Usually people refinance to save money, either by obtaining a lower interest rate or by reducing the term of the loan. Refinancing is also a way to convert an adjustable loan to a fixed loan or to consolidate debts.

A rate lock is a contractual agreement between the lender and buyer. There are four components to a rate lock: loan program, interest rate, points, and the length of the lock.

This is one of the most common questions asked in the lending business. Shortly after receiving your loan application, Axiom will send you a good-faith estimate of your closing costs and your payment. This information will be based on the actual loan amount and interest rate along with estimated costs incurred with your loan. By law, Axiom must enter all of these actual figures, along with some of the costs you pay (such as your loan origination fee, discount fees and prepaid interest), into a computer and show you the annual percentage rate (APR) based on all of these numbers.

In the mortgage industry, we use co-borrowers more often than co-signers. This means that your parents will go through a full application procedure and qualify along with you. Consult with your mortgage consultant for specific rules as they apply to your loan.

No. Pulling your credit will not adversely affect your score.

There are many ways to increase your credit score. See the “Credit Scores” section for more information or call your mortgage consultant to find out specific steps toward improving your credit score.

Your credit approval is typically good for about 6 months, but check with your mortgage consultant for a more specific timeline.

APR includes more than just the interest rate. It is calculated including origination fees, insurance and interest, as an annual rate.

If you get a good interest rate it may be in your best interest to lock now. Waiting could lead to an increase in rates later. Call your mortgage consultant to discuss the options, including a program that allows you to lock for an extended period, and choose to lower your rate if one becomes available.

Underwriting typically takes 24-48 hours. If you are curious about the state of your loan, call your mortgage consultant. They are happy to help you with any questions you may have.

From the moment you make an offer on a home, until the day you close, the loan process usually takes about a month, but it can be more or less depending on your specific transaction. Various things can alter this timeline so be sure to check with your mortgage consultant about your specific situation.

Appraisals compare the current market value of your home to other homes in your area that have recently been sold. Tax values can sometimes be higher or lower and may not reflect the actual appraised value of the home. A current appraisal is necessary for the lender to justify the loan amount you’ve requested and is required by secondary investors. You should not, however, rely on the appraisal for assurance about the condition of your home or as a guarantee of the value of your home.

The seller and/or your real estate professional should provide you with the current taxes for the property. Property taxes are reassessed from time to time, so this amount may change. If you would like to confirm what your taxes would be, contact the County Recorder’s Office.

Required by federal law, the Good Faith Estimate (GFE) is a written list of the estimated closing costs associated with your mortgage transaction, including the lender’s charges along with the title company’s charges and fees. It also includes estimated amounts for real estate property taxes and homeowner’s insurance.

Also known as HELOC, a HELOC is a secure line of credit using the available equity in the applicant’s residence as collateral.

We strongly encourage clients finding out how much they qualify to buy BEFORE they shop for a home. Being Pre-Approved means you have a mortgage commitment from your lender, making you a strong buyer. When you find your perfect home, your offer will be considered more seriously if you have a full loan commitment from a strong lender behind you.

You can only lock in your rate once, and your Mortgage Consultant will offer you rate options that are appropriate for your loan and closing date.
Ask about our “Lock and Shop” program for rate lock options for the one-time opportunity to change your rate if the rates drop.

Title Insurance is required because it protects against losses from disputes over the title of a property, such as unknown liens or other discrepancies in ownership. Title insurance protecting the lender is required at closing. There is a one-time fee for the policy that you pay at closing. You may purchase a separate buyer’s policy to protect your interests.

Your homeowner’s insurance policy, as required by the lender, needs to cover the cost to rebuild the home. The insured amount may be higher or lower than the actual purchase price as long as it meets the program requirements. The insurance company you choose can give you an actual quote based on specific information about the property.