Mortgage FAQs

Ryan Nordby
Coldwell Banker Home Loans

1.888.281.1032 phone
916.600.0880 mobile
ryannordby@yahoo.com e-mail

7/3/2009

Mortgage FAQs

Here is a collection of frequently asked questions that have been put together to help you in buying or selling a home. If you have any other questions, not listed here, feel free to call or send an e-mail.

Credit

By clicking on any of the questions below, you may view the answer.

What is a lock in?

What is underwriting?

What is PITI and what does it stand for?

What is a gift letter?

What does Prepaid Interest mean?

What does the origination fee cover?

Why is the Annual Percentage Rate (APR) on the Truth in Lending Disclosure higher than the rate shown on my note, which is the rate I thought I chose?

Should discount points be paid to lower (buy down) an interest rate?

How long does the loan process take?

What is an escrow account?

Are lenders limited in the amount of escrow funds they can collect from borrowers?

Can I pay my own taxes and insurance?

What do I do if I receive a tax statement?

Why did my mortgage payment amount change?

What is an ARM loan?

What benefits do I receive from private mortgage insurance?

How is interest calculated on a mortgage loan?

Why does the title have to be cleared before I can get a mortgage?

How much time will it take to close my loan (sign the loan documents)?

What are the benefits of doing a first and second lien conbination?

What is preapproval or prequalification?

How can I avoid private mortgage insurance?

What is my credit score and how is it calculated?

Is there a minimum credit score?

Must I use the mortgage company that my builder directs me to?