Q: Can customers apply for a mortgage loan via the telephone?
A: Yes. Our Mortgage Consultants are available from 8 a.m. to 6 p.m. MST to start an application. Please call 208-888-9394 or click here to get started.
Q: What is a pre-qualification?
A: A pre-qualification will estimate how much money you are eligible to borrow before you apply for a mortgage. Be prepared to provide basic information such as income, debts and assets. A pre-qualification is not a pre-approval or loan approval.
Q: Can I apply for a loan before I have a home to purchase?
A: Yes. You may provide the required documentation for a loan pre-approval to verify income, debts and assets prior to your purchase. Once we obtain a credit report, we can make a credit only loan decision. This process is called a pre-approval. Since the property to be purchased is typically not known for a pre-approval, estimated sales price and loan amount are used to make a loan decision.
Q: What is an appraisal?
A: An appraisal is a report made by a certified appraiser who provides a professional opinion or estimate of property value. When you apply for a mortgage loan with Legacy Lending Group, we will initiate the process to get an appraisal ordered.
Q: How important is my credit?
A: Your credit is an important consideration for determining your creditworthiness. Information in your credit report is prepared by a credit bureau or consumer reporting agency. Any late payments or other adverse information contained in your credit report will receive additional review during the underwriting of your loan application, and may require further written explanation(s) or documentation from you as we consider your loan request.
Q: What are closing costs?
A: Closing costs cover all the fees and expenses associated with a loan transaction. Closing costs may include fees for an appraisal, credit report, title insurance, survey, and points. Closing costs vary depending upon the loan product and the type of transaction.
Q: What are discount points and how are they calculated?
A: Discount points are a one-time charge (or credit) by the lender. Each point is equal to 1% of the principal loan amount and can be paid to buy down the applicable interest rate. If you choose to pay points, they are typically paid at the time of closing. Discount points may be negotiated in the Purchase Contract to be paid by either the seller or borrower. Contact a Loan Consultant for more information.
Q: What is title insurance and why do I need it?
A: Title insurance protects the lender (lender’s policy) and the homeowner (owner’s policy) against loss resulting from disputes over ownership of the property.
Q: Who do I contact once my loan is in process and how would I update my application?
A: To update your application or ask a question about the process, contact your Loan Consultant. Once you submit your application, you can contact your Loan Consultant or the processor in charge of processing your loan.
Q: What is Private Mortgage Insurance (PMI)?
A: PMI is insurance provided by non-government insurers that protect the lender against loss if a borrower defaults. Typically PMI is required if your down payment is less than 20 percent of the purchase price. For example, on a purchase price of $100,000.00, PMI would be required if you put less than $20,000 (20% of $100,000) as a down payment.
Q: Will I always have to pay Private Mortgage Insurance (PMI)?
A: PMI will be canceled in accordance with federal law. We recommend you contact a Loan Consultant to ask about your specific situation. On 30 year FHA loans PMI will always be charged for at least the first 5 years.
Q: What information do I need to apply for a loan?
A: In all mortgage applications your Loan Consultant will ask for information regarding your employment, income, assets, debts and the prospective property you intend to purchase. Other information may be needed depending upon your situation.
Q: What is the difference between a Fixed Rate Mortgage and an Adjustable Rate Mortgage?
A: A fixed rate mortgage is a loan in which the interest rate does not change during the entire term of the loan. With this type of mortgage your monthly payments for principal and interest never change.
With an adjustable rate mortgage (ARM) the interest rate may periodically adjust on the basis of changes in a specified index. ARM loans can allow you to buy a more expensive home since the interest rate is usually lower than a fixed rate mortgage.
The right type of mortgage for you depends on many factors including:
- Your current financial picture
- How you expect your finances to change
- How long you intend to keep your house
- How comfortable you are with your mortgage payment changing from time to time
- How much risk you are willing to take.
Q: What is a jumbo loan?
A: A jumbo loan is a mortgage that exceeds the maximum loan amount established by Fannie Mae and the Federal Home Loan Mortgage Corporation (Freddie Mac). Jumbo loans are also referred to as “non-conforming” loans.
Q: When can I lock my interest rate?
A: Typically, you can lock your interest rate after submitting your application and providing a copy of your Purchase Agreement or Sales Contract. Legacy Lending Group offers a wide range of lock-in periods depending on your needs. If you do not lock your rate at application, you must lock no less than five business days prior to closing.
Q: What term (length of loan) is best for me?
A: While the monthly payments on a 30-year mortgage are lower than those for a 10, 15 or 20-year mortgage, a shorter-term can save you a considerable amount of money because of the way the mortgage amortizes. In addition, many times a shorter-term mortgage is available at a lower interest rate.
Q: Does Legacy Lending Group have products to help first-time homebuyers and/or low-to-moderate income homebuyers?
A: Yes. We have affordable housing mortgages designed to help more people afford a home. There are even some NO MONEY DOWN programs available.
Q: What are “conforming” and “non-conforming” loans?
A: A “conforming” loan meets loan limits and established by Fannie Mae and the Federal Home Loan Mortgage Corporation (Freddie Mac). “Non-conforming” loans or “jumbo” mortgages exceed these limits.
Q: What is a convertible mortgage?
A: A convertible mortgage allows a borrower to convert from an Adjustable Rate Mortgage (ARM) to a Fixed Rate Mortgage (FRM) during specified time periods. A conversion fee and certain conditions usually apply. Not all ARMs are convertible.
Q: Should I refinance my home?
A: Although each situation is different, there are several reasons to refinance including:
- To lower your monthly principal and interest payments.
- To move to a secure, fixed rate loan.
- To lower your interest rate.
- To take cash out of the equity in your home to consolidate debt or for home.
Q: If I refinance, do I need a new appraisal and credit report?
A: Generally, a new appraisal and credit report are necessary.
Q: What is cash-out refinance?
A: The difference between your loan balance and the value of your home is called equity. If you have held your mortgage for some time, you’ve probably begun to reduce the outstanding principal on your loan and increase the amount of equity in your home.
You may be able to refinance your home for more than what you currently owe and take the extra loan proceeds in the form of cash. On a cash-out refinance you may use the cash for home improvements, college costs, new car or other major purchases.
Q: What are closing costs to refinance?
A: Closing costs vary depending on your location and the purpose of the loan as well as differences in third party fees. To find out what a refinance would cost you please contact a Loan Consultant.
Q: Do I have to qualify again?
A: Yes, you will have to qualify for the refinance loan. However, the process can often be streamlined and expedited. Contact one of our Loan Consultants to learn how the Legacy Lending Group refinance program fits your needs.
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