Background image for Tidewater Home Funding 41552

Common Mortgage Questions

Have a question about the homebuying or refinancing process? Our team compiled a list of common questions that we've received over the years. Don't see a question on your mind listed below? Contact our team, we'd be happy to help.

 

CONTACT

Did You Know 1

1. What is the interest rate on this mortgage?
Ask for the lender's loan estimate, which breaks down the interest rate and fees. It will include the annual percentage rate, or APR, which accounts for the interest rate, points, fees and other charges you will pay for a mortgage.

2. How many discount and origination points will I pay?
Lenders may charge discount points, origination points or both. One point is equal to 1% of the loan amount. For example, if you get a $162,000 mortgage and pay 1 discount point, you'll pay a fee of $1,620, because that's 1% of $162,000. (Divide the loan amount by 100 to calculate 1%.)

3. What are the closing costs?
Borrowers pay fees at closing for services provided by the lender and other parties, such as title companies. Lenders are required to provide a written estimate of these costs within 3 days of receiving a loan application.

4. When can I lock the interest rate, and what will it cost me to do so?
Interest rates might fluctuate between the time you apply for a mortgage and closing. To prevent getting a higher rate, you can lock the rate, and even the points, for a specified period. Fees may apply, but not always. To keep tabs on rate movements, read Bankrate's Rate Trend Index.

5. Is there a prepayment penalty on this loan?
Some lenders charge a penalty if you prepay on the mortgage. Some apply only when you refinance or reduce the principal balance by more than a certain percentage. Find out the penalty specifics and see if your lender will lower the rate if you choose a loan with a penalty.

6. What is the minimum down payment required for this loan?
A bigger down payment might mean a lower interest rate and better loan terms. With a down payment of less than 20%, you will probably have to get mortgage insurance, increasing your monthly payment.

7. What are the qualifying guidelines for this loan?
Ask about requirements relating to your income, employment, assets, liabilities and credit history. Qualifications for first-time homebuyer programs, Veterans Affairs loans and other government-sponsored mortgages are typically less stringent.

8. What documents will I have to provide?
Lenders require proof of income and assets, including bank statements, tax returns, W-2 statements and recent pay stubs. More may be needed to show your down payment and ability to pay closing costs.

9. How long will it take to process my loan application?
Depending on how busy the lender is, it can take as little as 2 weeks or as long as 60 days. Be patient and forward any requested documents quickly to speed up the process.

10. What might delay approval of my loan?
A job change, an increase or decrease in salary, a new debt, a change in your credit history or change in marital status could delay your loan approval. The best way to avoid that is to put your financial life in a holding pattern until you reach the closing table.

 

 

 

The pre-approval process is much more complete than pre-qualification. For pre-qualification, the loan officer asks you a few questions and provides you with a pre-qual letter. Pre-approval includes all the steps of a full approval, except for the appraisal and title search. Pre-approval can put you in a better negotiating position, much like a cash buyer.

Usually, people refinance to save money either by obtaining a lower interest rate or by reducing the term of the loan. Refinancing is also a way to convert an adjustable loan to a fixed loan or to consolidate debts. The decision to refinance can be difficult, since there are several reasons to refinance. However, if you are looking to save money, try this calculation: Calculate the total cost of the refinance Calculate the monthly savingsDivide the total cost of the refinance (#1) by the monthly savings (#2). This is the "break even" time. If you own the house longer than this, you will save money by refinancing. Since refinancing is a complex topic, consult a mortgage professional.

A rate lock is a contractual agreement between the lender and buyer. There are four components to a rate lock: loan program, interest rate, points, and the length of the lock.

A mortgage broker counsels you on the loans available from different wholesalers, takes your application, and usually processes the loan which involves putting together the complete file of information about your transaction including the credit report, appraisal, verification of your employment and assets, and so on. When the file is complete, but sometimes sooner, the lender "underwrites" the loan, which means deciding whether or not you are an acceptable risk.

Not necessarily. In fact, if you are a reasonably astute shopper, you will probably do better dealing with a mortgage broker. Mortgage brokers do not add any net cost to the lending process, because they perform functions that would otherwise have to be done by employees of the lender. Furthermore, because mortgage brokers deal with multiple lenders -- in a typical case, 25 to 30, sometimes more -- they can shop for the best terms available on any given day. In addition, they can find the lenders who specialize in various market niches that many other lenders avoid, such as loans to applicants with poor credit ratings, loans to borrowers who do not intend to occupy the property, loans with minimal or no down payment, and so on.

Both income and assets are disclosed and verified, and income is used in determining the applicant's ability to repay the mortgage. Formal verification requires the borrower's employer to verify employment and the borrower's bank to verify deposits. Alternative documentation, designed to save time, accepts copies of the borrower's original bank statements, W-2s and paycheck stubs.

Stated income/verified assets: Income is disclosed and the source of the income is verified, but the amount is not verified. Assets are verified, and must meet an adequacy standard such as, for example, 6 months of stated income and 2 months of expected monthly housing expense. Stated income/stated assets: Both income and assets are disclosed but not verified. However, the source of the borrower's income is verified. No ratio: Income is disclosed and verified but not used in qualifying the borrower. The standard rule that the borrower's housing expense cannot exceed some specified percent of income, is ignored. Assets are disclosed and verified. No income: Income is not disclosed, but assets are disclosed and verified, and must meet an adequacy standard. Stated Assets or No asset verification: Assets are disclosed but not verified, income is disclosed, verified and used to qualify the applicant. No asset: Assets are not disclosed, but income is disclosed, verified and used to qualify the applicant. No income/no assets: Neither income nor assets are disclosed.

It is the list of settlement charges that the lender is obliged to provide the borrower within three business days of receiving the loan application.

A loan eligible for purchase by the two major Federal agencies that buy mortgages, Fannie Mae and Freddie Mac.

A mortgage larger than the maximum eligible for conforming purchase by the two Federal agencies, Fannie Mae and Freddie Mac.

It is an upfront cash payment required by the lender as part of the charge for the loan, expressed as a percent of the loan amount; e.g., "2 points" means a charge equal to 2% of the loan balance.

This is the process of determining whether a customer has enough cash and sufficient income to meet the qualification requirements set by the lender on a requested loan. A pre-qualification is subject to verification of the information provided by the applicant. A pre-qualification is short of approval because it does not take account of the credit history of the borrower.

Background image for Tidewater Home Funding 41552

Your Experience is Our Priority


Your local lending partner, our team strives to exceed your expectations before, during and after the mortgage process.

Gee came recommended from my real estate agent and I'm glad I reached out. Tidewater was able to provide a loan that was far and away the best available, nearly a full point lower than the best rate from one of the major national lenders at the time. Gee and her team were knowledgeable and professional every step of the way. I was also impressed at how prompt they were in communication. This made navigating a few interesting situations that arose during my purchase much easier.
If I find myself in the market for another loan in the area, I will absolutely be reaching out to Gee again.

Matt

Working with Michelle Phillips was easy because she has great communication and knowledgeable on everything. All around 5 stars

Ilia Walker-Randall

I had an exceptional experience from the meet and greet to closing.

Catherine

Jennifer was friendly and informative throughout our Mortgage process. She is the BEST!

Allen B

Let Jennifer handle everything.

Scott P

Everything went well. My husband and I’s experience was fantastic. Jennifer was super helpful and explained everything to us that we didn’t understand. She made the process so easy and quick. I never felt confused or didn’t understand anything. Jennifer was always quick to explain
everything and break it down for us. I don’t think we could have made it through the process of buying our home without her!

James and Tracy

Everything was great.

Dalton and Eleanor

It was perfect.

Kristin

The team I was working with were amazing and so Knowledgeable. If they didn’t know the answer they were quick to find it. I would
definitely recommend Jennifer to anyone that is looking to purchase a home especially first time homebuyers because I didn’t know
what I was doing and she got me through every step of the way. Thank you so much for being there.

Cassi

Thank you very much for a smooth and seamless transition. It was great working with you and your staff. Thanks for outstanding
customer service.

John

Michelle Phillips was very hands on from the beginning to the end. This was our second house we bought with her assistance and both times they were stress free. Whenever I had a question and reached out to her she was quick to respond. The whole office is full of hard friendly workers. In my opinion they’re the best.

Mark Skyles

I was able to ask all of my questions and if I was to forget an answer my loan officer was more than willing to answer them again. I
never had to worry about if something was wrong, and directions were clear through the whole process. I had a wonderful experience overall.

R. Lewis

We are so happy we chose Farmers Bank Home Mortgage to do our refinance. We were very fortunate that we had the opportunity to
work with Jennifer Simpson, who is an amazing loan officer. She went above and beyond every step of the way right up to closing
day. Thank you!

Davis;

Jennifer was the absolute BEST when it came to ALL parts of the mortgage process. As a young, first time home buyer, I had a lot of
questions and uncertainties. Every question I had, she was able to answer. We had a few obstacles to overcome, but Jennifer was
quick to react and never let me stress over it. I have and will continue to refer my friends and family to Jennifer for any future needs.
She is THE BEST!!!

Cole

My experience was great! Jennifer was very professional and very helpful from start to finish.

Amanda

I refinanced my house with Jen then I got qualified to buy my dream beach house and I bought it and couldn’t be any happier with Jen
she was awesome and I will definitely recommend her all day everyday

H. M.

Very satisfied. Jennifer was on point, fast and worked hard to give me the best loan.

Ashley

Everything was great. We loved working with Jennifer. Jennifer was the absolute sweetest. She was always there to answer any questions and never felt like we were bugging her. She made sure we fully understood everything.

Mike and Brooke

Excellent experience honestly. From my first interaction with Jennifer I was treated with respect and was given any information I requested. I was running late on a few documents and Jennifer didn't once get negative or lose her patience. I appreciate the amount of time and respect Farmers and Jennifer gives to it's customers.

S. Sellers

Jennifer made everything nice and smooth. Looking forward to doing more business with Jennifer and send her all the business I can.

H.M.

Jennifer Simpson was excellent! I have already started referring friends. She was great to work with. She was very knowledgeable and guided me through the entire
process. I would highly recommend Farmers Bank!

T, Smith

Jennifer was amazing! She truly made us feel like we were her main priority and our success was her utmost priority. Loved working with her

C and J

Working with Jennifer Simpson thru Farmers Bank has been a great experience. She was always available and was there to answer my 1,000 questions I had. She was very eager to be sure we closed even with all the limitations due to the virus. I would definitely recommend her and Farmers Bank Home Mortgage to anyone. Can not thank her enough!

White

Paul Branch and Farmers Bank took great care of me and quickly found a loan and great rate to meet my needs. They were very personable and easy to work with. Best home loan experience I've ever had!

Lauren S

I highly recommend Farmers Bank Home Mortgage. Jennifer Simpson made my home refinance process as simple as possible from start to finish. She kept me updated every step of the way. Thank you, Jennifer for an excellent experience.

Lisa S

After shopping around for a mortgage lender, I decided to go with Farmers Bank Home Mortgage because of Jennifer's exceptional customer service. I truly felt like I was working with a friend that had my best interests in mind

Daniel T

Jennifer made me feel like she cared about helping. I had gone with another company at first. They were promising low rates and no fees. At the nd of their process all the promises disappeared and the fees were triple what Farmers Bank Home Mortgage was.

William E

She goes above and beyond for all of her clients! The best there is!!

Shea J

Paul was absolutely great to work with. He was extremely Clear, thorough and patient as he guided us through the process. He was also very timely and worked hard to make sure everything was ready to go before closing. Thank You so much.

Babb

She is a very hard working young lady!! I can't think of anyone else I would choose to handle my next mortgage loan!!! She has been in the mortgage business for many years and has attained a vast knowledge which will benefit anyone needing her assistance!

Gale B

Deb Olmstead at Tidewater Home Funding is prompt, professional, and personable. She went out of her way to make sure everything was as
smooth as silk.

Anonymous

Closing went awesome and smooth as can be.. Thank you so much for the basket of goodies.. Between you guys and Martha we were spoiled.. Just got water n power on and believe it or not half of the house is packed and moved to the new house already..  We were very blessed to have had you as our loan officer and doesn't hurt that you have an awesome staff like Linda  and all..  Thank you thank you so much again Paul for being so patient and considerate you have made our dreams of being home owners true.
 

Mrs. W

Good experience. Enjoyed working with Paul.

J. Foshee

We first applied for a loan at our financial institution. The experience with them was horrible, we felt like we were nobody to them. So down the road we went. Found Paul Branch as a recommendation from a friend. Our lives changed. Paul sat down and explained everything to us like he was a very good friend. Huh? We were not used to this considering what we just had experienced. When we had a question and left a message he promptly called us back. To our surprise Paul helped us get the very best interest rate, better than our bank!! If I know anyone looking for a loan I know who to send them to. HAD TO DO IT!

Barbara H.

Background image for Tidewater Home Funding 41552

Ready to Fund Your Dreams?

Reach out to our team of local mortgage specialists and take the initial step towards homeownership. Our team is ready to assist you throughout the process, offering you the necessary information and guidance to help you make informed decisions for your unique needs. Don't delay any longer - apply today to begin.

 

APPLY NOW