Below you will find frequently asked questions.   
Should you have further questions, please feel free to complete our
feedback form or call 1-800-520-4799.

1. Mortgage insurance stays on your loan until...
 a. the loan is paid off.
 b. you have 20% equity.
 c. your loan balance is at 78% of closed value.
 d. none of the above.

2. The annual percentage rate, a government calculated cost is...
 a. confusing and should be ignored by the borrower.
 b. always equal to or greater than the note rate.
 c. an optional disclosure method for the lender.
 d. works against the lowest note rate quote.

The APR is a federally required mortgage comparison tool that is never less than the note rate.
 A professionally trained mortgage person is always willing to explain the details of regulation z.

3. The appraiser's job is to...
 a. examine the property top to bottom looking for defects that could hurt resale.
 b. compare the price you are paying to the city assessed value.
 c. make sure he gets a value on paper equal or greater than the purchase price.
 d. none of the above.

4. Mortgage surveys are...
 a. a waste of money because the title insurance will protect you.
 b. required by mortgage lenders when you have less than a 20% down payment.
 c. good for two years.
 d. none of the above.

5. The following is a down payment requirement...
 a. the larger down payment, the better the interest rate you will get.
 b. although gifts of down payment are legal, they must come from a related party.
 c. in building a house, the work you do (painting, staining, roofing, landscaping, etc.)
     should not be counted when figuring your investment.
 d. all of the above.
 e. none of the above.

There is a lot of confusion about down payments because the requirements and documentation
vary for each loan program and each source of funding.  An independent mortgage source
should be able to find a mortgage for you that can meet your specific down payment
restrictions including no down payment at all!

6. When reviewing a credit report, the underwriter must deny the loan if...
 a. a bankruptcy shows up.
 b. a federal tax lien appears.
 c. a pending divorce case is reported.
 d. more than one social security number shows.
 e. none of the above.

An underwriter reviews a mortgage application based on all of the information provided.  The
more thorough and complete your mortgage person is can make a big difference on your credit
review.  In many cases, a larger down payment, a co-signer, a good deal on a property or an
excellent job history can override a credit blemish or social issue.

7. A borrower's employment must include the following to gain approval...
 a. two or more years at the same employer.
 b. gross income that is at least 2 1/2 times more than all debt payments.
 c. guaranteed salary and bonus commissions in order to count them.
 d. none of the above.


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