Answers to questions you may have about Applying, Purchasing, or Refinancing.

Q:  How Do I Apply On Line?
You can use the link below to apply safely and securely on line.  This page works
on your computer, tablet or mobile device.  You don't have to complete it all at
once. It will only take about 15 minutes but you can stop and start again later at
the same place you left off.
Apply Now

Q: Do you charge an origination fee like
many lenders?
As a nationwide lender we are not required to charge an origination fee and
this alone can save you thousands of dollars compared to lenders that do.
You can pay discount points for a lower rate and your loan may have a
processing fee and/or administrative fee.  These fees will show
up under origination charges on your loan estimate.  Please contact me
for more information.

Q: What documentation do I need to provide?
The documentation required for each loan differs depending on the loan
program. While some programs require income, employment, and asset
verification, others require no documentation at all.  I will provide you with
a list of items needed.

Q: Are there any loan programs that don’t
require a down-payment?
Yes there are loan programs that do not require a down payment, depending
on credit, employment history, and other determining factors. Please contact
me for more information.

Q: What is mortgage insurance and why is it
required? Is there any way around
mortgage insurance?
Mortgage insurance protects the lender against taking a financial loss in
the event the mortgagor stops making payments. It is required on
mortgage programs that require little or no down payment and the lenders
exposure is greater than 80% of the purchase price or appraised value,
whichever is less. We have a Lender Paid Mortgage Insurance Program (LPMI).
With this option, the lender pays the mortgage insurance, which is offset by
a slightly higher interest rate charged to the borrower but still almost always
results in a lower monthly payment!

Q: If I’ve filed bankruptcy in the past few years,
will I still qualify for a mortgage loan?
There are many programs out there for people looking to purchase a home
but have lower than average credit. Credit is one of the determining
factors when qualifying for a loan, but not the only one. Please call me and
I'll be happy to tell you if you qualify without cost or obligation!

Q: What are some of the benefits of Government loans
(FHA, VA, USDA Rural Housing)?
These programs make it easier to purchase a home for those that otherwise
may not be able to afford it. There are programs that require little or no
down payments, no pre-payment penalties, and limited amounts of certain
fees and charges the borrower must pay to establish the loan. These
programs also have rates that are comparable to conventional loans.

Q: How is my ARM rate determined?
Adjustable Rate Mortgages are determined by adding a margin to an index on
a specific date.

Q: What is a balloon loan?
A balloon loan is a short term loan with payments amortized over a longer
period of time. These payments are not sufficient to pay off the loan in full
within the term of the loan. The remaining balance, known as the balloon
payment, is due in full at maturity of the note.

Q: How is my monthly mortgage payment applied
to my mortgage loan?
Your monthly mortgage payment includes a payment to the principal balance,
interest, and escrow, otherwise known as P.I.T.I.
(principal, interest, taxes and insurance).

Q: What is the difference between
pre-qualification and pre-approval?
Pre-qualification is a lender's judgment of your ability to make payments on
your mortgage, based on your verbal statement of income, assets, and employment
history. Pre-approval is the underwriting decision that you are conditionally
qualified and is subject to the lender's review of your completed application,
verification of your income, assets, employment history, credit check,
appraisal and other determining factors.

Q: Is there a fee to submit my application online?
No, applying online is free.

Q: What is the difference between the interest rate
and the annual percentage rate (APR)?
The interest rate is the rate you agree to pay for your mortgage loan. It is
used to determine the interest portion of your monthly payment. The
annual percentage rate (APR) includes your interest rate and prepaid
finance charges to give you an average yearly rate.

Q: What is a discount point?
A discount point is generally a percentage of the loan amount and is paid to the
lender to buy down or lower an interest rate.

Q: What is an escrow account?
Your monthly payment includes an amount which is placed in a fund held by the
mortgage company to pay your annual property taxes and insurance premiums.
This fund is referred to as an escrow account.

Q: What is a rate lock?
A rate lock is a contractual agreement between the lender and buyer. There
are four components to a rate lock: loan program, interest rate, points,
and the length of the lock.

Q: What are points?
It is an upfront cash payment required by the lender as part of the charge for the
loan, expressed as a percent of the loan; e.g. “2 points" means a charge equal
to 2% of the loan balance.  I never charge this fee but you can pay a discount fee
for a lower rate if you like.

Q: When am I committed to the loan?
For a purchase loan you are committed to the loan when you sign the closing
documents, however you may be at risk of losing commitment fees or earnest
money if you do not purchase the home as agreed.  For refinance loans, you
have 3 days after closing to change your mind (rescind).
On the 4th day your loan funds.
Mortgage FAQ
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First Federal Bank is an FDIC insured nationally chartered mutual savings bank approved lender.  NMLS# 408902.
We are an approved VA and FHA Lender. VA Lender: #6353290000 | FHA Lender: #7478000079
First Federal Bank, 2450 Atlanta Hwy Suite 1103 Cumming, GA  30040
Bill Brown
NMLS# 1460898
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