Frequently Asked Questions

What information will I need when I apply to buy a home?

What information will I need to refinance my home?

Iíve found a house I want to buy, now what?

How quickly can I be pre-qualified?

What are my responsibilities in the buying process?

Are pre-approval and pre-qualification the same?

How quickly can I be approved for a home loan?

How long will the loan process take?

What is private mortgage insurance (PMI)?

How can I have PMI removed from my loan?

What are closing costs?

What are prepaids?

What is escrowed at closing?




Iíve found a house now what?

The first step would be to contact a Loan Officer to be pre-qualified or pre-approved for a mortgage loan to purchase the home. Then contact your Realtor to make an offer to purchase, hopefully concluding with an accepted contract to purchase.

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How quickly can I be pre-qualified?

Generally pre-qualifications can be handled in just a few minutes. All it takes is a phone call to an experienced loan officer. You will need to provide information on your income, deposits, loan, and credit card payments.

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What are my responsibilities in the buying process?

You are responsible for performing the terms of the sales contract including:

  • if the contract calls for a home inspection, order and review the inspection within the time frames in the sales contract
  • apply for a loan in a timely manner
  • schedule your closing with an attorney
  • provide requested loan information in a timely manner
  • obtain Homeowners Insurance for your new home
  • if required, obtain a termite inspection
  • bring certified funds to closing for down payment and closing costs

Your Realtor and Loan Officer will assist you in handling these items, but it is important not to procrastinate!

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Are pre-approval and pre-qualification the same?

Pre-approval and pre-qualification are similar but are different procedures. When a loan officer pre-qualifies you for a mortgage, they are using information provided by you, which is not verified. If you provide accurate information to your loan officer your pre-qualification should turn into a loan approval when you apply for the loan.

A pre-approval is a commitment to extend credit to you. After reviewing your credit history and verifying your employment and financial information, you are approved for a loan subject to selecting a home within the approved price range and an acceptable appraisal on the home.

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How long will the loan process take?

The loan process from application to closing is usually completed in 2-4 weeks, depending upon:

  • How well prepared you are when you apply
  • The amount of information that must be collected through third parties, employers and banks
  • When the appraiser is allowed to inspect the home
  • Obtaining title information from your attorney
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