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MORTGAGE SOLUTIONS

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:

Loan origination [varies with loan type and term]

Discount points [optional - can be paid to lower your interest rate]

Appraisal fee

Credit report fee

Flood zone determination fee

Title insurance fee

Deed recording fee

Survey fee

Pest inspection fee [if necessary]

Underwriting/document review fee

Interim interest [varies with the closing date]

Tax service fee

Attorney fee

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:

Sales contract

Social Security number[s]

Gross monthly income[s]

Name/address of each employer for past two years

W2 forms for past two years and year-to-date earnings

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

Residence address, including landlord and/or mortgagee address and account number, for the past two years

Mortgagee name and address plus address and account number for other real estate owned

Name, address, account number, balance and monthly payment for all outstanding debts

If self-employed, last two years of personal and corporate tax returns, year-to-date profit and loss, business tax returns and balance sheet

Be prepared to pay the credit report, appraisal and flood certification fees

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!

More Home Mortgage Solutions:
Home Equity Options

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).