FAQs

Are there special mortgages for first-time home buyers?

Yes. Lenders now offer several affordable mortgage options which can help first-time homebuyers overcome obstacles that made purchasing a home difficult in the past. Lenders may now be able to help borrowers who don't have a lot of money saved for the down payment and closing costs, have no or a poor credit history, have quite a bit of long-term debt, or have experienced income irregularities.

How large a down payment do I need?

There are mortgage options now available that only require a down payment of 5% or less of the purchase price. But the larger the down payment, the less you have to borrow, and the more equity you'll have. Mortgages with less than a 20% down payment generally require a mortgage insurance policy to secure the loan. When considering the size of your down payment, consider that you'll also need money for closing costs, moving expenses, and - possibly -repairs and decorating.

Credit counseling professionals can help you create and use a financial plan. If your income is not sufficient to pay all your debts, they can help you work out a debt repayment plan. With this plan, you deposit money each pay period with the credit counseling service and they pay your bills according to your debt repayment plan. They may also require that you not use any additional credit until you have repaid your present debts, unless approved by your credit counselor.

What is debt relief?

If you have serious financial difficulties and cannot find a solution, a non-profit credit counseling service may be able to help. Credit counseling services are provided by organizations designed to help persons with debt problems pay their bills. Some credit counseling services charge small or no fees for helping people develop a spending plan. Consumer Credit Counseling Services, credit unions, banks and housing authorities provide financial counseling.

Credit counseling professionals can help you create and use a financial plan. If your income is not sufficient to pay all your debts, they can help you work out a debt repayment plan. With this plan, you deposit money each pay period with the credit counseling service and they pay your bills according to your debt repayment plan. They may also require that you not use any additional credit until you have repaid your present debts, unless approved by your credit counselor.

What is bankruptcy?

Personal bankruptcy generally is considered the debt management option of last resort because the results are long-lasting and far-reaching. A bankruptcy stays on your credit report for 10 years, making it difficult to acquire credit, buy a home, get life insurance, or sometimes, get a job. However, it is a legal procedure that offers a fresh start for people who can't satisfy their debts.

What is debt consolidation?

A debt consolidation loan allows you to pay most of your debts through one monthly payment. Even though the debt consolidation loan simplifies the monthly payment, you may have a larger loan with new credit costs for a longer period of time. This may not be the best solution for you. Ask yourself whether you can meet the terms and conditions of a consolidation loan. Some companies offer consolidation loans by giving you a second mortgage or home equity line of credit. In this situation you are using your home as collateral. The danger is that if you cannot make payments or are late paying, you could lose your home.

What is a home equity loan?

A home equity loan is a form of credit for which your home is pledged as security. Generally, home equity loans offer a fixed interest rate and a fixed monthly payment. A standard home equity loan, (also called a second mortgage) is paid off over an extended period of time. You can estimate your home equity by adding together the balance of all the debts secured by your home, then subtracting the total from your home's value.

What can a home equity loan be used for?

You can use a home equity loan for almost anything. Common uses include debt consolidation (paying off high-interest credit card debt), home improvements, purchasing or refinancing a home, purchasing land, paying for education expenses, college tuition, and buying luxury items.

Can I pay off balances from other accounts?

Yes. You may use the proceeds of your new home equity loan or line to pay off balances from other accounts, or we can process those payoffs on your behalf.

Do I have to live in the residence I'm using for collateral?

No. We offer loans on primary residences as well as second homes, vacation homes and investment properties.

What are the costs involved in refinancing?

The closing costs, including lender fees, are typically 1% to 2% of the loan amount. In addition, you may choose to pay points in order to get a lower rate, or accept a higher rate in exchange for having the lender pay some or all of your closing costs.

How much documentation will I need to supply to verify the information I provided on my application?

Every situation is different. Once you submit your loan application online you'll automatically receive a customized list of the documents you'll need to provide. If you apply over the phone, you'll receive this list within three business days.