Q: Can I really apply for a loan without having to come to your office?
A: YES! you can! We process hundreds of mortgages every month. Most of the time this is accomplished over the phone, the internet, and the mail.

Q: Do you offer residential mortgages in my state?
A:  Yes, We are currently doing business in all states.

Q: After I apply for a loan, what should I expect?
A:  Once your loan application is received, whether you apply online, by phone, or in person, you will get notification that your loan is in process. Within several days you will receive a loan package with a set of loan application documents for your signature. This mailing by e-mail or postal will also include a list of documents we will need to complete your loan approval.

Q. Is it safe to transmit my mortgage application to you over the Internet?
A. Security of your personal information is a prime concern. As such, we have implemented several layers of security and provide the highest level of encryption available across the Internet today. Web pages holding your information are secured using Secure Sockets (SSL) and while completing your mortgage application, your details are transmitted using 128-bit encryption. This ensures that no one on the Internet can view your personal details.

Q: Can I apply for a purchase loan before I've found my property?
A:  Absolutely! When you apply for a purchase pre-approval you simply assume a maximum purchase price, loan amount, and loan program. Once your loan has been approved you can change any of these variables to match the specifics of your purchase transaction. Please note that we cannot lock in a loan until a property address has been specified.

Q: On a purchase loan, is there someone who will work with my Realtor?
A: Yes. Since each loan is assigned to one loan officer who works with you until you close, he or she will be able to assist you or your Realtor at any time.

Q: Can I get loan program information over the phone?
A: Yes. At any time during your loan process you can contact your loan officer if you require assistance in the selection of a mortgage product.

Q: How quickly will my loan be approved?
A: Once your application & documentation is received, you can expect to receive an answer within 1 to 2 days. The processing of your loan will be related to how complete your application is and how rapidly you submit any required documents to your processor.

Q: Is my interest rate locked in as soon as I apply for a loan?
A: No, your interest rate is floating. We have found that clients prefer watching the market before they commit to a specific rate. You can request a rate lock after you have returned your package to the loan officer and we have reviewed your documentation and credit information. We will notify you via email or phone when you are able to request the lock.

Q: When should I lock my rate?
A: We recommend watching the market and then locking in. Please note that a lock can't be changed once you select your product, so we ask that you be certain of your request. you maybe subject to application & processing fees if you cancel thru no fault of the lender.

Q: When will I have to pay for something?
A: Once you apply for a loan, you want to know if you qualify for the product selected. The first step in this qualification is to review your credit. A credit report will be ordered by your loan consultant once you've returned your completed package to our offices. Once you are credit is approved, we arrange for an appraisal on the property. We ask that you only pay the appraiser COD when he inspects your property. You make the check payable to the state licensed appraiser.

Q: What about the appraisal?
A: We'll arrange for an appraisal of your property and will use your estimated value as a guideline. If your appraised value is lower than your estimated value, we will notify you right away.

Q: Who handles my closing and where do I sign?
A: If you're buying a home, your closing agent may be selected by your Realtor or the seller. If you're refinancing a property, we'll select a closing agent for you. Either way, we'll make arrangements for the loan documents to be delivered to your closing agent and will notify you when they're ready for signing

Q: How could Loan Shopper's rates be lower than the competition?
A:  We are an Affiliate Mortgage Broker Lender. We're not limited to any one financial institution. That gives us the flexibility to choose from a large variety of wholesale mortgage programs that best suits your specific situation. Your Loan application accesses hundreds of lenders who want your business.

Q: Do you offer apartment or commercial mortgages in my state?
A:  Yes, We currently do apartment loans (5+ units) in all states.

Q: How is my credit score determined?
A: A credit score is based on information in your credit report, including information about how you have handled debt and credit accounts in the past. Looking at the way millions of consumers manage their credit develops the calculations that make up a credit score. Credit scores have proven over time to be a reliable indicator of whether or not a consumer would repay a loan. A score is determined by summarizing a number of factors in your credit report. These include:

Payment History
Outstanding Debt
Credit History
Credit Inquiries
Types of Credit

Q: What’s my score? Is that good or bad?
A: Credit scores typically used in mortgage lending range from approximately 300 to 900. Generally, the higher your credit score, the less risk of future default you represent to the lender. This is a strong indication that you have successfully managed credit in the past and are likely to repay a mortgage loan.

Keep in mind that your credit score is only one factor that the lender uses to evaluate your mortgage loan application and that the final decision whether or not to approve your mortgage loan is made by the lender after careful analysis of all of the information the lender has collected.

Q: How to determine if you've been late on Credit Payments?                  A: For example, If your bill payment is due on the 1st of each month and you missed it by a few days by paying on the 5th, 16th, 20th but before the following month your payment may not be necessarily late or reported late by your creditor. You are most likely late only if your payment wasn't received until the 1st of the following month (30 days after it is due). Your creditor may assess late fees but this doesn't mean they will report you 30 days late on your credit report.  

Q: What is a Bi-Weekly mortgage payment plan?
A: Prepaying your Fixed-Rate mortgage is a guaranteed way to own your home sooner. But that's not the only reason to consider it. Since every dollar you prepay also reduces the interest you owe, prepayment will save you money-thousands of dollars, in many cases.

Q: Pros and Cons of Homeownership
A: The decision to buy a home is a big one and should not be made lightly. If you are planning to buy a home, you probably have good reasons in mind, ranging from the purely personal to the very practical. But homeownership is not for everyone. For one thing, buying a home is a complex, time-consuming, and costly process that sometimes brings unwelcome responsibilities. There are many good reasons for becoming a homeowner, provided you are ready for the increased responsibilities that come with it.

Advantages of Homeownership

If you are planning to buy a home, you probably have good reasons in mind. Some of the major advantages are described below.

A Place to Call Your Own

“Your home is your castle.” Perhaps you are ready to settle down in your community and want to have the feeling of permanence and involvement that comes with owning your own home. Maybe you need more space for your family. Or maybe you want more freedom than you currently have as a renter to change your home to suit your individual taste and needs.

Financial Advantages
Owning your own home can offer a number of financial advantages, some of which are noted below.

Scheduled Savings
When you are a homeowner, your monthly mortgage payments serve as a type of savings plan. Over time you will accumulate what lenders call “equity,” an ownership interest in your house that you may be able to borrow against or convert to cash by selling the house. On the other hand, renters continually pay rent to a landlord for as long as they rent without the opportunity to build up equity.

Stable Housing Costs
while rents typically increase year after year, the principal and interest portion of most mortgage payments remains unchanged for the entire repayment period. Because of the effect of inflation, you pay the same amount with ever “cheaper” dollars.

Increased Value
Houses typically increase in value over time. It's not unusual for a house that sold fifteen years ago to be valued at much more than its selling price today. This increased value is as good as money in the bank to the homeowner.

Tax Benefits
Homeowners are eligible for significant tax advantages that are not available to renters. Most important, the interest paid on your home mortgage usually is tax deductible and therefore can save you a substantial amount each year in federal income taxes.

Q: What is a mortgage loan?
A: The mortgage is a legal document that secures the note and gives the lender a legal claim against your house if you default on the note's terms. In effect, you have possession of the property, but the lender has an ownership interest (called an "encumbrance") until the loan has been fully repaid. The lender agrees to hold the title or deed to your property (or in some states, to hold a lien on your title or deed) until you have paid back your loan plus interest.

Q: Adjustable Interest Rate
A: Adjustable Interest Rate

An adjustable-rate mortgage (called an ARM) has an interest rate that varies during the life of the loan. The interest rate with an ARM may increase or decrease based on market interest rates. Consequently, your mortgage payments may go up or down

Q: Conforming and Nonconforming Loans
A: Conforming and Nonconforming Loans

The term “conforming”, as opposed to “nonconforming”, is sometimes used to explain loans that offer terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac. Fannie Mae and Freddie Mac are two private, secondary mortgage market companies that buy mortgage loans from lenders, thereby ensuring that mortgage funds are available at all times in all locations around the country.

The most important difference between a loan that conforms to Fannie Mae/Freddie Mac guidelines and one that doesn't, is its loan limit. Fannie Mae and Freddie Mac will purchase loans only up to a certain loan limit (currently $333,700).

So, if your loan amount will be for more than the conforming loan limit of $333,701, you may be asked to pay a higher interest rate on your mortgage. Your mortgage loan may also follow slightly different underwriting requirements, particularly in regard to your required down payment amount. Check with your lender about this if you are taking out a large loan amount. Nonconforming loans are sometimes called jumbo loans.

Q: Closing Costs
A: Closing Costs

The closing, also known in some areas as the settlement, is the final step - the act of transferring ownership of the home to you. The closing usually takes place at a financial institution, like a bank or savings and loan, and is designed to ensure that the property is all set to be transferred to you. Each state has its own rules as to what costs must be paid at the closing. Common items to be paid at the closing are: transfer taxes and recordation taxes; title insurance; the site survey fee; loan discount points; attorney fees; and various fees for preparing the legal documents. When talking about closing costs, rather than discussing all of these fees individually, closing costs are talked about as a percentage of the sales price or the loan amount. Although you can try to get the seller to pay some part of the fees, closing costs generally range from 3 percent to 6 percent of the sales price of your home.

Can you deduct points on your income taxes?
In the United States, one side benefit of paying points on a mortgage loan is that they are fully tax deductible for the same tax year as your closing. However, this does not apply to points paid for a refinance loan. For refinances, the IRS requires you to spread out the deduction over the life of the loan. For example, if you paid $5,000 in points for a 30-year refinance loan, you can only deduct 1/30 of the $5,000 each year for 30 years. If you pay off the loan early, though, you can deduct the remaining amount that tax year. Please still consult a tax advisor because of changing tax laws. or go to http://www.irs.gov 

Do I need an appraisal of the property? If so, will I receive a copy of it?

Yes. The property is the collateral for the mortgage, therefore an appraisal is almost always required and if a borrower pays for the appraisal he or she is definitely entitled to receive a copy of it.

Why do I need to pay for another policy of title insurance when we already own the property and purchased title insurance when we bought the house?

Before closing your new mortgage, your new lender must be certain that the title to the property will be free and clear, free of prior defects and indebtedness. A new policy is needed to protect the new lender and subsequent investor of your new mortgage. Both a homeowner and prospective lender need to be certain that what is available on the property is what is referred to as a "marketable title". A title company researches the legal history of the property that entails searching public records in the offices of the county recorder. Problems with the title could threaten the mortgage, limit ones use and enjoyment of the property and could result in financial loss. A policy of title insurance protects a homeowner's title and the insurer covers the cost of any legal challenges.

7/23 and 5/25 Mortgages
These mortgages are extendible balloon mortgages with a one-time rate adjustment after seven years and five years respectively. The extendible feature is available with certain lender caveats, such as no delinquency in the 12 months prior to the requested extension, the property must be owner occupied, and rates at the time of the extension cannot be more than 5% higher than the original note rate.

3/1, 5/1, 7/1 and 10/1 ARMS
Adjustable Rate mortgages in which the rate is fixed for the initial three years, five years, seven years and ten years respectively, and will adjust annually after the initial fixed period.