We freely admit that the mortgage process is complicated. That’s why we do everything in our power to simplify and streamline the process for you.
To get you started, we’ve assembled a selection of the most frequently asked questions and their answers. Throughout the years, we’ve found these to be the majority of the most common questions mortgage buyers ask.
We invite you to browse through the list below, and feel free to call us at 516-466-2930 for further information. We invite you to chat online with a licensed mortgage loan originator (click the Chat Now button above) or to contact one of our staff by phone or email.
Many mortgage options are available. Each one offers pros and cons. You can discuss your unique situation when you speak with one of our licensed mortgage loan originators. The mortgage specialist will then present your best options and their associated benefits, including short- and long-term savings, and savings on taxes, interest, and deferred payments. From there, it will be much easier to determine which loan option is right for you.
After completing your loan application with our licensed mortgage loan originator, you will receive a package or email from us containing an application for you to sign, and a list of documents we will need to process your loan. This documentation should be returned to us as quickly as possible.
Your loan officer will always be your primary contact point for any questions you have throughout the process.
If you spot an error, feel free to draw a line through the incorrect information and write in the correct information. Also, you may fill in by hand any information that was inadvertently missed. We will prepare a final application reflecting the most accurate and up-to-date information, and provide it to you before or at closing.
A number of situations could result in your loan amount falling short at settlement. For example, your loan payoff might come in a little higher than anticipated, or you might have property taxes or insurance due to be paid at closing. That is why we always recommend submitting the loan request at a higher amount, giving you a buffer to prevent shortages. During the underwriting process, it is always easier and quicker to decrease the loan amount than it is to increase it.
We ask that you email or fax everything back to us as soon as you have filled out the application and collected the necessary documents. You can also send the paperwork to our office via overnight mail. We are happy to provide you with a prepaid Fedex label if you wish. Our goal is to get your loan processed as quickly as possible, so the sooner we get your documents, the better.
We are the first ones to review your application package and determine if you have furnished all the necessary paperwork. We then submit the package to an underwriter for review. Though we do our best to anticipate everything you need to provide, it’s possible the underwriter might require some additional documentation.
Once your file is submitted to the lender, there is a three business day waiting period from the day the lender issues the Truth in Lending disclosure before the appraisal can be ordered. As soon as the waiting period passes, your licensed morgage loan originator will contact you to set up the appraisal.
Your loan officer will initiate the appraisal order with the appraisal management company, which will assign the order to an appraiser. The appraiser will then contact you directly to schedule a time for the appraisal. You do not have to be at the home for the appraisal, but someone has to be there to give the appraiser access.
Your interest rate can be locked after we receive your signed application package and loan paperwork. At that point we will inform you of the rate and the lock expiration date.
The rate lock should allow enough time for the loan to get through the approval process and to closing. Typical lock terms are 15, 30, 45, and 60 days. Locks are available for longer terms, but they typically come with a cost.
The terms of your rate lock will determine when your rate will expire. For example, if you choose to lock your rate for 45 days, your loan must close within this 45-day time frame, otherwise you will have to extend your rate lock, or examine options to let the rate expire and re-lock. This will depend on market conditions and the specific lender's lock policy. Be sure to request a rate lock confirmation so that you know exactly when your rate expires.
We do our best to make sure that your loan closes within the lock time frame, but sometimes, delays beyond on our control push things beyond the lock expiration. The lender will extend the lock, but in some cases will charge a fee to do so. We do our best to cover the fee ourselves, or have it covered by the lender, but you may be required to pay it in instances where the delay was not due to Silver Fin Capital or the lender. Be sure to discuss extension options with your licensed mortgage loan originator in advance.
The annual percentage rate (APR) is a comparison tool that reflects the total cost of your mortgage loan expressed in terms of an annual interest rate. The APR reflects two factors: the interest rate on your mortgage loan and the other applicable costs of financing, such as points, fees, and certain closing costs. Your monthly payment is calculated based on the mortgage note rate, not the APR. The APR will usually be higher than your interest rate.
Each of our many lender partners has to meet federal disclosure requirements. As a result, you will receive additional paperwork from the lender funding your loan. Upon receipt of the documents, contact your loan officer. In many cases, the figures from the lender might not exactly mirror those on the paperwork sent by your loan officer, which are often based on estimates from the early stages of the process. Most of the time, you will not be required to return this documentation to the lender. You will be advised by your loan officer whether any of the documents requires signatures.
Normally, your loan process should take approximately 30 to 45 days from application to closing. However several issues can slow the process. For example, if the mortgage market is busy with refinances and purchases, lenders will be at capacity and require extra time. Federal regulations can also stretch the process, including certain waiting periods built in for consumer protection. In addition, any change to your loan along the way, however minor, can reset time lines and require extra work.
To expedite the process, we recommend that you send in your requested income and asset documentation promptly. This allows us to quickly make a decision about your loan. Also, schedule your appraisal as soon as you hear from the appraiser, and call your loan officer with questions as often as needed. It is the loan officer’s job to manage this process and close your loan, but your attention also plays a critical role in the process.
If your homeowners insurance is due for renewal within 60 days of closing, you will have to pay it in full prior to or at closing. If you renew on your own, we will contact your insurance company to request a receipt that states your insurance was paid in full.
The decision to use an attorney is up to you. In general, real estate attorneys are involved in purchase transactions; refinancing generally doesn’t require one. Attorneys are not typically used in real estate transactions in many areas of the country.
As soon as the lender advises us that your loan is ready to close, we will call you to request a date for a closing appointment. You will usually have the choice of closing at the office of your attorney or title company, our office, or even at your home. The time of the closing will be based on your convenience and availability.
The closing date will determine when the first payment is due on your new loan. Generally, you will not have a payment due the month of closing or the month after closing. Your first payment will be due the first day of the following month. For example, if you closed January 10, your first payment is due March 1. We recommend that you make all mortgage payments on your existing mortgage until you close on the new mortgage. Be sure to discuss all of this with your licensed mortgage originator.
The "servicing" of your loan (e.g., the right to collect payments for a fee) is a marketable asset that your lender can sell to other sources. As part of the loan documentation, you will sign a form that recognizes that the servicing of your loan could be sold. Most fixed-rate loans are, in fact, sold. However, this will not affect the terms of your loan. The only change is that you will make your payment to a different lender.
Today, residential loans do not have a prepayment penalty, however, commercial loans generally do. Check with your licensed mortgage loan originator to determine whether your loan has a prepayment penalty.
You can do that right from our website. Go to our Secure Document Upload page and use the form to select the files you want to send to us.
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