March 10, 2010

Frequently Asked Mortgage Questions

If you have questions, we have answers!! Several of the most asked questions are below, including: Understanding the difference between pre-approval and pre-qualification: A pre-approval requires more complete borrower information than a prequalification. Prequalification is simply running ratios and can be accomplished on the phone. These ratios are based on the information provided, but without verifications. Pre-approval is recommended since it puts borrowers in a better negotiating position with a seller.

Understanding a rate lock: A rate lock is an agreement between a lender and a buyer. Some of the most important components of a rate lock are: length of time of the lock, loan program, interest rate, and origination or discount fees.

Understanding how a mortgage banker can save you money: Since mortgage bankers underwrite and close your loan, there is more control over the process allowing us to provide better service. Additionally, we have negotiated rates based on large volume to insure you get the best rate.

Understanding if it makes sense to refinance: Usually people refinance to obtain a lower rate or to reduce the term on the loan. Also, if borrowers currently have an adjustable rate mortgage or need cash out of their home, they may want to refinance. The choice to refinance should be in part based on how long you plan to stay in the home. Consult your Home Lending Counselor to discuss your situation.

Understanding points: Points are usually paid to buy down the interest rate. The cost for this rate reduction is expressed as a percent of the loan amount. One point means a charge of 1% of the loan balance.

Understanding what a good faith estimate represents: This estimate is a list of normal settlement charges that the lender is obligated to provide the borrower within three business days of receiving the loan application.

Understanding conforming loans: A conforming loan qualifies as salable to the two main Federal agencies that purchase mortgage loans, Fannie Mae and Freddie Mac.

Understanding jumbo loans: A jumbo loan exceeds the maximum conforming purchase limit set by Fannie Mae and Freddie Mac.

Understanding full documentation loans: Fully documented loans require both income and assets be disclosed and verified. The income is used in determining the borrower's ability to repay the mortgage. Additionally, W-2's and paycheck stubs will be needed.

Understanding other types of loans: Stated income/verified assets requires income to be disclosed and the source of the income verified, but the amount is not verified. Assets are verified and must meet an adequacy standard such as, for example, 6 months of stated income and 2 months of expected monthly housing expense. No ratio loans require income to be disclosed and verified, but does not use the income in qualifying calculations. FHA mortgages are backed by the Department of Housing and Urban Development. FHA loans offer as little as 3% down and borrowers can finance "allowable" closing costs. Seller can also contribute up to 6% of the purchase price toward closing costs.

Customer Comments
Thank you for your continuous follow up , fast service and expert advice. It has indeed been a pleasure working with you.
- Fernando G


I am pleased to say that everyone that I have contacted has been extraordinary. Thanks so much!!
- Harold S.


They say the greatest complement is a recommendation, so I am sending three of my co-workers your way.
- Calvin B


You made the whole process manageable and easy to understand. Thanks again from another satisfied customer!
- Peter E


You were great to work with and we very much appreciate your all your kindness and professionalism during this very stressful process.
- Delane Q


From start to finish, we received reliable advice and individual attention. What more can we say except thanks?
- Eric W


I never felt out of the loop at any time during the loan process. I just wanted to let you know how extremely positive my overall experience has been working with you!!
- Carl M


I had no idea how critical it is to have professional skills that was exhibited by your staff!!! I just wanted to add a personal thanks to you for all your help!!
- Homer K


We gave you less than three weeks to get everything done and you did it!! I recommended you to my boss!!
- Marion S


I would like to take this oppurtunity to congratulate you for having a very honest and professional company! Could not be more pleased!!
- Ted and Sally R


Your excellent communication and timely responses kept this process painless. Keep up the good work!!
- Adam C


Your company was extremely pleasant to deal with during our lending experience! I wanted to take the time to personally Thank You, very much!
- Vince H


I really appreciate all of your efforts on my loan, I will happily give you my highest recommendation. You were very professional and easy to work with.
- Crystal A


I have learned that uneventful is a good word in mortgages. Our closing was uneventful, and I am sending my sincere thanks to your and your team!!
- Ed and Pauline P


I admire the way you did not 'bad-mouth' the other company, but demonstrated how lending should be done! You earned a GOLD STAR from me!!
- Louis R


Thank-you for your great help for getting us our home loan. We were very happy with the quality of service provided and your willingness to simplify the process for us!!
- Jesse D


You did what you said you were going to do and we wanted to send a Thank You!! Your estimated costs were the actual costs of the loan which was amazing!
- Pang M


Thank you for all your help, you made the process a pleasure! It is so wonderful to work with you who is on top of everything and made our life so much easier.
- Sara J


I can truly say that this was the best experience with a lender I have ever had. I appreciate your help!
- Morgan B


Aside from getting writer's cramp, the closing on the home went very, very well! It is nice to work with people who deliver such fabulous service.
- Larry R


We spoke to five different lenders. You always offered the lowest interest rate were consistent, honest and helpful!! We were impressed by your constant willingness to help.
- Vivian P


Everyone kept telling me how stressful buying a house would be, but I was lucky to have chosen to work with Nationwide!! You guys are professionals!!
- Malcolm G


I want to say that I am extremely satisfied with your service. You were prompt and available, and remarkable!
- Matt Y


Thank you so much for your help and for making me feel so comfortable with my mortgage. The whole process was great!
- Lisa K


Nationwide seems like a well-oiled, well-organized organization. You guys are a credit to the lending industry!!
- Martin C.


Thank you for your help, patience, and expertise in buying our new home!! Settlement went without a hitch!!
- Brent H.


You went out of your way (and beyond) to take care of us throughout the process!! Thanks so much!
- Mary and Matt B.


I really enjoyed working with you! You were timely and conscientious on every detail. Again, thanks.....I will recommend you anytime a friend needs a lender.
- Cari V


Despite your other work, my loan was processed in record time. Thank you for the dedication you have shown.
- Carolyn D.


When you phoned me, I was lost in a sea of information! I appreciate you walking me through to closing, being there each step of the way!
- Roland T.


I enjoyed doing business with you! Not only did I get the best rate on the market, but your team was so on top of every detail.
- Jim D.


Just wanted to say thank you so much for all your help and your high level of customer service. I will definitely be referring you whenever I can.
- Jeff L


Thank you for all your help in getting my loan funded Friday! It was a pleasure doing business with you!
- James M.


Just wanted to let you know that our closing yesterday went beautifully. There were no surprises, and everything was just as you promised!
- Greg R


This was a very pleasant experience! You have done a great job and I hope I can send you more business soon!
- Faith R


I appreciate all your updates and quick response to all calls and e-mails. Excellent and professional!
- Joe A


My second loan, first via the internet. Fantastic service! I would certainly use your company again.
- Steve K


I have been raving about you! I would never hesitate to recommend you in the future.
- Bob & Allison G


Thanks for putting up with all my questions, concerns and fears! Everything went smoothly and you are great!!
- Bryan P


We just wanted to thank you for helping us work on getting our first home! It really was nice to know we could call you with any kind of question, and you had the answers!
- Sonny N


Your hard work and dedication do not go unnoticed, rather are an inspiration to those you come in contact.
- Victor T


I would like to acknowledge my appreciation of all your work!! I will highly recommend to anyone inquiring about a loan to give you a call.
- Dennis W


Thank you for all your help; you made the loan process so easy. I was very pleased with the closing costs as well. We'd certainly use you again!
- Barry N


I admit I was skeptical regarding the internet, but you proved me wrong by delivering everything you promised!
- Karen and Edward P.


My real estate agent was worried at first about my using an online mortgage company, but now she says she'll be referring clients!! You certainly are a true professional.
- Sissy M


Thank you for everything!! You guys were the only one out of the entire process that did what you said you would do. Your help was greatly appreciated.
- Donald B


As you surely realize, going through this as a homebuyer creates a lot of anxiety!! I would like to commend your entire staff for a job well done!!
- Jean D


I appreciate your patience with my crazy realtor, and thank you for a wonderful job!! We will not hesitate to recommend your organization!!!
- Chip W


Thank you for streamlining our loan application process. You provided wonderful customer service and be prepared that we will refer you to all our friends.
- Leon M


Thanks again to help me find the best loan ever. Your have definitely earned all of our business and referrals!!
- Wayne & Cindi Y


Very fast, efficient and knowledgeable. Best rate and lowest fees. Everyone should have this kind of experience!!!
- Javier C


We have only superlative comments for the way our loan was handled. Great job, and excellent service!!
- Aaron O


We have moved into our new home! Your manager should know that anything that arose--you took care of it and got back to me---any message--you responded that day! We could not be happier!!
- Omar S


We will be a stellar reference for your future customers. The terms were just as advertised - quite a splendid relief !!
- Gary G


Thanks to you, we had every confidence that things were moving along smoothly and that we would close on time. We love our new home!!!
- Tony & Tonya W


I chose you because your offered the lowest rate and the lowest fees. However, I'd like to thank you for your responsivness, knowledge and for helping us every step of the way!!
- Charles W


I would like to say THANK YOU for the EXCELLENT service provided me during the refinancing process!! You guys are the BEST!!
- Ken T


You provided excellent service throughout the process, and I wante to thank you for all your hard work. We are very excited!!!
- Theodore M


We appreciated the personal integrity you demonstrated by truthfully disclosing all costs and fees with no last minute surprises. Easiest mortgage I've ever done!!
- Randy J


At first I didn't even consider using the internet for such a major purchase, but then my local bank of 10 years acted as if they did not know me!! You guys deliver, and I am your biggest fan!!
- Johnny A


Our local lender laughed at your rates, and invited me to call him back with the deal "fell apart"! Needless to say, I have not called him back, and am extremely happy with the rate and the service!!
- Marshall M


Everything went like clockwork, and we were very pleased with the rate and the service.
- Robert R


Having recently gone through the process with another lender where it was complicated and time consuming, I would rate Nationwide as the best lender I've work with so far!
- Joel P


I like your company because everything was very straight-forward with no hidden costs or surprises while closing. Your professionalism is stellar!
- Terry W


It has been a total pleasure working with you and we really appreciated your timely answers to our many questions! What an asset you were in a complicated process!!
- David Z


Wow! I'm a homeowner thanks to you and your staff! You gave me so much helpful information throughout the entire process. Thanks and thanks again!!
- Tiffany F


It is great to know a company that takes care of customers all the way through. We love our new home, and thank you for all your efforts!
- Cory H


All our questions were answered in a timely manner and the loan closed in the time frame needed to maintain the lock in rate. I am telling all my friends!! Thanks to you and Natiowide!
- Deena F


We are moved into our new home and LOVE it. This the nicest home we have ever lived in and it's all ours!!! You're the best!!!
- Owen L


Getting a mortgage loan usually means constant pressure, but working with Nationwide was amazingly easy! Your team is incredible!!
- Dustin J


Your company is truly gifted at customer service and the mortgage process!! My closer at the title company said, Wow, you guys got a really good loan!!
- Terrell W


Thank you Thank you Thank you...I really appreciate all the hard work that went into making everything happen on time.
- Estelle H


I know they hit you with very short-notice deadlines that were sometimes unreasonable. To my amazement, you guys came through every time with flying colors
- Travis R


You were very efficient, courteous and most professional in handling my loan. Outstanding work on our mortgage start to finish!! Thanks a million!!
- George C


It has been a pleasure doing business with Nationwide! A Mortgage Banker has certainly proven to be better than the brokers out there!! You have certainty been three steps above my previous lenders.
- Shawn J


Just wanted to THANK YOU for all your support and patience in dealing with me, a first time homebuyer!! We were so pleased, we can't wait to start sending you business!!
- Lars R


There were no suprises, delays, hidden or unexpected charges! Wow, were we amazed!! Thanks so much for your assistance!!
- Pattie R


We absolutely love our house and we are very pleased at the service you provided to us. I was very impressed with you and Nationwide!!
- Ben D


Your steadiness and support was a real comfort to me through out this stressful process. You certainly delivered exactly as promised!!!!
- Rich B


I was astounded with your knowledge and attention to detail! I would like to thank you for such a great job!!
- Susan F


We will, without any hesitation, recommend you and Nationwide!! Thanks, and congratulations on a job well done!!
- Dave C & Glenn K


We are in our new home, and wanted to Thank You!! You were always willing to help or answer questions and it made the whole process simple.
- Russell O


You were always professional & available! We owe you a big thank you for making this EASY!!!!
- Rita C


You were very informative about every aspect of our mortgage including finance charges, mortgage insurance, etc. Better still, you delivered as promised. Thanks!!
- Ernesto F


I can't tell you how many times I heard from your competitors that the internet mortgage wasn't going to close on time or that the rate would be changed(ie bait and switch). How wrong they were!
- Mark N


My coworkers commented on how easily everything seemed to go and that they were surprised that an "online" company was so easy to work with and that the closing fees and interest rate were so low! I think they'll be calling you!!!
- Beverly T


I feel lucky and privileged to have worked with Nationwide on my refinance and will definitely refer you to everyone I know. Thank you!
- Lowell B


We will be singing your praises...I've given your name out so many times already, and hopefully someone will contact you soon!
- Karla M


I will give you guys a perfect score for making my loan close on time! I will recommend you to everyone I know!!
- Cedric S



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