1. I'm a first time home buyer. Are there any programs that provide financial advantages for me?
Yes, there are. If you need assistance with a down payment, there is a program we offer that could help you get the home you want sooner. Contact one of our mortgage bankers for assistance and we'll go over all the programs for which you qualify.

2. I've had some credit problems in the past. Will that keep me from buying a home?
We'll work with you to find a loan that will allow you to buy a home now. In most instances, you will pay a higher rate of interest, but if you maintain a good payment record, after a time you can refinance to take advantage of lower interest rates.

3. How long does it take to get loan approval?
We try to make the process as short as possible. Part of the timing depends on whether you have all the information you need when you make your loan application. See "The Seven-Step Process to Owning Your Home" elsewhere on this site. As a general rule, your loan will close between 30 and 60 days from the date you apply.

4. Is there an advantage to being prequalified for a loan?
Being prequalified can be a definite advantage. Both home sellers and their real estate agents know that you have the means to purchase the home you want, and you know in advance the amount of the loan you can afford.

5. What are the advantages and disadvantages to locking in a percentage rate?
If the interest rates in the marketplace go up while you are waiting for your loan to be approved, locking in a rate can ensure that you pay only the current interest rate instead of the new, higher one. The disadvantage is that if interest rates go down, you will have to pay today's rate for the loan.

6. When should I consider an adjustable rate mortgage (ARM)?
An ARM may be right for you if you plan to live in the home only a few years before selling it. You can take advantage of the lower interest rate during the early years of an ARM and sell (or refinance) before the rate goes up. Sometimes you are able to qualify for an ARM when you cannot qualify for a fixed-rate loan because your income is not high enough for the fixed-rate loan on the home you want.

7. Is title insurance required?
In most cases, it is. Title insurance insures you against any hidden liens on the property or an unclear title to the property if past ownership is in doubt.

8. Who pays for points on a loan?
Sometimes the seller pays, sometimes the buyer pays, or they split the cost of points between them. You can negotiate these costs with the seller as part of the sales contract.

9. What is the difference between a debt consolidation loan and a home equity loan?
A debt consolidation loan combines your existing mortgage and the total of your other debts into a single loan. When the loan closes, your debts are paid off and you are left with one payment – your mortgage payment. In a home equity loan, you borrow money for any purpose against the existing equity in your home.

10. I see some loan programs advertised with very low interest rates for refinancing. Why am I quoted a higher interest rate?
The rate you are quoted is a function of your credit score, the value of the property, and similar factors. If you have experienced credit problems, for instance, you may find that you will have to pay a higher interest rate to borrow money because a lender will view the loan as a greater risk.