When should I talk to
a mortgage lender?
It’s never too early to start talking to a mortgage lender when you
are considering buying a home. The lender can help you with preliminary
steps that will prepare you for home ownership, such as determining how
much house you can afford. When you find the home you want to buy, you will
be familiar with the lender which can facilitate a smoother loan
process.
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How
much impact will my credit history have on my ability to get a mortgage?
Often homebuyers are worried about credit history and what has been
reported. If you have had credit problems or you are aware of potential
problems that may show up on your report, there are some simple steps you
can take to resolve these issues. First, obtain a copy of your report and
review it carefully. Second, be prepared with a written explanation of any
late payments before you meet with a mortgage lender. The lenders at United
Bank understand that there can be legitimate reasons for credit problems
such as unemployment, illness, or other financial difficulties.
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How do I
know what type of mortgage is best for me?
The best type of mortgage for you depends on several factors such as
your current financial status, how you expect this status to change, how
long you intend to keep your house, and your comfort level with a mortgage
payment that could fluctuate. Allow your mortgage lender to discuss the
various types of mortgages available through United Bank, or visit our Types
of Mortgages Offered page for more information about the products
we offer.
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How do I know how
much house I can afford?
If you have saved for a down payment, and have a satisfactory credit
history then the other major factor, which determines your ability to
qualify for a mortgage loan, is your income. As a guide, you can generally
purchase a home with a value of two – three times your annual household
income. However, your savings and your debt can affect this figure. Try
this handy calculator: How Much House Can I
Afford for a "ball park" idea.
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How much will I need
for a down payment?
You may be surprised to learn that there is not a pre-determined amount
that will answer this question. Down payments can be as little as 3% and as
much as 20% of the home's sales price or appraised value whichever is less.
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What does my mortgage
payment include?
Principal, interest, taxes, and insurance or P.I.T.I are the most common
components of your mortgage payment. The monthly mortgage payment is
usually broken down into parts: a payment to principal and a payment on the
interest, and the remainder for hazard insurance, property taxes, escrow,
and PMI, if any.
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When should I lock in
my interest rate?
Most banks will not allow negotiations on interest rates after they are
locked-in, even if the rates go lower. The market can be volatile;
therefore, if you
think rates are trending upward, then of course you should lock your rate.
If you want to wait for the market to trend downward, that’s your choice.
You should lock your loan when you are sure that the current interest rate
is one that you are willing to accept even if the market fluctuates. In any
case, you will have to lock in your rate so that you can close your purchase on
time.
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How long does the loan
process take?
Some loans can be completed in as little as two weeks. The more
information your lender has at the beginning of the loan process, the less
time it takes to complete. After all the information has been gathered, the
lender must verify what you have provided for accuracy and completeness.
But remember, after all the information is gathered by the loan officer,
the underwriter still has to have time to approve your loan.
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What information will I
need up front?
For your convenience we have put together a list of information and
common items United Bank lenders will need. Click on Application
Checklist for easy access to this information.
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Can
I talk to a lender if I just want to get information?
You certainly can! Our staff of knowledgeable, experienced mortgage
lenders will be happy to answer any of your mortgage questions. We can meet
with you in person at any of our 11 bank locations, or call us at (770)
567-7211 and a customer service representative can assist you with finding
an available mortgage loan officer.
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Does
pre-qualification mean I’m approved for a loan?
No, it does not. The pre-qualification is a way for the loan officer to
qualify you to purchase a house at a certain price.
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What determines my interest
rate?
Each morning, based on market activity, United Bank will issue a rate
sheet to all mortgage loan officers at all of our branches.
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Besides
the down payment, what other costs can I expect?
Other costs involved in obtaining a mortgage loan may include but are
not limited to the following:
|
fees for appraisal |
credit report(s) |
flood certification |
origination fee |
|
escrow |
settlement |
title insurance |
recording fees |
|
pest inspection |
tax service fee |
underwriting fee |
courier fee |
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What is PMI?
Private mortgage insurance is normally required when you buy or
refinance a house with less than a 20% down payment. It is a type of
guarantee that helps protect lenders against the cost of foreclosure
thereby enabling lenders to accept lower down payments than they normally
would. The PMI premium is usually added to your monthly mortgage payment.
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What happens if I
don’t have enough money?
Prospective homeowners can obtain additional funds as a gift from a
family member. Another source would be to borrow against your 401K or
retirement plan. In addition, the sale of personal property can be used as
a source of funds, but it must be documented carefully.
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