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Frequently Asked Questions About Mortgages
How long does the mortgage process
take?
Processing and closing a mortgage usually takes between 30
and 60 calendar days. An Industrial Bank Mortgage Lender can
give you a precise estimate based on your individual situation.
How much does it cost to close
a mortgage?
For purchases, most mortgages require a minimum down payment
as a percentage of the sales price or appraised value [whichever
is less]. Moreover, some loans require a very low down payment.
Closing costs include:
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Loan origination [varies with loan type
and term] |
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Discount points [optional - can be paid
to lower your interest rate] |
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Appraisal fee |
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Credit report fee |
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Flood zone determination fee |
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Title insurance fee |
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Deed recording fee |
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Survey fee |
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Pest inspection fee [if necessary] |
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Underwriting/document review fee |
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Interim interest [varies with the closing
date] |
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Tax service fee |
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Attorney fee |
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Additional fees may apply as warranted
by your state and/or personal situation |
Many of the same fees apply to refinance loans, but closing
costs can often be included in the loan amount.
When should I apply?
Most borrowers apply once they have selected a property.
However, you can get pre-qualified
by Industrial Bank so that you'll already know how much
house you can afford before you start shopping.
Where do I apply?
If you want to apply for an Industrial Bank mortgage, please
call one of our Mortgage Lenders at (301) 839-4600, Monday
- Friday, 8:00 to 5:00 EST. They will answer any questions
you have and schedule a personal appointment at a time and
location convenient for you.
What information
will be required when I apply?
To speed the application process, here is some of the information
you should gather:
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Sales contract |
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Social Security number[s] |
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Gross monthly income[s] |
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Name/address of each employer for past
two years |
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W2 forms for past two years and year-to-date
earnings |
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Last two monthly checking/savings account
statements [if not Industrial Bank Accounts] and brokerage
statement or name, address, account number and balance
for each deposit account/brokerage account |
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Residence address, including landlord
and/or mortgagee address and account number, for the
past two years |
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Mortgagee name and address plus address
and account number for other real estate owned |
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Name, address, account number, balance
and monthly payment for all outstanding debts |
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If self-employed, last two years of personal
and corporate tax returns, year-to-date profit and loss,
business tax returns and balance sheet |
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Be prepared to pay the credit report,
appraisal and flood certification fees |
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VA loans only: Certificate of Eligibility
or DD124 |
What is the APR?
The Annual Percentage Rate [APR] is the cost of your credit
expressed as a yearly rate. The APR starts with the Interest
Rate, and then adds in other costs such as points and fees.
All lenders are required by the Truth In Lending Act to disclose
the APR. However, your note rate is the rate at which your
mortgage payment is calculated.
What is the difference
between pre-qualifying and pre-approval?
A pre-qualification
is normally issued by a loan officer, who, after interviewing
you, determines the dollar value of a loan you can be approved
for. However, loan officers do not make the final approval,
so a pre-qualification is not a commitment to lend. After
the loan officer determines that you pre-qualify, he/she then
issues you a pre-qualification letter. This pre-qualification
letter is used when you are making an offer on a property.
The pre-qualification letter indicates to the seller that
you are qualified to purchase the house you are making an
offer on.
Pre-approval is a step above pre-qualification. Pre-approval
involves verifying your credit, down payment, employment history,
etc. Your loan application is submitted to an underwriter
and a decision is made regarding your loan application. If
your loan is pre-approved, you are then issued a pre-approval
certificate. Getting your loan pre-approved allows you to
close very quickly when you do find a house. A pre-approval
can help you negotiate a better price with the seller, since
being pre-approved is very close to having cash in the bank
to pay for the house!
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E-Statements
Find
out how our home equity products can help you use the equity
in your home to borrow money for emergencies, medical expenses,
for education, home improvement, to buy a car or boat, to take
vacations, and so much more. Your interest payments may even
be tax deductible (consult your tax advisor to see whether you
qualify).
