|
Frequently Asked Questions
Choose a category for the complete list of questions.
 Before
You Apply
After You
Apply
Interest
Rates
Home
Equity
Closing
Mortgage
Insurance
Privacy &
Security
Company
Information
Before You Apply
I have not yet applied. Who do I contact for general
information and questions regarding your services?
We hope our website will answer all of your questions. If any of
your questions are not answered here then please use the "Contact Us" form on
this website and we will either send you an e-mail or call you. Or, you can call
either, Dave Hartman or Pete Pokela at Mortgage Headquarters (920) 491-0100 in Green Bay, WI.
Our business hours are Monday through Friday, 9 am to 5
pm or call me personally. Dave's cell phone number is (920) 360-0905 and Pete's
cell phone number is (920) 609-7026.
Can I apply for a loan if I have filed for bankruptcy?
Yes. In most cases, we can provide you with a loan if your bankruptcy discharge
is at least 2 years old and you've had excellent credit since the discharge. If
your bankruptcy was discharged less than 2 years ago or if your credit problems
have continued, it may be more difficult to approve your loan. However, it is
still possible.
I live outside Wisconsin. Can I still get a loan?
Yes, so long as the real estate is located in Wisconsin.
Can I finance 100% of my loan?
Yes. We have several loan programs that offer 100% financing on purchases. You
must, however, have excellent credit to be eligible for most of these programs.
WE also have 2nd mortgage programs up to 125% combined loan value.
Do you require a minimum loan amount?
Yes. Currently we do not accept applications for loans less than $30,000. You
must enter a loan amount of at least $30,000 to be considered for our programs
and interest rates.
Is there any cost to apply?
No. We do not require an up-front fee to submit an application and begin the
loan process. You will be required to make a good faith deposit once your
application is in process; however, this payment is not a fee, it is a deposit
that will later be credited toward your closing costs.
I do not have a lot of money for a down payment. Can I
still get a loan?
Yes. We have a variety of loan programs that offer a loan with a minimal down
payment. Your personal loan officer can explain these options to you and help
you find the best program for your needs. We also have zero down payment loans
for excellent to good credit applicants.
Do I have to apply online or can I phone, fax or mail my
application?
Although applying online is the fastest and easiest option, we can also fax or
express mail our application package to you. We'll do whatever it takes to make
you comfortable. Call me at (920) 491-0100, and I'll make arrangements to
complete the application over the phone, via fax or mail.
Can I come to your office to complete an application?
Yes. We'd love to meet with you and assist you in person.
Will you check my credit if I complete your online application?
Yes. Our goal is to make the loan process as quick and efficient as possible, so
I will request a credit report shortly after you complete the online
application. This allows us to gain an accurate financial profile quickly, and
allows me to determine early in the process if we have a loan
program that fits your needs. I know your time is valuable, and I don't want
to waste days or weeks completing all the necessary paperwork only to find that
you do not qualify for our programs, or to discover that you are not interested
in the programs we have to offer.
What documents will I need to provide with my
application?
Our streamlined loan process minimizes the number of documents that you are
required to provide; however, the actual documents that you need to send us will
vary based on your situation.
Required Documents page.
What criteria do you use to evaluate my loan application?
In addition to the information you submit in the online application,
we review your personal finances, including your credit history, employment and
income, collateral, liabilities and assets.
What if I don't have an email address?
You can call me at (920) 491-0100 I will take your
information over the phone, via fax or mail.
How long does it take to complete the online
application?
The on line application is one of the shortest and easiest
applications on the Internet! On average, it takes around 10 minutes or less to
complete and in most cases I will have a response for you in one working day or
less.
top of page
After You Apply
What should I expect once I complete the online application?
After completing one of our online forms, I will contact you to
answer any questions you may have, discuss your loan program options and
complete the application process.
How long will it take for my loan to be approved?
We can approve your loan within 1 or 2 business days if your loan qualifies for one of
our automated underwriting systems. Even if you do not qualify for desktop
underwriting, your loan can be approved within 5 business days, provided we have
obtained sufficient up-front information from you.
Who do I contact once my loan is in process?
My office.
Once I have received your completed application and supporting documentation I
or one of my assistants will be responsible for collecting any remaining
documentation, preparing your application for approval, and clearing your file
for closing.
What should I do if I entered my information incorrectly
and need to correct it? How can I update my information?
If you have already completed the online application
and need to correct or update your information, you may call us at (920)
491-0100 or
email us DHartman@mtg-hq.com and a loan officer will make the changes you request.
How can I check the status of my application or loan?
During the application process I or one of my assistants will always be
available to answer your questions and offer advice.
top of page
Interest Rates
What are the differences between fixed and adjustable
rate mortgages?
Adjustable rate mortgages (ARMs) offer a lower initial interest rate than most
fixed rates loans; however, the interest rate can change periodically (usually
in relation to an index) and your monthly mortgage payment will go up or down
accordingly. With a fixed rate mortgage, your interest rate and monthly mortgage
payments will stay the same for the life of your loan, regardless of market
conditions. When weighing the advantages and disadvantages of both, it is
important to consider how much risk you are willing to assume. For many people,
an ARM is the right mortgage choice, particularly if your income is likely to
increase in the future or if you only plan on being in the home for 3 to 5
years. On the other hand, if you are looking to put the kids through college or
buy a new car in the future, then a fixed rate mortgage is a safer choice.
How do I know if it's best to lock my rate or let it
float?
Mortgage interest rate movements are as hard to predict as the stock market, and
no one can really know for certain whether they'll go up or down.
If you have a hunch that rates are on an upward trend, then you'll
want to consider locking the rate as soon as you are able. Before you decide to
lock, make sure that your loan can close within the lock-in period. It won't do
you any good to lock your rate if you can't close during the rate lock period.
If you think rates might drop while your loan is being processed, take a risk
and let your rate "float" instead of locking. You can watch rates and lock in at
any time. You must lock your rate at least 5 days prior to closing.
When can I lock my rate?
You can lock your rate as soon as you find a property and complete our
application. After submitting your completed online application I will contact
you. At that time, you may decide to lock your rate. Please note that you must
specify a property address in order to lock.
top of page
Home Equity
What is a Home Equity Loan?
A Home Equity Loan, also known as a second mortgage, allows you to borrow a
one-time disbursement of funds*, using the equity in your current home or
property as collateral. Your interest rate is usually fixed and the loan is
amortized over a fixed term. Like a traditional mortgage, you borrow a set
amount, you receive the set amount of funds in one disbursement and then you pay
that loan back with interest over a set amount of time.
* You may borrow up to 100% of the equity in your home. Because
you have the option to rescind or cancel your loan for up to 3-days following
the closing, your money will not be distributed until the end of this 3-day
rescission period.
What is a Home Equity Line of Credit?
A Home Equity Line of Credit allows you to periodically access an account of
funds* via various means, using the equity in your current home or property as
collateral. This loan is similar to a credit card account in that you are only
charged interest on the outstanding balance, and there is usually a credit limit
or maximum that you can draw against. For instance, you may have a credit limit
of $100,000, but if you only withdraw $5,000 of that, you will only pay interest
on that $5,000. The interest rate is usually tied to the Prime Rate with a
margin, and may even be below Prime.
* You may borrow up to 100% of the equity in your home. Because
you have the option to rescind or cancel your loan for up to 3-days following
the closing, your money will not be accessible until the end of this 3-day
rescission period.
What is the difference between a fixed rate and a variable
rate?
With a fixed rate loan/line, the interest rate will not change during the term
of the loan. With a variable rate, the interest rate will move up or down,
according to a pre-selected index, over the term of the loan. Home Equity loans
offer a fixed interest rate, and Home Equity Lines of Credit feature a variable
rate. Interest rates are based on the amount you borrow and the loan term.
What can I use Home Equity money for?
Home Equity Loans and Lines of Credit can be used for almost anything. The most
common uses include debt consolidation, home improvement, purchase/payoff of
auto, boat or other high-ticket items, purchase of investment property, college
tuition and future ready reserve.
Is the interest tax deductible?
In most cases the interest on home equity loans and lines of credit can be tax
deductible. Consult your tax advisor about your specific situation.
Will my first mortgage be affected by a home equity loan?
No. Your first mortgage balance is used to determine your borrowing options, but
your home equity loan/line is totally separate and has no effect on your first
mortgage.
How much can I borrow?
Your loan/line amount is determined by taking a percentage (up to 100%) of your
home's fair market value and subtracting the balance of any outstanding
mortgages on the property.
How can I access my Home Equity Line of Credit?
You have several convenient options to access your Home Equity
Line of Credit:
- Line of credit checks
- Credit card tied exclusively to your Home Equity Line of Credit
- ATMs
top of page
Closing
If I apply for a mortgage online, where will the closing take
place?
Usually, the closing is held at the title company from whom we obtained your
title, but in some instances it is held at an attorney's office. Regardless, we
will arrange for your closing to take place at the real estate agents office. We
will deliver our loan documents and transfer your loan funds
to the agent prior to, or at the closing.
When will I know the exact amount of money I will need at
closing?
Just to make sure there are no surprises at closing, your
loan officer will contact you a few days before the closing date to review your
final costs and loan terms. If you're purchasing a new home, the numbers that
the underwriter provides are related to your new mortgage only. Additional costs
or even credits may need to be applied based on your agreement with the seller.
We will calculate the exact amount that you'll need to bring to
closing and contact you at least 24 hours prior to closing with the final
figures. The funds you bring to closing must be in a certified form, such as a
bank check or money order, and made payable to the closing agent.
What happens at the loan closing?
The closing will take place at the office of a title company or attorney in your
area. If you are purchasing a new home, the seller may also be at the closing to
transfer ownership to you, but in some states these two events actually happen
separately. During the closing, you will be reviewing and signing several loan
papers, including the Settlement Statement, the Truth-in-Lending Statement, the
Note and the Mortgage or Deed of Trust. Just to make sure that there are no
surprises at closing, your underwriter will contact you a few days before
closing to review your final fees, loan amount, first payment date, etc.
What's included in closing costs?
Closing costs are expenses over and above the price of the property. Closing
costs include origination fees, attorney's fees, taxes, prepaid insurance,
points, escrow, title insurance and survey fees. Closing costs usually amount to
between 2 and 6 percent of your mortgage. A complete list of your closing costs
can be found on the HUD 1 Settlement Statement, and we will go over your closing
cost items with you as well.
top of page
Mortgage Insurance
What is Private Mortgage Insurance or PMI?
PMI is a type of insurance provided by a private mortgage insurance company that
protects us, the lender, in the event that you default on the loan. Mortgage
insurance is usually required on a conventional loan when your down payment is
less than 20%.
How do I pay for mortgage insurance?
Mortgage Insurance premiums can be paid annually from an escrow account, paid
up-front as a closing cost or financed in your loan amount and paid monthly as
part of your mortgage payment.
How can I avoid mortgage insurance?
The easiest way to avoid PMI is to make a down payment of at least 20% of the
purchase price of the property. However, if you do not have the funds, you may
consider a second trust loan, sometimes called a piggyback loan. The most common
type of second trust is an 80/10/10, where a down payment of 10% is made, 80% is
financed as usual, and the remaining 10% is financed in a second trust at a
higher interest rate.
When can I cancel my mortgage insurance?
Typically, PMI will no longer be required once your loan balance falls below 80%
of the home value. You can reach this 80% level by 1) paying off enough of your
loan over time to reduce the principal balance, 2) your home appreciating
(increasing in value) enough that your loan balance is less than 80%, or 3) a
combination of the two.
You should verify that your loan agreement allows for PMI to be
cancelled once you reach the 80% loan-to-value ratio. Sometimes, your PMI will
be cancelled automatically once you have paid enough; however, we will not know
if your house increases in value. You will need to provide the lender with a certified
appraisal of your house in order to verify the current market value.
top of page
Privacy and Security
Do you share my information with other companies?
The mortgage process involves communicating personal financial data, and we
understand the need for a safe and secure environment in which to share this
information. We respect the trust you are giving us, and we do not use your
information for any purpose other than to underwrite and approve your loan. We
do not share, rent or sell any of the information you provide to us.
top of page
Company Information
Are you a mortgage broker?
Mortgage Headquarters, Inc. is a full-service mortgage broker. We shop hundreds of loan programs and rates offered by the
nation's leading wholesale lenders to find the best program and terms for your
needs.
Because we have the ability to lock-in, decision and fund the loan program you
have selected, you deal with us - and only us - from application to closing.
This ensures a faster, more efficient loan process and expert service from start
to finish.
Can I get a construction loan?
Yes, and after your new home is complete I can roll it over into one of
our standard home mortgage programs.
Do you finance land loans?
Currently, we do not provide loans for land.
Do you finance mobile home loans?
Currently, we do not provide loans for mobile homes.
Do you finance mixed-use property loans?
In certain situations, yes.
Do you finance commercial property loans?
Currently, we do not provide loans for commercial properties.
top of page
| 
