Frequently asked questions
Can Northpoint Mortgage tell me how much home I can afford?
Yes! If you are ready to explore buying a home, a Northpoint Mortgage Loan Officer is the right person to speak with to understand exactly how much you qualify for and to discuss how much you can afford. Many Northpoint clients find they can qualify for more than they expected. At Northpoint we feel it is more important to also have an earnest discussion about homeownership to help you make sure you get a mortgage you are comfortable with for many years to come.
Can I use Northpoint Mortgage if I already have signed a purchase agreement?
Yes. Northpoint Mortgage has helped many clients who had issues with the lender they originally planned to use. Northpoint is nimble enough to move quickly and has the expertise to get the deal done.
What is a mortgage pre-approval vs pre-qualification?
Do not worry about which word lenders use. Some lenders may use the word “prequalification”, while other lenders may call the letter a “preapproval”. In reality, lenders’ processes vary widely, and the words they use don’t tell you much about a particular lender’s process. The important thing is that the letter you receive provides enough information for sellers in your area to take it seriously.
At Northpoint we will look closely at your credit report, validate your income and assets, and process your application for an automated approval to ensure you qualify for a loan. Our qualified borrower letter will confirm all of this in writing.
With Northpoint’s letter, the real estate agent and seller will know you are a qualified borrower.
How much do I need for a down payment?
How much of a down payment you are required to make will depend in part on the loan program you decide to obtain. Some home buyer programs have no down payment requirements. Consult with one of our experienced Mortgage Loan Originators to decide which loan program is best for you.
What is a rate lock?
If your interest rate is locked, your rate will not change between now and closing as long as you close within the specified time frame and there are no changes to your application. Rate locks are typically available for 30, 45 or 60 days and sometimes longer.
How do I apply?
At Northpoint we make it easy for you to apply. What is most convenient for you? You can apply online, over the telephone, via mail or in person. A great way to start is to request more information or begin a consultation, all with no obligation. A loan officer will be available to assist you so that completing the application takes very little of your time. We can be available by appointment after hours to make it easier and more convenient for you.
Do I need to find a home before I apply?
No! Getting started before you find a home may be the best thing you could do!
We highly recommend you talk with one of our experienced Loan Officers before you have a property to purchase. We can provide you with a letter which you can use to assure real estate brokers and sellers that you are a qualified buyer. Getting preapproved with Northpoint will give more weight to any purchase offer you want to make.
Our Loan Officers are local and know the community. We are happy to help you find the right real estate agent for you.
Can I get advice from a Loan Officer even if I’m not ready to apply just yet?
Certainly! Put our years of experience to work for you! Our Loan Officers are EXPERTS and are here to answer any questions you may have. Call (888) 310-7707
How do I know which loan program is right for me?
USDA, VA, FHA, Fannie Mae, Freddie Mac, State Housing. Northpoint offers so many loan programs it can be overwhelming! With so many variables to decide impacting the decision, like credit score, income, location, down payment…
You can do all the research yourself, or you can spend a few minutes with one of our Loan Officers and let their expertise and experience work for you. Northpoint’s Loan Officers truly are experts. All they do is mortgages, 24 hours a day, 7 days a week. Contact one of our Loan Officers today to start your journey.
What will my rate be?
Mortgage rates are based on a variety of factors (26 to be exact) such as the loan program, loan purpose, your credit history, the value of the house and the loan amount. Talk to one of our experienced Loan Officers to get an accurate rate quote.
What is PMI?
Private Mortgage Insurance protects the lender against a loss if a borrower defaults on the loan. It is usually required for loans in which the down payment is less than 20 percent of the sales price. The positive thing about PMI is it allows buyers to purchase a home with an attainable down payment. Northpoint has a variety of PMI options available from monthly, to single-pay up front, and even Lender paid PMI. Talk to one of our Loan Officers to see which options fits your needs.
What is the difference between interest rate and APR?
Your interest rate is the cost you pay on the unpaid principal balance of your home loan. An Annual Percentage Rate (APR) includes both your interest rate and any additional finance charges. Finance charges included in the APR include items like the origination fee, points, private mortgage insurance and courier fees. While your interest rate is the rate at which you will make your monthly mortgage payments, the APR is a universal measurement that can assist you in comparing the cost of mortgage loans offered by different mortgage lenders.
How does my escrow account work?
An escrow account is a separate account that holds funds for the purpose of paying bills such as homeowner’s insurance and property taxes. The lender collects the funds to be deposited into the account each month along with your monthly payment and then pays the bills for you when they come due. By taking the annual amounts charged for homeowner’s insurance, property taxes and other annually paid items and dividing them by 12, a payment amount is determined and is added to your monthly principal and interest payment. Spreading the cost of these expenses over 12 months makes it easier for you to budget those expenses and you will not have to come up with additional cash when bills are due.
What does a lender look for when approving my loan?
There are “4 C’s” of a loan approval.
Capacity – Can you repay the debt? We will ask for employment information and how much you earn. We are verifying that your current job situation and income levels are stable.
Credit History – Will you repay the debt? We will look at your past credit history to see how much you owe, how often you borrow, whether you pay bills on time.
Capital – Meeting the down payment requirements of your chosen loan program and closing costs. Do you need a gift from a relative? Will you have a cushion left after your home purchase?
Collateral – Will the value of the house fully protect the lender if something happens and you cannot repay the loan?