NTFN

Frequently Asked Questions

Q: What documents will I need for my mortgage application?
A: We suggest you provide the following for most loan applications
    • Copy of your Social Security ID
    • Last two years of pay stubs
    • Bank statements for the past three months, depending on loan program
    • Past two years of W-2 forms
    • Two years of federal tax returns
    • All current debt totals including current home, auto, credit cards, etc.

Q: Should I get Pre-Qualified for a mortgage before finding a home?
A: Yes, we strongly recommend that you get pre-qualified before you start the process. It makes the process much smoother for everyone involved. That way you know exactly what is in your price range and where to begin your search. This helps everyone that is involved in the transaction. Primarily, you as the buyer, because you have the peace of mind that you can qualify for the purchase of a home.

Q: What is “PITI”?
A: The term PITI is used to represent principal, interest, taxes, and insurance. In other words, the entire payment on the mortgage (one payment if the borrower has an escrow account to pay taxes and insurance).

Q: What are the total costs to close the loan?
A: You will know the total closing costs for the loan when the settlement statement is completed. This should be completed before the loan closing (usually 24 hours) and is prepared by the title company that will close your loan.

Q: What is mortgage insurance “PMI”?
A: Private mortgage insurance is something that is typically required by lenders to decrease the potential loss, in the event of a borrower default. It is usually required on conventional loans when the borrower puts down less than 20% on the loan.