Why should I do business with HomePlus Mortgage?
Customer service is our commitment to you. We have a strong and genuine belief in the "customer for life" principle of doing business. Our new and repeat customers are earned through providing the most competitive rates, and superior service. Referrals from previous customers, and local Real Estate professionals have always delivered the majority of the company’s business. We strive to earn your business today and keep it in the future.
Is it safe to apply online?
HomePlus Corporation uses the latest security software and secure server, so that someone intercepting the transmission can read no information you send to us over the Internet. Your application and information is 100% safe and will only be delivered to us.
Does HomePlus Corporation sell or give information to other companies?
We are committed to your right to privacy. We do not share your personal data with anyone. Once your application is in process, you can be guaranteed that all your information will be protected.
What should be expected after I apply online?
A Loan Officer will contact you with in 24 hours to review your loan application and discuss loan program options. You will receive a loan package in the mail within three business days of your application. The package will include a copy of your application for signature and a list of any needed documentation. Your completed application is returned to HomePlus Mortgage in the enclosed pre-addressed envelope.
What kind of paperwork and records will I need to provide?
The amount of documents needed depends on what type of loan program you are seeking to obtain. Generally speaking, for a full documentation loan, borrowers need to provide the past two years of W-2 forms and the past month of paystubs.
What will my interest rate be?
Interest rates vary based on the type and purpose of the loan, your credit history, income, loan amount, value of the property, and the number of points you are willing to pay.
What are points, and how may do I have to pay?
We offer Zero Point/Zero Origination Fee Mortgages. Points are paid when a loan closes, not at the time you apply. Points are fees added to the loan, or with a home purchase paid at closing. One point equals 1% of the loan amount. When you get a loan you’ll have the opportunity to “buydown” the interest rate by paying points, basically paying a fee to lower your interest rate. By lowering your rate, you will be lowering your monthly payment and the amount of interest you will pay over the life of the loan.
How will I know if paying points or not paying points is right for me?
That depends on how long you plan to stay in the home. If you plan to move in a few years or refinance paying points may not make sense because you will not keep the loan long enough to realized the benefit of your savings in interest over what your paid in points to lower your rate. If you plan to stay in the home for a long time and not refinance, paying points may benefit you because over the long run you will realize the savings in interest over what you paid in points to buy the rate down.
What closing costs will I pay?
HomePlus Mortgage offers loans with and without closing costs depending on what type of loan you choose and the amount of the loan.
What is (APR) Annual Percentage Rate?
The total cost of your mortgage loan is expressed as and annual interest rate. The APR is the effective rate of interest because it takes into consideration the cost of the loan. The APR is typically higher than the note rate because it takes into account the amount of closing costs paid for the loan.
When is my interest rate locked?
Typically, you can request a rate lock after we have received your loan application, your application can be received either by our online application or a phone application at 1-800-810-PLUS.
What is an appraisal and who completes it?
The appraisal is a report that determines the value of your property. HomePlus Mortgage will arrange an appraisal of your property. If you have a current appraisal, we can accept that. An appraiser is a licensed professional who estimates the value of the property.
When is the appraisal ordered?
Appraisals can be ordered at different times throughout the loan process. Typically it is ordered when you loan officer calls you to review your loan application. Appraisals are paid C.O.D. to the appraiser.
Where do I sign final loan documents?
If you are purchasing a home, your Realtor will choose your closing agent (an Escrow Company or Attorney), or we can select one for you. If you are refinancing or obtaining a second mortgage we’ll select the closing agent for you. In both cases you will be required to sign final loan documents in front of a notary public. Either way, the location will be close to you and in many cases the documents can be signed at a location of your choice.
How much can I borrow and why?
Income, current debt, mortgage payment, and loan to value, are primary factors, which affect whether you qualify for a loan or not.
Does HomePlus Corporation offer no income verification loans?
Yes, we offer loans that do not verify your income, and do not look at debt to income ratio.
What is the difference between a Home Equity Line of Credit (HELOC) and another type of second mortgage?
A Home Equity Line of Credit (HELOC) is money in an account that can be used, as you need it. You can use any portion at any time and pay it back at any time. The interest is variable and tied to the prime rate. Other types of second mortgages or home equity loans allow you to borrow a lump sum and pay it back over a period of years with interest. The interest rate is fixed.
Why should I use a mortgage loan refinance to consolidate my debts?
Mortgage loans generally have the lowest interest rates compared to credit cards, auto loans and other debts. Also the payment and length of the mortgage is usually less than that of other debt.
Can I get a tax advantage from having a mortgage loan?
You should contact a tax attorney of accountant for details, but interest on a mortgage loan is usually tax deductible. Interest on credit cards or car loans are usually not tax deductible.
I’m purchasing a home. Is there someone who will work with my Realtor?
Yes, each borrower is assigned to one Loan Officer who works with you closely throughout the entire process. He or She can assist your Realtor at any time.
When buying a home, what is the difference between Pre-qualifying and Pre-approval?
As a potential homebuyer competing for a property, you’ll have a better chance of getting your offer accepted by a seller when you are as prepared as possible. Consider the following hierarchy of preparation.
- Neither pre-qualified or pre-approved
The benefits of each level can be easily understood when viewed from the seller of the property’s perspective. If the seller is in receipt of multiple offers to purchase their property, a stranger you (buyer) is asking them to take their property off the market for three to four weeks while you apply for a mortgage loan. As a seller let's consider the type of buyer you would choose to deal with:
This buyer has applied for a mortgage and provided the lender with written evidence of income, debts, assets, savings, liabilities, and credit. The lender has verified all information and an underwriter has reviewed the documentation and approved the loan. As a result, much of the paperwork for the buyer is completed and the transaction is able to close quickly. The lender will provide the buyer with a pre-approval certificate for a specific purchase price and loan amount. The seller is as certain as possible that this buyer can close.
As a potential buyer, you can see that obtaining a pre-approval will give you the best chance of getting your offer accepted and will also give you an advantage in your negotiations with the seller.
This buyer has spoke to a Mortgage Loan Officer (lender) and discussed their financial situation. The lender may also review a credit report. The buyer has informed the lender regarding income, debts, assets, savings and liabilities, however the buyer has not completed an application or provided the lender with any documentation regarding their financial situation. The buyer provides the seller with a pre-qualification letter from the lender stating an opinion of what the buyer can afford. The lender does not verify this information. The seller may still have doubts and will be most likely to accept an offer from the following pre-approved buyer.
Neither pre-qualified nor pre-approved
This buyer provides no evidence that they can afford to purchase the property. The seller will question how motivated you are, and may not take your offer seriously.