Most of your Adjustable Rate Mortgages use the 1 Year LIBOR Index and a margin of 2.25%.

The funds needed for the closing are paid to the closing attorney.  Contact the closing agent or attorney for instructions on the payment method and amount.

Third party closing costs consist of closing attorney/agent, title insurance, recording fees, AL tax stamps for both refinances and purchases.  Purchases may also have additional closing costs per the sales contract.  For example, a survey or wood infestation report.  Third party closing costs will be the same no matter what lender you choose.

In addition to closing costs, there will be additional settlement charges referred to as PREPAIDS.  These will be the same no matter what lender you choose.  Prepaids are comprised of your prepaid interest from the day of closing to the first of the month; a years worth of homeowners insurance on a purchase; the pro-ration of property taxes on a purchase; and the setting up of a new escrow account for a purchase or refinance to collect for upcoming property taxes and homeowners insurance when due.

No, on a purchase.  You can, however, ask the seller to pay your closing costs and prepaids.  If your downpayment is 20% or more, the seller can pay up to 6% of the sales price to be applied towards your closing costs and prepaids.  If your down payment is 5% to 19.9%, the limit is 3%.

Pre-approval is based on income, assets, debt ratio, and credit scores.  By completing and submitting an application to us, we can determine the right loan program that fits your own personal needs.  We will then be able to quote you an accurate rate and closing costs based on that program and your credit score.

We can help you determine the sales price range that best fits your budget.

Your income and how we are required to calculate income may not be the same.

There may be credit blemishes on your credit report that need to be addressed and we would have no knowledge of this on a pre-qualification.

This does not change your loan in any way.  Rate and term remain the same.  Only who will service your loan will change.

Currently, from time of application to close is 3 to 4 weeks on FHA, VA and conventional loans.   The Government prohibits any loan closing in less than seven (7) days from date of application.

Foreclosures and short sale purchases may take longer than 30 days due to the seller, not lender procedures.

We will confirm and lock your interest rate with your verbal or written authorization. 

Because we have already purchased money to fund your loan at a specific rate, we cannot go back to the lenders we work with and buy your mortgage at a lower rate.  Think of it like buying a stock.  If you purchased a strock at $45 a share and the price goes to $43 the next day, you cannot call your broker and tell them you want the stock at the lower price.  In essence, you own the rate lock you have agreed to.  In the even that rates drastically drop before your closing, we will contact our investor for a rate change consideration but we cannot guarantee a rate reduction.

It is our objective as your mortgage advisor to assist you in determing an optimal time to lock into an interest rate given our professional assessment.

No one has a crystal ball and the news media always lags behind on mortgage rate news.  We offer free advise and consultation.

A builder, Realtor, Loan Officer, Banker, Broker and Borrower is prohibited from ordering an appraisal or speaking to the assigned appraiser.

When applying for a loan, whether for a purchase or a refinance, the appraisal fee is due at the time of application in order for the appraisal to be ordered.  The appraisal typically costs from $420 to $475 and the fee is paid to the third party vendor chosen by the lender.

For FHA and VA, a wood infestation report will be required.  All active infestation must be treated prior to closing. 

You are required to receive a copy of your appraisal at least 3 days prior to your closing.  However, I will provide you a copy as soon as it becomes available.

Appraisal fees are $420 or $475 and are non-refundable.

Next, your dwelling coverage should be equal to or greater than the loan amount.  If less than the loan amount, the policy must have full replacement cost coverage or a percentage that when added to the dwelling coverage will result to an amount equal to or greater thant he loan amount.

The seller can lower the sales price, do the repairs prior to the closing, pay the contractor for future work at the closing with the repair on the HUD-1 and check payable to the contractor, or pay a portion of the buyer's closing costs and/or prepaids in lieu of a direct payment to the buyer.

There are some lenders that will allow a small escrow at 1 1/2 times the contractor's estimate but this is not always the case.  If there is a possibility of a small escrow, before you lock in, this must be known as you must be locked in with a lender that will allow the escrow.

In January, you can request the county to provide you with your new homestead tax rate, call your lender and ask how you can get your escrows readjusted.

If the county has assessed it as substantially completed, it will be at the non-homestead tax rate for full value.  Therefore, you will have double taxes the first year.

Once you have declared homestead and the new tax year has arrived, you will need to get, in writing, your new tax amount and contact your lender to get your escrows readjusted.

If you are building and can close before October 1, do so! If you close on Oct. 1, you now have double taxes!!!

Talk to your Realtor about this and further advise.

If your loan to value is 80% or less, you have the option of waiving escrows.  All lenders will charge .25% of the loan amount to waive escrows.

You can either pay the .25% at closing (a one time fee) or you can increase your interest rate by 1/8th and have your broker pay it on your behalf by using the Yield Spread Premium received from the lender.

If you are refinancing your primary residence, there is a three day right to cancel.  This means that once you close, you have three days to change your mind.  On the 4th day (Sundays and Holidays are not counted), your loan will fund.

If this is a purchase, a certified bank check made payable to the closing attorney/agent.

Your monthly interest only payment is your loan amount multiplied by your interest rate then divided by 12.

You can make payments toward your principal balance at any time.

An interest only loan is ideal for a commissioned borrower.  On good months, you can increase your mortgage payment to pay down principal and on slow months, you are only required to make your minimum interest only payment.

It is not recommended to never pay toward principal.  Remember interest is paid in arrears and when you go to refinance or sell your home, if you never made any payments toward principal, you will owe more than you borrowered as your accrued interest will be added to your loan balance.

First, if the property you are purchasing is eligible for the USDA Rural Housing Program, you can get 100% financing with no PMI.  It is address specific in a specific geographic area.  You can ask the listing Realtor or go on the USDA Rural Housing website.  There are income limitations for qualifying.  I can help you with USDA mortgages.

Next, you may be eligible for the Alabama Housing program either using bond money (First Step) or getting a FHA loan and a second through Alabama Housing for 3% and you would then only need 1/2% for the down payment.  There are also income limitations for qualification and you will have a non-refundable upfront commitment fee due at time of application.  You will have mortgage insurance.  I will be happy to assist you with your FHA loan. 

Another option with a minimum down payment is a FHA loan.  You only neeed 3.5% down and it can all be gift money.  You will have an upfront mortgage fee of 1.75% of the loan amount financed into your loan AND monthly mortgage insurance at the rate of 1.35% of the loan amount.  The seller can pay up to 6% of the sales price and pay your closing costs and prepaids.  The loan limit is $271,050 including the mortgage insurance.  Minimum credit score is 620.  I will be happy to assist you with your FHA loan.  This is an ideal loan for first time home buyers.

If you are purchasing a HUD foreclosure with the $100 incentive, you can get a FHA loan with just $100 down.  This is for HUD foreclosures only.  Ask you Realtor about HUD owned homes for sale.

The most popular is the Fannie Mae or Freddie Mac conventional/conforming loan with a maximum loan amount of $417,000.  You will need at least a 5% down payment and an excellent credit score.  The 5% must be your money and not gift money.  These loans are my speciality.

And if you are eligible for a VA loan, you do not need a down payment.