FAQS - GET A HOME LOAN

General faqs about home loans
What happens after I submit my loan application?
Is my information confidential?
How fast can I get a home loan?
Do I need proof of income to qualify for a loan?
Are there any up-front fees to apply?
Can I get a home loan without paying points and / or closing fees?
Do I have to make an office visit to apply for a home loan?
How do I close my loan?
What is the difference between a fixed and adjustable rate loan?
What are points?
What is APR?
Is it a good idea to shop for a home loan on the basis of comparing the applicable points and total closing costs?

Homebuying faqs
How much cash do I need for a down payment?
Should I apply for a loan before I start looking for a property?

Refinancing faqs
What are the advantages of refinancing a home
What are the benefits of consolidating debt by refinancing my mortgage?

Home equity loan faqs
What is a home equity loan?
How do I calculate the amount I have available for a home equity loan?
What are the benefits of taking out a home equity loan?

Debt consolidation loans faqs
What is a debt consolidation loan?
What are the benefits of a debt consolidation loan?

GENERAL FAQS ABOUT HOME LOANS

WHAT HAPPENS AFTER I SUBMIT MY LOAN APPLICATION?
Your information is automatically matched with one of our affiliated lending experts. They have years of experience and will immediately begin the process of finding a home loan right for you.

IS MY INFORMATION CONFIDENTIAL?
Your information is only shared with our affiliated lending experts and will only be used for the purpose of providing you a loan.

HOW FAST CAN I GET A HOME LOAN?
Usually our affiliated lenders can get you pre-approved in as little as thirty minutes. From there it can take as little as 15 working days for your loan to be finalized. Your lender can work at a maximum speed if you are able to provide them with required information in a timely manner.

DO I NEED PROOF OF INCOME TO QUALIFY FOR A LOAN?
Try for a Low-Doc or No-Doc Loan. In recent years banks have been offering loans to people who can't (or don't want to) provide details about their income or their employment. The most popular is called a Stated Income loan because you just "state" how much income you have without offering any proof. It's also called NIV for "No Income Verification" because your income isn't verified. With No Ratio and No Doc loans, you don't even say how much you make. You can think of these as "Don't Ask, Don't Tell" loans. The No Doc is also called NINA, for "No Income & No Asset verification"

ARE THERE ANY UP-FRONT FEES TO APPLY?
Absolutely NOT. Our affiliates will not charge you any up-front fees to apply. You are free to shop, inquire and compare without risk or obligation. We are confident our affiliates will be able to qualify you for a loan that you will be very happy with.

CAN I GET A HOME LOAN WITHOUT PAYING POINTS AND / OR CLOSING FEES?
Yes. Our affiliated lenders have many lending options available that have no points or closing costs. To see if you qualify, call, or email.

DO I HAVE TO MAKE AN OFFICE VISIT TO APPLY FOR A HOME LOAN?
Absolutely NOT. Our affiliated lending experts will arrange to get your qualification and approval process done without having to come to their office. We want to make getting a home loan as easy and stress-free as possible.

HOW DO I CLOSE MY LOAN?
Our lending affiliates prepare all the paperwork. Once your documents are ready to sign, they will schedule a notary public or settlement agent to come to your office or home (when possible). It's that easy.

WHAT IS THE DIFFERENCE BETWEEN A FIXED AND ADJUSTABLE RATE LOAN?
Fixed rate loans have a set interest rate and payments that do not change over the life of the loan. Adjustable rate loans are linked to an index and fluctuate as the index rate changes. Since there is more risk involved with adjustable loans, lenders often reward borrowers with initial discounted interest rates that are lower than fixed rate loans. Adjustable loans are normally recommended for borrowers who do not plan on keeping the loan for the full term, or for borrowers who want to benefit from lower payments during the initial term of the loan.

WHAT ARE POINTS?
Points are a method of reducing the interest rate you would pay on a loan. One point is equivalent to 1% of the loan amount. For example, 2 points on a loan amount of $200,000 would be $4,000. In general, a loan requiring 2 points has a lower interest rate than one with 1 point or 0 points, but you would pay the higher amount of fees from the increased points in your closing costs. Paying points may be a more attractive option for those planning to stay in their new home for longer periods of time, usually at least three years or more. This is because the amount you save with a reduced interest rate increases every year you hold the mortgage.

WHAT IS APR?
APR is the abbreviation for Annual Percentage Rate. The APR is not the interest rate on the loan and the APR is not used to calculate your monthly payments. The APR is the cost of the credit as a yearly rate. Included in the calculations of APR, are the loan amount, interest rate, and certain fees categorized as finance charges.

IS IT A GOOD IDEA TO SHOP FOR A HOME LOAN ON THE BASIS OF COMPARING THE APPLICABLE POINTS AND TOTAL CLOSING COSTS?
There are risks to comparing only the APR when shopping for a home loan. For example, the calculation of APR may vary from lender to lender. Your best comparison is generally evaluating the same interest rate, for the same loan type and term, and then comparing the applicable points and total closing costs.

HOMEBUYING FAQS

HOW MUCH CASH DO I NEED FOR A DOWN PAYMENT?
Our affiliated lending experts have home buying loans that require as little as 3% of the purchase price as a down payment as well as a no down payment options. The down payment amount required does vary by loan type and purchase price, so please discuss the exact down payment requirements with your lender. For a free consultation, please call 1-800-RESCUE-ME, (1-800-737-2836) or fill out the form online.

SHOULD I APPLY FOR A LOAN BEFORE I START LOOKING FOR A PROPERTY?
Yes. By applying and getting pre-approved you will be better prepared to know ahead of time how much you can afford.

REFINANCING FAQS

WHAT ARE THE ADVANTAGES OF REFINANCING A HOME
The advantages of refinancing your home mortgage may include the following:

Stability - Converting an adjustable-rate mortgage to a fixed-rate mortgage means that your     monthly payments will remain at a constant level without surprise increases.

Savings - Reduce your monthly mortgage payments by refinancing a lower interest rate when      rates are low to save money each month.

Tax Deduction - Get a tax deduction on the amount you refinance, even if you take cash out to      use for other purposes. Consult your tax advisor to determine how much of a refinanced      payment may be tax-deductable.

Increased Value - Use additional cash from a refinance to improve your home and increase     its value.

WHAT ARE THE BENEFITS OF CONSOLIDATING DEBT BY REFINANCING MY MORTGAGE?
There can be many benefits to refinancing, including:

Saving money by reducing your current monthly payments.

Increasing your tax deductions by financing other needs with a mortgage (consult your tax     advisor).

Eliminating monthly bill payments, by consolidating all your debt into one monthly mortgage     payment.

HOME EQUITY LOAN FAQS

WHAT IS A HOME EQUITY LOAN?
Home Equity Loan uses a portion of the value of your home, over and above what you owe on your existing mortgage, as security, so you can borrow additional money.

HOW DO I CALCULATE THE AMOUNT I HAVE AVAILABLE FOR A HOME EQUITY LOAN?
To determine the amount available for a home equity loan, take your home's appraised value or tax assessment and multiply by 80% (the loan to value ratio), minus any outstanding liens, that equals the potential loan amount.

For example, let's say you've had a mortgage on your home of $100,000 for 10 years and have paid down the principal to $60,000. In the 10 years you have owned your home, property values in your area have increased and now your home is worth $125,000. In this particular example, you would be able to borrow up to $40,000 using your home as security for the loan.

WHAT ARE THE BENEFITS OF TAKING OUT A HOME EQUITY LOAN?
Taking out a home equity loan allows you to consolidate other debts you may have or use the equity you've built in your home to get cash for other purposes, such as home improvement, financing a child's education, a new car, or other personal needs. In addition, you can realize:

Savings - Consolidating debt from other sources with higher interest rates may mean overall      lower monthly payments.

Tax Deduction - Get a tax deduction on the amount of your home equity loan interest     payments, even if you take cash out to use for other purposes. Consult with your tax advisor     to determine how much interest you can deduct.

Convenience - You can consolidate bills into one monthly payment.

DEBT CONSOLIDATION LOANS FAQS

WHAT IS A DEBT CONSOLIDATION LOAN?
Basically, a debt consolidation loan is a second mortgage or home equity loan used specifically for paying off your debts. For example, instead of having a number of loans and debts outstanding like credit card debts, car loan, and student loan, you get one loan against your house for an amount that pays off all these other debts and loans. You make one payment a month on your home equity loan, instead of making numerous payments, because now all the other debts have been satisfied.

WHAT ARE THE BENEFITS OF A DEBT CONSOLIDATION LOAN?
You save money by converting high interest rates and daily compounded interest on credit card debt, car loans, student loans, outstanding unpaid bills, and any other debt with high interest payments, into a lower interest rate, consolidation loan with simple annual interest.
A fixed rate debt consolidation loan payment schedule can eliminate the “minimum payment”     syndrome that prolongs credit balances as is often the case with credit card debt.
A fixed rate debt consolidation loan has the potential to increase your credit score, by lower     card balances, and also a new tax deduction, because a debt consolidation loan is secured     by a 2nd mortgage lien.
Potentially give you a new tax deduction. A debt consolidation loan is secured by a 2nd     mortgage line.