FAQ Archive - NBH Admin

Yes, you can borrow funds to use as your down payment! However, any loans that you take out must be secured by an asset that you own. If you own something of value that you could borrow funds against such as a car or another home, it's a perfectly acceptable source of funds. If you are planning on obtaining a loan, make sure to include the details of this loan in the Expenses section of the application.

Any student loan that will go into repayment within the next six months should be included in the application. If you are not sure exactly what the monthly payment will be at this time, enter an estimated amount. If other student loans are reflected on your final credit report, which will not go into repayment in the next six months, we may need to ask you for verification that repayment will not be required during this time period.

If you've had a bankruptcy or foreclosure in the past, it may affect your ability to get a new mortgage. Unless the bankruptcy or foreclosure was caused by situations beyond your control, we will generally require that two to four years have passed since the bankruptcy or foreclosure. It is also important that you've re-established an acceptable credit history with new loans or credit cards.

The maximum percentage of your home's value depends on the purpose of your loan, how you use the property, and the loan type you choose, so the best way to determine what loan amount we can offer is to complete our online application!

Automated monthly payments are available. At the loan closing an automated payment application will be provided. Simply return it at your earliest convenience to enroll in the automated payment program.

We define manufactured housing as housing units that are factory built with a steel undercarriage that remains as a structural component and limits the structure to a single story. These types of manufactured homes are sometimes known as mobile homes. We do not consider other factory-built housing (not built on a permanent chassis), such as modular, prefabricated, panelized, or sectional housing, to be manufactured housing. If your home is one of these types, please complete the application indicating that your home is a single family home. In order to qualify for our loan programs a manufactured home must meet the following requirements: A manufactured home is any dwelling built on a permanent chassis and attached to a permanent foundation system. Be a one-family dwelling that is legally classified as real property. The towing hitch, wheels, and axles must have been removed and the home must be permanently attached to a foundation system that meets state and local codes as well as the manufacturer’s requirements. Foundation system must be appropriate for the soil conditions for the site and meet local and state codes. The land on which the manufactured home is situated must be owned by you. We do not provide financing for manufactured homes located on rented or leased land. Must have been built in compliance with the Federal Manufactured Home Construction and Safety Standards that were established June 15, 1976. Generally, compliance with these standards will be evidenced by the presence of a HUD Data Plate that is affixed near the main electrical panel of the home or in another readily accessible and visible location. Must be at least double-width, 24 feet wide, and have a minimum 600 square feet of gross living area. Must be acceptable to typical purchasers in the market area.

In most cases we are able to offer financing for homes on large tracts. What's most important is to determine if the size of your property is common for the area. The appraiser must be able to provide detailed information about the recent sale of similar homes on similar lots that have occurred recently. If that's not possible, we may not be able to provide the financing that you are looking for. It's also important that your property be residential in nature. If the property is a working farm or is used for any commercial purposes, we may have issues.

You are never too old for a 30-year mortgage! Seriously, Federal law prohibits all lenders from discriminating based on age. You should apply for whatever mortgage you are comfortable with - no matter what your age.

One of the investor rules we have to consider if you are refinancing relates to determining if you are refinancing the balance on existing mortgages only or receiving cash back at closing. Things like the maximum percentage of your home's value that you can borrow can vary based on the type of refinance you are requesting. Typically, if you have received more than $2000 from your equity line in the last 12 months, it is considered to be the same as receiving cash back at closing.

An adjustable rate mortgage, or an "ARM" as they are commonly called is a loan type that offers a lower initial interest rate than most fixed rate loans. The trade off is that the interest rate can change periodically, usually in relation to an index, and the monthly payment will go up or down accordingly. Against the advantage of the lower payment at the beginning of the loan, you should weigh the risk that an increase in interest rates would lead to higher monthly payments in the future. It's a trade-off. You get a lower rate with an ARM in exchange for assuming more risk. For many people in a variety of situations, an ARM is the right mortgage choice, particularly if your income is likely to increase in the future or if you don't plan on being in the home for more than 3 to 5 years. Here's some detailed information explaining how ARM's work. Adjustment Period With most ARMs, the interest rate and monthly payment are fixed for an initial time period such as one year, three years, five years, or seven years. After the initial fixed period, the interest rate can change every year after. For example, one of our most popular adjustable rate mortgages is a 5 year ARM. The interest rate will not change for the first 5 years (the initial adjustment period) but can change every year after the first 5 years. Our ARM interest rate changes are tied to changes in an index rate. Using an index to determine future rate adjustments provides you with assurance that rate adjustments will be based on actual market conditions at the time of the adjustment. The current values of most indices are published weekly in the Wall Street Journal. If the index rate moves up so does your mortgage interest rate, and you will probably have to make a higher monthly payment. On the other hand, if the index rate goes down your monthly payment may decrease. To determine the interest rate on an ARM, we'll add a pre-disclosed amount to the index called the "margin". If you're still shopping, comparing one lender's margin to another's can be more important than comparing the initial interest rate, since it will be used to calculate the interest rate you will pay in the future. An interest-rate cap places a limit on the amount your interest rate can increase or decrease. There are two types of caps: 1.Periodic or adjustment caps, which limit the increase or decrease of the interest rate from one adjustment period to the next. 2. Overall or lifetime caps, which set the maximum interest rate, over the life of the loan. As you can imagine, interest rate caps are very important since no one knows what can happen in the future. All of the ARM's we offer have both adjustment and lifetime caps. "Negative Amortization" occurs when your monthly payment is less than the amount required to pay interest due. If a loan has negative amortization, you might end up owing more than you originally borrowed. None of the ARM's we offer allow for negative amortization. Some lenders may require you to pay special fees or penalties if you pay off the ARM early. We never charge a penalty for prepayment. Selecting a mortgage may be the most important financial decision you will make and you are entitled to all the information you need to make the right decision.

The interest rate market is subject to movements without advance notice. Locking in a rate protects you from the time that your lock is confirmed to the day that your lock period expires. If you elect not to lock your rate, you assume the risk if interest rates rise. However, you must lock your rate no later than five business days prior to your scheduled closing date in order for us to have sufficient time to prepare your loan for closing. If you choose to "float" rather than lock we suggest you take advantage of our rate watch feature. By going to the check rates tab and giving some basic information about your loan type we can keep you up to date on our rates. We will email you when rates reach your goal or if you prefer, we will email current rate information on a regular basis. A lock is an agreement by the borrower and the lender and specifies the number of days for which a loan's interest rate and discount points are guaranteed. Should interest rates rise during that period, we are obligated to honor the committed rate. Should interest rates fall during that period, the borrower must honor the lock. We do not charge a fee for locking in your interest rate. We currently offer a 60 day lock-in period on our site. This means your loan must close and disburse within this number of days from the day your lock is confirmed by us. Once we accept your lock, your loan is committed into a secondary market transaction. Therefore, we are not able to renegotiate lock commitments.

There's no cost at all for completing our application. After your application is pre-approved, you can decide whether you wish to pay the application deposit which covers the cost of the appraisal and final credit report so that you can lock in an interest rate. Then we can begin to process your request.

If you're looking for a mortgage it may be tempting to pick up the phone book or to visit your local bank, after all that's how people have done it forever. A faster, easier and more convenient way to understand the costs associated with obtaining a mortgage loan. Apply at your convenience. There's no need to make an appointment with a loan officer when you choose an online application with us. You can complete the loan application in the morning or at midnight in the convenience of your own home without any pressure to make a final decision until you are ready! We offer personalized support during the entire loan process.

The Federal Truth in Lending law requires that all financial institutions disclose the APR when they advertise a rate. The APR is designed to present the actual cost of obtaining financing, by requiring that some, but not all, closing fees are included in the APR calculation. These fees in addition to the interest rate determine the estimated cost of financing over the full term of the loan. Since most people do not keep the mortgage for the entire loan term, it may be misleading to spread the effect of some of these up front costs over the entire loan term. Unfortunately, the APR doesn't include all the closing fees. Fees for things like appraisals, title work, and document preparation are not included even though you will probably have to pay them. For adjustable rate mortgages, the APR can be even more confusing. Since no one knows exactly what market conditions will be in the future, assumptions must be made regarding future rate adjustments. You can use the APR as a guideline to shop for loans but you should not depend solely on the APR in choosing the loan program that's best for you. Look at total fees and possible rate adjustments in the future if you are comparing adjustable rate mortgages. Also consider the length of time that you plan on having the mortgage. Do not forget that the APR is an effective interest rate-not the actual interest rate. Your monthly payments will be based on the actual interest rate, the amount you borrow, and the term of your loan.

The application will ask you questions about the home and your finances and takes less than 20 minutes to complete. As soon as you've finished the application we will review your request for instant approval. If your application is pre-approved online, we will ask you for a deposit to cover the cost of the appraisal on your home so that we can begin to process your request immediately. This deposit will be credited towards your closing costs at closing. If we did not have sufficient information to give you a pre-approval online, we will ask you for additional information required to make a decision about your loan. You will be sent containing papers for you to sign and a list of items we will need to verify the information you provided about your finances during the online application. We will order the appraisal from a licensed appraiser familiar with home values in your area. If it is necessary for the appraiser to access the property an appointment will be made. Title insurance will be necessary. If you're purchasing a home, we will work with the real estate broker or seller to insure the title work is ordered as soon as possible. If you are refinancing we will take care of ordering the title work for you. After we receive your returned papers, the appraisal, and title work, we will contact you to schedule your loan closing. If you are purchasing a home, we will also schedule the closing with the real estate broker and the seller. In most cases the closing will take place at the office of a title company or attorney in your area who will act as our agent. A few days before closing you will be contacted to confirm the time and location of your closing. That's all there is to it! You're on your way to the most convenient home loan ever!

The simple rule of thumb for determining if it makes sense to refinance is to analyze the amount that it will cost you to refinance compared to the monthly savings you will have by reducing your payment. By dividing the cost of refinancing by the monthly savings you can determine how many monthly payments you will have to make before you've recaptured the initial refinance cost. If you plan on staying in your home longer than the recapture time it may make sense for you to refinance. To fully analyze whether it's the time to refinance you will have to look deeper. The remaining term of your current loan must also be considered, as well as your tax bracket. Our refinance calculator can help you determine if it's the right time to refinance.

A 15-year fixed-rate mortgage gives you the ability to own your home free and clear in 15 years. And, while the monthly payments are somewhat higher than a 30-year loan, the interest rate on the 15-year mortgage is usually a little lower, and more importantly - you will pay less than half the total interest cost of the traditional 30-year mortgage. However, if you can not afford the higher monthly payment of a 15-year mortgage do not feel alone. Many borrowers find the higher payment out of reach and choose a 30 year mortgage. It still makes sense to use a 30 year mortgage for most people. The 15-year fixed rate mortgage is most popular among younger homebuyers with sufficient income to meet the higher monthly payments to pay off the house before their children start college. They own more of their home faster with this kind of mortgage, and can then begin to consider the cost of higher education for their children without having a mortgage payment to make as well. Other homebuyers, with higher incomes who desire to own their homes before they retire, may also prefer this mortgage. The 15-year fixed rate mortgage offers two big advantages for most borrowers. 1. You own your home in half the time it would take with a traditional 30 year mortgage. 2. You save more than half the amount of interest of a 30-year mortgage. Lenders usually offer this mortgage at a slightly lower interest rate than with 30-year loans. It is this lower interest rate added to the shorter loan life that creates real savings for 15-year fixed rate borrowers. The possible disadvantages associated with a 15-year rate mortgage are: 1. The monthly payments for this type of loan are roughly 10 percent to 15 percent higher per month than the payment for a 30-year. 2. Because you will pay less total interest on the 15-year fixed rate mortgage, you will not have the maximum mortgage interest tax deduction possible. Use our 15 year to 30 year comparison calculator to help decide which loan term is best for you.

An adjustable rate mortgage, or an "ARM" as they are commonly called is a loan type that offers a lower initial interest rate than most fixed rate loans. The trade off is the interest rate can change periodically, usually in relation to an index, and the monthly payment will go up or down accordingly. Against the advantage of the lower payment at the beginning of the loan, you should weigh the risk that an increase in interest rates would lead to higher monthly payments in the future. It's a trade-off. You get a lower rate with an ARM in exchange for assuming more risk. For many people in a variety of situations, an ARM is the right mortgage choice, particularly if your income is likely to increase in the future or if you only plan on being in the home for 3 to 5 years. Here's some detailed information explaining how ARM's work. With most ARMs, the interest rate and monthly payment are fixed for an initial time period such as one year, three years, or five years. After the initial fixed period, the interest rate can change every year. For example, one of our most popular adjustable rate mortgages is a 5 year ARM. The interest rate will not change for the first 5 years (the initial adjustment period) but can change every year after the first 5 years. Our ARM interest rate changes are tied to changes in an index rate. Using an index to determine future rate adjustments provides you with assurance that rate adjustments will be based on actual market conditions at the time of the adjustment. The current value of most indices is published weekly in the Wall Street Journal. If the index rate moves up, so does your mortgage interest rate. In such a case you will probably have to make a higher monthly payment. On the other hand, if the index rate goes down, your monthly payment may decrease. To determine the interest rate on an ARM, we will add a pre-disclosed amount to the index called the "margin". If you're still shopping, comparing one lender's margin to another's can be more important than comparing the initial interest rate, as it will be used to calculate the interest rate you will pay in the future. An interest-rate cap places a limit on the amount your interest rate can increase or decrease. There are two types of caps: 1. Annual adjustments caps, which limit the interest rate increase or decrease from one adjustment period to the next. 2. Overall or lifetime caps, which limit the interest rate increase over the life of the loan. As you can imagine, interest rate caps are very important since no one knows what can happen in the future. All of the ARM's we offer have annual adjustment and lifetime caps. Please see each product description for full details. None of the ARM's we offer allow for negative amortization. Selecting a mortgage may be the most important financial decision you will make, and you are entitled to all the information you need to make the right decision.

Yes, applying for a mortgage loan before you find a home may be the best thing you could do! If you apply for your mortgage now, we will issue a pre-approval subject to you finding the perfect home.

We use a network of title companies or closing agents to conduct our loan closings. We will schedule your closing to take place in a location that is located near your home for your convenience. We will deliver our loan documents and wire transfer your loan funds to the closing agent or attorney prior to closing so that they will have plenty of time to prepare for your closing.

A home loan often involves many fees, such as the appraisal fee, title charges, closing fees and state or local taxes. These fees vary from state to state and also from lender to lender. To assist you in evaluating our fees, we've grouped them as follows: Fees that we consider third party fees include the appraisal fee, the credit report fee, the settlement or closing fee, the survey fee, tax service fees, title insurance fees, flood certification fees, and courier/mailing fees. Third party fees are fees that we will collect and pass on to the person who actually performed the service. For example, an appraiser is paid the appraisal fee, a credit bureau is paid the credit report fee and a title company is paid the title insurance fees. Typically, you will see some minor variances in third party fees from lender to lender. A lender may have negotiated a special charge from a provider they use often or chooses a provider that offers nationwide coverage at a flat rate. Fees that we consider to be taxes and other unavoidables include: State/Local Taxes and recording fees. You may be asked to prepay some items at closing that will actually be due in the future. These fees are sometimes referred to as prepaid items. One of the more common required advances is called "per diem interest" or "interest due at closing" . All of our mortgages have payment due dates of the 1st of the month. If your loan is closed on any day other than the first of the month, you will pay interest, from the date of closing through the end of the month, at closing. For example, if the loan is closed on June 15, we will collect interest from June 15 through June 30th at closing. This also means that you will not make your first mortgage payment until August 1st. A escrow or impound account will be established, you will make an initial deposit into the escrow account at closing so that sufficient funds are available to pay the bills when they become due. If your loan requires mortgage insurance, up to two months of the mortgage insurance will be collected at closing. Whether or not you must purchase mortgage insurance depends on the size of the down payment you make. If your loan is a purchase, you will also need to pay for your first year's homeowner's insurance premium prior to closing. We consider this to be a required advance.

First of all, let's make sure that we mean the same thing when we discuss "mortgage insurance". Mortgage insurance should not be confused with mortgage life insurance, which is designed to pay off a mortgage in the event of a borrower's death. Mortgage insurance makes it possible for you to buy a home with less than a 20% down payment by protecting the lender against the additional risk associated with low down payment lending. Low down payment mortgages are becoming more and more popular, and by purchasing mortgage insurance, lenders are comfortable with down payments as low as 3 - 5% of the home's value. It also provides you with the ability to buy a more expensive home than might be possible if a 20% down payment were required. The mortgage insurance premium is based on loan to value ratio, type of loan, and amount of coverage required by the lender. Usually, the premium is included in your monthly payment and one to two months of the premium is collected as a required advance at closing. It may be possible to cancel private mortgage insurance at some point, such as when your loan balance is reduced to a certain amount - below 75% to 80% of the property value. Recent Federal Legislation requires automatic termination of mortgage insurance for many borrowers when their loan balance has been amortized down to 78% of the original appraised value.

Completing our online application is as easy as 1-2-3! We will ask you questions about your personal finances and the home. You will probably know all the answers off the top of your head. The application is broken down into sections and you can track your progress through each section at the top of each screen. It should take less than 20 minutes to complete the application. Move through the application by using the back and next arrows at the bottom of each screen. Please do not use the back and next button on your browser while your completing the application. We use exciting new technology in order to provide you with the most convenient online mortgage application ever! As you answer some of the questions, you will note that questions below may change, disappear or new questions are added instantly. We do not ever want to waste your time asking for information that isn't important in your situation, so we evaluate the information we need based on your answers. Isn't that what amazing customer service is all about? If you need additional help answering a question, click on the question mark at the end of the question for more information. If you do not have time to complete the application right now or if you need to gather information before you finish, we will save the information you have completed. When you're ready to finish, return to the site and enter your User ID and password to continue.

We use leading-edge technology to ensure that all customer information is safe. We protect our customers by using a combination of security measures that are among the best in the e-commerce industry. All customer information is encrypted using Secured Socket Layer (SSL) technology supported with digital certificates provided by Starfield Technologies. This means that your loan application information is safe and secure as it travels over the Internet. We use leading firewall and network security technology to protect our internal computer systems from unauthorized access. Our customers can be confident that their personal information is safe and private after they apply.

If you can not remember your password, contact us and we will establish a new one.

If your buying a secondary residence that's not a vacation home (such as a home that's closer to work for use during the week) you should complete the application indicating that you are buying a primary residence. Before you submit your application you will have the opportunity to enter additional information.

Since the value and marketability of condominium properties is dependent on items that do not apply to single family homes, there are some additional steps that must be taken to determine if condominiums meet our guidelines. One of the most important factors is determining if the project that the condominium is in is complete. In many cases, it will be necessary for the project, or at least the phase that your unit is located in, to be complete before we can provide financing. The main reason for this is that we need to be certain that the remaining units will be of the same quality as the existing units. This could affect the marketability of your home. In addition, we will consider the ratio of non-owner occupied units to owner-occupied units. This could also affect future marketability since many people would prefer to live in a project that is occupied by owners rather than renters. We will also carefully review the appraisal to insure that it includes comparable sales of properties within the project, as well as some from outside the project. Our experience has found that using comparable sales from both the same project as well as other projects gives us a better idea of the condominium project's marketability. Depending on the percentage of the property's value you'd like to finance, other items may also need to be reviewed.

An abundance of credit inquiries can sometimes affect your credit scores since it may indicate that your use of credit is increasing. But do not over react! The data used to calculate your credit score doesn't include any mortgage or auto loan credit inquiries that are made within the 30 days prior to the score being calculated. In addition, all mortgage inquiries made in any 14-day period are always considered one inquiry. Do not limit your mortgage shopping for fear of the affect on your credit score.

If you've moved frequently, it really has no affect on your application. We will ask for your residence history for the last two years to insure that the proper credit records are considered when obtaining your credit report, but it certainly will not affect your ability to obtain a mortgage.

In most cases, we will not need to contact your landlord at all. However, if you have a limited credit history obtaining information about your rental payment history may help us to approve your loan. Please let us know if you would prefer that we not contact your landlord.

Our goal is to have your loan ready for closing as soon as possible! Generally the items that take the longest to receive are things such as the appraisal and the title work. We will want to get those ordered as soon as possible to avoid any delays. If you are purchasing a new home, we will do our best to meet the date you and the seller have agreed upon. If you are refinancing and have a second mortgage that you do not want to pay off with your new loan closing could take a little longer since we will need the permission of your second mortgage holder before we can close.

One of the first things we will do after your loan is approved is to contact the broker to discuss the items required for closing that the broker or seller might be responsible. Though there is some variance across the country, generally the broker is involved in ordering the title policy or scheduling the appraiser's inspection of the home. We will make sure that everything necessary has been taken care of so that your closing happens as efficiently as possible. The broker may also want to know that you have taken the steps to obtain financing and that your loan request has been approved. We will only provide basic information about your loan approval. It's really up to you to decide what details you want to share.

The year you purchased your home and the price you paid for it are provided to the appraiser to assist them in finding data about your home through local public records. In addition, if you purchased your home in the last year some of the loan programs we offer require us to compare the original purchase price to the current appraised value so that any large increases in value can be justified. If you do not remember the exact year and purchase price of the property an estimate will work just fine.

If you're not sure exactly how much the annual real estate taxes are for the property you are purchasing, an estimate will do. The appraiser and title company will provide us with the exact amount later. If you do need to estimate the amount, estimate on the high side just to be sure.

To determine the value of the property you are purchasing or refinancing, an appraisal will be required. An appraisal report is a written description and estimate of the value of the property. National standards govern not only the format for the appraisal; they also specify the appraiser's qualifications and credentials. In addition, most states now have licensing requirements for appraisers evaluating properties located within their states. The appraiser will create a written report for us and you will be given a copy at your loan closing. Usually the appraiser will inspect both the interior and exterior of the home, however, in some cases, only an exterior inspection will be necessary based on your financial strength and the location of the home. Exterior-only inspections usually save time and money. After the appraiser inspects the property, they will compare the qualities of your home with other homes that have sold recently in the same neighborhood. These homes are called "comparables" and play a significant role in the appraisal process. Using industry guidelines, the appraiser will try to weigh the major components of these properties (i.e., design, square footage, number of rooms, lot size, age, etc.) to the components of your home to come up with an estimated value of your home. The appraiser adjusts the price of each comparable sale (up or down) depending how it compares (better or worse) with your property. As an additional check on the value of the property, the appraiser also estimates the replacement cost for the property. Replacement cost is determined by valuing an empty lot and estimating the cost to build a house of similar size and construction. Finally, the appraiser reduces this cost by an age factor to compensate for depreciation and deterioration. If your home is for investment purposes, or is a multi-unit home, the appraiser will also consider the rental income that will be generated by the property to help determine the value. Using these three different methods, an appraiser will frequently come up with slightly different values for the property. The appraiser uses judgment and experience to reconcile these differences and then assigns a final appraised value. The comparable sales approach is the most important valuation method in the appraisal because a property is worth only what a buyer is willing to pay and a seller is willing to accept. It is not uncommon for the appraised value of a property to be exactly the same as the amount stated on your sales contract. This is not a coincidence, nor does it question the competence of the appraiser. Your purchase contract is the most valid sales transaction there is. It represents what a buyer is willing to offer for the property and what the seller is willing to accept. Only when the comparable sales differ greatly from your sales contract will the appraised value be very different.

The transfer and sale of mortgages is a common practice in the mortgage industry. It fulfills the need of investors and makes funds available for other homebuyers. A sold mortgage means we have sold the rights to collect the monthly payment. Everything about the loan stays the same except for the company you send your monthly payment to.