Mortgage Loan Questions

EMG MORTGAGE is committed to helping you understand and compare home mortgage loan options. So we’ve compiled a list of some common questions about mortgages that we frequently hear from our customers. If you don’t find the answer you are looking for, please contact us or chat with a live EMG MORTGAGE loan specialist right now!

What is the typical home loan process?

A typical home mortgage loan process consists of 10 easy steps:

1.  Complete the pre-qualification worksheet and complete a loan application
2.  Pre-purchase consultation with an EMG MORTGAGE loan specialist
3.  Gather and prepare necessary documents
4.  Receive credit approval
5.  Obtain a property inspection
6.    Loan officer orders home mortgage loan documents
7.    Buyer obtains homeowners insurance
8.    EMG MORTGAGE loan experts update you on document status
9.    Seven-day pre-closing confirmation
10.  Easy, smooth, on-time closing!

What do I typically need to apply?

1.   W-2′s for the past 2 years
2.   2 most recent year-to-date paycheck stubs (within 30 days).
3.   Residence address – past 2 years and landlord information if applicable.
4.   Name and address of each employer – past 2 years
5.   2 years’ tax returns with W2s included and all schedules included
6.   Last 2 months’ bank statements for all checking, savings and retirement accounts (all pages included).
7.   Divorce Decree and 12 months’ proof of child support. when applicable
8.   Address of other real estate owned.
9.   Loan information on all real estate owned.
10. Payment for appraisal.

What’s the difference between pre-qualification and pre-approval?

A mortgage pre-qualification is basically the lenders opinion of your ability to buy or refinance a home. Requires only basic information and no documentation or credit score. A mortgage pre-approval is the underwriter’s decision that you are qualified. Credit check and documentation are required.

Once I sign my application am I committed to borrowing money?

No. Your pre-closing signatures are non-committal but only allow your mortgage banker to negotiate and approve you for a loan.

Internet Statements- Can I use them?

Internet statements are not allowed because they’re not yet seen as completely unalterable by Fannie Mae or Freddie Mac. ALL PAGES of a required hard copy statement must be submitted (1 of 5 – all 5) even if the first page is an advertisement.

Who orders the appraisal and survey, and when is it ordered?

Your lender will order the appraisal and survey for you. (Unless your home is new construction and then your builder will order your survey) Most contracts have option periods that allow you to dictate when the appraisal and survey are ordered.

What does “locking my rate” mean?

Locking your interest rate refers to guaranteeing a specific interest rate for a specific period of time. Shorter lock periods usually have lower interest rates. For more information or to compare mortgages and rates, contact EMG MORTGAGE qualified home mortgage loan experts or chat one-on-one now!

Do you “sell” your loans?

EMG MORTGAGE serves as both a broker and a Mortgage banker – Our company sells all of our loans.

A mortgage banker will originate, process, underwrite, close and fund the loan in-house or the loans are sold to our Investors who has guaranteed your loan program.

What are origination and discount points?

Origination and Discount points are both a percentage of your loan. Origination fees are usually range 1% – 3% and can be paid by either the Investor or the Client.  Discount points range from 0% – 3% which allows the client to get a lower interest rate.  The client can also elect to forego the discount points and get a par rate.

What is APR? (Annual Percentage Rate)

Usually higher than your quoted interest rate because it includes, in addition to interest, some of the additional costs of obtaining your financing.

Need more information? Please call us at 229-420-9364 to start an application today!