Q: How much will I need to put down on my Brookstone home?
A: A $1000 deposit is required at contract. A total of 5% of the total purchase price will be due at your plan reviews and contract completion meeting.

Q: What information will I need to begin the application process?
A: It is a good idea to gather the following information and have it accessible when you fill out your loan application:

• Social security number
• Two year residency history
• Gross monthly earnings
• Two year employment history including addresses and phone numbers
• Bank and 401K statements

Q: What is the difference between a pre-qualification and a pre-approval?
A: A pre-qualification will give you an affordable mortgage payment based on your income, current debt and credit situation. It will also let you know an affordable purchase price range while you begin shopping for your new home.

A pre-approval occurs only after you go through the complete loan application process. When a lender issues you a pre-approval, it means that they are guaranteeing financing for a stated amount.

Q: How long will it take to get my certified pre-approval?
A: Our preferred lender will issue a certified pre-approval within approximately one to two business days after receiving your loan application and necessary paperwork.

Q: How is my credit score determined?
A: Your credit score is a number generated by a mathematical formula based on information in your credit report, compared to information on millions of other people. The resulting number is a highly accurate prediction of how likely you are to repay your loan on time. Higher credit scores are better as you’ll be eligible to receive the best financing options available. Factors affecting your credit score include:

• Your payment history
• Any collection or bankruptcy recorded against you
• Your outstanding debts
• Your account history
• The number of recent inquiries made about your credit report
• The type of credit you are using

Q: What is mortgage insurance?
A: Mortgage insurance is a product that lenders will often require as a condition of making a loan when the borrower is generally making less than a 20% down payment. The insurance protects the lender in the event the borrower defaults so it enables them to make lower down payment loans with the same amount of risk as loans with larger down payments.

Q: Which is better – a fixed or adjustable rate mortgage?
A: When evaluating various mortgage programs, you have many options. Your main decision will be between choosing a mortgage with an interest rate that is fixed for the entire term of your loan or one that changes throughout. A fixed-rate loan gives you the security of knowing that your interest rate will never change. An adjustable rate mortgage has an interest rate that will vary, possibly up or down, during the term of your loan. Your loan officer will work with you to determine which loan is best for your personal situation.

Q: Are taxes and insurance included in my monthly mortgage payment?
A: It depends on your loan program. The choice is usually up to you.  If you elect to pay your property taxes and insurance independent of your mortgage payment, you may need to provide evidence of annual payments to your lender.

Q: How long is my rate lock good for?
A: With our preferred lender, you can lock in your interest rate at any time and it will be honored for up to 60 days.

Q: When will I find out the exact amount of funds needed for closing?
A: We want to make it as easy as possible for you to get your finances together well before closing. At application, our preferred lender will provide you with a good faith estimate that will be very close to the dollar amount that you should expect to bring to closing.