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1. Mortgage Prequalifying and Applying


How can I start my application?

 We offer many convenient ways to start the mortgage application process:


Can I complete the online contact form if I have a joint customer?

 Yes, you can complete the online form.

  • If you have more than one joint customer, choose one person as the main joint customer, and provide information about that person.

  • If one of the joint customers is your spouse, answer the online questions using his or her information.

  • During your follow-up consultation, if you decide to move forward with an application, your home mortgage consultant will gather information about any additional customer(s).


Do you require a property inspection?

 No, but if you're buying a home, it's a highly recommended that you obtain a property inspection and make your     purchase offer contingent on the findings of the inspection.

  There is a difference between a property inspection and an appraisal. An appraisal is required by most mortgage     lenders in order  to support the value of the real estate and the terms of the mortgage agreement.


Do I need an attorney?

 The decision to use an attorney is up to you. In general, real estate attorneys are involved in purchase  transactions; refinancing generally doesn't require an attorney. There are many areas of the country where  attorneys are not typically used in real estate transactions.


What is the minimum down payment for conventional, FHA, and VA loans?

 While conventional loans usually require a minimum down payment of 5%, we also have other low-down payment  programs.

  • FHA mortgages are available for as little as 3.5% down. Although FHA loans have the benefit of a low down payment, in many instances, FHA may be a more expensive financing option and should be considered after thoroughly evaluating all other product options that meet your credit qualifying and financial needs.

  • VA mortgages have a no-down payment option for eligible veterans.


2. Rates and Terms


How are interest rates determined?

 Interest rates are influenced by the financial markets and can change daily – or multiple times within the same  day. The changes are based on many different economic indicators in the financial markets.

 What is a rate lock?

  • A rate lock gives you protection from financial market fluctuations that could affect your interest rate range.

  • You can choose to lock or not lock your interest rate range. On the date and time you lock, that interest rate range remains available to you for a set period of time.

    • If there are no subsequent changes to your loan and your interest rate range is locked, the interest rate range on your application generally remains the same.

    • If there are changes to your loan, your final interest rate at closing may be different.

 What is the difference between "locking" and "floating?"

  • Locking ensures that your loan pricing will be unaffected during the lock-in period by giving you a specified period of protection from financial market fluctuations in interest rates.

  • Locking sets the range of pricing available to you; it doesn't guarantee that a specific rate will apply.

    • Your final rate, which may not be determined until closing, will reflect the pricing that was available at the time you locked.

  • Floating – or not locking – means your rate will fluctuate with the up and down movements of the market.

 The benefit to floating is if interest rates were to decrease, you would have the option of locking in at a lower  level of rates.

 Refer to our Loan Pricing Disclosure for more information.


When can I lock and how much does it cost?

 The fee for locking varies.

  • You can lock anytime you locate a property, or start your refinancing process, up until ten business days before the closing.

  • You can select a specific length of time for your lock, usually 60 days.


3. Mortgage Approval and Closing


If I've already been preapproved by the lender, how long does it typically take to close?

 The time to close will vary, depending on your situation. Once you've been preapproved, closing generally occurs  within 45-60 days.


If I have a mortgage and want to refinance, will I have to pay closing costs again?

 Yes. There are costs related to processing any new loan application; they can include fees paid to third parties,  such as an appraiser, the title company, and other closing expenses.


What is an origination charge?

 The origination charge is the amount charged for services performed on the initial loan application and loan  processing. This includes all charges (other than discount points) that lenders and brokers involved in the  transaction will receive for originating the loan. It includes any fees for application, processing, underwriting  services, and payments from the lender for origination.


Can I close my loan at the lender's location?

 Each state has its own specific closing requirements, so check with your closing representative for the details.  Typically, closings can be held at the lender's locations or at an attorney's office. Some states permit "mail away"  – or "mail out" – closings. If you're able to obtain a "mail away" closing, we will send you the documents using  overnight delivery.


How much money will be required at closing?

 The amount you’ll need to close your loan includes your down payment, closing costs, and prepaid amounts for  property taxes , and insurance escrow accounts. We will provide you with a good faith estimate (GFE) of  settlement costs when your loan application is accepted. Within 24 hours of your closing, the closing agent will  provide you with the final amount that you will need to close.


4. Insurance


Will homeowners insurance be required at closing?

 Proof of homeowners insurance will be required before you can close your loan. Typically, you will need to  present an insurance binder and pay for one year's worth of insurance coverage.


What is the difference between private mortgage insurance and homeowners insurance?

 A homeowners insurance (or hazard insurance) policy covers loss from damages to your home, your belongings  and accidents as outlined in your policy.

 Mortgage insurance is required if you have less than 20% equity (or down payment) in your home and protects  the mortgage lender from losses if a customer is unable to make loan payments and defaults on the loan.


How long do I have to pay for private mortgage insurance (PMI) on my loan?

 If you obtained your loan after July 29, 1999, you can request cancellation of PMI when your loan-to-value  (LTV) reaches 80%.


What is title insurance?

 An insurance policy protects a lender and/or homebuyer (only if homebuyer purchases a separate policy, called  owner's coverage) against any loss resulting from a title error or dispute.


Is purchasing title insurance mandatory?

 All mortgage lenders require lender's coverage for an amount equal to the loan. It lasts until the loan is repaid.

 As with mortgage insurance, it protects the lender but the borrower pays the premium at closing.


About Ryan Dailey  

Thank you for considering Prosperity Mortgage Company for your home financing needs.

I am a local, experienced and professional mortgage consultant.

Prosperity Mortgage Company provides you with a wide array of products, programs and services throughout the home financing process. I am dedicated to providing exceptional service from application to closing, while helping you find a home financing option that meets your needs.

I will work closely with you to help provide information so you can make informed decisions.


In addition, I provide:


  • Competitive rates and fees

  • Mortgage product information

  • Purchase or refinance

  • Prompt communication

  • High commitment to customer service


Even after your loan settlement, my service still continues. Please contact me today to start the process with a personal consultation. I look forward to working with you!