Q. I do not have a lot of money for a down payment. Can I still get a loan?

A.We have a wide variety of loan programs and some of them are offered with no or low down payment.

Q. I have a poor credit rating can I still get the loan?

A. Yes, some of our lenders offer loans to people with bad credit rating too. When you send us quote request, we match your profile with 100s of lenders readily waiting to give you loan. The most suitable 4 lenders then call you with the rate quotes.

Q. What documents will I need to provide with my application?

A. Our streamlined loan process minimizes the number of documents that you are required to provide. At this point you don't have to provide any documents. What you have to do is just to provide your basic information. The documents will be needed at later stage. The types of document required vary from person to person.

Q. What criteria do you use to evaluate my loan application?

A. In addition to the information you submit in the online application, we review your personal finances, including your credit history, employment and income, collateral, liabilities and assets.

After You Apply

Q. What should I expect once I complete the online quote request form?

A. After you submit your complete quote request form, up to 4 top lenders from your area will contact and provide you with competitive loan quotes. It is up to you to decide, which lender's quote best suits you. There is no obligation attached with this procedure and the quotes are offered completely free.

Q. How long will it take for my loan to be approved?

A. Upon receipt and verification of all required supporting information and documentation, lender (s) can approve your loan within 1 business day.

Q. Who do I contact once my loan is in process?

A. Once you have decided which lenders you are going to work with, a loan officer will be assigned to you with all contact details. In case of any query, you can contact your loan officer.

Q. How can I check the status of my application or loan?

A. During the application process, your loan officer is available to answer your questions and offer advice. Once your loan is in process, your underwriter can provide you with status updates and any additional information you may require.

Interest Rates

Q. What are the differences between the APR and the stated interest rate?

A. APR stands for Annual Percentage Rate and is a much better indicator than just the interest rate of the actual cost of a mortgage loan, as it estimates what you'll pay over the course of an entire year. The federal law requires every lender to disclose their APR while advertising for their interest rate. This protects borrowers from being wrongly attracted by a lender's low rate advertisement. APR includes other fees and cost that actually drive up the cost of purchasing a loan.

APR takes into consideration the following costs:

• Discount point
• Origination Fees
• Mortgage Insurance Premiums
• Prepaid Mortgage Interests

Interest rate on the other hand include simple the rate or interest that lender will be charging on the principal amount you are borrowing.

To better understand this lets compare quote from 2 lenders

Bank "A" offers a 30-year fixed mortgage at a 6 percent interest rate.
Bank "B" quotes a 30-year fixed mortgage at a 5 percent rate.

Your first instinct would be to go with Bank "B" because of the lower rate. However, Bank "B" charges a $2,000 origination fee, and you are required to pay four points, or $4,000, on your $100,000 loan. Bank "A" has no origination fee, and requires you to pay no points. Suddenly you will be paying $6,000 more if you go with bank "B". The APR will factor this into the overall equation, and Bank "A" will have the lower, and potentially more attractive, APR.

Q. What are the differences between fixed and adjustable rate mortgages?

A. If you are opting for adjustable rate of interest your monthly repayment may vary as the interest rate is not fixed. If the market interest rate goes high you will notice rise in your monthly installments and if it goes down your EMI may also be reduced.

In case of fixed rate mortgage, your monthly payment is fixed for the entire loan life and does not get affected by the fluctuation in market rates.

When weighing the advantages and disadvantages of both, it is important to consider how much risk you are willing to assume. For many people, an ARM is the right mortgage choice, particularly if your income is likely to increase in the future or if you only plan on being in the home for 3 to 5 years. On the other hand, if you are looking to put the kids through college or buy a new car in the future, then a fixed rate mortgage is a safer choice.

Q. How do I know if it's best to lock my rate or let it float?

A. Mortgage interest rates are hard to predict as it is as dynamic as stock market. If you are predicting increase in interest rate in near future, you would definitely like to lock as soon as possible. However, locking your interest rate may not do any good if you can't close during the rate lock period. If you think rates might drop while your loan is being processed, take a risk and let your rate "float" instead of locking. It is advisable to discuss about rates with your loan officer as they are most updated source regarding interest rates.

Q. When can I lock my rate?

A. Once you have completed our online application, your loan officer will call you to complete the loan process and discuss your rate lock options. You must provide a property street address in order to lock your rate.

Pre-Approval

Q. Can I apply for a loan before I find a property?

A. If you are in a process of finding property you can get pre-approval for the loan as this will help you to determine how much you can afford to borrow based on your salary, estimated debt and the amount of money you have available to make a down payment and cover your closing costs. It is also an excellent tool for negotiating with real estate agents and sellers, since it lets those involved in the home buying process know that you are financially qualified to purchase a home.

Q. Why should I obtain a pre-approval?

A. It helps you to know exactly about your future finances. You are left with no doubts on the following issues:

• How much you can afford to borrow
• Based on your credit rating, street address what would be your interest rate
• Upfront charges on your loan
• What down payment you can afford to make to your realtor.

Q. What's the difference between getting pre-approved and applying for a mortgage?

A. Pre-approval is just another name to categorize a borrower as financially qualified to buy a property on mortgage. Your real estate agent may ask you for a pre approval letter to ensure your potentiality to buy the property. However, you can not lock in your interest rate until you specify your street address.

Home Equity

Q. What is a Home Equity Loan?

A. A home equity loan is granted against the value of share you possess in your house.

Your equity in the house means the difference between the balance amount on your first mortgage and the present market value of the house.

Home equity loans come in two types, closed end and open end. Both are usually referred to as second mortgages, because they are secured against the value of the property, just like a traditional mortgage. Home equity loans and lines of credit are usually, but not always, for a shorter term than first mortgages. In the United States, it is sometimes possible to deduct home equity loan interest on one's personal income taxes.

Q. What is a Home Equity Line of Credit?

A. A Home Equity Line of Credit allows you to periodically access an account of funds* via various means, using the equity in your current home or property as collateral. This loan is similar to a credit card account in that you are only charged interest on the outstanding balance, and there is usually a credit limit or maximum that you can draw against. For instance, you may have a credit limit of $100,000, but if you only withdraw $5,000 of that, you will only pay interest on that $5,000. The interest rate is usually tied to the Prime Rate with a margin, and may even be below Prime.

You may borrow up to 100% of the equity in your home. Because you have the option to rescind or cancel your loan for up to 3-days following the closing, your money will not be accessible until the end of this 3-day rescission period.

Q. What is the difference between a fixed rate and a variable rate?

A. With a fixed rate loan/line, the interest rate will not change during the term of the loan. With a variable rate, the interest rate will move up or down, according to a pre-selected index, over the term of the loan. Home Equity loans offer a fixed interest rate, and Home Equity Lines of Credit feature a variable rate. Interest rates are based on the amount you borrow and the loan term.

Q. What can I use Home Equity money for?

A. Home equity loans are best taken for the purpose of:

• Home Improvements
• To repay credit card bills
• To repay or consolidate your high interest debts
• To send your child to college

Q. Will the first mortgage affect my home equity loan?

A. No your first mortgage simply determines the balance or equity you have in your home in order to assess the maximum amount that can be given to you against your property.

Q. Is the interest tax deductible?

A. In most cases the interest on home equity loans and lines of credit can be tax deductible. You must consult your tax advisor about your specific situation.

Q. How much can I borrow?

A. Your loan/line amount is determined by taking a percentage (up to 100%) of your home's fair market value and subtracting the balance of any outstanding mortgages on the property. Various home equity lines.

Q. How can I access my Home Equity Line of Credit?

A. You have several convenient options to access your Home Equity Line of Credit. Within six to eight weeks of your loan closing you will receive a package that contains both payment information and checks that will allow you to access your line of credit.

Q. Can I convert a traditional Home Equity Loan to a HELOC?

A. Yes, as long as it has been at least 12 months since the current Home Equity Loan was funded.

Q. If I apply for a mortgage online, where will the closing take place?

A. When you apply for your loan here up to 4 lenders will contact you. Once you have agreed to deal with a particular lender, a loan officer will be assigned to you. The closing of loan normally is arranged at location nearest to your home.

Q. When will I know the exact amount of money I will need at closing?

A. Just to make sure there are no surprises at closing, your closer will contact you a few days before the closing date to review your loan terms. The settlement agent office will also contact you at least 48-24 hours before your closing to tell you the exact amount that you'll need to bring with you.

Q. What's included in closing costs?

A. Closing costs are expenses over and above the price of the property. Closing costs include attorney's fees, taxes, prepaid insurance, points, title insurance and survey fees. Closing costs usually amount to between 2 and 6 percent of your mortgage. A complete list of your closing costs can be found on the HUD 1 Settlement Statement, and your closer will go over your closing cost items with you as well.

Mortgage Insurance

Q. What is Private Mortgage Insurance or PMI?

A. PMI is a type of insurance provided by a private mortgage insurance company that protects the lender. Mortgage insurance is usually required on a conventional loan when your down payment is less than 20%.

Q. How do I pay for mortgage insurance?

A. Mortgage Insurance premiums can be paid annually from an escrow account, paid up-front as a closing cost or financed in your loan amount and paid monthly as part of your mortgage payment.

Q. How can I avoid mortgage insurance?

A. The easiest way to avoid PMI is to make a down payment of at least 20% of the purchase price of the property. However, if you do not have the funds, you may consider a second trust loan, sometimes called a piggyback loan. The most common type of second trust is an 80/10/10, where a down payment of 10% is made, 80% is financed as usual, and the remaining 10% is financed in a second trust at a higher interest rate.

Q. When can I cancel my mortgage insurance?

A. Typically, PMI will no longer be required once your loan balance falls below 80% of the home value. You can reach this 80% level by 1) paying off enough of your loan over time to reduce the principal balance, 2) your home appreciating (increasing in value) enough that your loan balance is less than 80%) a combination of the two.

You should verify that your loan agreement allows for PMI to be cancelled once you reach the 80% loan-to-value ratio. Sometimes, your PMI will be cancelled automatically once you have paid enough; however, we will not know if your house increases in value. You will need to provide us with a certified appraisal of your house in order to verify the current market value.