FREQUENTLY ASKED QUESTIONS ABOUT MORTGAGES

A: Mortgage companies fall into three categories: bankers, brokers, and financial institutions. A bank is a lender that originates, funds, and sells loans in its own name to investors on the secondary market. Some banks service their loans, while others do not. You will make your monthly mortgage payments to the lender who has purchased the servicing rights. A mortgage broker acts as a middleman between you and a larger financial institution or mortgage bank. He doesn't underwrite or use his own funds for closing the loan. Loans are originated and funded by financial institutions. Lenders collect payments for the lifetime of the loan.

A:

• Are you able to offer a variety of mortgages?
• How much is your annual percentage rate (APR)?
• What's the deadline for locking in my interest rate?
• Are there origination fees associated with my mortgage?
• What are the closing costs?
• Would I qualify for closing cost incentives?

A: A buyer's first home should always be thoroughly researched. You should know your financial situation - do a budget to determine what monthly mortgage payment you need.

A pre-approval is also necessary to find out what you can afford. If you're going to make a monthly mortgage payment, you should make sure you can afford it. Also, a mortgage counselor can help you understand different mortgage products. Consider how much money you need to save for a down payment and whether PMI is an advantage or a disadvantage.

A: You will need different documentation based on what kind of loan you're applying for, but here's an overview of what you'll need:

• Bank account numbers, current account names, savings, money market, and retirement accounts, and their balances
• a 3 month statement of checking and savings accounts
• You should bring your most recent pay stubs, W-2s and any other documents that prove your income and employment
• . You should also bring the loan application and the borrower's social security number.
• Identification numbers for individual taxpayers
• Properties where you have lived for at least the past two years
• Returns filed with the IRS for the past two years
• and any additional income you have received
• Self-employment tax returns and balance sheets
• Documents related to your divorce settlement (if applicable)
• Credit cards, mortgages, student loans, car loans, furniture loans, department store credit cards, and other consumer debts list
• For homes purchased with gifts from parents, or relatives, gift letters may be used to help with closing costs

A:

1. To determine what you can afford

2. You have more time to check out the right houses

3. Making an offer on a house will allow you to beat out the competition

4. Home purchases will take place more quickly

5. You'll have time to do your homework

A: Your ability to obtain a loan may be affected if you changed jobs or careers recently. If you have questions about your loan, you should consult a SIRVA Mortgage loan counselor. If you have any questions about your unique situation, Jeremy is standing by to assist you.

A: SIRVA Mortgage loan mortgage counselors will be able to assist you in your specific case. Please reach out to our counselors with any questions you have. We will do everything in our power to make the application process as simple as possible.

A: A credit score indicates whether you can repay a loan well. Lenders require access to it. Credit history and debt history are tracked as well as various other variables.

Credit scores were considered by most mortgage companies to determine your interest rate and what type of mortgage products you are eligible for. You'll have more product options and a lower interest rate if your credit score is higher. Having a good understanding of your credit score and ensuring there are no outstanding issues can end up saving you thousands when applying for a mortgage.

A: You can obtain your credit score in three ways:

You can access your credit score online at annualcreditreport.com

Please contact Annual Credit Report at 1-877-322-8228

Mail-in a request form to:

Annual Credit Report Request Service

P.O. Box 105281

Atlanta, GA 30348-5281

A: If you lock in a rate, it means your lender will let you know at closing what interest rate and/or point combination they will retain for you until closing. Mortgage companies typically offer you a limited window of time during which you can lock in your interest rate, for example 30 days prior to the expected closing date. You should read and understand your loan agreement before locking your interest rate.

A: In the case of borrowers who are unable to put down 20%, private mortgage insurance is required. You, as the borrower, pay the premiums. Default on your loan can be reimbursed by the insurance. Depending on your area and type of mortgage, you may pay a different PMI amount.

A: It is important that you heed the advice to be cautious when seeing the term "lender paid mortgage insurance" since this doesn't mean that the insurance is free of charge. As opposed to private mortgage insurance (PMI), which you the borrower would typically pay, your lender will actually increase your interest rate to compensate for paying no PMI. Although the lender and borrower PMI scenarios might not always mean more or less, it's important to perform the math so you can see how much you will pay.

A: Before closing, it's basically a requirement for lenders that you have home insurance. In case of an unforeseen disaster or incident, everyone wants to know their home is protected. You can also protect your most valuable asset with your insurance.