Sam Coleman

Mortgage Update

Home Loan Specialists, Inc.

After you officially apply for a mortgage you will receive a Truth-In Lending (TIL) statement and a Good Faith Estimate (GFE). YOU NEED TO SIGN AND RETURN these document to my office along with the other paperwork that you will find in our Post Application Package. To assist you in understanding the terms used in this paperwork I provide you the following explanations/definitions. Call for specifics.

1)          Good Faith Estimate (GFE) This is an estimate based on available information for the costs and rates which might apply to your mortgage loan. These  numbers are not perfect. When you close your loan you will receive an accurate GFI.

2) Annual Percentage Rate (APR):  This is the true cost of borrowing expressed as a percentage. This rate includes the total finance charges paid over the life of the loan. This includes origination fees, private mortgage insurance (PMI) premiums and the interest portion of the mortgage payments. THE APR IS NOT THE MORTGAGE NOTE RATE. The APR is generally higher than the note rate because of the inclusion of closing costs and PMI etc.

3) Finance Charge: This is the cost of credit expressed in dollars. It represents the interest and private mortgage insurance premiums paid over the life of the mortgage and fees paid at the time of closing.

4) Amount Financed: This is the loan amount minus the prepaid charges (such as origination fees, daily interest, first year private mortgage insurance premium and closing fees.) The amount financed is generally lower than the actual loan amount because it represents the NET figure.

5) Total Of Payments: This figure represents the total amount the borrower will pay if the minimum required payments are made for the entire term of the loan. This includes principal and interest and private mortgage insurance premiums, but does no include payments for real estate taxes or homeowners insurance premiums.

6) Prepayment: If the loan is paid off early, finance charges are not refunded to the borrower. Interest is always charged for the period of time in which the money was loaned. Any points or other finance charges the borrower pays at closing and the interest paid on the loan are not refundable at the time of loan payoff.

Your post application package will also include a variety of additional disclosures required by law. I will go over this paper work with you if you have questions. Several forms relate to equal or fair housing while some forms explain that you are allowed a copy of the appraisal or that you will be informed if the desired property is in, or not in, a flood zone.

More Application Info

After the application is completed it is time to document your information. This process may require you to provide proof of your employment history, income and asset verification, rent or mortgage verification etc.  You may need to provide W-2's or tax information. A property appraisal is ordered for most purchase deals but it is not always required in certain refinance situations. Title work is always needed.

Underwriting determines how much documentation is required for each approved loan. The information is then comfirmed prior to closing.  

Pre-Qualify For Free!

Call Sam Direct

1-866-SAM-4-YOU

(1-866-726-4968)

e-mail: sam4you@hlsinc.us

"It Is Always Alright To Do The Right Thing!"

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Copyright © 2008 Sam Coleman