Home Buyers FAQs

Buying FAQs

• Will my credit history prevent me from getting a mortgage?

  Speak with your loan officer to discuss your credit history and your financial options for a mortgage.

• What is a Good Faith Estimate (GFE)?

  This is the estimate of the costs that you (the borrower) will have to pay at closing.

• Should I get a fixed rate or an adjustable rate?

  The decision is entirely up to you. With a fixed-rate loan, your interest rate doesn’t change the entire life of your loan. On the other hand, with an adjustable rate mortgage, your interest rate is fixed for a set number of years, then goes up or down based on the market index. If you are staying in your home for a shorter amount of time, you may want to consider an adjustable rate.

• What will my rate be?

  Your rate is based on a variety of factors including your credit history, ability to repay, loan amount, and loan purpose. Find a loan officer near you to discuss your options and receive a free rate quote.

• How long does it take to get prequalified for a loan?

  Prequalifying for a loan takes a shorter amount of time than getting pre-approved for a loan. For a prequalification, you will need your income information, assets, employment and property information.

• How can I get pre-approved?

  Contact a loan officer and get started with your mortgage pre-approval.

• What types of loans are available?

  We have a variety of loan options available for many different types of home buyers. Talk to your loan officer about loans you may qualify for.

• What is an appraisal?

  An appraisal is an evaluation of how much your home is worth by a qualified, unbiased professional.

• How much do I need for a down payment?

  Your down payment will depend on the type of home you decide to buy, and the type of financing you choose. Typically you can expect to spend a range of 3%-20% of the home’s purchase price on a down payment.

• What will you need from me to process a loan?

  Speak with your dedicated loan officer about materials you will need for the process or check out our document checklist to get a head start.

• How can I start my application?

  Click here to start your application, or call (800) 680-8799 to get connected to a loan officer near you.

• Can I apply for a loan before finding a home to purchase?

  Not only can you apply for a loan before finding a home to purchase, it is considered the best strategy before starting your home search. Knowing what you can spend will help you decide which price range you can start looking in.

• Why should I buy a home rather than rent?

  By paying a mortgage each month, you are essentially paying yourself. Statistically, rent has been increasing year per year in the U.S. With a mortgage, you’ll know each month what you’re paying, plus years down the line you’ll be able to use the equity when you cross over into retirement. There are also several tax breaks, and tax advantages to owning a home.

• What is an escrow account and how does it work?

  Escrow is an account your lender sets up to hold the money you pay each month for real estate taxes, insurance bills, and flood or mortgage insurance (if applicable).

• What are closing costs?

  Closing costs are fees you need to pay to close on your home including title insurance, documentation fees, and attorney fees.

• What’s the difference between APR and interest rates?

  The interest rate is the cost to borrow the money in your loan, while APR (annual percentage rate) adds in upfront costs of getting the loan including points and lender fees.

• Why should I refinance?

  You may want to consider refinancing to:
  – Change the terms of your loan
  – Lower your interest rate
  – Lower your monthly payment

• What does “market value” mean?

  Market value refers to the price a home could sell for to a willing buyer and seller on the market.

• Will I need a home appraisal?

  Yes, you will need a home appraisal. A lender can help you determine what the fair market value of your home will be for refinancing.