Working with ColonialFirstLending.com What is Colonial First Lending Group?
Is there any obligation to accept an offer once I apply?
How do I find out about different mortgage loan options and rates?
What does Colonial First Lending Group charge on a loan?
What makes different loans have different rates?
How long will it take to close my loan once I accept an offer?
How does the loan process work?
Will you share or sell my personal information? Purchase Loans What are the advantages of purchasing a home vs. renting?
Can I apply for a purchase loan before I find a home I like?
How much money do I need for a down payment?
Should I run a credit report on myself?
What is the difference between a fixed-rate loan and an adjustable-rate loan?
What is mortgage insurance and when do I need it?
What are points?
What is APR? Mortgage Refinance What are the advantages of refinancing a home?
Can I take cash out of my home even if I owe more than my property is worth?
If I currently have mortgage insurance, will refinancing eliminate it?
What are the benefits of consolidating debt by refinancing my mortgage? Home Equity Loans & Lines of Credit What are the benefits of taking out a home equity loan?
What is a HELOC? What is Colonial First Lending Group?
Colonial First Lending Group is a local mortgage center that connects you to our large network of lenders who compete for your business. Colonial First Lending group has several years of combined experience and the most up to date technology to help you with your mortgage needs through a fast and easy process.
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Is there any obligation to accept an offer once I apply?
We work hard to get you the best possible loan programs and rates but will not obligate you to any such offers. There is no obligation to apply with us, although, we are confident that our expertise and loan diversity will help you achieve all your mortgage goals.
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How do I find out about different mortgage loan options and rates?
You can apply in person, online, or over the phone with Colonial First Lending Group. Your loan request is then delivered to our lenders by the next business morning after you fill out your application. Remember there is no obligation! You will then receive a response to your inquiry from the best qualified lenders that specialize in fulfilling your unique loan request from a professional loan officer within 24 hours.
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What does Colonial First Lending Group charge on a loan?
Your closing cost will depend on the amount of your loan and the type of loan that you would like to do. Colonial First Lending Group takes pride in knowing that we offer competitive closing cost.
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What makes different loans have different rates?
Rates vary with each lender and can fluctuate as often as every day. Different loans will offer different rates based on the economy, your loan term, and of course your own personal qualification. By filling out an application with Colonial First Lending Group we can determine what you will qualify for and offer you the best rates for your specific situation.
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How long will it take to close my loan once I accept an offer?
Typically the loan process may take anywhere from 2-4 weeks. The sooner you are able to verify the information that you provided on your loan application the quicker your loan will be processed and closed. The required documentation for your mortgage loan will vary from person to person but is most often simple to obtain and accessible for most.
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How does the loan process work?
A professional loan officer will work with you to determine the best loan and interest rate available to you after they review your application. Once you accept an offer you will receive a list of the documentation needed to complete your loan and most often at that time an appraisal is ordered. It is important to provide your loan officer with the requested documentation as soon as possible. Once this is complete your loan officer will give you a realistic time frame of a closing date and your final loan papers get prepared for your signing.
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Will you share or sell my personal information?
Your privacy and the security of your personal information (i.e., SS Number, Telephone, etc.) is an important concern of ours. Under no circumstances will C.F.L.G. sell or share any personal information about you with any person or organization other than our loan officers and lender network, unless mandatory by law or court order.
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What are the advantages of purchasing a home vs. renting?
There are several advantages to owning a home including:
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- Experience the American dream of owning your own home and increase your quality of living.
- Use your home to take advantage of the tax benefits. Mortgage interest and property taxes are both tax-deductible expenses, while rent is not. Consult your tax advisor to see how home ownership can be an advantage on your annual taxes.
- Saving through your home’s equity. Why pay rent every month paying for your landlord’s mortgage? Monthly mortgage payments build equity in your home.
- You could experience appreciation in the value of your home with home ownership; a home is a great investment.
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Can I apply for a purchase loan before I find a home I like?
YES. In fact, if you are in the process of looking for a home we highly recommend that you apply for a mortgage pre-approval. A mortgage pre-approval shows that a lender has reviewed your credit and has determined that you are likely to qualify based on an estimated loan amount and purchase price (provided on your initial application). Having a pre-approval in hand gives you greater bargaining power when negotiating the sales price with a seller as well as peace of mind.
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How much money do I need for a down payment?
The amount of money that you put down on a home will depend on what you qualify for and what type of loan you desire; you may qualify for up to 100% financing.
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Should I run a credit report on myself?
Your credit report is the first thing a potential lender will need to review to qualify you for a mortgage. If you want to see your credit report prior to applying for a loan you can do so by ordering it online through one of the three credit bureaus (Link to “Links Page”) Most often your lender cannot use this that same credit report for your loan though and will have to order another one when you apply.
We recommend ordering your credit with a loan officer so that he/she can review it with you for any inaccuracies and explain the content. Regardless if you pay your bills on time, you will want to ensure that all the information in your credit file is up-to-date and accurate.
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What is the difference between a fixed-rate loan and an adjustable-rate loan?
A fixed rate loan is a loan with a permanently fixed interest rate throughout the entire term.
An Adjustable Rate Mortgage (Commonly referred to as an ARM) consists of two components: The Margin and the Index. Adding the margin and the index together will equal your rate. The margin is fixed and the index is the portion that can change. There are several different indexes used in mortgage loans; some common indexes used are the MTA, LIBOR, and CMT.
An adjustable rate mortgage will most often have a fixed term to start and then adjust at specific periods throughout the life of the loan thereafter. The rate can only go as high as the lifetime cap and change as often as specified in your loan. This means your monthly payments will be periodically recalculated based on the prevailing market conditions and the terms of your loan.
For more information and specific Arm loan questions please contact us.
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What is mortgage insurance and when do I need it?
Mortgage insurance—or PMI [Private Mortgage Insurance] as it is frequently called, is the added amount a borrower is required to pay a lender when they have less than 20% down payment or equity. The mortgage insurance protects the lender against loan default.
There are several ways to avoid paying mortgage insurance so don’t feel intimidated by this when you want to refinance or buy a home.
More information on PMI is included in the following printable brochures: Consumer Handbook on PMI (.pdf); PMI Alert (.pdf)
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What are points?
Essentially, points are prepaid interest - it's a method of reducing the interest rate you would pay on a loan. One point is equivalent to 1% of the loan amount. For example, 2 points on a loan amount of $200,000 would be $4,000.
In general, a loan requiring 2 points has a lower interest rate than one with 1 point or 0 points, but you would pay the higher amount of fees from the increased points in your closing costs. Paying points may be a more attractive option for those planning to stay in their new home for longer periods of time, usually at least three or more years.
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What is an APR?
The APR (Annual Percentage Rate) is a factor designed to measure the "true cost of a loan" and is commonly used to compare the same loan program at the same interest rate from different lenders. It attempts to create a level playing field for all lenders by preventing the advertising of low rates with hidden fees. The APR is NOT your loan interest rate and is not used to calculate your monthly principle & interest payments.
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What are the advantages of refinancing a home?
There are several reasons to refinance your home mortgage. The most important part of determining weather of not this is best for you is to evaluate your current mortgage and rate and compare it to what is available. There are several advantages to refinancing your mortgage including:
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- Stability—converting an adjustable-rate mortgage to a fixed-rate mortgage means your monthly payments will always be the same amount-no surprise increases.
- Savings—reduce your monthly mortgage payments by refinancing to a lower interest rate.
- Tax Deduction—get a tax deduction on your closing cost. Consult your tax advisor to determine how much of a refinanced payment and/or closing cost may be tax-deductible.
- Increased Value—use additional cash from a refinance to improve your home and increase its value.
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Can I take cash out of my home even if I owe more than my property is currently worth?
Some loan programs allow you to borrow up to 125% of the value of your home.
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If I currently have mortgage insurance, will refinancing eliminate it?
It is possible to eliminate mortgage insurance payments when you refinance if your home value has either appreciated sufficiently so that your loan amount would be no more than 80% of the new assessed value or if you choose a loan program that separates your loan into both a first and second mortgage.
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What are the benefits of consolidating debt into my mortgage?
There are several benefits to refinance for debt consolidation. Most often by doing so it reduces you monthly mortgage payment(s), possibly increases your tax deductions by financing other needs with a mortgage (consult your tax advisor), and can eliminate and/or lower your monthly bills by consolidating all your debt onto one monthly mortgage payment.
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What are the benefits of taking out a home equity loan?
Taking out a home equity loan allows you to consolidate other debts you may have or use the equity you’ve built in your home to get cash for other purposes, such as home improvement, financing a child’s education, a new car, or other personal needs. In addition, you can realize increased savings by consolidating debt from other sources with higher interest rates. Tax Deductions may also be available to you on your home equity loan interest; consult with your tax advisor to determine how much of your new loan payment may be tax deductible.
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What is a HELOC?
A HELOC stands for Home Equity Line of Credit. With a Home Equity Line of Credit (HELOC), you are qualified for a maximum credit line that you can borrow from on a revolving basis, like a credit card. The interest rate on a HELOC is typically an adjustable-rate that fluctuates with the pre-determined index, usually the prime rate published in the Wall Street Journal, plus the margin. Your monthly payment will change as your loan balance and interest rates change, depending on how much you’ve borrowed or drawn on the line.
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