FAQs - Approve.Today

How Mortgage works Rates Lock rate Refinance Apply Credit Scores Appraisals

How Mortgage works

What do I need to apply?

You don't need much to get started and find your rates. Our digital application only takes a few minutes to complete.

Can I get a mortgage online without talking to a human?

technically, yes.

Can I get a Mortgage if I have bad credit?

Lender typically provide loans to customers who have a 620 credit score or higher. If your credit score is slightly below 620 loan officer might still have options for you.

Can I get a Mortgage if I am not a US citizen?

Yes,there are options for foreign nationals.

Rates

How can you help me get the lowest rates?

There isn't a perfect lender for everyone. We recognize that you're an individual with your own unique story, and we search high and low to find you the best lender. We use technology to keep our costs drastically lower than traditional mortgage companies, and then pass on those savings to you. Our mission is to help you get the best possible mortgage at the best possible rate.

Will I get the same rate I was quoted?

Yes, we work hard to ensure that the price you're quoted is the price you get. If you provide accurate information during your digital application, the rate you're given will almost always be available to you.

How you determine my mortgage rate?

We use technology to connect you with the best available rates available across all of our network lenders. The price we quote you will be driven by your credit history, market conditions, and the characteristics of the subject property, among other factors.

What is included in the monthly payment?

Typically, the monthly payment will include your interest, principal, taxes, and insurance.

What is a 30-year fixed rate mortgage?

A 30-year fixed rate mortgage is a loan that's outstanding for 30 years, where the rate is fixed for the whole time. 30-year fixed rate mortgages amortize over time, which means that a portion of the principal is paid back every month. The monthly payment is the same every month for 30 years, and the end of the 30 years, the loan is paid off in full. These types of mortgages are the most popular in the United States.

What is an adjustable-rate mortgage?

Adjustable-rate mortgages typically have a fixed rate for a certain period of time (usually between 5 and 10 years), and then have an adjustable rate for the remaining term of the loan, with limits on how much the rate can increase.

What is an interest-only mortgage?

An interest-only mortgage is a mortgage where you are not required to pay down principal on a monthly basis for a certain period of time (usually 5-10 years). Interest-only mortgages have lower monthly payments during the initial period, but higher payments afterwards once the loan starts to amortize.

Lock rate

What does "locking" your rate mean?

When you lock your rate, it's guarantee your rate won't change for a certain period of time no matter what happens in the market. This gives you peace of mind while we work to gather all of your information and get you to the finish line.

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Can I choose a different product after I lock my loan?

Yes, in most cases you can choose a different product after you lock your loan. Contact your Loan Expert if you want to make changes after locking your rate.

What happens if rates go up after I lock my loan?

Once you lock your rate, you can have peace of mind knowing that your rate won't be affected by what happens in the market.

What happens if my lock expires before my loan closes?

If your lock expires before your loan closes, you can usually extend the lock period for up to an additional 60 days.

Do loan officer recommend locking the rate?

Yes, loan officer will recommend you to lock your rate. Once you lock, your rate is guaranteed while officer work together on the loan process. Market conditions can change daily, and once you lock your rate you can finish the process with the peace of mind that market conditions won't affect your monthly payments.

Refinancing

What kind of refinance loans can I get?

Most lenders offers two types of refinance loans: Rate & Term and Cash Out. In a Rate & Term refinance transaction, the borrower seeks to lower their monthly payment and/or change the term of their existing loan. A Cash Out refinance allows you to increase the size of your loan, and extract equity out of your home which you can then use for other purposes.

Can I refinance a condo?

Yes, you can!

Can I refinance a second home or investment property?

Yes, you can!

How much will closing costs total?

Your closing costs will vary based on a number of factors, including the location of the property, pre-paid interest (which is based on your scheduled closing date), and third-party fees (which may vary depending on the loan you choose).

When will I pay fees?

Once you select a loan and schedule an appraisal, lender will collect payment of the appraisal fee. You will pay all other fees at closing.

Apply

Am I committing to anything by checking rates?

No, you are not committing to anything by checking rates.

What do I need to do to lock my rate?

Once you select your loan and decide to move forward with a lender, you will also be given the opportunity to lock your rate.

How quickly can I close my loan?

Processing times vary for lender. From few days to months days depends on the quality of your file and also the loan officer.

What is an escrow account?

An escrow account is an account that is set up by the lender to collect your taxes and insurance payments.

Do I need to have an escrow account?

Most lenders require an escrow account. An escrow account is an account set up by the lender to collect your monthly taxes and insurance payments. In some cases, the lender will allow the borrower to waive an escrow account.

Can I transfer my current escrow account?

No, unfortunately it's not possible to transfer an escrow account. Your current lender will typically refund any balance in your current escrow account within 3 weeks of closing.

Credit Scores

How does my credit score affect my mortgage?

All other things equal, lenders are willing to lend at a lower rate when you have a higher credit score. That said, if your credit score is lower than you thought or hoped, a loan officer can help you find the best possible loan for your particular circumstances.

What is a soft credit check?

A soft credit check does not affect your credit score in any way. Soft credit checks allow Smartly Mortgage to paint a more accurate picture of your borrower profile to our lenders, and then match you with the best possible loan options.

What is a hard credit check?

A hard credit check tells the credit bureaus that you're interested in opening a new loan or line of credit (a credit card, a personal loan, a mortgage, etc.). Hard credit checks usually have a small impact on your credit score (typically less than 5 points).

What if I think my score is incorrect?

If you think your credit score is incorrect, the best course of action is to call the credit bureaus directly.

What if I don't recognize something on my credit report?

If you don't recognize something on your credit report, the best course of action is to call the credit bureaus directly.

How do multiple credit checks work?

If you're shopping for a loan, it's normal to have multiple credit checks. Typically within a 30-day period of your first credit check, performing additional credit checks will not affect your credit score. That means that if you’ve already done a credit check with another lender but want to switch to abc Mortgage, it probably won’t have any impact on your credit score.

How does lender choose which credit score to use?

Lender pulls your credit scores from all three major credit bureaus, then uses the median score for pricing purposes (in other words, lender discard the highest and the lowest score). If you have a co-borrower lender may use the lower of the two median scores.

What if I am applying with a co-borrower?

If you're applying with a co-borrower, lender will use the lower of your median score and your co-borrower's median score. If you or your co-borrower has a low credit score, we recommend that the applicant with the higher score apply individually to get the best available terms. You can always add an additional co-borrower later in the process should you need to for qualifying purposes.

Is my credit score too low to apply?

Loan officers typically provide loans to customers who have a 620 credit score or higher. If your credit score is slightly below 620 they might still have options for you.

Appraisals

What is an appraisal?

An appraisal is an expert opinion of the value of a property based its location, condition, and specific attributes. Appraisals are conducted by independent real estate professionals, and are used to establish the current market value of the property.

Why do I need to get an appraisal?

The amount you can borrow is in part determined by the value of the property you are using as collateral for the loan. Lenders do not typically visit the property themselves, and instead rely on an appraisal to assess the value of your property.

Can I use or transfer a recent appraisal?

No, the lender has to order the appraisal on your behalf. Most loan officers will work with you to schedule the appraisal at a time that's convenient for you.

Can I use an appraisal company of my choice?

No, unfortunately not. The lender chooses the appraisal company.

How long does an appraisal inspection take?

The appraisal is generally pretty quick. It typically takes under 30 minutes for a home under 3,000 square feet.

What is the difference between a home inspection and an appraisal?

A home inspection determines the condition of the home, whereas an appraisal determines the estimated value of the home.

How does an appraiser determine the value of my home?

The appraiser visits the property in person to see how it compares to other similar properties. They'll also look at recent sales of other properties in the neighborhood, and make adjustments for differences between the properties.

If the appraised value of my home increases, will this affect my taxes?

No, the appraised value will not have an impact on your taxes. It's used by the lender to determine the fair value of the property, but the appraisal and any findings listed within, aren't shared with the tax assessor.

Will I receive a copy of my appraisal?

You will receive a copy of your appraisal report once it's complete. Appraisals are standardized reports that make it easy for lenders to complete their analysis.

Which home improvements add value to a home?

When it comes to valuing real estate, there isn't a one-size-fits-all answer. That said, generally bathroom and kitchen renovations add the most value relative to the refurbishment cost.