Can I apply for a loan before I've found my property

Yes. You can obtain pre-approval for a maximum purchase price, loan amount and loan program. Once the loan has been approved, any of these variables can be changed to match the specifics of the actual transaction. However, an interest are can not be locked until a property address has be specified.

How much cash will I need for a down payment and closing costs?

Depending on your credit and the loan amount, you may be able to get a home with 0% down. However, the more you put down, the lower your monthly payment will be. And if you can provide a 20% down payment, you will avoid the extra monthly coast of Private Mortgage insurance (PMI). Closing costs can generally add 2% to 3% to the final bill.

How much documentation will I need to supply to verify the information I provided on my application?

Every situation is different. Once you submit your loan application you'll receive a customized list of the documents needed.

What if can't supply the standard documentation necessary to get a loan?

We offer special loan programs that include low documentation or even no documentation, or you can contact or call us for more details.

Can I get a loan if I'm not a U.S. Citizen

Yes. As long as the property you are buying or refinancing is in North Carolina, South Carolina, Virginia, Tennessee, Kentucky, Maryland or West Virginia. Contact us to find out more.

What are the components of a monthly payment?

Your monthly payment is the sum of four factors, commonly referred to as PITI (Principal, Interest, Taxes, Insurance). You may also be required to pay a monthly Private Mortgage Insurance premium (PMI).

     Principal- The amount of the payment that is applied to the loan balance.
     Interest-The charge paid for borrowing money.
    Taxes-Property taxes. May also be paid separately to your local government.
    Insurance-Leaders require you to maintain adequate insurance to protect your home. This may        also be separately.

What is an impound/escrow account?

Instead of paying large, lump sums to cover the costs of homeowner's insurance and property taxes, these payments are divided into installments which are paid to the lender monthly along with your loan principal and interest. The lender will hold the money in an impound/escrow account and make the payments from the account when they are due. Impound/escrow accounts may be optional, or they may be required by the lender, depending on the location of the property, the size of the loan in relation to the value of the property, and the loan type. Escrows are mandatory without at least 20% down payment.

What are closing costs?

Closing costs cover all the charges associated with the transaction, including points, origination fee, appraisal fee, title insurance, survey, charges for credit reports, etc. Closing costs vary depending upon the loan product and the fees that are customary in your region.

What are"points?"

Points, or more correctly discount points, are a form of prepaid interest which is paid to the lender for the purpose of obtaining a lower interest rate. If points are paid, they are normally payable at the time of closing. For example, %1,500 equals one point on a $150,000 mortgage. The more points you pay, the lower your interest rate should be, thus lowering your monthly mortgage payment.

What does it mean to "buy down" the interest rate?

Buying down the rate refers to the payment of discount points in exchange for a lower interest rate. A discount point is one percent of the loan amount. As an example, paying two discount points on a $100,000 loan requires $2,000.

Do you make "zero point" loans ?

Yes, nearly every loan program we offer give you the option of zero points. This is done in exchange for a slightly higher interest rate than that which is available with the payment of points.

What is homeowner's insurance?

Homeowner's insurance is designed to protect your home. It is also knows as hazard insurance, or fire insurance. While the lender requires this coverage, you determine which insurance company will carry the policy. Homeowner's insurance premiums are either paid directly to the insurance agency or by your lender through an impound/escrow account.

Does my credit have to be excellent?

Your ability to purchase a home will depend, in part, on your credit history as profiled in a credit report. The information on the credit report is used to determine how responsible you are in meeting your obligations. You do not have to have perfect credit to be approved for a mortgage, but if you have a number of late payments, you may need to provide a letter explaining why those payments were late.

Why would I refinance?

Refinancing can provide a significant savings to a homeowner. Most people refinance to take advantage of lower interest rates that can give them a lower monthly payment. Others might find it beneficial to consolidate debt, reduce the mortgage term (from 30 years to 15 years), or use the home's equity for investments or other purchases.  Recently people can sometimes eliminate the PMI they are paying while refinancing.  Whether or not you are ready to refinance depends on your reason for doing so. Why would you?

     Lower your interest rate and lower your payment
        This is why most people refinance. A lower interest rate means a lower payment but be sure to         weigh the cost of refinancing against the potential savings. The costs of refinancing not only would         include any up-front costs but also interest paid if you extend your mortgage term past the number         of years remaining on your current loan.
     Consolidate Debts (including other mortgages)
        Mortgage interest rates are often less than consumer loans resulting in an overall monthly                     payment. The potential tax deduct ability of the interest paid can also reduce your costs even                    further.  Though you may lower your monthly payments, you may also incur more interest charges           due to a longer loan term.
     Reduce your mortgage term
       When interest rates are lower than your current mortgage rate, a reduction in the term of your loan          to pay the loan off faster may be your choice. Even though your monthly payment may be the same          or even a little higher, the interest saved could be tremendous.
     Cash out the equity in your home
        Borrowing against the equity in your home could be a low-cost way to obtain the needed cash for         home improvements, investments or other purchases.
     Eliminating PMI (Private Mortgage Insurance)
       Due to reduction of principal and perhaps appreciation in value you may be able to eliminate PMI if        you put down less than 20% at the time of purchase.

Will I need a new appraisal and credit report if I refinance?

Some types of FHA, VA and conventional refinances do not require new appraisals or credit reports. We can tell you if you will qualify for one of these refinances.

How do I apply for a refinance loan?

Contact us directly and you may be approved while you wait.

What are the costs involved in refinancing?

The closing costs, including lender fees, are typically 1% to 3% for the loan amount.  In addition, you may choose to pay points in order to get a lower rate, or accept a higher rate in exchange for having the lender pay some or all of your closing costs.

What information do I need to bring when filling out an application?

Click here for a checklist of information that will be required when filling out an application.