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FREQUENTLY ASKED QUESTIONS
AT THE MORTGAGE GROUP.
What is The Mortgage
Group?
The Mortgage Group is both a lender and a broker licensed
in Virginia and Maryland. Being a broker, The Mortgage Group
has relationships with regional and national lenders, which
supply competitive rates. This allows us to supply you with
a large range of financing programs including VA, FHA, conforming
and non-conforming fixed and ARMS loans, 2nd mortgage, full
documentation and no documentation loans. Ask your account
executive about these programs. TOP
What is the advantage
of using The Mortgage Group?
As an affiliate of Brookfield and Keswick Homes, we know the
homes and understand what kind of financing you want. We realize
that you want financing a home to be easy, convenient and
economical. We know the communities and coordinate final settlement
with you, the builder and the title company. We can pre-qualify
you before you even start your home search. We can even arrange
equity lines on your current home, help you with financing
your homebuyer and will do whatever it takes to find the right
financing for you. TOP
How do I get the loan
process started?
A quick call, email or fax to your personal mortgage representative
is all you need to do to get started. Together you can decide
the most convenient way for you to apply for your mortgage
- online, via fax or with a personal interview. We recommend
a personal interview. TOP
What documentation do I need at the
loan application?
The lender will need the following information for the loan
application:
- Pay stubs for the most recent thirty
days.
- W-2's for the last 2 years.
- A copy of complete federal tax returns
for the past 2 years.
- Bank, stock, investment, IRA and
401k statements for all accounts for the recent 3 months.
- Copy of lease agreements for rental
properties.
- Copy of sources of non-salary income,
i.e. retirement, social security, disability, child support,
alimony, etc.
- If renting, the name and address
for your landlord(s) for the most recent two years.
VA LOAN
- Original Certificate of Eligibility
(if you do not have it, call your mortgage representative).
- DD214 (if separated from the service).
- Copy of LES.
- Copy of orders, if transferring to
this area.
- DD1747 (authorizing the use of off-base
housing if active duty).
SELF-EMPLOYED
- Year-to-date profit and loss statement.
- Complete, signed business tax returns
for the most recent two years. TOP
What fees are associated
with the processing of my loan?
You will be required, at the time of loan application, to
provide a check for the property appraisal in the amount of
$300 and for the credit report in the amount of $57 (total
of $357). These fees are part of (not in addition to) the
cost shown on the Good Faith Estimate. TOP
How will I know if
I/we qualify for a loan?
With the many changes in the mortgage industry during the
past 10 years and the variety of programs available, the real
question is: "What type of program is best for me?"
TOP
What is the process
for loan approval?
Your account representative will review the financing programs
with you at the interview and tell you what, if any, additional
documents are needed. He or she also will go over the disclosures
and additional forms that we are required to have signed,
and mail them to you for your review and signature. Because
new homes can take up to 9 months or even longer to complete,
your loan documents may need to be updated. We will contact
you within 30 days of settlement for these updates. TOP
How do I know my loan
is approved?
When your loan is approved, you will receive a loan approval
letter that will state the terms that have been approved (including
the loan amount). Generally, the loan approval has conditions
which are listed in order to complete the requirements of
an investor. At least 95% of the initial approvals have conditions.
These conditions can be as simple as a signed disclosure that
was missed. Other types of conditions could be the sale and
settlement of your present home, a copy of another pay stub
or a bank statement. TOP
Why doesn't The Mortgage
Group post their rates on the Internet?
Because people's finances are different, their mortgage financing
needs will be different; thus the rates change. In addition,
we have so many financing programs that it would not be possible
to show all of them along with rates. Just call or email us
for any specifics that you may need. TOP
How do I guarantee
the rate I want? What is a lock-in?
A lock-in, also called a rate lock or rate commitment, is
a lender's promise to hold a certain interest rate and a certain
number of points for you, usually for a specified period of
time. You must close or settle on your home within this time
period. The lock period can vary from 30 days to 60 days,
without a cost. Usually when the lock period is longer than
60 days, there will be a cost. Consult with your mortgage
representative regarding the extended lock periods. It is
important to recognize that a lock-in is not the same as a
loan commitment or loan approval. TOP
When during the day
can I lock-in my interest rate?
Please call between the hours of 12:30 PM and 4 PM Monday
through Friday and request a rate quote for your program.
There is no charge for the rate lock, except when it is an
extended rate lock. TOP
What are points?
Often the cost of a mortgage loan is stated in terms of an
interest rate, points and other fees. A "point"
is a fee that equals 1 percent of the loan amount. Points
are usually paid to the lender, mortgage broker, or both,
at the settlement. Often, your can pay fewer points in exchange
for a higher interest rate or more points for a lower rate.
TOP
What is an APR?
A document called the Truth in Lending Disclosure Statement
will show you the "Annual Percentage Rate" ("APR")
and other payment information for the loan you have applied
for. This is not the note rate. The APR is the cost of the
loan in percentage terms, taking into account your loan charges
(of which interest is only one such charge). Some other finance
charges which are used to calculate the APR are mortgage insurance,
loan points, origination fees, prepaid interest and other
financing fees. The APR is calculated by spreading these charges
over the life of the loan, which results in a rate higher
than the interest rate shown on your note. TOP
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