Homebuyer Resources

This is one of the most popular mortgage questions we hear. Mortgage pre-qualification shows you what you can afford and mortgage pre-approval is confirming with bank statements, pay stubs and credit reports what you have provided verbally for the sake of achieving a full loan approval. It is ideal to secure either when house-hunting. 

Often times borrowers ask this mortgage question about closing costs. Closing costs are those costs that include the loan origination fee, discount points, appraisal costs, and any other charges associated with the legal transfer of property. Typically, these costs will range between 2% and 3% of the mortgage amount. 

Private mortgage insurance is required on Conventional loans and may allow you to purchase a home for as little as 3% down. This coverage requires a monthly insurance fee to be paid. PMI is only required if your loan-to-value ratio is 80% and above. 

Mortgage rates are constantly changing and can even change throughout a single day. This is why it is important to stay in touch with one of our loan officers to assist you in making the determination of when to lock your loan. Things that will affect the movement of interest rates are strong swings in the equity or stock market and indications from our economic position in not only the U.S. market but the world market as well. 

The Srack Team will keep in contact with you throughout the completion of your application and after the loan has been originated. Once your loan is approved and the appraisal is in, we will contact you regarding any pertinent information. Finally you will be contacted seven to 10 days prior to closing for confirmation of details and three to five days before closing to go over final figures. 

The contract will specify where you will be closing. three to five days prior to closing, our team will contact you regarding how much to bring and how to bring it (usually in the form of a cashier's check made payable to the title company). You can use a personal check for up to $1,000.00 for any difference in the amount you are told and the actual amount needed. 

Origination and discount points are percentages of the loan amount that you agree to pay your lender for their part in the loan transaction. One point typically equals one percent of the mortgage loan. 

Locking a mortgage interest rate means that Fairway and the associated investor have committed to a specific interest rate on your behalf. Your loan officer watches the market on a daily basis to make sure that when we lock your interest rate, it is in your best interest.