FAQs
How can I tell if I qualify for a Mortgage?
There are several points to consider, including your income, employment,
credit history and availability of funds to close the loan. Our
Mortgage Consultants can help you find a loan that is tailored
to your specific circumstances.
What are closing costs?
A variety of expenses can be considered “closing costs:” lawyer
fees, credit reports, title insurance, etc. These are out of pocket
expenses for you, however if you do not have the liquid funds for
them, there are other payment options available. These costs can
often be worked into your loan or paid by the seller.
Can I get a loan if I am self-employed?
Yes! There are loan programs available for self-employed borrowers
to borrow up to 100% of the purchase price of their house. Options
are available for borrowers with no income verification.
My credit is less than perfect. Can Nixa Mortgage help me?
Absolutely. Nixa Mortgage has thousands of loan programs that cover
the full spectrum of financial and credit profiles. Our specialty
is finding a loan for every home, no matter how unique the situation.
No matter your situation, you won't find a better program, with
better rates, and better service than at Nixa Mortgage. Best
of all, there's no cost or obligation to apply for a loan or
obtain a custom loan search. APPLY NOW!
What is a rate lock?
A rate lock is a lender's guarantee of an interest rate for a set
period of time, usually between loan application and loan closing.
The lock period can range anywhere between 15 days to 90 days
during which time the borrower is protected against rate fluctuations.
Generally speaking, the longer the lock-in period, the higher
the cost to the borrower, in interest rate or points, or a combination
of both.
Do you have no cost or low cost options?
Absolutely. With the large variety of loan programs available today,
we can get you into a new home or refinance your existing loan
with no cost or minimal cost to you. Your savings will be immediate
and you won't have to sacrifice your savings or equity to get
a great rate. We offer no down payment and low down payment home
purchase options and no cost refinance programs. Just ask one
of our friendly Mortgage Consultants for our flexible financing
options.
How long does it take for loan approval?
Once we have a complete application, we can generally give you
a conditional approval in five (5) business days or less. The
most common condition in our approval is for the appraisal of
your property.
How long does the loan process take?
That depends on a number of things. For example, the closing date
on a purchase loan is determined by the escrow closing date that
is agreed upon between the buyer and the seller or builder. Usually,
purchase escrow periods range between 30 to 90 days. On refinance
transactions, the process can vary between 5 to 30 days depending
on whether there are any special circumstances surrounding the
transaction. In most cases, Nixa Mortgage closes refinance transactions
in less than 21 days.
How do I know what my closing costs will be?
Your Mortgage Consultant can go over these costs with you prior
to application. Upon receipt of your application, Nixa Mortgage
will also mail you a written Good Faith Estimate of the costs.
Are there fees I have to pay when submitting a mortgage application?
Yes, there is a non-refundable fee that covers the cost of the
processing of your application, a credit report, flood hazard
determination and the property appraisal.
What is PMI?
This stands for Private Mortgage Insurance, and it protects the
bank or mortgage lender against the loss incurred by a mortgage
default. The borrower pays for this insurance in situations where
the down payment is below a certain level (typically less than
20%).
Certain programs exist where the down payment may be less. One
example is the First Time Homebuyer Program.
How much of a down payment do I need?
Down payments vary according to the type of Mortgage. Contact Nixa
Mortgage for assistance.
Do I have to pay discount points?
A discount point is equivalent to one percent of the loan amount.
It is commonly used to lower the interest rate and is usually
optional. Unless an employer is paying discount points to lower
the interest rate, we usually suggest that the borrower calculate
the savings to insure it meets their needs.
How do I reduce the amount of my closing costs?
Many closing costs such as appraisals and title company fees are
determined by the companies that provide these services. Some
fees such as title policy costs are set by state governments.
Discount points can be reduced by going with a higher interest
rate which may have some tax advantages for the borrower.
Why do I have to establish an escrow account?
Although many lenders require an escrow account for real estate
taxes and insurance, there are also exceptions. An escrow account
can be avoided (waived) if the loan amount is not more than 80%
of the value of your home. If you bought the home within the
last year, then use the sales price or the appraised value --
whichever is lower. There is a fee which is charged by the lender
for the waiver of escrow.
Can my loan be sold?
Yes, and most loans are sold on the secondary market. In some cases
the borrower is not aware of the sale because the servicer of
the loan remains unchanged. The sale does not affect the terms
of your Note.
What can I do if I don't think I have enough cash?
A Nixa Mortgage representative can help guide you to the most prudent
use of resources. An example of a typical question is whether
to pay off credit cards or to save the cash to be verified as
cash reserves. Since there are many aspects to each person's
financial situation, not all decisions can be categorized and
displayed in a table.
What is APR (annual percentage rate)?
We are required by federal law to express the cost of credit as
an annualized rate. Typically certain costs are spread over the
life of your loan and therefore the APR is higher than your actual
interest rate.
How is the equity in my home determined?
Equity is the difference between the amount owed on a home and
its market value. Market value is established by a licensed appraiser.
What
is the difference between "closing" and "escrow"?
In some states, the consummation of a real estate transaction is
called "escrow." In other states this same process
is called "closing." Both terms mean that all funds
are safeguarded (escrowed) by a reliable third party. This third
party can be an escrow agent, title company, or an attorney.
When all documents and funds are received, escrow is closed,
funds are dispersed and title is transferred and recorded.
How do I get started?
Nixa Mortgage makes it easy. Just setup a convenient appointment
with one of our Mortgage Consultants. They’ll help you
get started and be there for you, right through closing. It’s
that easy!
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