| What is the process for being prequalified for mortgage
financing?
The process is Fast, Simple and Free.
After
we receive your Quick Application, we will quickly analyze your stated income,
assets & liabilities and promptly issue you a written Pre-Qualification
Letter. You can submit your Quick Application by this website or by printing the
completed application form and faxing it to our office at (610)
853-6502
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| What is the difference between a Pre-Qualification and a
Pre-Approval?
As we stated above, the Pre-Qualification is issued
based on your stated (unverified) information. A Pre-Approval is a full
(verified)credit approval from our automated underwriting system through FNMA or
FHLMC. This is an actual mortgage loan commitment that we render prior to you
purchasing a home. Generally, we charge $50 for this approval process to cover
our credit and underwriting services. Although we charge this fee in advance, we
always credit the entire fee back to you at the time of loan closing. The
Pre-Approval written commitment from us will give you the confidence to move
forward with your home purchase, without the worry of qualifying
afterward.
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| What is your complete process for loan approval?
After we receive your Quick Application and render
you an approval from our FNMA/FHLMC underwriter, we will contact you to request
any outstanding loan approval conditions. Upon our acceptance of these
conditions, we will prepare the mortgage closing documents (note, mortgage,
disclosures, etc.)for your settlement.
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| What is the difference between fixed rate and variable rate
mortgages?
A fixed rate mortgage is a loan where the principle
and interest payment never change during the life of the loan.
A
variable rate mortgage is a loan where the interest rate can change
periodically. The changes in the interest rate are tied into the market rates
that exist at the time the rate is subject to change. They usually offer lower
interest rates than fixed rate mortgages, but can adjust upward if interest
rates go up. There is a predefined cap which defines how high the interest rate
can adjust.
Fixed rate mortgages are beneficial to those who are on a
fixed income, (adverse to interest rate change) and those who prefer fixed
payment schedules.
Adjustable rate mortgages are advantageous for those
who do not plan to stay in their home for a long time, for those borrowers who
do not qualify at higher fixed interest rates, and those who can financially
handle fluctuating payments.
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| How can I get a detailed analysis of your various mortgage
programs?
That's easy. Just pick up the phone and call us at
(610) 853-6500 or toll free at (888) 456-0988. We'll ask you a few questions to
prepare your detailed mortgage analysis. This analysis will provide you with all
the specific details you need when comparing the numerous programs available to
you. This is the perfect tool you need to get started.
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| How
do I lock in my interest rate?
Under Construction.
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| What should I expect on the day of settlement?
Under Construction.
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| How do adjustable rate mortgages work?
There are many types of adjustable rate mortgages,
but all have some common features.
One common feature of adjustable rate
mortgages is an interest rate change that occurs after a stipulated number of
payments have been made. The interest rate can increase or decrease depending on
how the new interest rate is calculated. Typically, the interest rate change is
based upon a predetermined index value and a margin. If a mortgagor currently
has an interest rate that is pending adjustment, the new rate would be
calculated by adding the current index rate and a margin. For example, if the
mortgagor’s current rate was 6.000% with a 2.000% margin, the new rate would be
determined by adding the current index rate (5.000% as an example) to the
margin. In this example the new interest rate would be 7.000%.
The
maximum amount the interest rate can change during any adjustment period is
usually fixed. This maximum adjustment is called the cap. Adjustable rate
mortgages also have a lifetime cap, preventing the interest rate from exceeding
a predetermined rate.
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| What are escrow accounts and how much do I need in my
escrow account?
Escrows are payments made by a mortgagor to a
mortgagee for the purpose of paying the mortgagor’s taxes, insurance, and other
payments associated with home ownership. The mortgagee is responsible for the
timely disbursement of escrow funds to pay the mortgagor’s bills as they come
due.
Usually, a mortgage company collects funds for placement into the
mortgagor’s escrow account with the mortgagor’s periodic payment for principal
and interest. An escrow account has sufficient funds if there is enough to pay
all bills when they come due.
It is common practice for mortgage
companies to hold an escrow cushion for a mortgagor. The cushion is kept by the
mortgage company to assure that if the cost of any escrowed item were to
increase in the future, there would be sufficient funds to pay all bills as they
come due.
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