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McBride Financial Services

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Frequently Asked Questions


 

How long will it take to process my mortgage application?

In most cases, your mortgage application will processed within one business day.

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When will my loan close?

Most loans can close within 10 - 14 days. Some loans may take longer to close if there are problems in exchanging required documents, obtaining necessary approvals, etc.

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Can I apply for a loan beforeI have found the property?

Certainly! Being pre-approved for your mortgage will actually make the buying process easier since you will be able to identify the properties that you can afford to purchase.

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What is an ARM?

ARM stands for "Adjustable Rate Mortgage." With an ARM, the interest rate that you pay will fluctuate over the life of the mortgage. The interest rate of the loan will be adjusted either up or down based upon changes to interest rates in the marketplace. Some ARMs will also define limits setting the minimum and maximum interest rate for the loan.

In contrast to the ARM is the Fixed-Rate mortgage. With a fixed-rate mortgage, the interest rate paid by the borrower will remain constant over the term of the loan regardless of changes in the interest rates in the marketplace.

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What is a "lock-in"?

A "lock-in" is an agreement between the mortgage company and the applicant that the proposed loan's interest rate will not change during the time the loan application is pending. Interest rates are constantly changing. Since it can take days, weeks or even months before a loan is finalized and closed, there is a risk that an interest rate quoted when a mortgage application is first submitted, may not be available when the loan finally closes. To avoid this situation, the applicant and the mortgage broker can enter into a separate agreement in which it is agreed that the quoted interest rate will be "locked-in" for a certain length of time.

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Team Charles