Calculators
There are many financial decisions involved in purchasing or refinancing a home. The calculators we provide here can help you make some of those decisions.Your Property
When you buy or refinance a home, the property is used as collateral for the loan. Here's what the lender is looking for and why.-
What is an appraisal and who completes it?
An appraisal report is a written description and estimate of the value of the property. It is used to verify that the value of the property supports the amount of the loan request.
The appraiser will complete an inspection of the property, noting condition, number of rooms, any upgrades and other information about the property. At that time the appraiser will also take interior and exterior photographs to document the physical condition of the property. They will then create a written report specifically for the bank.
After the property inspection is complete, the appraiser will compare the qualities of your home with other homes that have sold recently in the same neighborhood. These homes are called "comparables". Because the comparables are similar properties, in the same area, that have recently been sold, they are an important indicator of the current market conditions in the neighborhood. Using comparables helps the appraiser determine what a similar home, in the same area, might reasonably be expected to be worth in the current market.
You’ll be provided a copy of the full appraisal in the mail when the final loan decision is made.
If your home is for investment purposes, or is a multi-unit home, the appraiser will also consider the rental income that will be generated by the property to help determine the value. If there are multiple units in the property, the appraiser will need access to each of them to complete the report.
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What types of things will an underwriter look for when they review the appraisal?
The appraisal is used to verify that your home’s value supports the amount of the loan requested.
The appraisal will be reviewed to verify that the recently sold homes in your neighborhood, which were compared to your home to help determine the value, are similar to your home in size, style and other similar factors.
The appraisal will also be reviewed to determine that it contains required information as required by investor and other guidelines.
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Will I get a copy of the appraisal?
When we receive your appraisal, your loan will be updated with the appraised value of the home. As a standard practice we will send a copy of your appraisal in the mail when the final loan decision is made.
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I've heard that some lenders require flood insurance on properties. Will you?
Federal Law, including the Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994, requires all lenders to investigate whether or not each home they finance is located in a special flood hazard area as defined by FEMA, the Federal Emergency Management Agency.
We use a third party company who specializes in the reviewing of flood maps prepared by FEMA to determine if your home is located in a flood area. If it is, then flood insurance coverage will be required, since standard homeowner's insurance doesn't protect you against damages from flooding. The property will also be monitored for the life of the loan to determine if the flood maps provided by FEMA have changed.
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How long does it take for the property appraisal to be completed?
Licensed appraisers who are familiar with home values in your area perform the appraisal. We order the appraisal soon after the application fee is paid.
Generally, it takes 7-10 days before the written report is sent to us. We follow up with the appraiser to insure that it is completed as soon as possible. An interior and exterior inspection of the home, including photographs, will be necessary.
The appraiser will need access to all units of the property you are financing, if the property is not a single family home.
Whether you are purchasing or refinancing, please provide us with the name and contact information of the person the appraiser should call for access to the property.
If the appraiser hasn’t set an appointment within a few days of the application, please contact your Loan Processor at 888-906-6210.
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Does Liberty Bank for Savings provide financing for manufactured homes?
We do not provide financing for manufactured homes at this time.
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Are there any special requirements for condominiums?
Since the value and marketability of condominium properties is dependent on items that don't apply to single-family homes, there are some additional steps that must be taken to determine if condominiums meet our guidelines.
One of the most important factors is determining if the project that the condominium is located in is complete. In many cases, it will be necessary for the project, or at least the phase that your unit is located in, to be complete before we can provide financing. The main reason for this is, until the project is complete, we can't be certain that the remaining units will be of the same quality as the existing units. This could affect the marketability of your home.
In addition, we'll consider the ratio of non-owner occupied units to owner-occupied units. This could also affect future marketability since many people would prefer to live in a project that is occupied by owners rather than renters.
We'll also carefully review the appraisal to insure that it includes comparable sales of properties within the project, as well as some from outside the project. Our experience has found that using comparable sales from both the same project as well as other projects gives us a better idea of the condominium project's marketability.
Depending on the percentage of the property's value you'd like to finance, other items may also need to be reviewed. -
I'm purchasing a home, do I need a home inspection AND an appraisal?
An appraisal will be required on all loans. The appraiser will make note of any obvious structural or environmental issues that are visible during the appraisal inspection. If any items are noted, the bank may require further inspections by licensed experts.
The appraiser is not an expert in structual, electrical, plumbing or other issues not related to determining value. These are all areas that a potential buyer may want to have inspected prior to purchasing a home.
Getting a home inspection is recommended if you are purchasing a new home, but it is not required unless the appraiser makes note of any obvious issues. If you are unsure if you should get a home inspection, consult with your realtor.
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Can I lock in an interest rate and points before I find a home?
Unfortunately, we'll need to gather some information about your new home before we can offer a rate lock, so you'll need to have a fully signed and executed contract to purchase your new home and complete an application before we can lock in your interest rate.
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How do I lock my rate?
You can lock your rate online at the time of application, or you can float the rate and lock in at a later date.
If you choose to lock in later, you can go to the Loan Status section of our website and lock your rate there.
If you prefer, you can contact us at 888-906-6210 to lock your rate.
If locking through the online application, you may be requested to sign a lock disclosure.
Loans, Rates & Fees
When it comes to home financing, there are many different options to choose from. How do you find the loan that's best for you? Here is some information to help you.-
What is an adjustable rate mortgage?
Adustable Rate Mortgages, or ARMs, have a specified period in which the interest rate cannot change. At the end of that period, the interest rate will be subject to an annual adjustment.
At the time of each annual adjustment, the interest rate may remain the same, or it may increase or decrease, within agreed limits.
For more information, call us at 1-888-868-7068.
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Should I pay points in exchange for a lower interest rate?
Points are considered a form of interest. Each point is equal to one percent of the loan amount. You typically pay them at your loan closing in exchange for a slightly lower interest rate over the life of your loan. Not all programs offer the option to pay points to reduce the interest rate, and limitations may apply.
Paying one point does not mean a one perecent reduction in interest rate.
Paying points will require that you bring more money to closing. However, the reduced interest rate will mean slightly lower monthly payments over the term of your loan.
To determine if paying points is right for your situation, please go to the Mortgage Calulators link on our website and select the calculator titled, “Does it make sense to pay points to get a lower interest rate?”, or call us at 1-888-868-7068.
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Is comparing APRs the best way to decide which lender has the lowest rates and fees?
Federal law requires that all financial institutions disclsose a corresponding annual percentage rate (APR) each time they advertise an interest rate for a loan product. Comparing APR’s is a reasonably reliable way to evaluate loan products but not an absolute, foolproof method. This is because each financial institution may use different criteria in determinig certain fees and also because not all fees you will pay are included in the computation of an APR.
For adjustable rate mortgages, the APR can be even more confusing. Since no one knows exactly what market conditions will be in the future, assumptions must be made regarding future rate adjustments.
Don't forget that the APR is an effective interest rate--not the actual interest rate. Your monthly payments will be based on the actual interest rate, the amount you borrow, and the term of your loan.
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How do I know if it is best to lock in my interest rate or to let it float?
Mortgage interest rate movements are as hard to predict as the stock market and no one can really know for certain whether, or when, they'll go up or down.
If you believe that rates are on an upward trend then you may want to consider locking in the rate. However, if you lock in your rate, and rates go down, you won’t be able to “unlock” and take advantage of the lower rate.
If you think rates might drop while your loan is being processed, take a risk and let your rate "float" instead of locking. However, if rates go up, you risk locking in at a higher rate since you can’t go back to a previous day’s lower rate.
Before you decide to lock, make sure that your loan can close within the lock in period. It won't do any good to lock your rate if you can't close before the rate lock expires.
If you're purchasing a home, review your sales contract for the closing date to make sure you will have enough time to close before the end of the rate lock period.
If you are refinancing, and you have a second lien on the property that won’t be closed, allow some extra time since the other lender will need to review the new loan and provide a subordination agreement.
Either way, the choice of whether to lock or float the interest rate is strictly up to you.
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How much money will I save by choosing a 15-year loan rather than a 30-year loan?
We offer a number of tools to help you determine which loan product may be best for your unique sitation.
On our website, use the "How much can I save with a 15 year mortgage?" calculator, or call us at 1-888-868-7068
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Is there a fee charged or any other obligation if I complete the online application?
There is no upfront fee charged for starting a loan request online.
Within three (3) business days (excluding Sundays and holidays) of submitting your loan application, we will send you a set of initial disclosures. Included with these will be a document titled Intent to Proceed.
Federal law requires that we obtain your intent to proceed with the application before we may collect any fees. The Intent to Proceed does not obligate you to close the loan. It is intended to acknowledge your willingness to continue with the loan application process.
Please note that a delay in receiving the signed and completed initial disclosure may put your rate lock in jeopardy due to potential delays in processing and closing your loan.
When we have received your signed Intent to Proceed, we will request payment of an Application Fee. The fee may be paid via check, or we can send an emailed invoice for payment online using a credit or debit card.
The amount of the fee will depend on the details of your loan request. Generally, if you are financing a single family home or condo as your principal residence, the fee is $375. For Single Family or condo Investment properties, the fee is $500. If the property has more than one unit, the fee is $575.
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When can I lock in my interest rate and points?
You can lock in your interest rate as soon as your loan is approved online and you pay the application fee.
If you complete your application today, and your request is approved online, you'll have the opportunity to pay the application fee with a credit card and can lock in your rate immediately.
If your loan information needs to be reviewed before a loan approval can be provided, a Loan Officer will contact you and you'll have the opportunity to lock your rate and fees then.
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What is your Rate Lock Policy?
INITIAL RATE LOCK
At the time of application, you will have the choice whether to lock in your rate, or let it float and lock in at a later time.
When you choose to lock your rate, the rate lock period will be provided to you. Generally rate locks are for 60 calendar days from the date of lock.
The rate on your loan is typically determined, in part, by the terms of the loan, such as: your credit score, the product chosen, the amount of the loan in relation to the home’s value (called Loan to Value, or LTV), the purpose of the loan and other factors.
After your rate is locked, if these terms change, your rate could be impacted.
FLOAT TO LOCK
If you floated your interest rate at the time of application, you may lock your interest rate by using one of the following methods of notifying . Requests must be received by 3:00 pm, Monday through Friday.
• In Person
• Email
• Fax
RATE LOCK EXTENSIONS
Availability of rate lock extensions are subject to review and approval and fees may be applied. Approval of rate extension requests and fees charged are subject to market conditions at the time of the request.
RATE LOCK EXPIRATIONS
If your initial interest rate lock has expired and your loan is moved to a floating status, your loan interest rate will be subject to current market rate, or the original locked-in rate, whichever is higher at the time your loan is re-locked.Re-lock requests are subject to review and approval and fees may be applied. Approval of re-lock requests and fees charged are subject to market conditions at the time the interest rate is re-locked.
LOAN APPLICATION CANCELLATIONS AND RE-APPLICATIONS
You may cancel your loan application with Bank at any time prior to signing the note and mortgage at loan settlement. After loan settlement, restrictions and conditions apply to loan cancellation requests.
If the interest rate on your cancelled loan was locked, and you re-apply within 90 calendar days of the cancellation, the locked interest rate on the original loan application, or current market rates at the time of the re-application, whichever is higher, will be used for the new loan application. If the interest rate on your cancelled loan application was floating, current market rates will apply to the new loan application.
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Are there any prepayment penalties charged for these loan programs?
None of the 1-4 family loan programs offered online have penalties for prepayment. You can pay off your mortgage any time with no additional charges. Prepayment penalties may apply for properties greater than 4 units.
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Tell me more about closing fees and how they are determined.
After application, you will be given a Loan Estimate (LE) that shows the estimated amounts of fees and charges for completing your loan.
At loan closing, you will receive a Closing Disclosure (CD) that details all of the fees actually charged, and who is responsible for paying them.
The closing fees and costs shown on the LE and CD can be broken down into four basic categories:
Bank fees:
These are the fees charged by the bank in order to cover the costs of originating, processing, underwriting, closing and servicing your loan. These fees include any points you may choose to pay, as well as other fees that are retained by the bank.
Service Providers:
In order to complete your mortgage loan, the bank must use the services of outside providers, including: Appraisers, Title Companies, Credit Reporting Agencies, and others. Each of these providers charges a fee for their services, which are included in your closing costs at the actual amount charged by the provider.
Governmental Agencies:
The state, county and local municipality may collect fees and taxes on mortgage loans. Those charges may include: property taxes due at the time of closing; fees to record documents associated with your mortgage; taxes for the transfer of ownership on a purchase transaction; and other fees that may be charged by the state, county, municipality or other Governmental agencies. These fees are included in your closing costs at the actual amount charged by the agency.
Escrow Setup:
On most loans, your annual property taxes and homeowner’s insurance premiums will be divided into monthly amounts that are included in your mortgage payment. As you make monthly payments, that portion of the payment is set aside in an escrow account. When your taxes and insurance come due, the bank will pay them on your behalf with the funds from the escrow account.
At closing, the bank will collect a few months of reserves of both the property taxes and the homeowner’s insurance premiums. This will ensure that when they are due, the bank will have enough money in the escrow account to pay them on your behalf.
Each year, the bank will analyze the escrow account to make sure that there is enough money to make your tax and insurance payments. If taxes go down and there is too much in the escrow account, the bank will refund the overage. If insurance premiums have gone up and there is not enough money to pay the premium, the bank will contact you to make arrangements for making up the shortage.
For more information, call us at 1-888-906-6210.
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What is title insurance and why do I need it?
The purchase of a home is most likely one of the most expensive and important purchases you will ever make. You, and Liberty Bank, want to make sure the property is indeed yours and that no individual, company or government entity has any right, lien, claim, or encumbrance on your property.
The function of a title insurance company is to make sure your rights and interests to the property are clear, that transfer of title takes place efficiently and correctly, and that your interests as a homebuyer are fully protected.
Title insurance companies provide services to buyers, sellers, real estate developers, builders, mortgage lenders, and others who have an interest in real estate transfer. Title companies typically issue two types of title policies:
1) Owner's Policy. This policy covers you, the homebuyer.
2) Lender's Policy. This policy covers the lending institution over the life of the loan.
Both types of policies are issued at the time of closing for a one-time premium, if the loan is a purchase. If you are refinancing your home, you probably already have an owner's policy that was issued when you purchased the property, so we'll only require that a lender's policy be issued.
Before issuing a policy, the title company performs an in-depth search of the public records to determine if anyone other than you has an interest in the property. The search may be performed by title company personnel using either public records or the information contained in the company's own title records.
After a thorough examination of the records, any title problems are usually found and can be cleared up prior to your purchase of the property. Once a title policy is issued, if any claim covered under your policy is ever filed against your property, the title company will pay the legal fees involved in the defense of your rights. They are also responsible to cover losses arising from a valid claim. This protection remains in effect as long as you or your heirs own the property.
The fact that title companies try to eliminate risks before they develop makes title insurance significantly different from other types of insurance. Most forms of insurance assume risks by providing financial protection through a pooling of risks for losses arising from an unforeseen future event, say a fire, accident or theft. On the other hand, the purpose of title insurance is to eliminate risks and prevent losses caused by defects in title that may have happened in the past.
This risk elimination has benefits to the homebuyer, the title company and the lender. It minimizes the chances that adverse claims might be raised, thereby reducing the number of claims that have to be defended or satisfied. This keeps costs down for the title company and the premiums low for the homebuyer.
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What is mortgage insurance and when is it required?
There are several different types of mortgage insurance. Usually, mortgage insurance refers Private Mortgage Insurance (PMI).
Mortgage insurance makes it possible for you to buy a home with less than a 20% down payment by protecting the lender against the additional risk associated with low down payment lending.
The mortgage insurance premium is based on loan to value ratio (LTV), the type of loan requested and the amount of coverage required by the lender.
Usually, the premium is included in your monthly payment and one to two months of the premium is collected as a required advance at closing.
It may be possible to cancel mortgage insurance at some point, such as when your loan balance is reduced to a certain amount. Federal Legislation requires automatic termination of mortgage insurance for many borrowers when their loan balance has been amortized down to 78% of the original property value.
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How do I lock my rate?
You can lock your rate online at the time of application, or you can float the rate and lock in at a later date.
If you choose to lock in later, you can go to the Loan Status section of our website and lock your rate there.
If you prefer, you can contact us at 888-906-6210 to lock your rate.
If locking through the online application, you may be requested to sign a lock disclosure.
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What is the maximum percentage of my home's value that I can borrow?
The maximum percentage of your home's value that you can borrow depends on the purpose of your loan, how you use the property, and the loan type you choose.
The best way to determine what loan amount we can offer is to complete our online application or call us at 1-888-868-7068.
Your Application
Applying for a mortgage can be very intimidating. You're asked specific details about your income, assets, and debts. Here we will give you information that will let you know how that information is used when applying for a mortgage.-
Can I apply for a pre-approval before I find a property to purchase?
Yes, you may apply for a pre-approved mortgage loan before you find a home. If you apply now, and if approved, a conditional pre-approval letter will be issued which can be presented, to your real estate agent and seller.
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What is a credit score and how will my credit score affect my application?
A credit score, sometimes called a FICO score, is based on information collected each month by the three major credit bureaus: TransUnion, Equifax and Experian. The information is provided by companies such as credit card issuers, utilities and lenders. The information collected includes a number of different factors, including when the credit was opened, payment history and current balances.
Liberty Bank generally uses a report called a “tri-merge” which takes information from all three credit bureaus and creates a single report, including the credit score from each bureau.
We use the information in the report, as well as the credit scores, to evaluate loan applications and also use any additional pieces of information such as income, assets and other information provided during the application process.
Credit scores generally range from about 450 to about 850. However, each bureau uses its own calculation method to determine credit scores.
Higher scores are generally an indicator of good payment history and credit management on the part of the applicant. However, credit scores are only one of the factors used in evaluating a loan application. While a higher score is usually more desirable for both the applicant and the creditor, a high credit score alone is not a gurantee of loan approval.
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Will the inquiry about my credit affect my credit score?
Having an abundance of credit inquiries on your credit report within a short time can sometimes affect your credit score. This is because numerous inquiries can indicate that your use of credit is increasing.
However, the credit bureaus generally take into account that you may be shopping for a home loan or car loan. Inquiries of this type, if completed in a short time, will typically have less impact on your credit score.
If you have inquiries on your credit report, we’ll ask you about them and ask whether you have opened any new credit as a result of the inquiries
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Will I be charged any fees if I authorize my credit information to be accessed?
There will be no charge at the time you give us permission to access your credit report. No credit scores or credit reports will be displayed online, only a list of your liabilites and payments.
At the end of the online application, if you wish to proceed with submitting the loan request, an application fee will be charged.
At the time of loan closing, a fee for the amount of the credit report that was obtained will be included in the total closing costs.
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Are we right for you?
At Liberty Bank we pride ourselves on providing excellent customer service whether you're purchasing or refinancing.
We offer a wide variety of mortgage products to meet your individual needs.
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Can I really borrow funds to use towards my down payment?
In some circumstances, yes. However, any loans that you take out must be secured by an asset that you own and that ownership must be verified.
If you own something of value that you could borrow funds against, such as a car that has been paid off or another home, it can be an acceptable source of funds.
If you are planning on obtaining a loan, make sure to include the details of this loan in the Expenses section of the application.
Funds obtained from an unsecured loan or from cash advances on a credit card cannot be used towards down payment.
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How do you decide what you need from me to process my loan application?
There are some pieces of information requested on all loan applications, such as income and assets statements.
Your loan application will be reviewed online to determine if it qualifes for a conditional approval. At that time you will be provided with a list of requested information and documentation.
All submitted applications will be reviewed by an underwriter. During that review, additional information may be requested to complete the loan review.
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I'm self-employed. How will you verify my income?
Generally, the income of self-employed borrowers is verified by obtaining copies of personal (and business, if applicable) federal tax returns for the most recent two-year period. We’ll also ask for a year to date profit and loss statement. This is a list of your business income and liabilities for the year so far.
We'll review the income from self-employment that's reported on your tax returns to determine the income that can be used to qualify. We won't be able to consider any income that hasn't been reported on your tax returns.
Typically, we'll ask for a full two-year history of self-employment to verify that your self-employment income is stable and not decreasing.
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Will my overtime, commission, or bonus income be considered when evaluating my application?
In order for bonus, overtime, or commission income to be considered, you must have a history of receiving it, it must be stable and not decreasing, and it must be likely to continue.
We'll usually need to obtain copies of W-2 or 1099 statements for the previous two years and a recent pay stub to verify this type of income. If a major part of your income is commission earnings, we may need to obtain copies of recent tax returns to verify the amount of business-related expenses, if any.
If you haven't been receiving bonus, overtime, or commission income for at least one year, it most likely will not be given full consideration when your loan is reviewed for approval.
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I am retired and my income is from pension or social security. What will I need to provide?
Generally, the most recent award letter from the pension or the Social Security Administration will be requested.
In addition, any W2 or 1099 statements you receive from the pension will be requested.
It will also be necessary to verify that this income will continue for at least three years since some pension or retirement plans do not provide income for life.
This can usually be verified with a copy of your award letter. If you don't have an award letter, we can contact the source of this income directly for verification.
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If I have income that's not reported on my tax return, can it be considered?
Generally, only income that is reported on your tax return can be considered when applying for a mortgage. Unless it is non-taxable income and is not required to be included on a tax return.
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Can I lock in an interest rate and points before I find a home?
Unfortunately, we'll need to gather some information about your new home before we can offer a rate lock, so you'll need to have a fully signed and executed contract to purchase your new home and complete an application before we can lock in your interest rate.
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How do I lock my rate?
You can lock your rate online at the time of application, or you can float the rate and lock in at a later date.
If you choose to lock in later, you can go to the Loan Status section of our website and lock your rate there.
If you prefer, you can contact us at 888-906-6210 to lock your rate.
If locking through the online application, you may be requested to sign a lock disclosure.
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How will rental income be verified?
If you own rental properties, we'll generally ask for the most recent year's federal tax return to verify your rental income. We'll review the Schedule E of the tax return to verify your rental income, after all expenses except depreciation. Since depreciation is only a paper loss, it won't be counted against your rental income.
If you haven't owned the rental property for a complete tax year, we'll ask for a copy of any leases you've executed and we'll estimate the expenses of ownership. -
I have income from dividends and/or interest. What documents will I need to provide?
Generally, two years personal tax returns are required to verify the amount of your dividend and/or interest income. In addition, we will need to verify your ownership of the assets that generate the income using copies of statements from your financial institution, brokerage statements, stock certificates or Promissory Notes.
Typically, income from dividends and/or interest must be expected to continue for at least three years to be considered.
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Do I have to provide information about my child support, alimony or separate maintenance income?
Information about child support, alimony, or separate maintenance income does not need to be provided unless you wish to have it considered for repaying this mortgage loan.
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Will my second job income be considered?
Typically, income from a second job will be considered if a one-year history of secondary employment can be verified.
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I've had a few employers in the last few years. Will that affect my ability to get a new mortgage?
A full two year history of employment will be required during the loan application.
If you're paid on a commission basis, a recent job change may be an issue since we'll have a difficult time predicting your earnings without a history with your new employer.
However, your full employment and income information will be reviewed during the loan process.
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I was in school before obtaining my current job. How do I complete the application?
If you were in school before your current job, provide a copy of your diploma along with the other requested documentation. You can also enter the name of the school you attended and the length of time you were in school in the "length of employment" fields. You can enter a position of "student" and income of "0."
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If my property's appraised value is more than the purchase price can I use the difference towards my down payment?
If you are purchasing a home, we'll have to use the lower of the appraised value or the sales price to determine your down payment requirement.
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I'm getting a gift from someone else. Is this an acceptable source of my down payment?
Gifts can be an acceptable source of down payment, if the donor is related to you or your co-borrower. The donor will be asked to sign a Gift Affidavit, stating that the funds are a gift and are not expected to be repaid. They will also be asked to provide documentation of ownership of the gift funds and that they have sufficient funds to make the gift.
If your loan request is for more than 80% of the purchase price, you’ll need at least 5% of the property's value in your own assets that can be verified with asset statements.
Prior to closing, we'll verify that transfer of the the gift funds from the donor’s account to your account. A verification of the transaction will be requested.
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I am selling my current home to purchase this home. What type of documentation will be required?
If you're selling your current home to purchase your new home, you’ll be asked to provide a copy of the executed sales contract at the time of application. You will also be asked to provide the settlement or closing statement you'll receive at the closing of your current home to verify that your current mortgage has been paid in full and that you'll have sufficient funds for our closing.
Often the closing of your current home is scheduled for the same day as the closing of your new home. Although you will have already provided a copy of the executed sales contract, you’ll also be asked to bring your settlement statement with you to your new mortgage closing.
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I am relocating because I have accepted a new job that I haven't started yet. How should I complete the application?
If you will be working for the same employer, complete the application as such but enter the income you anticipate you'll be receiving at your new location.
If your employment is with a new employer, complete the application as if this were your current employer and indicate that you have been there for one month. The information about the employment you'll be leaving should be entered as a previous employer.
If you have any employment contracts or offer letters, please include them with your other documentation.
A two year history of employment will be required in the loan application.
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I've co-signed a loan for another person. Should I include that debt here?
Generally, a co-signed debt is considered when determining your qualifications for a mortgage and should be included in your application.
If you can provide verification that another party has been making the payments on the loan for at least 12 months, it may be possible to exclude the loan. However, that determination is made during the review of the loan application.
You may be asked to provide a copy of the loan documents to complete the review.
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I have student loans that aren't in repayment yet. Should I show them as installment debts?
Any student loan shown on your credit report should be included in the application. If you are not sure exactly what the monthly payment will be at this time, enter an estimated amount.
Your loan application will be reivewed to determine if the payment must be included. Your student loan lender may need to be contacted to provide additional information.
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How will a past bankruptcy or foreclosure affect my ability to obtain a new mortgage?
If you've had a bankruptcy or foreclosure in the past, it may affect your ability to get a new mortgage. Unless the bankruptcy or foreclosure was caused by situations beyond your control, we will generally require that two to four years have passed since the bankruptcy or foreclosure was discharged.
It is also important that you've re-established an acceptable credit history with new loans or credit cards.
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What, exactly, is an installment debt?
An installment debt is a loan that you make payments on, such as an auto loan, a student loan or a debt consolidation loan.
Do not include payments on other living expenses, such as insurance costs or medical bill payments. Any installment debts that have more than 10 months remaining will be used when determining your qualifications for this mortgage.
Closing & Beyond
Once your loan is approved, you will set a closing date. This section will give you an idea of what to expect at closing and what happens after closing.-
What happens at the loan closing?
The closing will take place at the office of a title company who will act as our agent. If you have hired an attorney to represent you, they will likely be attending the closing. If you are purchasing a new home, the seller, along with their attorney and realtor, may be present at the closing as well.
During the closing you will be reviewing and signing several loan papers. The closing agent or your attorney should be able to answer any questions you have. If they are unable to answer your questions, please ask the closer to call your processor at 888-906-6210.
Prior to closing, you will be contacted to review your final fees, loan amount, first payment date, etc.
The most important documents you will be signing at the closing include:
Closing Disclosure (CD):
This document provides an itemized listing of the final fees charged in connection with your loan. By federal law, we must provide you with a copy of the CD in advance of the closing. You will have the CD in your possession for at least three (3) business days prior to the closing taking place.
If your loan is a purchase, the CD will also include a listing of any fees related to the transaction between you and the seller. If the loan will be a refinance, the CD will show the pay off amounts of any mortgages that will be paid in full with your new loan. The CD will look very similar to the Loan Estimate (LE) you received early in the loan process and will follow a very similar format and placement of fees.
Note:
This document is the agreement between you and the bank. The Note specifies the amount of the loan, the interest rate and the loan term. You sign the Note and agree to repay your mortgage under the terms you and the bank agreed upon. The Note will provide you with all of the details of your loan including the interest rate and length of time to repay the loan. It also explains the penalties that you may incur if you fall behind in making your payments.
Mortgage:
This document pledges a property to the lender as security for repayment of a debt. Essentially this means that you will give your property up to the lender in the event that you cannot make the mortgage payments. The Mortgage restates some of the basic information contained in the Note, as well as detailing the responsibilities of the borrower.
If your loan is a refinance, Federal Law requires that you have three business days to decide positively that you want a new mortgage after you sign the documents. This means that the loan funds won't be disbursed until the fourth business day after closing. The closing agent will provide more details at the closing.
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Will I need to have an attorney represent me at closing?
Having an attorney at the closing is your choice. An attorney is not required for the loan.
Even if you have an attorney and they come to the closing, you will still need to be present to execute the closing documents.
Your attorney cannot execute closing documents on your behalf.
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Can I get advanced copies of the documents I will be signing at closing?
Federal law requires that we provide you with a copy of the Closing Disclosure (CD) in advance of the closing. You must have the CD in your possession for review for three (3) business days prior to loan closing.
Please Note: Federal law requires lenders to adhere to strict timing requirements and waiting periods between delivery of the CD for your review and the closing of the loan.
If the CD cannot be delivered within the required timeframe or if changes are made after the initial CD is sent, federal law may require that the proscribed waiting period between issuance of the CD and the loan closing be started over.
The remainder of the closing documents will be provided on the day of close at the title office. The closer at the title office should provide you with copies of the documents you sign during closing.
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Who will be at the closing?
The title company acts as our agent and will represent us at the closing.
If you are purchasing a home, your attorney and real estate agent (if you are using one) will likely be present. The seller, their attorney and real estate agent, may also be at the closing.
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I won't be able to attend the closing. What other options are there?
If you won't be able to attend the loan closing, contact your Processor to discuss other options. Generally, all parties to the loan are required to be present at the closing.
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If I apply, where will the closing take place?
All Liberty Bank mortgage loans are closed at local title company offices. We will work with you to choose a location that is most convenient for you.
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Can I make my monthly payments with an automated debit from my checking account?
Automated monthly payments (sometimes called an ACH) are available. If this option is selected prior to closing, will receive a closing cost credit. Contact your processor to discuss this process and the amount of the credit.
At or prior to closing, you’ll be asked to provide the name of the bank where the payments will be coming from, their Routing Number and your account number.
You’ll also be asked to provide a voided check from the account.
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How do I lock my rate?
You can lock your rate online at the time of application, or you can float the rate and lock in at a later date.
If you choose to lock in later, you can go to the Loan Status section of our website and lock your rate there.
If you prefer, you can contact us at 888-906-6210 to lock your rate.
If locking through the online application, you may be requested to sign a lock disclosure.