good borrower
 
 
Learning Center Daily Rate Advisory Join our Team Loan Status
 
Why LoanGallery?
Direct Lender
Full control of Loan Process
In house Underwriting and Funding
State of the Art technology
 
Calculators
How much will my payments be?
Should I Refinance
Rent vs. Buy
Estimate your Tax Savings
 
More Information?
Our Loan Process
What documents do I need?
State Licensing
Privacy Policy
Security

 

 
 
General Loan Questions
 
Interest Rates

How do I know what my loan rate will be?

What are points and how many do I have to pay?

What is my loan rate and when is it confirmed?

When can I lock my interest rate?

What is pre-paid interest?

What is the difference between the interest rate and the APR?

 
Loan Qualification

How do I qualify for a loan?

I don't have much money for down payment. Can I still get a loan?

What is a home equity line of credit?

 
Application Process

What kind of documentation will I need to provide to the lender for verification?

Can I apply for a purchase loan before I find a property?

On a purchase loan, is there someone who will work with my Realtor?

Is there any cost to apply?

Do I have to have an impound account?

What is a "cash-out" option?

Can I change my application after I've submitted it?

When do I order my appraisal?

What is hazard insurance?

What is the rescission period?

How quickly can I close my loan?

 
Appraisal

How do I calculate the value of my property?

What percentage of my home's appraised value can I borrow?

 
Taxes and Amortization

Do I get a tax advantage from having a mortgage?

Can I make extra principal payments so I can pay off the loan more quickly?

 
 

back to top
How do I know what my loan rate will be?

Rates vary primarily based on the type and purpose of the loan, credit history and income, loan amount, value of the property, and the number of points you are willing to pay.

back to top
What are points and how many do I have to pay?
Generally speaking, points are fees added on to loans. One point is equal to 1% of your loan amount. Points are paid when the loan closes, not at the time you apply for the loan.

back to top
What is my loan rate and when is it confirmed?
Interest rates fluctuate daily, so the rates available when you apply may be different than the rates available when you decide to lock your interest rate. By locking, you protect your selected rate for a stated period regardless of market fluctuation. Once your rate is locked, you will receive a lock confirmation stating the rate and terms that you have protected.

back to top
When can I lock my interest rate?
Your loan consultant will review your application and credit information in order to determine whether you can request a rate lock. Once your eligiblity is confirmed, your loan consultant will contact you so that you can lock at your convenience. Please note that you must specify a property address in order to lock your interest rate.

back to top
What is pre-paid interest?
This amount represents the interest that accrues between the day your loan closes and the last day of that month. It is added to your closing costs. Your interest will be included in your regular monthly payments after this one-time pre-payment.

back to top
What is the difference between the interest rate and the APR?
The interest rate is the cost to borrow the lender's money. The APR represents the total cost of the

back to top
How do I qualify for a loan?
Lenders use specific criteria to determine if you qualify and the amount you can qualify for. The basic rule to follow with our loan programs is the percentage of your debts agains your income.  Your monthly debt payments should be less than or equal to 50 % of your monthly income.  if you are a salaried borrower we will use your gross income. If you are a self employed borrower, we will use your net income

back to top
I don't have much money for down payment. Can I still get a loan?
At this time the minimum requirement we have is 10 %.

back to top
What is a home equity line of credit?
A home equity line of credit is a form of revolving credit in which your home is used as collateral. Home equity lines of credit feature a variable interest rate and a draw period.

back to top
What kind of documentation will I need to provide to the lender for verification?
Our streamlined loan process minimizes the number of documents required. The actual documents you need to provide will vary based on your situation. Your Loan Specialist  will help you gather the information you need to process your loan efficiently. You can find a basic guideline here.

back to top
Can I apply for a purchase loan before I find a property?
Yes! In fact if you are in the process of looking for a property we recommend you apply for pre-approval. The pre-approval process involves a review of your financial situation to determine if you are likely to qualify based on the estimated loan amount and purchase price information that you provide in your application. Pre-approval gives you greater flexibility and leverage while you conduct your home search. Please note that we cannot lock your rate until you specify a property address.

back to top
On a purchase loan, is there someone who will work with my Realtor?
Yes. Each loan is assigned to one loan consultant who works with you until you close and he or she will be able to assist you or your Realtor at any time.

back to top
Is there any cost to apply?
No! There is no up-front fee to submit an application and begin the loan process.

back to top
Do I have to have an impound account?
Impound accounts are required by lenders in most states, particularly when the amount you are borrowing represents a large percentage of the property's market value. When an impound account is required, you can often waive the use of an impound account for the hazard/homeowner's insurance and property taxes for a fee.

If you choose this route, you will always have to prepay your mortgage insurance payments (if any) into an impound account. In most states we can help you determine if you will need an impound account once you submit a loan application.

You cannot waive the use of an impound account if your loan-to-value ratio (loan amount divided by property value) is greater than 90%.

back to top
What is a "cash-out" option?
If the equity you have earned in your property qualifies, you can refinance with a loan amount greater than your current mortgage and keep the difference! Use the cash for home improvement, debt consolidation, or whatever you desire.

back to top
Can I change my application after I've submitted it?
Yes. Changes can be made at any time until you lock your interest rate, but be aware that any changes may delay the closing date, your approval or affect your loan costs.

back to top
When do I order my appraisal?
We will order your appraisal as soon as you are ready. All that is required is your credit card number and your consent to get the process rolling. We recommend that the appraisal be ordered early in the process in order to avoid delays.

back to top
What is hazard insurance?
Hazard insurance protects homeowners against property damage and is required by lenders before you buy or refinance a home. Hazard insurance shields you against property damages caused by a fire or severe storm and should cover the cost of rebuilding your home. Generally you have to confirm at closing that you've secured one year of hazard insurance coverage.

back to top
What is the rescission period?
The rescission period is a waiting period of three days (excluding Sundays and legal holidays) between signing your loan papers and closing your loan. This period allows you to reconsider and perhaps void the transaction. Federal law requires it for all owner-occupied refinances.

back to top
How quickly can I close my loan?
The time needed to close your loan depends on a variety of factors, including the time needed to obtain required documentation and when you can sign your loan documents. Many loans close within 20 days of application and most loans close within 7 days of receiving a final approval.

back to top
How do I calculate the value of my property?
Since a mortgage is a loan secured by a piece of real property, a crucial factor is the correct value of the property in question. Property value can be determined in a number of ways:
- The market value of the property -- what a buyer will pay for it and what other comparable properties (comps) in the neighborhood have recently sold for.
- The appraised value of the property -- what a trained and licensed professional deems the property to be worth based on an inspection, comps, and a thorough analysis of the property and neighborhood.
Additionally, the appraiser estimates the replacement value of the property, meaning the cost to build a house of similar size and construction on a vacant lot. The appraiser reduces this cost by an age factor to take into account deterioration and depreciation.

back to top
What percentage of my home's appraised value can I borrow?
The amount that you can borrow varies based on a variety of factors, but most borrowers can borrow at least 80% of their home's value (when all mortgages are totaled) and some can borrow up to 100%. At this time,  Goodborrower.com will let you borrower as high as 90% of your properties Value., although there are limits to loan amounts. Your loan specialist will give you all of your options.

back to top
Do I get a tax advantage from having a mortgage?
You should consult a tax attorney or accountant for specific details, but interest on a mortgage is usually tax deductible. Interest on credit cards or automobile loans is not normally tax deductible.

back to top
Can I make extra principal payments so I can pay off the loan more quickly?
Depending on the loan and what your state permits, it is feasible for you to make extra payments on the loan. Extra payments will affect the amortization schedule over the remaining term of your loan.


Home | Apply Now | Calculators | Security | | Disclosures
State Licensing | About us | Contact us
Copyright © 2014 LoanGallery. All rights reserved.
Privacy Policy | Equal Housing Opportunity Lender