Q:
What is Debt Consolidation loan?

A:
A debt consolidation loan is a home equity or refinance loan that can give you cash out of your monthly payments. You generally can obtain a lower interest rate than most credit cards, so you can begin to save for the future.

Q:
What documents should I bring to loan application?

A:
If you receive a W2 from your job, we will need copies of your two most recent W2s and copies of your two most recent paystubs. If you do not receive W2s, we need copies of your most recent tax returns with all schedules. If you are purchasing a home we will need a copy of your ratified contract

Q:
What is Prepaid Interest?

A:
Prepaid interest is normally paid at loan closing. It represents the interest paid on a new loan from the closing date through the end of the month. All future interest payments on the loan are then paid in arrears. For example, if your new loan closes on January 15th, prepaid interest would be paid at closing from January 15th throught January 31. Interest would then be paid monthly with your first payment beginning March 1 which would pay February interest.

Q:
Why is the Annual Percentage Rate (APR) on the Truth in Lending (TIL) Disclosure higher than the rate shown on my note, which is the rate discussed or chosen with my loan officer?

A:
Lenders are required by the Real Estate Settlement and Procedures Act (RESPA) to show the rate charged on the note signed at closing which will include the total cost to obtain the loan. Some of these costs include the total interest paid over the life of the loan, assuming the full term is carried out at the note rate, plus other closing costs, including but not limited to prepaid interest or Private Mortgage Insurance (PMI). Other lender charges may be underwriting and tax service fees or other administration fees. All of these "finance charges" are factored into the APR calculation to give the borrower a better estimate of the total cost of the loan.