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Frequently Asked Questions
Tucson, Arizona
520-318-5605
5151 E. Broadway Blvd., Suite 1600
Tucson, AZ 85711

Frequently Asked Questions

How long does it take from start to finish?

The loan process takes from 30 days to 60 days from application until funding.

What paperwork do I need to provide you?

Each loan program has different requirements, but basically, photo id and Social Security card, all pages from your last 2 months bank statements and/or stock statements, 30 days current pay check stubs, 2 years W2s if you are not self employed and have no rental homes. If you are self employed, have a home based business or have rental units, we will also need 2 years of Federal 1040 forms with all the schedules. If you receive retirement or pensions, we will need awards letters.

Why are there so many disclosure forms?

For your protection, this may be the single largest purchase many of you will make in your lifetime so you can fully understand exactly what you are signing at closing.

What is a mortgage?

A mortgage (also called a home loan) is a legal contract made between a lender and a borrower that uses property as collateral to secure the loan. The lender can take possession of the property if the borrower fails to pay the prearranged home loan payments.

What is a mortgage refinance?

Occurs when borrower uses the money from a refinanced loan to pay off an existing home loan. Borrowers typically do this to extend their home loan period, apply for a lower interest rate, or to use some money out of their equity.

What is a home equity loan?

A home equity loan is a type of loan that allows a homeowner to obtain cash loans based on the present value of their property minus the mortgage amount still left to be paid off. Homeowners often apply for home equity loans to pay for expenses such as home remodeling, debt consolidation, college education, and other long-term investments.

What is a home equity line of credit (HELOC)?

HELOCs give homeowners access to an open line of credit, where only the outstanding balance accrues interest. HELOCs provide flexibility by allowing borrowers access to money on an as needed basis.

What is a second mortgage?

A second mortgage is a type of mortgage refinancing that allows you to acquire a second loan on your home in addition to your first home loan.

What is a reverse mortgage?

Reverse mortgages are loans that allow homeowners to transfer some of their home equity into cash. In contrast to traditional home loan mortgages, reverse mortgages do not require borrowers to repay their home loan until the homeowner no longer lives primarily at that residence, although he or she stills owns the residence.

What is a mortgage lender?

A mortgage lender is a financial institution that provides prospective homeowners with the funds over a long-term period to pay off their home loan mortgage. Borrowers are required to pay monthly installments to their lender which includes principle, interest, and additional lender fees. Examples, mortgage bankers and mortgage brokers.

What is the difference between a mortgage broker and a mortgage banker?

A mortgage broker is the middleman who helps match borrowers with lenders based on corresponding needs and standards. Mortgage brokers arrange more the 80% of all transactions between borrowers and lenders, yet mortgage bankers actually finance and distribute the largest portion of home loans compared to all other lenders.

What is the mortgage principle?

The mortgage principle is the amount of loan money that a homeowner borrows, excluding the interest.

What does APR mean?

The Annual Percentage Rate (APR) is the percentage used to figure out the total cost of your cash advance loan by taking into account all fees charged by your lender in addition to your loan principle and interest.

What is a fixed rate mortgage?

A fixed rate mortgage is a home loan with steady interest rates and monthly payments that do not change throughout the life of the loan.

What is an adjustable rate mortgage (ARM)?*

ARMs have monthly payments that change periodically due to fluctuations in market interest rates.

What is an interest-only mortgage?

Interest-only loans require the borrower to pay only interest on the principle in monthly installments for a fixed period.

What is an amortized mortgage?

Amortized mortgages refers to loans that are paid in installments comprised of both principle and interest, and which is paid off (or amortized) over a fixed period of time.

How do you calculate the loan-to-value ratio (LTV)?

The loan-to-value ratio of your home is calculated by dividing the fair market value of your home by the amount of your home loan.

What are lender fees?

These fees usually range anywhere from 2%–5% and may include, but are not limited to, things such as appraisal costs, document preparation and application costs.

What is the Truth in Lending Act?

The Truth in Lending Act is a federal law that was enacted as part of the Consumer Protection Act. This law requires lenders to reveal all information to the borrower and detail all costs associated with the transaction.