Frequently Asked Questions
What documents do I need to apply for a Home Loan?
What is an adjustable rate mortgage (ARM)?
What is a Convertible ARM?
What is a Fixed-rate mortgage?
What is a Balloon Mortgage?
Does Bank of Bartlett have first-time home buyer programs?
What is my down payment?
What sources can I draw from for my down payment?
What are closing costs?
How much money do I have to have left after closing?
What is a Loan Estimate?
What is an APR?
What is the difference between my interest rate and APR?
When should I lock or float my rate?
How do I lock my interest rate?
Can my rate change during my lock-in period?
What happens if my rate expires before I close my loan?
What are points?
Do I have a choice of points or no points and how do I determine whether or not to pay points?
What is an Origination Fee?
What is an appraisal?
What is Title Insurance?
What is private mortgage insurance (PMI)?
What is a Subordination Agreement?
Why do I need to pay for a flood certificate?
What will my monthly payment include?
What is PITI?
What happens if I miss my closing?
What is my principal balance?
What is an escrow payment?
What if I want to waive escrows?
What is a late charge?
What is Fannie Mae?
What is HUD?
What is FHA?
What is Freddie Mac?
What is the VA?
What documents do I need to apply for a Home Loan?
- Copy of your sales contract with original signatures.
- Copy of your drivers license
- Name, addresses, account numbers, and phone numbers of all landlords/mortgage companies covering the last two full years
- Employer's address, person to contact, and phone numbers necessary to verify all jobs all borrowers have held within the last two years
- Bring your most recent two (covering one month) pay stubs
- Proof of social security/disability income (i.e. award letter) if applicable
- Copies of W-2's for the past year. If commissions, bonus, rental or interest dividends are part of income, provide income tax returns for past 2 years, signed and dated by borrower(s)
- Copy of last 2 months statements on all bank and credit union accounts
- Most recent statement for all investments including retirement funds, stocks, and/or bonds
- List of all outstanding loans and charge accounts, with account number, monthly payment, and balance on each account.
- If applicable, a copy of original divorce decree, settlement papers, and/or child support agreement if you pay or receive child support, alimony, or separate maintenance
- For self employed persons only: a year-TO-DATE profit and loss statement and a current balance sheet, signed and dated by a CPA and yourself, as well as 2 years business tax returns signed and dated by you
- A diploma or grades transcript if the borrower was a student during the last 2 years
- VA loans require DD214 (discharge papers) and original certificate of eligibility
- Bankruptcy petition and discharge papers if applicable within last 7 years. Attach a letter of explanation signed and dated.
- Investors: Copy of rental/lease agreement on rental property. Also, lenders address, accounts number, phone numbers, and monthly payment amounts
- Check in the amount of $390.00 for appraisal and credit report.
What is an adjustable rate mortgage (ARM)?
A type of mortgage instrument in which the interest rate adjusts periodically according to a predetermined index and margin. The adjustment results in the mortgage payment either increasing or decreasing. A 1-year ARM, for example, will have an initial interest rate for 1 year and then adjust on the second year, and continue to adjust annually over the life of the loan. With an ARM loan, you typically get a lower starting rate in exchange for taking a risk that rates may rise in the future. There is also a cap on how much the interest rate can go up or down.
What is a Convertible ARM?
A type of ARM that includes an option for the mortgagor to change the mortgage to a fixed-rate mortgage in the early years of the mortgage term.
What is a Fixed-rate mortgage?
A Fixed-rate mortgage is a loan that has the interest rate and payment set for the life of the loan. The benefit is that you always know what your principal and interest costs are, which takes out the guesswork when planning.
What is a Balloon Mortgage?
A mortgage that has level monthly payments that will fully amortize over the stated term, but which provides for a lump-sum payment to be due at the end of an earlier specified term.
Does Bank of Bartlett have first-time home buyer programs?
Yes, Bank of Bartlett has numerous lending programs to help make home ownership affordable for low- and moderate-income home buyers.
What is my down payment?
This is the amount of money you have available to put down toward the purchase of a home. The down payment and the loan amount make up the purchase price of the home.
What sources can I draw from for my down payment?
Examples of acceptable sources for your down payment are savings accounts, money market accounts, the sale of real estate, stock liquidation, IRAs, 401(k), cash value of a life insurance policy, brokerage accounts, retirement accounts and gifts.
What are closing costs?
Money paid by the borrower (or seller) to effect the closing of a mortgage loan. This normally includes an origination fee, title insurance, survey attorney's fees and such prepaid items as taxes and insurance escrow payments.
How much money do I have to have left after closing?
This varies with the loan program, but most programs require 2 months of principal and interest payments in reserve after closing your loan.
What is a Loan Estimate?
A Loan Estimate is an estimate from Bartlett Mortgage that outlines the costs you will incur during the mortgage process. This is provided to you when you apply for your loan.
What is an APR?
APR stands for the Annual Percentage Rate and is a measurement tool used to provide a standard basis of comparison of loans offered by competing lenders, which takes into account the loan's interest rate, closing costs, and other fees such as points. An APR lets you see the total cost of a loan, including fees and points over the life of the loan, not just the interest due.
What is the difference between my interest rate and APR?
An APR lets you see the total cost of a mortgage, including closing fees and points over the life of the loan, not just the interest due.
When should I lock or float my rate?
You can lock a rate anytime after we receive and review your signed loan application, you pay your application fee and you have identified a property. The typical lock-in period is 45 days. This means that once you lock in the rate, you must close your loan within 45 days. Once you lock, you cannot unlock. If you think rates may fall, don't lock and instead float your rate. If you are unsure or adverse to risk, it might be better to lock your rate.
How do I lock my interest rate?
During the application process, select a rate for your specific loan, or call us anytime during the process to lock your loan.
Can my rate change during my lock-in period?
No. As long as you stay in the same program, your rate is guaranteed throughout your lock period.
What happens if my rate expires before I close my loan?
You may be required to pay an extension fee or other charges.
What are points?
Also called discount points, a point is 1% of the amount of the loan. Points are a one-time fee added to your closing costs and generally results in a slightly lower interest rate on your loan.
Do I have a choice of points or no points and how do I determine whether or not to pay points?
Yes. The basic concept of points is to pay a little upfront in order to save a big amount over the life of the loan. Each discount point will typically lower your loan's rate. Points are a good idea if you plan to be in your home for a long period of time.
What is an Origination Fee?
A fee or charge for the work involved in the evaluation, preparation, and submission of a proposed mortgage loan.
What is an appraisal?
A report by a qualified person setting forth an opinion or estimate of value.
What is Title Insurance?
Title Insurance is a policy issued to lenders or buyers to protect any losses because of a dispute over the ownership of a piece of property.
What is private mortgage insurance (PMI)?
Insurance written by a private company protecting the mortgage lender against loss as a result of a mortgage default.
What is a Subordination Agreement?
If you have other mortgages against your property, this agreement is required to obtain another mortgage. This agreement assures that Bartlett Mortgage will be the first lien holder of notes against your home.
Why do I need to pay for a flood certificate?
A flood certificate is required to determine if a property is in a flood zone.
What will my monthly payment include?
Principal, insurance, taxes, interest, condo fees, and mortgage insurance, if applicable. (See next question)
What is PITI?
Principal, Interest, Taxes and Insurance = PITI
PITI is the acronym referring to the above-referenced components of your monthly mortgage payments. That is, each month your payment to the lender will consist of:
- Funds to be applied to the Principal - to repay the actual money you borrowed.
- Funds to be applied to the Interest - to repay the interest you're being charged on the loan, over the life of the loan.
- Funds being collected in an Escrow Account to pay your property taxes when they come due.
- Funds being collected in an Escrow Account to pay your hazard/fire insurance when it comes due.
What happens if I miss my closing?
If it happens, we will reschedule the closing and recalculate the closing costs.
What is my principal balance?
The outstanding balance of the mortgage, exclusive of interest and any other charges.
What is an escrow payment?
The portion of the mortgagor's monthly payment held by the lender to pay for taxes, hazard insurance, mortgage insurance and other items as they become due. Also known as impounds or reserves in some states.
What if I want to waive escrows?
We require you to escrow your taxes and insurance with us. However, if you wish to seek an exception to this, you may contact us to discuss the options and fees for waiver.
What is a late charge?
An additional charge a borrower is required to pay as a penalty for failure to pay a regular installment when due.
What is Fannie Mae?
Fannie Mae, also known as the Federal National Mortgage Association, is a congressionally chartered corporation that purchases conventional mortgages in the secondary market.
What is HUD?
The Department of Housing and Urban Development (HUD) is responsible for the implementation and administration of government housing and urban development programs. The broad range of programs includes community planning and development, housing production and mortgage credit (FHA), and equal opportunity housing.
What is FHA?
The Federal Housing Administration, part of HUD, insures mortgages made by private lenders.
What is Freddie Mac?
Freddie Mac, the Federal Home Loan Mortgage Corporation, is a congressionally chartered corporation that purchases conventional mortgages in the secondary market.
What is the VA?
The Department of Veterans Affairs is a U.S. Federal Government Department responsible for administering programs for Veterans which include loan insurance guarantee programs.