Choose a category for the complete list of questions.
Before You Apply
Can
I apply for a loan if I have filed for bankruptcy?
Yes. In most cases, lenders can provide you with a loan if your
bankruptcy discharge is at least 1 years old and you've had excellent
credit since the discharge. If your bankruptcy was discharged
less than 1 years ago or if your credit problems have continued,
it may be more difficult to approve your loan.
I
live outside the United States. Can I still get a loan?
If you are a United States citizen or green cardholder and are
purchasing a property within the United States, you are eligible
for our loan programs - even if you currently live outside the
United States. However, our lenders do not provide loans for properties
located outside the United States.
Can
I finance 100% of my loan?
Most lenders recommend that you make a down payment of at least
20% to avoid mortgage insurance. Although, if you are not able
to make a sizable down payment, lenders do offer 100% financing
and minimal down payment options. It is also important to note
that these low/no down payment options carry substantially higher
interest rates.
Do
you require a minimum loan amount?
Most lenders loan minimums are based on property type and use.
Is
there any cost to apply?
No. We do not require an up-front fee to submit an application
and begin the loan process. Once a local lender contacts you,
they will explain the loan in detail.
How
do I determine how much I can afford to borrow?
Our calculators are easy-to-use tools for estimating your buying
power. By entering a monthly mortgage payment that suits your
budget, our calculator will tally the maximum loan amount you
can afford to borrow based on a default interest rate and term.
You can also enter today's current rates or a different term for
more accurate answers.
I
do not have a lot of money for a down payment. Can I still get
a loan?
Lenders offer a variety of loan programs that offer a loan with
a minimal down payment; however. It is also important to note
that these low/no down payment options carry substantially higher
interest rates.
Will
the lender check my credit if I complete your online application?
The choice is yours. The sooner we can review your credit history,
the faster we can qualify you for a loan and make you an offer.
However, if you would prefer to speak with a loan consultant before
we review your credit history, a lender will respond to you within
24 hours. They will only make a credit inquiry if you indicate
that you want us to do so by checking the credit box on the online
line form..
With
that said, we would like to remind you that credit inquiries are
only damaging to your credit score when you have too many of them.
The good news is that all mortgage-related credit inquiries in
a 2-week period are always counted as one transaction. To keep
inquires on your report to a minimum, lenders recommend that you
do all of your “comparison-shopping” within a 2 or
3 week period. Don’t let fear of credit damage limit the
number of applications that you complete.
What
documents will I need to provide with my application?
Our streamlined loan process minimizes the number of documents
that you are required to provide; however, the actual documents
that you need to send us will vary based on your situation.
What
criteria does the lender use to evaluate my loan application?
In addition to the information you submit in the online application,
most lenders review your personal finances, including your credit
history, employment and income, collateral, liabilities and assets.
What
if I don't have an email address?
You must have an email address to complete our online application.
Don't worry, there are many websites that offer free email accounts.
Hotmail (http://www.hotmail.com), Yahoo (http://www.yahoo.com),
and MSN (http://www.msn.com) are some of the most popular providers,
and all three allow you to set up your email account in a matter
of minutes, free of charge.
How
long does it take to complete your online application?
Our application is one of the shortest and easiest applications
on the Internet! On average, it takes around 10 minutes to complete.
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After
You Apply
What
should I expect once I complete the online application?
After completing one of our online forms, our lenders will contact
you to answer any questions you may have, discuss your loan program
options and complete the application process.
How
long will it take for my loan to be approved?
Upon receipt and verification of all required supporting information
and documentation, most lenders can approve your loan within 1
business day if your loan qualifies for one of their automated
underwriting systems. Even if you do not qualify for desktop underwriting,
your loan can be approved quickly, provided we have obtained sufficient
up-front information from you.
Who
do I contact once my loan is in process?
Once one of our lenders have received your completed application
and supporting documentation, a loan officer will be assigned
to your file. Your loan officer (or broker/banker) will be responsible
for collecting any remaining documentation, preparing your application
for approval, and clearing your file for closing.
How
can I check the status of my application or loan?
During the application process, your loan officer is available
to answer your questions and offer advice. Once your loan is in
process, your underwriter can provide you with status updates
and any additional information you may require.
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Interest
Rates
What
is the difference between the APR and the stated interest rate?
APR calculates the total cost of a mortgage loan and expresses
it as a yearly rate. That means that APR takes into account mortgage
insurance, points and certain fees paid at origination, in addition
to your monthly interest payment. This generally results in a
rate slightly higher than the stated interest rate on the loan.
APR
is often said to be, “the best apples to apples comparison”
when rate shopping among mortgage lenders because it is calculated
according to a federally mandated procedure. For example, some
mortgage lenders will state a very low interest rate, but then
tack on several origination fees, increasing the actual cost of
the loan. Other lenders may state a higher rate, but then decide
to charge minimal origination fees, thereby balancing out the
total cost of the loan. If you were to compare the stated interest
rates alone, you would likely assume that the lender offering
the lower rate has the best price, but that may not always be
the case. Since items, like origination fees, are included in
the APR calculation, it is a more accurate depicton of the actual
cost of the loan.
What
are the differences between fixed and adjustable rate mortgages?
Adjustable rate mortgages (ARMs) offer a lower initial interest
rate than most fixed rates loans; however, the interest rate can
change periodically (usually in relation to an index) and your
monthly mortgage payment will go up or down accordingly. With
a fixed rate mortgage, your interest rate and monthly mortgage
payments will stay the same for the life of your loan, regardless
of market conditions. When weighing the advantages and isadvantages
of both, it is important to consider how much risk you are willing
to assume. For many people, an ARM is the right mortgage choice,
particularly if your income is likely to increase in the future
or if you only plan on being in the home for 3 to 5 years. On
the other hand, if you are looking to put the kids through college
or buy a new car in the future, then a fixed rate mortgage is
a safer choice.
How
do I know if it's best to lock my rate or let it float?
Mortgage interest rate movements are as hard to predict as the
stock market, and no one can really know for certain whether they'll
go up or down.
If
you have a hunch that rates are on an upward trend, then you'll
want to consider locking the rate as soon as you are able. Before
you decide to lock, make sure that your loan can close within
the lock in period. It won't do you any good to lock your rate
if you can't close during the rate lock period. If you think rates
might drop while your loan is being processed, take a risk and
let your rate "float" instead of locking. You can watch rates
and lock in at any time.* It's a good idea to discuss your options
with your loan officer - he or she is an excellent resource for
rate information.
*In most cases, you may lock your rate within 1 day prior to closing.
When
can I lock my rate?
Once you have completed our online application, one of our lenders
will call you to complete the loan process and discuss your rate
lock options.
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Pre-Approval
Can
I apply for a loan before I find a property?
If you are in the process of looking for a property we recommend
that you obtain a pre-approval. A pre-approval will help you determine
how much you can afford to borrow, based on your salary, estimated
debt and the amount of money you have available to make a down
payment and cover your closing costs. It is also an excellent
tool for negotiating with real estate agents and sellers, since
it lets those involved in the home buying process know that you
are financially qualified to purchase a home.
Why
should I obtain a pre-approval?
A pre-approval helps you put your buying power in perspective,
even before you find a property. Why waste time looking at houses
you cannot afford, when a pre-approval can tell you, up-front,
how much you qualify for? A pre-approval also lets others involved
in the home buying process know that you are financially qualified
to purchase a home. In fact, many real estate agents require borrowers
to "pre-qualify" before they will even begin working with them.
And most homebuyers feel that a pre-approval letter gives them
greater flexibility and leverage while shopping for a home. If
you have excellent credit, we can issue an online pre-approval
letter within seconds.
What's
the difference between getting pre-approved and applying for a
mortgage?
The pre-approval is designed to help individuals who have not
yet found the right property, but are in the process of looking.
You may find that a pre-approval letter is required by your real
estate agent or potential sellers, since it lets those involved
in the home buying process know that you are financially qualified
to purchase a home. A pre-approval will also help you to determine
how much you can afford to borrow, based on your salary, estimated
debt and the amount of money you have available to make a down
payment. However, you cannot lock in your interest rate until
you specify a property address.
If
you have already found a property, you are ready to apply for
a mortgage. Our online mortgage application is more detailed than
the pre-approval, and requires more accurate information about
your home, employment and finances. After completing the online
form, one of our lenders will contact you to complete the loan
process.
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Home
Equity
What
is a Home Equity Loan?
A Home Equity Loan, also known as a second mortgage, allows you
to borrow a one-time disbursement of funds*, using the equity
in your current home or property as collateral. Your interest
rate is usually fixed and the loan is amortized over a fixed term.
Like a traditional mortgage, you borrow a set amount, you receive
the set amount of funds in one disbursement and then you pay that
loan back with interest over a set amount of time.
*
You may borrow up to 100% of the equity in your home. Because
you have the option to rescind or cancel your loan for up to 3-days
following the closing, your money will not be distributed until
the end of this 3-day rescission period.
What
is a Home Equity Line of Credit?
A Home Equity Line of Credit allows you to periodically access
an account of funds* via various means, using the equity in your
current home or property as collateral. This loan is similar to
a credit card account in that you are only charged interest on
the outstanding balance, and there is usually a credit limit or
maximum that you can draw against. For instance, you may have
a credit limit of $100,000, but if you only withdraw $5,000 of
that, you will only pay interest on that $5,000. The interest
rate is usually tied to the Prime Rate with a margin, and may
even be below Prime.
*
You may borrow up to 100% of the equity in your home. Because
you have the option to rescind or cancel your loan for up to 3-days
following the closing, your money will not be accessible until
the end of this 3-day rescission period.
What
is the difference between a fixed rate and a variable rate?
With a fixed rate loan/line, the interest rate will not change
during the term of the loan. With a variable rate, the interest
rate will move up or down, according to a pre-selected index,
over the term of the loan. Home Equity loans offer a fixed interest
rate, and Home Equity Lines of Credit feature a variable rate.
Interest rates are based on the amount you borrow and the loan
term.
What
can I use Home Equity money for?
Home Equity Loans and Lines of Credit can be used for almost anything.
The most common uses include debt consolidation, home improvement,
purchase/payoff of auto, boat or other high-ticket items, purchase
of investment property, college tuition and future ready reserve.
Is
the interest tax deductible?
In most cases the interest on home equity loans and lines of credit
can be tax deductible. Consult your tax advisor about your specific
situation.
Will my first mortgage be affected by a home equity loan?
No. Your first mortgage balance is used to determine your borrowing
options, but your home equity loan/line is totally separate and
has no effect on your first mortgage.
How
much can I borrow?
Your loan/line amount is determined by taking a percentage (up
to 100%) of your home's fair market value and subtracting the
balance of any outstanding mortgages on the property.
How
can I access my Home Equity Line of Credit?
You have several convenient options to access your Home Equity
Line of Credit:
- Line
of credit checks
- Credit
card tied exclusively to your Home Equity Line of Credit
- ATMs
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Closing
If
I apply for a mortgage online, where will the closing take place?
Usually, the closing is held at the title company from whom the
lender obtained your title, but in some instances it is held at
an attorney's office. Regardless, your lender will arrange for
your closing to take place at the approved settlement agent office
that is located closest to your home.
When
will I know the exact amount of money I will need at closing?
Just to make sure there are no surprises at closing, your lender
should contact you a few days before the closing date to review
your loan terms. The settlement agent office will also contact
you at least 48-24 hours before your closing to tell you the exact
amount that you'll need to bring with you. The funds you bring
to closing must be in a certified form, such as a certified check
or money order, and made payable to the settlement agent office.
What
happens at the loan closing?
The closing will take place at the office of a title company or
attorney in your area. If you are purchasing a new home, the seller
may also be at the closing to transfer ownership to you, but in
some states these two events actually happen separately. During
the closing, you will be reviewing and signing several loan papers,
including the Settlement Statement, the Truth-in-Lending Statement,
the Note and the Mortgage or Deed of Trust. Just to make sure
that there are no surprises at closing, your closer and the settlement
agent office will contact you a few days before closing to review
your final fees, loan amount, first payment date, etc.
What's
included in closing costs?
Closing costs are expenses over and above the price of the property.
Closing costs include attorney's fees, taxes, prepaid insurance,
points, title insurance and survey fees. Closing costs usually
amount to between 2 and 6 percent of your mortgage. A complete
list of your closing costs can be found on the HUD 1 Settlement
Statement, and your closer will go over your closing cost items
with you as well.
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Mortgage
Insurance
What
is Private Mortgage Insurance or PMI?
PMI is a type of insurance provided by a private mortgage insurance
company that protects us, the lender, in the event that you default
on the loan. Mortgage insurance is usually required on a conventional
loan when your down payment is less than 20%.
How
do I pay for mortgage insurance?
Mortgage Insurance premiums can be paid annually from an escrow
account, paid up-front as a closing cost or financed in your loan
amount and paid monthly as part of your mortgage payment.
How
can I avoid mortgage insurance?
The easiest way to avoid PMI is to make a down payment of at least
20% of the purchase price of the property. However, if you do
not have the funds, you may consider a second trust loan, sometimes
called a piggyback loan. The most common type of second trust
is an 80/10/10, where a down payment of 10% is made, 80% is financed
as usual, and the remaining 10% is financed in a second trust
at a higher interest rate.
When
can I cancel my mortgage insurance?
Typically, PMI will no longer be required once your loan balance
falls below 80% of the home value. You can reach this 80% level
by 1) paying off enough of your loan over time to reduce the principal
balance, 2) your home appreciating (increasing in value) enough
that your loan balance is less than 80%, or 3) a combination of
the two.
You
should verify that your loan agreement allows for PMI to be cancelled
once you reach the 80% loan-to-value ratio. Sometimes, your PMI
will be cancelled automatically once you have paid enough; however,
we will not know if your house increases in value. You will need
to provide us with a certified appraisal of your house in order
to verify the current market value.
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Privacy
and Security
How
secure is the information I am supplying to you?
To protect your information from any possible misappropriation,
our website secures your data with the Secure Sockets Layer (SSL)
system, the latest in encryption technology. SSL creates a secure
connection between you and our servers so that the data you transmit
cannot be seen by anyone else.
I’ve
heard that requests for my credit report are damaging. Is this
true?
Too many credit inquiries can negatively affect your credit score.
However, all mortgage-related credit inquiries in a 2-week period
are always counted as one transaction. To keep inquires on your
report to a minimum, we recommend that you do all your “comparison-shopping”
within a 2 or 3-week period, but don’t let fear of credit
damage limit the number of applications that you complete.
Under
our policy, our lenders only make a credit inquiry if you indicate
that you want us to do so by checking the credit box on the online
application. Many consumers choose to check this box because they
want fast approval status and offers.
Do
you share my information with other companies?
The mortgage process involves communicating personal financial
data, and we understand the need for a safe and secure environment
in which to share this information. We respect the trust you are
giving us, and we do not use your information for any purpose
other than to forward that information to a lender so that they
may contact you with the best offer available.
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Company
Information
Where
can I learn about your company?
To learn more about our products and services, customer service
practices and corporate history, check out our About
Us section.
Is
sica-incendie.com a mortgage broker?
sica-incendie.com is a 100% advertiser supported loan search
engine. We are not a lender or broker. When you choose to inquire
with a lender or broker who advertises on sica-incendie.com,
your information remains between you and that lender(s). Advertisers
are solely responsible for keeping their information current.
Do
you finance land loans?
Currently, most lenders finance land..
Do
you finance mobile home loans?
Currently, most lenders provide loans for mobile homes.
Do
you finance mixed-use property loans?
Most lenders provide loans for mixed-use properties.
Do
you finance commercial property loans?
Commercial loans are financed by one of our commercial lenders.
Make sure you choose commercial property for the type of loan
you want.
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