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More Questions? Call 1-800-676-6276 |
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Where can I get information on rates?
To ask about current rates and get assistance with a new mortgage question, please call us at 1-800-846-0039.
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How much down payment is typically required for a home loan?
Minimum down payment can be as low as 0%, depending on the mortgage program that you select. Keep in mind that if you put less than 20% down, your transaction may be subject to mortgage insurance.
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Should I find a home first, or apply for a mortgage?
We recommend that you apply for your mortgage first; then you’ll know exactly what you can afford. Your Citizens Bank mortgage loan originator will help you determine the total amount of mortgage and your estimated monthly payments. Mortgage approval is free, and only takes a few minutes; you can complete the process online. When you know how much house you can afford, the home-buying process is much simpler, and you’ll have confidence when it comes to negotiating.
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Can I apply for a new mortgage loan before I’ve sold my current home?
Yes, you can apply for a new mortgage loan before selling the home in which you currently reside. Keep in mind that your income and debt levels will be factored into any agreements, and you may need to sell your current home before you can close on your new home. We do offer Bridge Financing for those transitioning between two homes.
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What’s the difference between the Annual Percentage Rate (APR) and the interest rate?
The annual percentage rate, or APR, is intended to reflect the total cost of your mortgage loan. To calculate the APR, lenders consider the interest rate on your mortgage loan, the term of the loan, and other loan fees such as closing costs, points, etc. Your monthly payment is calculated based on the mortgage note rate, not the APR. The APR will be higher than your interest rate, especially if you are paying any points.
To be used as a valid evaluation tool, the APR must be loan specific. The actual APR will show up on the Truth-in-Lending statement that you will see once you apply.
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Can I be pre-approved for a loan before I’ve found a property?
Yes; in fact, we encourage you to get pre-approval prior to beginning your house hunt. There are many advantages to pre-approval:
- By getting approved now, you will know exactly what you qualify for before you begin shopping.
- Realtors and sellers know that you’re a serious buyer when you’ve already arranged financing.
- Should you be competing with other buyers for a property, pre-approval is strongly in your favor.
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What is factored in to your approval process?
We will look at your current income, debt, and credit history in order to approve you and determine the amount for which you qualify. Once you find a property, and sign a sales agreement, we can continue processing your loan.
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Why is an appraisal necessary? Can I use the tax value of the home?
An appraisal determines the current market value of your home using similar homes in your area that have recently been sold. Tax values can sometimes be higher or lower, and may not reflect the actual appraised value of the home. A current appraisal is necessary for the lender to justify the loan amount you've requested and is required by secondary investors. Appraisals are in no way a guarantee of the value of your home.
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What is a Good Faith Estimate (GFE)?
Required by federal law, the Good Faith Estimate (GFE) is a written list of the estimated closing costs associated with your mortgage transaction, including lender's charges along with the local closing agent's charges and fees. It also includes estimated amounts for real estate property taxes and homeowner's insurance.
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What documents will I need to provide to complete my loan transaction?
While not comprehensive, this list provides a good idea of the types of documents that you should be prepared to provide to a loan officer in order to receive pre-approval:
- A fully executed agreement of sale for the property being purchased
- Financial statements for bank and brokerage accounts
- A HUD-1 settlement statement on the property you are selling
- Copy of your most recent pay stub
- Previous W2s
- Copy of a rental lease
- Form 4506
- Homeowner's insurance policy
- Flood insurance policy
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What is title insurance? Why is it required?
Title insurance protects the lender and you against losses from disputes over the title of a property. It ensures against the possibility that there may be an unknown lien or any discrepancies in ownership.
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More Questions? Call 1-800-676-6276 |