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 has more "Frequently
Asked Questions" answered before you get started with your application.  You don't have to complete
it all at once.  It will only take about 10 minutes but you can stop and start again later at the same
place you left off.
Get Your Questions Answered Before You Apply!

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
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-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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Bill Brown
NMLS# 1460898
Top 3 Lender