Trying to understand everything involved in the mortgage process can be overwhelming for any new buyer. So, to help you get started Jason Hunter has listed common frequently asked mortgage questions.
Question #1: What Is The Annual Percentage Rate?
The Annual Percentage Rate (APR) is the amount of money the borrower owes every year for their Tampa mortgage. The APR is generally expressed as a percentage, which illustrates the actual cost of funds borrowed over the loans amortization period.
Question #2: What Is The Difference Between Pre-Qualification And Pre-Approval?
Pre-qualification is referred to as “step 1” in the mortgage application process. Here your Tampa Florida area mortgage lender will review your finances and let you know what type of loan you can afford.
Pre-approval is a more in-depth process, where your lender confirms your affordability by running a credit check on your financial history and reviews all pertinent financial documentation.
Question #3: Do I Have To Sign The Disclosure Statement?
The disclosure statement is supplied by your local lender and signing it states that the terms and conditions on this document were given to you in an appropriate amount of time.
Question #4: What Does It Mean To Lock In Your Interest Rate?
Locking in a rate is where you accept a specific rate that is offered by your lender and that amount will not fluctuate when you close on your loan.
Question #5: What Is The Target Rate?
This is your original optimal rate regarding the interest on your home loan.
Question #6: If I Sign My Loan Application Does That Mean I Have To Work With You?
You are not required to work with us if you have signed your loan application form. Your only commitment is when you sign for the funds and all the closing documentation. This allows you to shop around and compare different rates with other Tampa Florida area mortgage lenders.
Question #7: What Are Closing Costs?
These are additional costs that are owed before your loan application is complete. These include, but are not limited to: origination fee, appraisal costs, attorney fees, title registration, home inspection, down payment, and discount points.
Question #8: What is Private Mortgage Insurance?
Also referred to as PMI, is an insurance that is paid for by the borrower to protect the lender in case of any defaults on the mortgage. You will be required to obtain PMI if you pay less than 20% of your down payment.
Question #9: How Do Interest Rates Change?
Interest rates can increase or decrease daily or over a long period of time. It all depends on economic factors, such as how well the local economy is doing. Talk with your Tampa mortgage lender to see what the current rates are and to lock in a rate.
Question #10: Can I Use Online Bank Statements?
Yes, but they have to include your name, the bank’s logo, and your account number.
For more information on frequently asked questions, please contact your trusted Tampa Florida Area Mortgage Lender Jason Hunter at 813-230-9428.