FAQ'S

Q:What is your rate?

Q:What items will I need for pre-approval?

This is a simple yet difficult question to answer.
First, mortgage rates change on a daily basis and
sometimes multiple times a day. Mortgage rates are
typically determined by bond activity,specifically
Mortgage Backed Securities. The daily trading and
movement of Mortgage Backed Securities is one of
the reasons quoting an interest rate can be difficult.

Additionally, there are more than 20 criteria that will
affect an interest rate. Items such as credit score, loan
amount, lender credits, occupancy type, loan to value,
and other factors determine a person’s interest rate.
An accurate interest rate quote comes after the
mortgage consultation and pre-approval are
completed,but may be subject to change if you do
not lock your rate immediately.

Exact items will vary from transaction to transaction.
You will receive a specific list of documents needed
for your pre-approval.

  • Standard Required Documentation:

  • Last 30 days of paystubs

  • 1099s and tax returnsLast 2 years of W-2s/

  • tatements60 days of bank/asset s

  • Fully executed sales contacts

  • Copy of Earnest Money deposit check

If you are self-employed, the previous two years
of business tax returns will be required as well.There
is additional documentation if borrowers are not U.S.
citizens, gift money is being used for down payments,
or the borrower(s) own multiple properties.

 

In accordance with federal regulations, consumers are not required to provide verifying documentation until after they have submitted an application,received a Loan Estimate, and stated an intent to proceed with the transaction. 

Q:Why do I see lower rates on the internet?

Simply put, mortgage interest rates quoted on websites are nothing more than advertisements. They usually come with some sort of asterisk(*) or disclaimers, and are designed to get
potential clients to call. Many times,these companies
are only able to offer their advertised rates to specific
consumers, and charge additional fees to do so.

Q:What items will I need for pre-approval?

Simply put, mortgage interest rates quoted on websites are nothing more than advertisements. They usually come with some sort of asterisk(*) or disclaimers, and are designed to get
potential clients to call. Many times,these companies
are only able to offer their advertised rates to specific
consumers, and charge additional fees to do so.

Q: What are discount points and should I pay them?

One discount point equals 1% of the loan amount. You
should only pay discount points in exchange for a lower
interest rate. The IRS deems a discount point to be pre-paid
mortgage interest, which maybe tax deductible. Before
deciding to pay points, you should ask a Adeline Mortgage
Team professional to run a“cost-to-break-even”, which is the
time it will take to recoup the initial investment.

In some cases, you may pay a loan origination fee in
exchange for a lower rate, much like a discount point.
Additionally,certain niche or portfolio products are priced
with mandatory discount points.

Q:Why do you request additional documentation?

Our team provides a closing guarantee. To ensure we
have all the needed information to guarantee your
closing, we ask for documents to verify your
information. You are not required to provide
documentation until you have received a Loan
Estimate, but if you choose to use our team for your
mortgage, we would request the documents later in
the process anyway. As an option to you, we request
the documents up front so you can choose to provide
them sooner rather than later. This is optional, but it
may help you to achieve a smoother loan process.

Q:What is the difference between discount points and
origination fees?

Q:What is the difference between discount points and
origination fees?

Discount points are fees that allow you to buy down your
interest rate, therefore lowering your monthly payment.You
can elect to pay more in cash to close to pay a lesser rate
over the life of your loan. We can review amortization tables
with you to determine if it would make sense to do this,and
what your“break even” point will be. Your break even point
would be the amount of time you would need to live in the
property to recoup the cost of paying down your interest
rate. Origination fees are used to cover overhead costs for
the loan.

You get to choose your own homeowner’s insurance
provider. Insurance decisions are made after you are under
contract and your loan application is completed, but should
be done at least 10 days before your closing date.
Adeline Mortgage loan professionals can refer an insurance
agent, if you would like a recommendation. With most
purchase transactions, the homeowner’s insurance premium
is paid at closing as a part of your total closing costs.

Q:What is the difference between discount points and
origination fees?

Q:What is the difference between discount points and
origination fees?

Closing costs consist of various charges associated
with the mortgage transaction that are above and beyond
the purchase price of the property or loan amount. These
costs may be paid by the buyer or the seller and are typically
paid at the time of loan closing. Some examples of closing
costs include title work,appraisals,inspections,credit
reports, recording fees,origination fees and points,and
reserves for taxes and insurance. You will receive a Loan
Estimate of your closing costs with in three business days of
application to help you plan. Additionally, at least three
business days be fore closing, you will receive an initial
Closing Disclosure, which is a statement of your final loan
terms or closing costs. Also, should any of your terms or
closing costs change after your initial Closing Disclosure is
delivered, you will receive a revised Closing Disclosure. Some
changes, such as a change to your loan product or a change
that causes the APR to become inaccurate based on
regulatory legal limits, will require a revised Closing
Disclosure received at or before closing.

APR stands for Annual Percentage Rate, and is usually
associated with the interest rate for your mortgage loan.
The APR is the cost of credit expressed as an annual rate.
Because there are closing fees associated with obtaining a
mortgage loan. The APR almost always will be higher than
the actual interest rate. APR takes into account some of
the borrower’s costs for getting the loan, including points,
most loan fees,and mortgage insurance can be used
as an accurate tool for comparing rates from different
lenders.

Q: How long will it take to get pre-approve.

Once we have all of your documents. it will take 24 - 48hrs to review your documents and determine what options are available to you (We can provide you with a secured portal for your documents, please let us know if you need one). We will set up a time to go over everything we reviewed with you and your loan options, including rates, terms, payments and cost. Your pre-approval letter is good for 3 months. Once 3 months is up, you can contact us to provide you with an update pre-approval that will not require more documents. We will walk you though the process once you are in contract, we will revisit everything and prepare you for the purchase. 

ADDRESS

1601 S. De Anza Blvd. Suite 260 Cupertino CA 95014  

CONTACT

Tel: (408)645-7002x102

Email:  info@adelineteam.com

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