Levittown PA Mortgage Lender

Whether you’re ready to buy a home, considering a refinance, or simply weighing your mortgage options, arming yourself with the right questions will benefit you greatly in the long run. Before you sit down to speak with your mortgage banker, take note of these 10 questions to enhance your lending knowledge and prepare yourself. Find questions 1-5 below, and a link to questions 6-10 at the end of this blog!

1. Which Type of Loan Is Best for Me?

There are a number of loan options available, and you’ll want to discuss them with your mortgage banker before making a decision. One of the main decisions you’ll need to make is whether an adjustable-rate mortgage or fixed-rate mortgage better suits your situation and needs. A great resource for weighing your options in this area is our Fixed Rate or Adjustable? decision-making guide. Beyond the rate-type you choose, you’ll also want to discuss the effect different loan terms (i.e. 30-year, 20-year, 15-year) will have on your larger financial picture with you lender.

2. What Documents Are Required?

Throughout the loan process, you’ll want to be prepared to fulfill documentation requests from several members of a lending team, including the loan processors, mortgage banker, mortgage planner, and underwriter or your loan. The documents required will vary depending on the loan for which you’re applying; however, the most common documents include pay stubs, bank statements, and tax returns. For a full breakdown of what’s required, check out our free checklists of the documents required for a purchase loan, refinance, and during a divorce.

3. What Costs Are Involved?

Prior to a loan closing, you will be required to pay some costs up-front. These may include appraisal fees, credit report fees, and application fees. Discuss all these costs with your mortgage banker to determine how much money will be required prior to the loan being approved. You’ll also want to discuss any funds that will be required to complete the loan closing. Looking for some more background on closing costs? Check out our closing costs page!

4. How Does The Appraisal Process Work?

Lenders require a property appraisal as an objective way to estimate the fair market value of a property for both a home purchase and mortgage refinance. Typically, a lender will maintain a list of reliable and reputable professional appraisers who are experts in the local market, and supply those lists to the mortgage bankers. In turn, those mortgage bankers will assign one of these appraisers to review the property. Bearing in mind this established procedure, lenders generally save the borrower time by arranging for the appraiser on the borrower’s behalf.

5. When Will I Get a Loan Estimate (LE)?

If you’ve bought a home before, you may be familiar with the term Good Faith Estimate (GFE). In October of last year, Loan Estimates replaced GFEs as an easier-to-understand document because of new lending rules called TRID (TILA-RESPA Integrated Disclosure). A Loan Estimate is a three-page document that a lender must provide within three days of receiving your application. It will include estimated interest, estimated monthly payment, and estimated closing cost. It is important to bear in mind that a Loan Estimate is just that: an estimate. Actual costs of your loan may be slightly higher or lower.

6. How Long Until We Can Close Our Loan?

Loan closing times vary and depend on number of factors. Closing dates may be delayed if there are missing documents or other underwriting delays; on the other hand, a loan may close sooner than expected if all requests and requirements are attended to right away. Speak with your mortgage banker to get an estimate of when your loan will close.

7. Where Will My Loan Be Processed & Underwritten?

After documents are submitted to apply for a loan, the loan is then processed and underwritten (wondering what an underwriter does? Click here). Depending on which lender you choose, where these important steps in the loan process occur may vary: some lenders outsource processing and underwriting to satellite offices, which can present hurdles in communication and efficiency. At Apex, all of our loans are processed and underwritten in-house, and our mortgage bankers are in close communication with these professionals throughout the process.

8. Will an Attorney Need to Be Present at Closing?

An attorney puts together the contract for closing beforehand, so it is normal for homebuyers to attend closing without one. However, if you feel more comfortable having an attorney present, discuss this with your mortgage banker to ensure the attorney receives the date, time, and location of closing.

9. Should I Lock in My Interest Rate?

Generally speaking, it is a good idea to lock in an interest rate at some point in the loan process, although you will want to consult with a mortgage banker as to when. The mortgage market is constantly changing, and even small changes in rate can have a huge monetary impact over the life of your loan. At Apex, we have a unique Auto-Lock service that allows our customers to target a specific rate from a vast selection of offerings on the market, and then lock it in when it becomes available. You should also bear in mind that when you lock in a rate, you may not be able to take advantage of a drop in rate should it occur..

10. When Will I Get A Closing Disclosure?

As a borrower, you are entitled to review your Closing Disclosure prior to closing. Your mortgage banker will make arrangements with you to provide the disclosure 3 business days prior to closing for your review. This will give you an opportunity to review loan terms, interest rate, and the costs of the loan.

You’ve Seen All 10 Questions! Still Seeking Answers? Contact Bill Mervin Team

Helpful local public sites in Levittown, PA:

• Levittown – Middletown Township
• Levittown Chamber of Commerce
• Levittown School District