| |
|
Frequently
Asked Questions
|
| |
|
 |
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. |
