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Atlantic Home Loans FAQ’s

Frequently Asked Questions

You can click on one of the sections to find specific answers or scroll through the FAQs below.

Getting Started

Loan App

Terms

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Getting
Started

Should I rent or buy a home?
The decision to rent or buy a home differs for everyone, as there are benefits to both. Buying a home could be a better deal for you depending on how long you plan to live in your home and the loan you choose.
What are the advantages of buying a home?
A home purchase gives you personal benefits such as a sense of investing in your community and pride for achieving the dream of homeownership. There are some strong financial benefits as well, especially the tax savings you may enjoy.
Which loan is best for me?

Our local loan experts are ready to help! Connect with a loan officer in your area to answer questions or to get started.

Loan
Application

What is the difference between pre-qualification and pre-approval?

To get prequalified, you will need to provide the lender with some financial information such as your income and the amount of savings and investments you have. The lender will use this information to estimate how much money we may be able to lend you and therefore the price range of homes you can start looking at. To get prequalified, the lender will request a formal credit check. The estimate of the loan amount provided to you does not guarantee you will ultimately be approved for that amount.

To get pre-approved, however, you will need to provide the lender with financial documents including W-2 statements, paycheck stubs and bank account statements. The lender will use these documents to verify your financial status and request a formal credit check. A pre-approval will help you when shopping for homes because sellers will have more confidence that you will be able to obtain a loan to purchase their house.

How long will it take to get prequalified?
Pre-qualification can be a very quick process. It can take as little as 5 minutes. The lender will ask for your income, assets, employment and property information and obtain a credit report.
How do I get approved for a mortgage?

After filling out an application with NEXT and pre-approval, you’ll have to provide the following information as directed:

  • Pay stubs (last 30 days)
  • Two years of W-2s
  • Two years of tax returns
  • Bank statements from the last two months
  • Investment statements
  • Proof of where you got money for a down payment, such as bank statements or a statement from someone saying it was a gift
  • Proof of identity
  • Social security number
Do I need to be pre-approved?

Many real estate agents will be reluctant to show you any properties without a pre-approval letter. A pre-approval letter is typically good for 60 to 90 days. You will also be more confident when negotiating the home price.

Do you sell my loans?
Yes. It is called transferring and it is done at closing.
Why must I sign the Disclosure Statement?
Lenders are required by law to provide the information on this statement to you in a timely manner. Your signature merely indicates that you have received this information, and does not obligate either you or the lender in any way.
Locking in my interest rate and when do I lock?
“Locking in” means that a commitment has been made between my company and the investor on your behalf regarding the interest rate in your mortgage loan. Your loan officer watches the market on a daily basis to make sure that when we lock your interest rate, it is in the best interest for you and your loan.

Loan
Terms

Amount Financed
The amount financed is the mortgage amount applied for MINUS prepaid finance charges and any required deposit balance. Prepaid finance charges include items such as loan origination fees, commitment or replacement fee (points), adjusted interest, and initial mortgage insurance premium. The Amount Financed represents a NET figure used to allow you to accurately assess the amount of credit actually provided.
New Loan Estimate (LE)
The New Loan Estimate (LE) replaces the Good Faith Estimate (GFE) and the initial Truth In Lending document (TIL). The LE provides borrowers with clearer information on loan terms and estimates of loan and closing costs.
Annual Percentage Rate (APR)
The Annual Percentage Rate, or A.P.R., is the cost of your credit expressed in terms of an annual rate. Because you may be paying “points” and other closing costs, the A.P.R. can be compared to other loans for which you may have applied and give you a fair method of comparing price.
Finance Charge
The Finance Charge is the cost of credit. It is the total amount of interest calculated at the interest rate over the life of the loan, plus prepaid finance charges and the total amount of mortgage insurance charged over the life of the loan.
Closing Costs
Closing costs are those costs that include the loan origination fee, discount points, appraisal costs, and any other charges associated with the legal transfer of property. Typically, these costs will range between 2% and 3% of the mortgage amount.
Private Mortgage Insurance (PMI)
Private mortgage insurance is required on conventional loans and may allow you to purchase a home for as little as 5% down. This coverage requires a monthly insurance fee to be paid. PMI is only required if your loan-to-value is 80% and above.

Make a
Payment

For questions about servicing your loan or making mortgage payments, please contact us at servicing@atlantichomeloans.com.