After You Apply

We are committed to easing the review and approval process starting from the moment you apply all the way through closing on your new home or property.

Assuming your financial situation meets the guidelines for the loan you want, you will be granted a letter of commitment which outlines the terms and conditions of the promised mortgage. This approval is subject to your financial conditions remaining stable until you close on your new home or property purchase. Because we may make one final check during the closing process on your various accounts, it’s wise to inform us as soon as possible of any major debts or windfalls occur and that could significantly affect your financial standing.

Your Total Mortgage Payment

Your monthly mortgage payment typically is made up of four components, some times referred to as PITI:

• Principal – the part of the monthly payment that reduces the remaining balance of the mortgage
• Interest – the fee charged for borrowing money
• Taxes – levied by your community (state, county, city). Generally based on a percentage of the value of your home. We typically collect 1/12th of the yearly property tax bill each month and place it in escrow so that funds are available when the property tax is due.
• Insurance – required to cover a minimum amount of home or property insurance against losses from fire, theft, bad weather or other concerns. We may also require you to carry mortgage insurance to protect us should you become unable to pay your mortgage for a time. We usually collect 1/12th of the yearly insurance bill or bills and place these funds in escrow so they are available when due.

For many loans, principal and interest comprise the bulk of your monthly payments in a process called amortization, which reduces your debt over a fixed period of time. You can determine the amount of principal and interest by using our Mortgage Payment Calculator.

For help understanding how your payments will vary for negative amortizing or adjustable rate loans, contact us.