longer.