What happens after I submit my loan application?
You will receive a free, no obligation consultation within one business day to confirm and verify your application. The consultation is also intended to select the most suitable loan program and ensure a favorable outcome to your application. When your loan is approved, you will be notified about the terms of your loan approval and what documentation you must furnish. Our loan approval will include a comprehensive list of items you may expect to provide.

How long will it take to get approved?
Traditional lenders take between 1-3 weeks to approve a loan because they require all supporting documents up front including an appraisal. The typical approval process for U.S. HOME & LOAN is anywhere from 1 hour to 48 hours. We do not ask for many of the supporting documents until after the approval.

What documentation will I be required to provide?
The actual documents you will need to provide will vary based on your situation. In some instances we won’t need any documentation.

For a comprehensive list, please e-mail us directly.

Can I get a loan without a down payment?
We offer many different types of loans without a down payment. These loans require that you have good credit and employment history. First time home buyers may also benefit from such favorable terms. For more information, please contact one of our mortgage counselors.

What is PMI?
PMI is private mortgage insurance, not to be confused with mortgage cancellation insurance or life insurance. PMI is typically required on loans where the down payment is less than 20%. This type of insurance protects the lender from financial loss in the event of a foreclosure. We have ways of getting around PMI by issuing two loans instead of one. Instead of taking out one loan at 100%, we can offer a consecutive 1st and 2nd mortgage combo to eliminate costly PMI.

What are No Income Verification Loans?
No Income Verification loans are for those borrowers with non-traditional sources of income and/or those who cannot properly document their income earnings. This may include self-employment income, non-taxable income, etc... To qualify borrowers usually need good credit.

At what point can I lock my interest rate?
Normally, you must have satisfied the terms of your approval letter before you can lock your loan. Once you decide to lock your loan, your lock cannot change, whether or not interest rates go up or down.

What is the difference between a fixed rate and adjustable rate loan?
Fixed rate loans have a set interest rate and payments that do not change over the life of the loan. Adjustable rate loans are linked to an index and fluctuate as the index rate changes. Since there is more risk involved with adjustable loans, lenders often reward borrowers with initial discounted interest rates that are lower than fixed rate loans. Adjustable loans are normally recommended for borrowers who do not plan on keeping the loan for the full term, or for borrowers who want to benefit from lower payments during the initial term of the loan.

When does the property need to be appraised?
As soon as possible. If you are applying for a purchase loan or refinancing, we will order your appraisal the day we receive your approval. Since appraisers are independent of our company, we usually need the borrower to pay the appraiser outside of closing.

What is APR?
APR stands for Annual Percentage Rate and is another way of recalculating the interest rate of a loan. This rate is the true cost of a mortgage loan and is usually higher than the note rate on a loan because it factors in closing costs associated with a loan. APRs are calculated based on a loan amount that is net after lender related closing costs (finance charges), rather than the gross loan amount that is borrowed.

What are closing costs?
Closing costs are all the expenses incidental to the sale of real estate such as loan fees, title fees, appraisal fees, etc. Settlement charges reflect every dollar associated with a loan including reserves and pre-paid interest.

What is a loan escrow (also referred to as a loan impound?)
When a loan is "escrowed" (or "impounded"), the borrower pays their property taxes and insurance along with their monthly mortgage payments. These monies are placed into an account held by the lender who in turn pays the taxes and insurance on behalf of the borrower when they are due. This should not be confused with an "escrow" company. An escrow company is the neutral third party that is hired to handle the details of your settlement at closing. In some areas, the escrow company or settlement agent is an attorney.

What is title insurance?
Title insurance is an insurance policy issued by a title insurance company which insures a home owner against title and ownership related to errors, omissions or claims. The premiums are determined primarily by the value of the property or loan amount.

Should I refinance?
There are many variables to consider before taking the refinance plunge. Do you want a fixed rate? Do you need cash out? Did you accumulate any negative amortization? For a better picture, check out our calculators.

What is negative amortization?
Negative amortization, also known as deferred interest or reverse accrual, is when your mortgage payment is not sufficient to cover the interest rate you are being charged. The unpaid interest will be added to your principal balance and will increase the amount you borrowed.

What is an ARM and how does it work?
An ARM is an adjustable rate mortgage whereby your interest rate changes periodically. The adjustment period may vary from 1 month to as long as 10 years. With ARMs you normally get a very competitive initial (teaser) rate depending on your program. Your interest rate will change at every adjustment period. The rate is determined by adding two key figures--the index plus the margin. The index is the fluctuating value that the lender uses to determine your interest rate changes (such as the prime rate, treasury rates, etc). The margin is the spread (or add-on) over the index and is fixed for the life of the loan and determined at the time of lock. Most loans will have periodic and lifetime caps to protect you from wild fluctuations.

Why do interest rates fluctuate daily?
Interest rates fluctuate based on the availability of mortgage funds in the financial marketplace. Mortgage(s) fall into two general categories: Investment Grade and Portfolio Grade. Investment Grade mortgage loans are sold in a secondary market that has a consistent appetite for such loans. This means that loans made to the homeowner are sold to another financial entity after the lender makes the loan to the homeowner. The secondary market determines the yield requirement on these loans based primarily on economic news and the level of demand for such products during a given day. With inflationary news, the market will demand higher yields. The reverse is true with deflationary news. Portfolio Grade loans lag the market and are usually not as competitive. Portfolio loans are designed for borrowers with qualifying problems, and as a result are not in high demand in the financial market place. Portfolio loans are higher in interest rates because of these reasons.

What is a buy down?
A buy down is when you pay a premium up front in order to establish a lower initial rate and/or payment so you may qualify for a given loan. In certain situations such as new construction, home builders will subsidize the mortgage to make it attractive to the home buyer. They are essentially "buying down" the loan by paying a premium up front, which is normally built into the cost of the home.

What are no point, no fee loans?
So called, no point, no fee loans will have hidden costs. These costs may be in the form of higher interest rates, pre-payment penalties, larger margins, etc. Whether or not these loans are for you depends on your particular situation. Generally, for homeowners who anticipate a short stay in their property, a no cost loan without a pre-payment penalty may be the right choice. However, the homeowner who does not anticipate a move for a long time is better served with a loan with points, and a lower interest rate.

What is a home equity loan?
Home equity loans are loans which use the equity in your home to get cash out and they fall into two different categories: lines of credit and equity loans. A line of credit, or HELOC, acts like a credit card where you pay interest only on the amount of credit that is outstanding. As long as you make the minimum monthly payment, you can borrow up to your limit at any time, or pay down the balance at any time.

An equity loan is a fixed amount you borrow upon closing and pay back over a pre-determined time period. Home equity loans are typically available from $25,000 to $500,000. Your credit limit or the amount you are qualified to borrow is determined by taking a percentage of your home's appraised value and subtracting any outstanding mortgages on the property.

What are qualifying ratios?
Qualifying Ratios are the ratios lenders use to determine how your debts measure up to your income. There are two ratios used in qualifying a borrower: the housing ratio and the debt ratio. The housing ratio is determined by dividing your housing costs (principal+interest+propertytax+hazard insurance+mortgage insurance+homeowners dues), as applicable, by your income. The debt ratio is similar to the formula above, however your minimum monthly consumer debt obligations (credit cards, auto loans etc.) are added to your housing expense then divided by your income. Generally lenders look for total combined ratios of 50% or less to qualify a borrower. A 50% debt ratio if you make $4,000 a month would be $2,000 dollars. This means if all of your total monthly debt on your credit report is $2,000, you would need to make $4,000 gross per month to qualify at a 50% debt ratio. Deviations from these figures are always made depending on a number of factors. These factors could be: credit, equity in the property, cash reserves, stable employment, etc.

Who are FNMA & FHLMC?
FNMA & FHLMC, also known as Fannie Mae and Freddie Mac respectively are quasi government institutions created by Congress to purchase conventional home loans from financial institutions and mortgage bankers. FNMA and FHLMC are the primary buyers of mortgages in the secondary market and they securitize said loans to sell major investors such as pension funds, insurance companies, etc. This creates much needed funds for future home owners by recycling funds back to the lending institutions.

What is the difference between a conforming and a jumbo loan?
Conforming loan amounts are loans that are readily saleable to FNMA (Fannie Mae) and FHLMC (Freddie Mac). The limits on conforming loans are adjusted once a year by these entities. These limits vary for multiple units.
Limits for properties in Alaska and Hawaii are higher. Any amount over these limits is considered to be a jumbo loan.

What are intermediate term ARMs, such as 5/1 and 7/1 ARMs?
Intermediate term Arms are loans that have an initial fixed rate period. The fixed year term can be 3, 5, 7, or 10 years. After the fixed term has expired, the loans typically convert to a one year adjustable program. These loans are ideal for individuals that can initially determine how long they intend to keep their property and want the security of a fixed payment period.

What is secondary financing?
Secondary financing is when a borrower gets more than one loan to acquire property. Typically there will be a first mortgage followed by said financing, a second mortgage. Home equity loans, home equity lines of credit, seller seconds are types of secondary financing. One way secondary financing is an advantage is when borrowers want to avoid mortgage insurance. A common financing scenario is an 80/10/10. This is a situation where the borrower puts 10 % down, borrows a first mortgage of 80% of value and a second mortgage for 10% of value. This scenario avoids the need for mortgage insurance with only a 10% down payment.