Personal Banking

Borrowing

How much will I need for closing?
The amount will vary depending on the product, property type and location. Generally, we estimate about 5% to 6% of the mortgage amount. A Good Faith Estimate is issued to a borrower within 3 business days of the loan application which discloses an estimate of monies needed for closing.

Does a Pre-Qualification guarantee a Mortgage Approval?
No. A Pre- Qualification is issued subject to terms and conditions including, but not limited to, a signed application, appraisal of the subject property, verification of all information, etc.

What is the difference between Residential and Commercial Mortgages?
Residential Mortgages are for 1-4 Family Units, Co-op's and Condo's. Commercial Mortgages are for 5 units and above, stores, mixed use and other properties used for commercial purposes.

What is the difference between a Borrower, Co-Borrower, Co-Signer or an Accommodating Party?
A Borrower and Co-Borrower both have ownership in the property as well as an obligation to pay the mortgage. A Co-Signer has no ownership but has an obligation to pay the mortgage. An Accommodating party has ownership but no obligation to pay the mortgage although the Accommodating Party's interest in the property secures the loan.

Why is a Title Report needed?
A Title Report gives assurance to the bank and a borrower that a home is owned free and clear without any objectionable liens, judgments or encumbrances that may otherwise impair the ownership.

What is PITI?
PITI consists of monthly payments of Principal, Interest, Taxes and Insurance used to calculate a mortgage payment.

How are loans qualified?
A borrower is qualified based on his/her ability to repay, his/her willingness to re-pay, credit history, sufficient assets for reserves and closing, and sufficient security in the property (Loan To Value).

What is the difference between a Purchase and Refinance?
A Purchase is an agreement between a buyer and seller where a mortgage is then taken to buy the home. A Refinance is a mortgage placed on a home already owned to pay off an existing mortgage and/or take cash-out using the equity in the home.

How long does it take to process an application?
Our goal is to make a decision within 30 days of receipt of a completed application and then close the loan within 60 days of receipt of the completed application.

When is the rate locked in by the Bank?
The rate is locked in the day the application is received by the Bank.