Question 1

How long is my pre-approval valid?

Accepted Answer

Pre-approvals are valid for 90 days. Updating your pre-approval is quick and easy. Since we already have most of your documentation, we will simply need to obtain updated pay-stubs and bank statements from you and we may also refresh your credit report.

Question 2

What is Loan Processing?

Accepted Answer

Processing a loan means that your loan application and all necessary paperwork is being sent to an Investor for review. Your Loan Processor is the liaison between you and the investor to ensure that all necessary paperwork has been provided, everything is accurate and handles your loan throughout the entire process to ensure a timely closing.

Question 3

What is a Reverse Mortgage?

Accepted Answer

A reverse mortgage is a loan available to homeowners 62 or older who have a good amount of home equity in which they can borrow against to receive a lump sum, monthly payments, or a line of credit to use. Unlike most loans, most reverse mortgages do not require the borrower to make monthly payments on the loan. Instead, the entire balance becomes due if the borrower passes away or sells the home.

Question 4

Should I be prepared to pay anything at close other than the down payment?

Accepted Answer

The simple answer is YES.

Closing costs (which are all fees and costs above and beyond your down payment) are a part of any purchase or refinance. The amount will vary depending on the loan amount that you are applying for, the sales price (for a purchase), and the loan program/interest rate that you select. Most closing costs are not loan related costs, but rather they are 3rd party fees such as: Independent Escrow and Title fees, Homeowner’s Insurance Policy, prorated Property Taxes, County Recording fees, etc. Loan costs are generally limited to your credit report, appraisal, underwriting fee, and occasional costs for property specific searches like a verification that your home is not in a flood zone. Beyond that, if you are paying ‘loan fees’ it is likely because you have selected a rate that comes at a ‘cost’ (also known as ‘points’ or a ‘discount fee’).

At Amerifund, it is our policy is to present clients with 3 rate options: 1 that comes at a cost, 1 that comes at no cost, and 1 that offers a credit from the lender to help offset those other charges that we just described above (sometimes offering a No Cost loan option). Whether you decide to buy down your rate by paying points or choose a rate that offers a lender credit, one thing you can always count on from us is that we will be honest and transparent with you about the amount of funds you should be prepared to bring in at closing. We work diligently to ensure that you not only understand the decisions you make,

Question 5

What is Loan Underwriting?

Accepted Answer

Underwriting means that an underwriter will look at your loan application, credit report, income and other financial information and determine whether you qualify for the home loan that you have applied for.

Question 6

How long does the loan process take?

Accepted Answer

This depends on several factors including the type of loan and contract closing date (purchases). Some loans close as quickly as 21 days while others take longer. The average loan closes in approximately 30 days. For a timeline of a typical loan, see www.amerifund.com/timeline

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