Gateway Mortgage is committed to meeting a variety of specific mortgage lending needs. Please visit with your local Gateway Mortgage Consultant for detailed information about your individual questions and situation.
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What is the difference between a Mortgage Banker and Mortgage Broker?
The primary difference is how your mortgage loan is underwritten, processed and ultimately funded.
Mortgage Bankers – Fund loans from their own balance sheet or warehouse lines of credit. Oftentimes this can mean a significant advantage when it comes to pricing and processing times of your loan. Many, if not all, of the aspects of underwriting, processing and closing your loan are handled in-house.
Mortgage Brokers – Facilitate mortgage loan products for their clients on behalf of other direct lenders. Although their pricing can be competitive due to having access to multiple funding sources, they must depend on the other lender to underwrite, process, close and fund the loan.
How long does the loan process take?This can vary greatly from lender to lender and the time to close can be affected by a number of things like your credit score, supporting personal documents, home appraisals and inspections. Be sure to work with a lender that is committed to closing on time while keeping you regularly informed.
What normal criteria is evaluated when obtaining a home mortgage loan?
Referred to as “underwriting,” many things are taken into consideration and the parameters for qualification vary based on a number of variables. A few are listed below:
- Credit History
- Loan-to-value (LTV)
- Assets and debts
- Property appraisal
- Loan product selected
- Income (current and historical)
- Source of down payment
- Tax returns
What is the difference between pre-approval and pre-qualification?
Although neither are a commitment to lend, both can provide you with great efficiencies.
Pre-approval – Your loan application goes through most of the underwriting process and a conditional pre-approval letter may be issued. This can strengthen your offer with sellers.
Pre-qualification – A quick way to determine what loan amount or price range of a home you can afford without commencing the underwriting process.
How best do I prepare for my loan application?Generally having your personal documentation (W-2’s, tax returns, bank statements, etc.) in order is a good first step but the best preparation is to speak with a Gateway Mortgage Consultant. They are intimately familiar with how to best prepare yourself for a successful and enjoyable mortgage experience.
How do I compare the cost of a loan from one lender to another?The overall cost of a mortgage loan is referred to as the APR (Annual Percentage Rate). This number calculates specific costs associated with a loan and can vary by lender, product and the term selected (15, 30yrs, etc.). Lenders are required, by law to deliver a GFE (Good Faith Estimate) within 72 hours of your mortgage application. And you will also receive a settlement statement outlining all costs at your loan closing (referred to as a HUD-1).
What are discount points or origination fees?Origination fees are typically assessed to cover the lender’s costs of originating the loan.
Discount points enable the borrower to secure a lower interest rate.
Can closing costs be rolled into my loan?Yes. Depending on your particular transaction, some closing costs can be rolled into your final loan amount. Please discuss your individual situation with a Gateway Mortgage Consultant for complete details.
Are escrow accounts always required?No, discuss the options with your Gateway Mortgage Consultant but depending on product and underwriting guidelines, escrow accounts may not be required.
Is mortgage insurance required on all loans?No, discuss the options with your Gateway Mortgage Consultant, but depending on product and underwriting guidelines, escrow accounts may not be required.
Why is title insurance needed when obtaining a mortgage loan?Title insurance protects a lender from lending money on collateral property that may have an unresolved third party dispute.
What is the benefit to working with a mortgage banker that has a direct seller-servicer relationship with the government agencies?Mortgage bankers that have been appointed as a direct seller/servicer afford borrowers with strong pricing, efficient underwriting guidelines and the ability to service the loan throughout its entire term.
Is it possible to qualify for a loan with less than perfect credit?Yes. There are many programs that offer flexible underwriting guidelines and working with a mortgage banker (like Gateway) that has a direct relationship with Fannie Mae and Ginnie Mae allow borrowers a wide range of solutions to meet very specific needs.
How do I select the best financing option for me?There is no replacement for asking an expert mortgage consultant to help guide your choice down the right path. You will discuss things like your credit history, current income and debts, how long you plan to stay in the home and many other factors that will help you decide what’s best for you.
What is the difference between a fixed-rate and adjustable rate mortgage?
- Fixed rate though life of loan
- P&I monthly payment doesn’t change
- Rate typically higher
- Good option for long term residency
- Ideal for risk tolerant homeowners
- Rate moves up or down
- P&I monthly payment can fluctuate
- Rate typically lower
- Good option for shorter term residency
- Ideal for high risk tolerant homeowners
Adjustable Rate Mortgages will have a fixed interest rate for an initial period of time and are generally amortized over 15 and 30 years. After the initial period, the rate, payment and APR can fluctuate according to market conditions and a specific index like Libor or Treasury rates.
Can I make a payment at a Gateway branch?Gateway branches are not equipped to receive mortgage payments. Please go here for where to send your mortgage payments.
I am having difficulty making my payments on an existing loan with Gateway.
What can I do?Whether you are struggling to make your monthly payments or you owe more on your home than its value, there may be a solution. Call 877.764.9319 and discuss your situation with one of our courteous Mortgage Specialists.
Does Gateway offer loans for townhomes and condominiums?Yes. Gateway has a variety of programs available for these types of properties. Ask your Gateway Mortgage Consultant for more details.