| What is the difference between pre-qualification and pre-approval? |
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Pre-qualification is a lender's opinion of your ability to purchase a home and qualify for a mortgage. It is based on your stated income, employment, assets and liabilities.
Pre-approval is a lender's underwriting decision that you are qualified, subject to the conditions noted in your pre-approval letter. It is based upon the lender's review of your completed application, credit check, income and asset verification.
If you are not sure which process may work best for your special needs, contact an SFN Mortgage Consultant at 610-325-5002 option #1
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| Can I apply for a mortgage loan before I find a property to purchase? |
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Yes. Applying for a mortgage loan before you find a home may be the best thing you could do! If you apply for your mortgage now, we’ll issue a pre-qualification or a pre-approval letter that you can use to assure real estate agents and sellers that you are a qualified buyer. Having a pre-qualification or a pre-approval for a mortgage may give you an advantage when making an offer to purchase a property.
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| What is the difference between APR and the interest rate? |
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APR - the Annual Percentage Rate is outlined in the Truth In Lending disclosure that you receive after you apply.
The APR is often higher than the quoted interest rate because it includes the additional costs necessary to obtain your mortgage financing.
If there were no costs associated with obtaining financing, your interest rate and the APR would be exactly the same.
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| What are points? |
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Points are paid at closing. One point equals one percent (1%) of the loan amount. If your loan amount is $100,000…then one point would equal $1,000…one percent (1%).
Points are fees paid by the borrower to the lender to acquire a lower interest rate. If you plan to keep the house for five or more years, it may be beneficial to pay points to reduce your monthly payment and achieve a greater savings over the life of the loan.
If you are not sure if you should pay points, check out our Mortgage Points calculator
Mortgage Points Calculator
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| Is it difficult to use the online application? |
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Completing our online application is as easy as 1-2-3. We’ll ask you questions about your employment, personal finances, assets and the home you are considering buying. It should take less than 20 minutes to complete the application.
Move through the application by using the NEXT button at the bottom of the screen. If you are unable to complete the application or if you need to gather information before you finish, you can save the information. When you’re ready to finish, return to the site and enter your User ID and password to continue.
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| Is the site secure? |
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YES. We use leading-edge technology to ensure that all customer information is 100% safe. Our security measures are among the best in the industry. All information is encrypted using Secured Socket Layer (SSL) technology and we use leading firewall and network security technology to protect our internal computer systems from unauthorized access.
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| What can I afford? |
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Use our Mortgage Qualifier calculator to find out just how much you can afford and if you can buy your dream home.
Mortgage Qualifier
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| What loan program is best for me? |
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Use the calculators below to help sort through the options and determine the right loan program for you:
ARM vs. Fixed Rate Mortgage
Mortgage comparison: 15 years vs. 30 years
Fixed Rate Mortgage vs. Interest Only Mortgage
Balloon Mortgages
If you are still unsure please contact an SFN Mortgage Consultant at
610-325-5002 option #1
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| What is a Rate Lock? |
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When a lender "locks" your interest rate, it means you are guaranteed a specific interest rate for a specific period of time.
The lock guarantees your rate as long as your loan closes prior to the expiration date. If your closing is delayed beyond your lock expiration date, you could be exposed to higher market rates.
You cannot lock a rate until a completed application and your application fee have been received.
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| What is an Appraisal and who orders the appraisal? |
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An appraisal is a written analysis of the estimated value of a property. SFN orders the appraisal from a licensed qualified appraiser.
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| What is a Home Inspection and who orders it? |
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Not to be confused with an Appraisal, a home inspection is an option available to you to have a reputable Home Inspector determine the condition of the property you are considering. It is the buyer’s responsibility to order and review the inspector’s report.
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| Once I sign my application, am I committed to borrow the money? |
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NO. In fact, none of the documents you have received are contractual until you are actually at closing and sign your Loan Note.
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| Will I need Homeowners Insurance? |
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YES. Homeowners Insurance, also known as Hazard Insurance, is coverage that compensates for physical damage to the property. It is very important for you to obtain your Homeowners Insurance at the earliest possible date so that there are no delays at the time of closing.
The Declaration Page of your Homeowners Insurance policy reflecting the proper coverage, mortgagee clause and proof of premium payment must be faxed or sent to SFN at least 10 days prior to your closing date.
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| Where will I be closing? How much do I have to bring to closing? |
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Closing costs are what you must pay to obtain a loan. When applying for your mortgage, your SFN Mortgage Consultant will provide you with a Good Faith Estimate of closing costs which will identify items such as state and local taxes, real estate taxes, title insurance, etc. Prior to closing your title agent or attorney will provide you with a preliminary Settlement Statement or a HUD-1 indicating the required cash to close. This ensures that you have time to arrange for the necessary funds.
At closing, you will be required to have certified funds in the form of a cashier's check. You should bring your personal checkbook to closing in case there are last minute adjustments. If you are due a refund at closing, the attorney or title agent will issue you a check.
Closing will typically take place at an attorney or title agent's office. All borrowers involved with the transaction must be present and picture identification is required. i.e. driver's license, passport, etc.
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