Frequently Asked Questions
Home financing is a world unto itself. If you are buying your first home, or just have not been in the housing market for a while, here are some common questions many people ask.
We hope that these questions answer some of yours.
- How can I compare the rates quoted by different lenders?
- What are "points"?
- Is a "no cost loan" really no cost?
- What does a "rate lock" mean?
- What does it mean to "qualify" for a loan?
- What is the difference between pre-qualification and pre-approval?
- What is a FICO score?
- If I have some credit problems in the past, can I still get a home loan?
- What does "cash to close" mean?
- What is mortgage insurance? How is it different from homeowner’s insurance?
- What is title insurance? Why do I need it?
- How do I know whether I need flood insurance?
- What is included in my monthly payment?
- What is an escrow account? Is that different from the escrow I had when I bought my house?
- What happens when my loan is "sold"?
- Is there a pre-payment penalty on my loan?
- If I pay extra each month, how much quicker can I pay off my loan?
- What is the benefit of a "bi-weekly" mortgage?
- Do I have to have a property to apply for a loan?
- What paperwork does the lender need to process the application?