Frequently
Asked Questions
FAQ Page 1 | FAQ Page 2
What is a Subordination Agreement?
If you have other mortgages against your property, this agreement is required to obtain another mortgage. This agreement assures that AmSouth will be the first lien holder of notes against your home.
Why do I need to pay
for a flood certificate?
A flood certificate is required to determine if a property is in a flood zone.
What will my monthly payment
include?
Principal, insurance, taxes, interest, condo fees, and mortgage insurance, if applicable.
When will my first payment be
due?
At closing, you will receive temporary payment coupons that will indicate when your first payment is due.
What happens if I miss my
closing?
If it happens, we will review, reschedule the closing and recalculate the closing costs.
The outstanding balance of the mortgage, exclusive of interest and any other charges.
The portion of the mortgagor's monthly payment held by the lender to pay for taxes, hazard insurance, mortgage insurance and other items as they become due. Also known as impounds or reserves in some states.
What if I want to waive escrows?
We require you to escrow your taxes and insurance with us. However, if you wish to seek an exception to this, you may contact us to discuss the options and fees for waiver.
An additional charge a borrower is required to pay as a penalty for failure to pay a regular installment when due.
Fannie Mae, also known as the Federal National Mortgage Association, is a congressionally chartered corporation that purchases conventional mortgages in the secondary market.
The Department of Housing and Urban Development (HUD) is responsible for the implementation and administration of government housing and urban development programs. The broad range of programs includes community planning and development, housing production and mortgage credit (FHA), and equal opportunity housing.
The Federal Housing Administration, part of HUD, insures mortgages made by private lenders.
Freddie Mac, the Federal Home Loan Mortgage Corporation, is a congressionally chartered corporation that purchases conventional mortgages in the secondary market.
The Department of Veterans Affairs is a U.S. Federal Government Department responsible for administering programs for Veterans which include loan insurance guarantee programs.
Does applying for a loan automatically lock in a rate?
No. Once you put your loan into process you can call us and we can lock in the rate.
Is there any financial obligation to completing the application?
There are no fees associated with completing the information.
How long will it take to close this loan?
Generally we can close your loan comfortably within 30 days. However, if there is a delay in receiving your documentation, or there is a problem with your title work or appraisal, a 30 day period may not be sufficient.
A point is equal to one percent of the loan amount. For example, if you get a mortgage for $100,000 with one point, you’ll pay $1,000 in points as part of your closing costs.
What is the turnaround time, from application through closing, for purchases and refinances?
Once we have a property address and completed application, we can usually close in 20 to 30 days.
What does “pre-approved” mean?
That means we have approved your loan based on your credit criteria and debt-to-income ratio. That approval is good for 90 days. If you don’t go through with your loan within that timeframe, you’ll need to re-apply.
When and how do I lock in my
rate? Can I change my rate once I have locked in my rate?
You can lock your rate at any time as long as we have your completed application and the property address for your refinance or new home. Once you have locked in your rate, that rate is set for 50 days unless the terms of your loan change.
You estimate closing costs to be
approximately 3% to 5% of the loan amount. Why is that such a wide range?
We don’t want you to have any surprises, so we tell you up front the approximate total cost, which may vary considerably. The percentage you should allow for closing costs is affected by how many points you pay. Attorney’s fees, recording fees, appraisal fees, etc. also affect it because these fees may vary. Closing costs also include “prepaids” which are the flood certification fee, underwriting fee, interim interest and the deposit for any real estate taxes and homeowners insurance. Some other lenders may not include these prepaids when they initially quote their closing costs, but these prepaid amounts will be due at closing.
How long does it
take to complete the process?
Generally, the process of financing or refinancing your home loan takes about 30 days from application to closing. Financing raw land may take a little less. New construction financing can be approved in about the same amount of time, yet the actual construction usually takes about 6 months. All these programs require complete financial and property information, so it is essential that the mortgage loan application be as thorough as possible to avoid unnecessary delays.
What does it mean to lock or float an interest rate during the application process?
Mortgage loan interest rates can change on a daily basis. Some members prefer to avoid this uncertainty by locking in the rate that is valid at the time of their application. Others prefer to "float" their rate, or take a risk on the market, which determines interest rates. A lock agreement must be executed by all parties at the face-to-face application in order for the lock to be valid. Changing from a "Float" to a "Lock" decision can be done over the phone only if you have previously decided to "Float" during the initial application process. Requests for an interest rate lock cannot be allowed via U.S. Mail since rate swings could occur during the mail delivery. Please ask for other features of our rate locks.
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"Working Together for a Mutual Goal"
Windsor Capital Mortgage Corporation
| 130 Iowa Lane, Suite 203 | Cary, NC 27511
Phone: 919-462-1500 or 866-440-0404 | Fax: 919-469-4500 | EFAX :
888-201-9151
