Home Loan FAQs
Your best option is a home loan pre-qualification — an evaluation of your creditworthiness based on your income, assets, debts and past credit use. To obtain your home loan pre-qualification today, contact a home loan officer at (855) 373-5626. If you have other home loan questions, call a home loan officer at (855) 373-5626 or visit your local branch.
Prepaids refer to fees you will owe to cover costs such as property tax, homeowner's insurance, and pro-rated interest. The lender collects these fees to ensure your taxes and insurance are paid on time.
As part of our recent acquisition by Flagstar Bank, we are now able to lend in all 50 states including the Virgin Islands.
Please call us at (800) 968-7700.
Not necessarily. We have various loan programs, and some do not require citizenship.
Not necessarily. We have various methods to verify your qualification for the loan.
Along with your income, assets, and debts, your history of credit management is an important factor when applying for a home loan. Three national credit reporting agencies continuously monitor your use and repayment of credit, including credit cards, car loans, student loans, and any other short- or long-term loan. Make sure you know what's in your credit reports so you can correct any errors.
ALL THREE AGENCIES REPORT THE FOLLOWING INFORMATION:
- Identification: name, address, Social Security number, employer, date of birth, and spouse's name.
- Credit history: current and past payment history of all open and paid accounts. Negative information, such as late payments, can stay on your report for seven years, while bankruptcies can remain for up to 10 years.
- Collection: any creditor who has turned over an account to a collection agency may be listed
- Public records: items of public record that affect your finances, such as bankruptcies, divorce decrees, child support, and other judgments are listed.
- Inquiries: anyone who has checked your credit in the past 18-24 months is listed.
You can order your credit report from annualcreditreport.com. Check their site for ordering information.
YOU CAN DISPUTE CREDIT REPORT INFORMATION BY CONTACTING THE AGENCIES LISTED BELOW:
Equifax
PO Box 740241 Atlanta, Georgia 30374
TransUnion
PO Box 390 Springfield, Pennsylvania 19064
Experian
PO Box 949 Allen, Texas 75013
Flagstar offers a wide array of great loan programs tailored to fit your individual needs in either a fixed-rate mortgage or an adjustable-rate mortgage (ARM).
SOME OF THE HOME LOAN PRODUCTS WE OFFER INCLUDE:
- 10-, 15-, 20-, 25- or 30-year conventional and Jumbo fixed-rate loan terms
- 3-, 5-, 7- or 10-year adjustable-rate loan terms (up to $453,100)
- 5-,7- or 10-year jumbo adjustable-rate loan terms (over $453,100)
- First-time homebuyer home loan programs
Have more home loan questions? Browse types of home loans.
In a hybrid adjustable rate mortgage, interest rates are fixed during the introductory period. Once this period expires, the loan converts to an adjustable rate mortgage. You should inquire with a home loan officer for current rates.
WE'LL HELP YOU CHOOSE THE BEST HOME LOAN FOR YOUR NEEDS BASED ON THREE KEY FACTORS:
- How long do you plan to keep your home?
- How much you need to borrow?
- How much financial risk are you willing to accept?
To learn more about the wide variety of home loan products that DCB offers or for any other home loan questions, you can speak directly with a home loan advisor at (855) 373-5626.
The most important factor in determining the size of your down payment is the amount of cash immediately available to you. Most home loan programs have minimum down payment requirements based on the amount you need to borrow compared to the actual value of the home. This amount is commonly known as the loan-to-value ratio or LTV for short.
You can calculate the LTV by dividing the loan amount by the appraised value. The bigger your down payment, the lower your LTV. For example, if you bought your home for $200,000 and put $50,000 down, your LTV would be 75% (150,000/200,000). A low LTV not only gives you a better chance of a home loan approval, but it also can affect the interest rate of your home loan, thus lowering your monthly mortgage payment.
An interest rate is the monthly cost you pay on the unpaid balance of your home loan. An annual percentage rate (APR) includes both your interest rate and any additional costs or prepaid finance charges such as points, origination fees, private mortgage insurance, and underwriting and processing fees (your actual fees may not include all of the items above). The APR is a universal measurement that will help you compare the cost of mortgage loans offered by different mortgage lenders.
A fixed-rate mortgage is a loan in which the principal and interest payments never change during the life of the loan.
FIXED-RATE MORTGAGES ARE BENEFICIAL TO BORROWERS WHO:
- Are on a fixed income
- Are averse to interest rate changes
- Like the security of fixed payments
Adjustable-rate mortgages are generally preferred by borrowers who do not plan to stay in their home for a long time, who do not qualify for lower fixed interest rates and/or who can handle fluctuating payments.
To find out what interest rates are available to you or for other home loan questions, call a home loan officer at (855) 373-5626.
Homeowner's insurance protects your property against disaster and liability. This insurance protects you and the lender's investment in your property. You are required to be insured against unexpected hazards and personal liability claims. Prepayment of the first year's homeowner's insurance will be part of your closing costs. Your ongoing insurance premiums will become part of your monthly mortgage payment.
The day you close represents the culmination of your efforts and those of your loan advisor to complete the financing of your home. You want the closing to be as smooth and stress-free as possible, so be sure to resolve any home loan questions before closing.
To close your loan, you'll need to bring certified funds totaling the down payment, closing costs, and prepaid items. The total amount of funds you'll need will be provided to you at least three business days before your scheduled closing date in the form of a closing disclosure, commonly referred to as a CD. The closing disclosure is a key part of the closing and identifies the different fees and charges associated with the loan, as well as mortgage terms and payment information. The final closing disclosure will be included in the package you are presented with at time of settlement.
Sign all the applicable documents, and when you're finished, you'll receive a copy of every document.
Closing costs typically total between two and five percent of the purchase price of the home.
THESE MOSTLY ONE-TIME FEES INCLUDE:
- Appraisal
- Title insurance
- Closing transaction fee
- Loan origination fee
- Discount points
- Recording fee
- Underwriting fee
- Processing fee