Questions & Answers

How much are closing costs?

For a conforming purchase, approximately $1,500; for a
conforming refinance, approximately $1,800; for non-conforming
purchases and refinances based upon your credit grade (A grade -
approximately $3,000 and D grade - could be as high as $8,000).

Do I have to pay Escrow at closing and what is it?

Yes. Escrow is not part of the closing costs mentioned above.
Escrow is for pre-payment of your property taxes and hazard
insurance. The amount you pay at closing is determined by the
value of your home and taxes in your area. New purchases require
one year pre-pay and refinances require less generally, approx. 3
months pre-pay. Note: On refinances you will receive from your
current mortgage holder a refund of all moneys in your current
Escrow account to be paid to you in no more than 30 days by law
after closing.

What's your rate?

You have to find out the particulars on the loan first before answering this question. Your credit score, the loan
amount and the % of down-payment can all be factors (e.g. $40,000 loan amount will require a higher rate than a
$150,000). If your needing a non-conforming loan your rate will most likely be even higher (e.g. 9% to 15%)
depending on your credit score.

Is there a pre-payment penalty?

Never on a conforming loan. Sometimes on a non-conforming loan.

How long does it take to close?

As quick as 5 to 7 days and as long as 6 weeks, depending on the issues. On the average, it should take no more
than 30 days.

Is there an application fee?

There is no application fee. There is a credit report fee of $55 paid to the credit reporting agency and an
appraisal fee of approx. $350 paid to the appraiser.

I have a friend that is an appraiser– can I use him?

Only if they are on our approved appraiser list. If they are not, it takes at least 30 days to get them set up.

I have a previous appraisal – can I use it?

Only if it is less than 6 months old and the appraiser is on the approved list. Has to be original signatures with
original pictures.

Will Express Mortgage sell my loan?

We transfer all serving rights to larger banks (serving mortgage companies) so that we can free up more capital to
lend to more people like you.

If you do sell my loan, can anything change?

No. The rate, payment, interest and terms can not be changed.

Can I get pre-approved?

Yes. It takes 2 to 3 days usually. It could help you get a better deal on a home purchase, because the seller and
the Realtor know you're a sure bet. In most cases the approval is only good for 90 days.

How often do rates change?

Conforming loan rates change as often as 5 times a day. Non-conforming rates stay the same for weeks or even
months.

Will I have mortgage insurance on a 2nd or non-conforming loan?

No.

When is mortgage insurance applicable?

When you finance more than 80%

Can my down payment be a gift?

Only if first 5% is yours. However, you can get into a home with $0 down if you can get a gift for the full 20%.

If the house I’m buying appraises for more than the purchase price, can I use that equity as my
down payment?

No, not on a purchase. Only on a refinance.