The annual percentage rate is a comparison tool that reflects the total cost of your mortgage loan expressed in terms of annual interest rate. The APR reflects two factors; the interest rate on your mortgage loan and the other applicable costs of financing, such as points, fees, and certain closing costs. Your monthly payment is calculated based on the mortgage note rate, not the APR. The APR will be higher than your interest rate, especially if you are paying points.

The Good Faith Estimate (GFE) outlines the closing costs we expect you will incur based on our experience in your area. It covers lender-based fees, title, attorney, and state mandated fees, if applicable. Due to the fact that this is an estimate, we cannot guarantee the figures, but we have made every attempt to be accurate.

Final closing costs are determined by combining the actual closing fees charged by the title company, lender costs (appraisal fee, credit report, etc), and any funds set aside for taxes, homeowners insurance, and private mortgage insurance (PMI). We arrive at these figures based on our experience in closing loans in your area. We make every effort to ensure that the figures provided are up-to-date, available, and accurate.

The Truth in Lending (TIL) statement provides detailed information about the interest charges that you will incur. It defines the cost of your loan expressed as the APR, the amount of interest you’ll pay in dollars, and the total of your payments if you make the minimum payment required over the life of the loan.

Private Mortgage Insurance (PMI) is required when he amount of the down-payment or equity in the house is less than 20% of the Sales Price or Appraised Value. Although PMI does not protect the borrower, it protects the lender in the event the borrower goes into default and foreclosure.

To provide you with the best service, we would like to have your package back to us within 3-4 days from the time you receive it. If you are closing within 30 days, it is important that you send your package back to us within 24 hours.

Absolutely. Just cross out the incorrect information, and write in the correct information. Once we receive your package, the loan processor will confirm the changes with and prepare a final application for you to sign at closing.