Mortgage FAQ's
It’s a mandated disclosure listing the estimated settlement costs associated with the loan. The lender is required to provide it within three business days after the application is received. The typical loan estimate includes appraisal fees, credit report fees, any lender fees, your attorney’s fees, tax and insurance escrow fees, mortgage insurance premium and interest paid in advance.
There are a few factors that are taken into consideration:
• Funds – We will need to determine if you have enough cash for your down payment and closing costs.
• Income – We will need to verify your employment information, including your occupation, length of time at your current position and your salary. Either your employer verifies your income or you must have two years of W2’s and one month of consecutive pay stubs.
• Credit History – Your credit history will be checked, including how much you owe and how timely you’ve made your payments.
• Appraisal – Your home will be appraised to ensure that its value is sufficient to secure your mortgage.
Points are upfront loan fees that are paid to lenders and mortgage brokers to reduce your monthly interest rate and total interest due over the life of a loan. Here’s how it works: 1 point equals 1% of the total loan amount. Paying points for a lower interest rate is a matter of paying money now versus paying money later. Normally clients do a zero point loan, we will help you decide what is best for you.
If the down payment is less than 20%, It is insurance that acts as protection for the lender in the event of a default. Ask us about NO PMI loans, we have plenty with only 5% down!
APR is computed from the amount financed and is based on what your proposed payments will be on the actual loan amount credited to you in the settlement.
Because it is a rescindable transaction under federal law. This means that the actual proceeds of the finances are not disbursed for a period of three full banking days after the settlement. During this period, you have the right to rescind (cancel) the transaction.
After buying a new home, you can take advantage of substantial tax savings available only to homeowners. Could include:
- Real estate taxes — the full amount of property taxes is a permissible income tax deduction.
- Mortgage interest payments — in most cases, you can deduct all of the interest paid on your mortgage.
- Points paid to lenders — you can also deduct, as interest, the points paid to a lender to obtain a new mortgage, provided that the payment represents compensation paid to the lender solely for the use of money, rather than for any special services. The points are fully deductible only in the year of payment.
With Cellura Mortgagers, there are no confusing terms, unnecessary processes or hidden fees. Most importantly, our mortgage counselors take your financial wellbeing seriously. We never recommend mortgages if they aren’t in the best interest of our clients
