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Frequently Asked Questions |
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Why is
there not a full loan application on your website? |
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Are you a Banker or a Broker? |
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What are the interest rates
charged for your loans? |
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What causes an adjustable rate
mortgage to adjust? |
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What is negative amortization and
how does it occur? |
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How am I approved? |
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How quickly will my loan be
approved? |
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What kind of documentation will I
need to provide to the lender for verification? |
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Do I have to document my income? |
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Can I apply for a purchase loan
before I've found my property? |
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What is the cost to submit a loan
application? |
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How do I know what my loan rate is
and when do I get it? |
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What is the difference between the
interest rate and the APR? |
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Can I make changes to my
application? |
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What is hazard insurance?
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What if I have bad credit or a
bankruptcy? |
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What is "loan-to-value" ratio? |
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What loan is right for me? |
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What costs are involved in the
loan process? |
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Why is there not a full loan application on
your website? |
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A loan application is more than
filling out several pieces of paper, its about developing a
relationship between me as the lender and you as the
borrower. Your loan is as unique as you are and I want
to take the time to get to know you and a face-to-face or
telephone application gives me the opportunity to do just
that. |
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Are you a Banker or a Broker? |
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BancGROUPTM
Mortgage is a correspondent lender. Meaning we provide
our own funds at closing and your loan is then sold to a
specific investor or servicer after closing.
Additionally, I can also broker your loan as the situation
dictates, allowing me to find the best loan for your
specific needs. Back to top. |
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What are the interest rates
charged for your loans? |
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Loan rates are determined by a
variety of factors including, but not limited to, the loan
product, borrower's credit history, loan amount,
loan-to-value ratio of the property, and borrower's income
(loan type / property type). Every loan is as unique as its
borrower. We recommend you take advantage of our free
application process to get some individually tailored rate
quotes. There is no cost or obligation. Back to top. |
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What causes an adjustable rate
mortgage to adjust? |
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The interest rate of an adjustable
rate mortgage (ARM) is linked to a particular index of
economic conditions. A commonly used index is the six-month
London Interbank Offering Rate or LIBOR. This index is the
average of interest rates charged by major international
banks to borrow U.S. dollars in the London money market.
LIBOR is the British equivalent to the U.S. Prime Rate.
The LIBOR index is officially fixed once each day, although
changes occur throughout the day. Changes in this index
correspond to changes in the interest rate of an adjustable
rate loan. Because the interest rate of an ARM is calculated
by adding the index plus a "margin" (a pre-set, fixed
interest rate established by the lender), a change in the
index value will cause a change to the interest rate
calculation. The number of times an ARM loan will adjust
each year, and the maximum amount it can change, varies per
loan. Back to top. |
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What is negative amortization and
how does it occur? |
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Negative amortization occurs when
scheduled monthly mortgage payments are not sufficient to
repay the fully scheduled amortized payment (principal and
interest) due on the loan and the outstanding balance of the
loan grows larger with each payment. Back to top. |
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How am I approved? |
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I understand that every customer is
unique. That's why I evaluate your individual situation and
find the right loan for you. I take the time to discuss with
you what factors go into approving your loan before I submit
your loan to our underwriters, so you understand the process
and what documentation will be required along with any
potential problems. Back to top. |
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How quickly will my loan be
approved? |
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Very quickly. BancGROUPTM
Mortgage is about providing unparalleled customer service.
I have a dedicated team that will process and underwrite
your loan, so you'll know within days and sometimes in as
little as a few hours if your approved. Back to top. |
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What kind of documentation will I
need to provide to the lender for verification? |
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Every loan is as different as every
borrower, so there is no single list of required documents
that will apply to all borrowers. However, the following is
a general list of documents you should be prepared to
provide to any (remember, you should provide copies of these
documents, not originals).
- Employment and Income Data:
W-2 tax forms for the past two years
1099s (if applicable)
Pay stubs showing current year-to-date earnings within
30 days.
Your employment history and any explanation of a job
change within the last two years
If Self-Employed (defined as owning 25% or more of a
business)
Business and personal federal tax returns (including all
schedules) for the past two years
Current year-to-date profit or loss statement K-1 for
all partnerships
Residence addresses for the past two years
Properties owned
- Assets
Bank account statements for the past two months
Most recent investment account statements
Most recent retirement account statements
Signed gift letter and transfer of funds verification
- Liabilities
Credit cards, including account numbers and balances
Auto loans and leases, including account numbers and
value of the car
Explanation and paperwork for any derogatory credit in
the past seven years
Explanation letter of any derogatory credit, such as
bankruptcy, collection, foreclosure or default
Student and personal loans, including account numbers,
monthly payments and balances
Landlord address(es) for the past two years if necessary
Property and Real Estate Agent Information
- Name and contact information of your Real Estate
Agent
- Homeowner's insurance information
- Rental or lease agreement
Back to top. |
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Do I have to document my income? |
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We offer many income documentation
programs: full and stated (where not prohibited by law).
Full documentation programs require that you substantiate
your income with tax returns, bank statements, pay stubs,
and/or other such paperwork. If you choose not to
document your income, you can take advantage of our stated
income programs, which requires no income verification, but
you must satisfy other loan requirements. During our
loan application meeting I will take the time to discuss
with you your specific needs and help you determine which
documentation process makes the most sense for you. Back to top. |
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Can I apply for a purchase loan
before I've found my property? |
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Yes, in fact I highly encourage it.
You can become pre-approved for a maximum loan amount and a
loan program in as little as fifteen minutes. Once you find
a specific property, the specifics of the loan can be
changed to suit your purchase. Please note that a rate
can't be locked in until there is a specific property
address. Back to top. |
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What is the cost to submit a loan
application? |
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There is no cost to submit a loan
application or to be pre-qualified for a loan. You will only
incur a cost when you have accepted a loan offer and an
appraisal is ordered for your property. Back to top. |
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How do I know what my loan rate is
and when do I get it? |
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You will be quoted an interest rate
and APR when I present you with a loan offer.
Additionally, BancGROUPTM
Mortgage allows us to "float down" your interest rate as the
market changes at no cost to you. Back to top. |
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What is the difference between the
interest rate and the APR? |
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The Annual Percentage Rate (APR) is
the yearly cost of a mortgage expressed as a percentage, and
takes into account the total cost of a loan, including the
interest rate and other finance changes (e.g., closing fees
and points). The interest rate consists solely of the cost
for borrowing a lender's money.
Using an APR allows a borrower to more accurately compare
the true costs of various loans offered by different
lenders, or different loan programs offered by the same
lender. For an APR
calculator click here. Back to top. |
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Can I make changes to my
application? |
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Yes, you can make changes to your
application at any time before the final approval. Any
changes after the final approval may affect the time it
takes to close your loan, the cost of closing the loan, the
interest rate, the type of loan and sometimes the loan
approval itself. Back to top. |
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What is hazard insurance?
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Hazard insurance is a type of
homeowner's insurance that protects against damages caused
to property by fire, wind, or other common risks. Lenders
require that you get a hazard insurance policy before you
buy or refinance a home. Back to top. |
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What if I have bad credit or a
bankruptcy? |
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BancGROUPTM
Mortgage offers loans to people with all sorts of credit.
Whether you have good credit, credit issues, a past
bankruptcy, or the need to re-establish credit, we encourage
you to apply. Back to top. |
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What is "loan-to-value" ratio? |
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Loan-to-value ratio is a measure used
by lenders to assess the relationship between the value of
the property and the amount of the loan. The loan-to-value
ratio is determined by dividing the loan amount by the fair
market value of the property. Back to top. |
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What loan is right for me? |
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Many factors and personal preferences
affect a borrower's choice of "the best loan," including the
purpose of the loan (e.g., new purchase, debt consolidation,
etc.), the length of both the loan and the ownership of the
property, and the type of loan a borrower requires (e.g., a
small amount of down-payment, a large amount, or no money
down). I encourage you to go through the loan
application to determine what kinds of loans you might
qualify for depending on your specific needs. Back to top. |
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What costs are involved in the
loan process? |
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Fees on home loans fall into the
following 3 main categories:
Lender Fees -- These are fees charged by BancGROUPTM
Mortgage (and other lenders) for originating, processing,
underwriting and funding your loan. These fees are set by
the lender and vary by state and loan program.
3rd Party Fees -- These fees are charged by other companies
which are necessary for completing your home loan. Examples
include title companies, appraisers and attorneys (in
certain states). 3rd parties set their own fees.
Government Fees -- These fees are charged by state and local
governments. Examples include; recording, state tax,
tax stamps or transfer tax. Your local and/or state
governments set these fees.
For a complete breakdown of fees associated with you loan,
please see your Good Faith Estimate (GFE). Back to top.
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Back to top. |
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BancGROUPTM Mortgage
Corporation is an Equal Housing Lender and California, Colorado (MB100017881), Illinois, Indiana,
Wisconsin and Florida Residential Mortgage Licensee