Frequently Asked Questions

In order to protect themselves against a potential increase in interest rates, many borrowers ask their lender to lock in the rate they have been quoted for a specific period of time, usually 30-60 days. Other borrowers prefer to take the chance that rates will decrease while the loan is processed and let the rate on their loan "float." The rate can then be locked in at any time until just before your loan closes. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.

An appraisal is a written estimate of a property's current market value, based on recent sales information for similar properties, the current condition of the property and the neighborhood. An appraisal is required because it provides written proof of your home's actual value which is used to determine the loan amount you can receive. Your lender will order your appraisal, but a third-party company will perform the appraisal. There will be a fee associated with your appraisal paid to the appraisal company. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.

Although a homeowner's inspection may not be required by a lender for your home purchase, it is highly recommended before purchasing a house to help verify the value and condition of the property. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.

Closing is the point when your mortgage or deed of trust will be given to the new lender. At your closing, a closing agent will meet with you at a location convenient to you to review and sign the necessary paperwork to finalize your loan. In some states (called escrow states), the closing takes place over a period of time. A neutral third party holds money and/or documents until the escrow instructions are fulfilled. The party can be a title company or an attorney, depending on state regulations. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.

Closing costs can be divided into two main categories: items controlled by the lender and items controlled by third-parties out of the lender's control. The sum of these items is what you will be required to pay for at closing.

• Lender fees include any costs associated with processing your loan such prepaid interest for the extra days in addition to a full month before the first payment is due, discount points, origination charge and any rate lock fees.
• Third-party fees include fees paid for services performed by parties other than the lender, established by the state or local government or set by the individual vendors that provide the service. They also include pre-payments for taxes and insurance that are placed in an impound or "escrow" account. Some examples of third-party fees are appraisal fees, title service fees and government recording fees.

Contact U.S. today at 1-312-448-8763 or via our contact page for more information.

Closing costs can be divided into two main categories: items controlled by the lender and items controlled by third-parties out of the lender's control. The sum of these items is what you will be required to pay for at closing.

• Lender fees include any costs associated with processing your loan such prepaid interest for the extra days in addition to a full month before the first payment is due, discount points, origination charge and any rate lock fees.
• Third-party fees include fees paid for services performed by parties other than the lender, established by the state or local government or set by the individual vendors that provide the service. They also include pre-payments for taxes and insurance that are placed in an impound or "escrow" account. Some examples of third-party fees are appraisal fees, title service fees and government recording fees.

Contact U.S. today at 1-312-448-8763 or via our contact page for more information.

At the time of closing, lenders require you to show that you have adequate insurance in place. For example, if you're purchasing a home, your lender may require insurance that is valid for one year and covers at least 80% of the replacement value of your home. Although lender rules vary, you may want to consider purchasing full replacement costs insurance even if the lender doesn't require it, to make sure that you can repair or rebuild your home after a fire or other loss. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.

An escrow account is typically established at the time of your closing. An escrow account is held by the lender and contains funds collected as part of mortgage payments for annual expenses such as taxes and insurance. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.

It is important to understand the difference between your interest rate and APR.

Your interest rate is the direct charge for borrowing money.

The APR, however, reflects the cost of your mortgage as a yearly rate and includes the interest rate, origination charge, discount points, and other costs such as lender fees, processing costs, documentation fees, prepaid mortgage interest and upfront and monthly mortgage insurance premium. When comparing loans across different lenders, it is best to use the quoted APRs for the same type and term of loan. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.

Paying points is a way to reduce your interest rate when you purchase or refinance your home. In essence, you pay up-front for a lower interest rate, reducing your monthly payments. One point is equivalent to 1% of your loan amount; one point on a $100,000 loan amount is equal to $1,000. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.