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Mortgage ... |
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FAQs
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have assembled these Frequently Asked Questions
for your convenience. If you do not find
what you are looking for or have additional
questions, please contact us.
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| Q: What is APR? A: The Annual Percentage Rate is the
cost of credit expressed as a yearly rate.
The APR combines interest rate, points,
and related fees.
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| Q: What is a Finance
Charge? A: The Finance Charge is the cost of
credit expressed as a dollar amount. It
includes any charge payable directly,
or indirectly, by the applicant, and imposed
directly, or indirectly, by the lender,
as a condition of receiving credit.
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| Q: What are Discount
Points? A: Discount Points are equal to a percent
of the loan amount. 1.25 points are equal
to 1.25% of the loan amount. For example:
on a $100,000 loan amount that equals
$1,250. Typically, if you pay points it
will lower the Interest Rate.
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| Q: What is a Loan Origination
Fee? A: Origination fees are expressed as
points or as a percentage. A one point
or one-percent origination fee is equal
to 1% of the loan amount.
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| Q: What are Escrows?
A: An Escrow Account is used to protect
monthly payments for taxes and insurance
obligations.
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Q: What is a Credit Score?
A: Credit scores were created for general
use in making lending decisions and are
based on credit data only. FICO* scores
are one type of generic credit score.
FICO scores range from approximately 400
to 900. The lower the score the greater
the risk of default on a loan. A credit
score below 620 gives a lender a strong
indication that a borrower's credit reputation
is not acceptable.
Under the Fair Credit Reporting Act all
consumers can obtain a copy of their credit
reports by calling:
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EquiFax:
800-685-1111 |
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Trans
Union: 800-916-8800 |
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Experian:
800-682-7654 |
Learn
more about Credit Scores.
*FICO: Fair ISAC Credit
Company developer of FICO scores
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| Q: What is Private Mortgage
Insurance (PMI)? A: Private Mortgage Insurance is a type
of insurance provided by a private mortgage
insurance company, to protect the lender
in the event of loan default. This type
of insurance is required when a borrower
has less than 20% equity in a home. Private
mortgage insurance is paid monthly.
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| Q: What is ARM (Adjustable
Rate Mortgage)? A: A mortgage that permits the lender
to adjust its interest rate periodically
based on the movement of a specific index.
Example: 1-3-5 year Treasury Bill. There
are generally limitations, such as 2%
on the amount the mortgage interest rate
can go up or down.
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| Q: What is PITI? A: PITI is an acronym for the items included
in a monthly payment: principal, interest,
taxes, and insurance.
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| Q: How do I determine
how much I can afford? A: Generally, you should qualify for
monthly housing expense (PITI, or the
monthly payment for mortgage principal,
interest, property taxes and property
insurance) equal to 33% of your gross
monthly income. The best way to know with
confidence is by getting
pre-approved .
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How
long does the mortgage process take?
Processing and closing a mortgage usually takes
between seven and 30 calendar days. A Whitney
Mortgage Lender can give you a precise estimate
based on your individual situation.
How
much does it cost to close a mortgage?
For purchases, most mortgages require a minimum
down payment as a percentage of the sales price
or appraised value [ whichever is less]. Moreover,
some loans require a very low down payment.
Closing costs include:
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Loan
origination [varies with loan type and term] |
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Discount
points [optional - can be paid to lower
your interest rate] |
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Appraisal
fee |
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Credit
report fee |
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Flood
zone determination fee |
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Title
insurance fee |
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Deed
recording fee |
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Survey
fee |
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Pest
inspection fee [if necessary] |
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Underwriting/document
review fee |
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Interim
interest [varies with the closing date] |
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Tax
service fee |
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Attorney
fee |
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Additional
fees may apply as warranted by your state
and/or personal situation |
Many of the same
fees apply to refinance loans, but closing costs
can often be included in the loan amount on
refinances.
When
should I apply?
Most borrowers apply once they have selected
a property. However, you can get pre-qualified
by Whitney so that you'll already know how much
house you can afford before you start shopping.
Where
do I apply?
If you want to apply for a Whitney mortgage,
please call one of our Mortgage Lenders at 1-800-347-7272
[Ext. 6300], Monday - Friday, 8:00 to 5:00 CT.
They will answer any questions you have and
schedule a personal appointment at a time and
location convenient for you.
What
information will be required when I apply?
To speed the application process, here is some
of the information you should gather:
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Sales contract |
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Social Security number[s] |
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Gross monthly income[s] |
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Name/address of each employer for past two years |
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W2 forms for past two years and year-to-date earnings |
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Last two monthly checking/savings account statements [if not Whitney accounts] and brokerage statement or name, address, account number and balance for each deposit account/brokerage account |
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Residence address, including landlord and/or mortgagee address and account number, for the past two years |
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Mortgagee name and address plus address and account number for other real estate owned |
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Name, address, account number, balance and monthly payment for all outstanding debts |
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If self-employed, last two years of personal and corporate tax returns, year-to-date profit and loss, business tax returns and balance sheet |
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Be prepared to pay the credit report, appraisal and flood certification fees |
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VA loans only: Certificate of Eligibility or DD124 |
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