1. How does the mortgage process work?

Our goal at Equisouth Mortgage is to simplify the process of getting a mortgage loan.

Step 1: Give us a call. Whether you are refinancing, pre-qualifying for a new home, consolidating debt or needing a loan for personal reasons such as travel, home improvements or college costs, our loan professionals can handle your request right over the telephone.

Step 2: Generally, within 12-48 hours after receiving your call, we will be able to discuss your loan options with you. Our mortgage professionals will help you decide what program is best tailored to meet your needs. If credit or special circumstances exist, our loan officers will discuss your options with you.

Step 3: An appraisal of your home will be ordered after you have been approved for a loan. If you are pre-qualifying for a home, a letter will be issued stating the loan amount you have pre-qualified for.

Step 4: Your loan closing will be scheduled with an attorney or title company. The closing agent will review all loan closing documents with you. Of course, our staff is always available to answer any questions you have during the application and loan closing process.

2. Are there out of pocket expenses when applying for a mortgage loan?

In most cases, there are no out of pocket expenses when you apply for a loan through Equisouth Mortgage.

3. Is there a large amount of paperwork required when applying for a mortgage loan.

Applying for a mortgage loan has never been easier. Much of the information can be gathered right over the telephone. Payroll stubs & tax returns may be required in some cases.

4. How do I know how much house I can afford?

Before you start looking for your dream home, it is a good idea to consider how much house you can afford. Most mortgage lenders consider several factors in determining how much money they'll agree to lend you. These include:

• Your gross monthly income
• Your credit history
• Outstanding debts
• Savings & the amount of money you plan to use for a down payment on your home
• Work history
• Prior mortgage payment history

At Equisouth Mortgage, we have creative loan programs that may help boost your purchasing power such as interest only loan programs, ARM's and other products.

One of the best ways to determine your budget is to have a pre-qualification. A pre-qualification is an estimate of what you will be able to afford when shopping for a new home. By pre-qualifying for a mortgage, you will have an idea of what size house & what neighborhood you can target in your home buying search.

5. When does it make sense to refinance my home?

Refinancing your home can save you money over the life of your loan but it will also cost you some up front fees. Consider the following before you refinance:

• Will you owe a prepayment penalty on your existing loan if you refinance?
• What are your goals for refinancing? Do you want to:
  
  
  • Free up cash
  • Lower total interest costs
  • Shorten the term of your loan
  • Pay off or consolidate debt
  
  
• How long do you plan to stay in your home?

All of these factors need to be considered before you can decide if it makes sense to refinance your home. At Equisouth Mortgage, we can help you determine the costs and benefits of refinancing and assist you in finding the best mortgage program to reach your refinancing goals.

6. What is a credit score and how is it reported?

A credit score is a number that lenders use to help them predict how a loan will be repaid. Credit scores are also called risk scores because they help lenders predict the risk of making a loan. Credit scores range from 365 to 840, with the higher scores being more favorable.

Some of the things that affect your credit scores include:

• Delinquencies
• Too many accounts opened within the last twelve months
• Short credit history
• Balances on revolving credit are near the maximum limits
• Public records such as tax liens, judgments or bankruptcies
• No recent credit card balances
• Too many recent credit inquiries
• Too few revolving accounts
• Too many revolving accounts

A credit score is generated at the time a lender requests your credit report. Since a credit score changes as the elements in your credit report change, a credit score is not stored as part of your credit history.

7. What do i do if my credit report contains incorrect information?

Credit bureau reports may contain errors or inaccurate information. If this is the case with your credit bureau report, you'll need to contact the reporting agency listed at the bottom of your credit bureau report and file a dispute.

8. What is the difference between interest rate and apr?

There are two interest rates associated with your loan:

• Actual Interest Rate
• APR

The actual interest rate is the annual rate of interest you are charged on your loan. It is also known as your note rate and is used to calculate your monthly payments.

The Annual Percentage Rate (APR) represents the total cost of the loan on a yearly basis after all charges are taken into consideration. APR includes your interest and any additional costs you may pay such as closing fees, points, prepaid interest appraisal etc.

APR was designed to protect consumers by giving them a way to check the true cost of a loan.

9. What does my mortgage payment include?

For most homeowners, a monthly mortgage payment includes three separate parts:

• A payment on the principal of the loan or the amount you borrowed
• A payment on the interest
• A payment into a special account called an escrow account.

An escrow account is set up by your lender to pay for property taxes, fire and hazard insurance premiums, mortgage insurance premiums and other escrow items. Escrow accounts ensure that these items are paid in a timely fashion.

Advantages of escrow accounts include:

• Bills are paid on time. The homeowner avoids the risk of lapsed insurance coverage or delinquent taxes.
• Unexpected increases are taken care of. It is the responsibility of the mortgage company to allow for possible increases in tax or insurance premiums.
• Mortgage companies typically cover shortages when tax or insurance premiums increase.

10. If i have less than perfect credit, can I still apply for a mortgage loan??

Yes. If you have credit problems, be prepared to discuss them honestly. At Equisouth Mortgage, we know there can be legitimate reasons for credit problems.