What steps do I take to apply for a loan?
Contact a Colonial Mortgage Group, Inc. officer to discuss your financial situation and home loan scenario.  Initial application should only take about 10 minutes.  Be truthful with your mortgage consultant as he or she can only make recommendations based on the information that you share.  Rest assured that all conversations are deemed confidential per Colonial Mortgage Group’s strict privacy policy.

How long does the loan process take?
A home loan can typically be closed in 2 to 3 weeks.  This depends largely on how fast you produce documentation when prompted by your loan officer or mortgage processor.   In addition, if there are any complicated issues with your financial situation and/or the property being financed, more time may be necessary to finalize your loan.

How do I know when to lock an interest rate?

Your mortgage consultant will advise you when to lock an interest rate.  If you would prefer to “play the market” and see if rates drop, that is your prerogative.  However, don't obsess and miss a good real estate deal.  Although rising interest rates can be a nuisance for home buyers, waiting and hoping for low rates is not necessarily a smart move.  You may end up paying a higher price or missing out on a great real estate investment.  Also, refinancing is always an option in the event that interest rates come down dramatically.

What is a credit report and how does it influence my loan?
A credit report is a record of an individual’s repayment of debt.  Credit reports are instrumental in determining if a loan application is approved and the interest rate offered.  Credit scores are calculated from information contained in your credit history. This information includes your payment history, how long credit has been used, the kinds of credit you use (revolving credit, installment loans, etc.), the amount of recent inquiries for credit, and current balances versus available credit.

How do I improve my credit scores?
There is no definite formula for how credit scores are calculated.  However, most mortgage professionals agree that the following is pretty close:  Payment History (35%); outstanding credit balances vs. available credit (30%); length of credit history (15%); type of credit (10%); number of hard (not mortgage or auto finance companies) inquiries (10%).  Keeping a good payment history and managing what type of credit lines and balances you have can only improve your scores.  While a Colonial Mortgage Group consultant is not a certified credit counselor, feel free to contact us for some further suggestions.

What is an appraisal?
An appraisal is an estimate of the value of property made by a qualified, state licensed appraiser. The appraiser will measure and inspect the property, inspect the public records of the property, take photographs, as well as compile public information and photos of other "comparable" homes in the neighborhood.  All of this information will be considered and the appraiser will issue a report to the lender/broker that will include an opinion of the value of the property.  This appraisal is paid for by the borrower.  Accordingly, the borrower can and should ask the lender/broker for a copy if not automatically given one.

What happens at closing?

At closing, a real estate attorney of your choosing (usually recommended by your mortgage consultant or real estate agent), will bring all of the parties of the transaction together to finalize the deal.  The closing attorney has reviewed all of the documentation at this time and is in control of the funds for the transaction.  A lot of the paperwork that you will see is the same paperwork that was provided to you by your mortgage consultant at application.

Why do I need an attorney?  Can’t I get a notary or a settlement service to close my loan? 

It is certainly your prerogative to choose a notary or a settlement service to close your loan (as long as the lender approves of the entity).  However, Colonial Mortgage Group, Inc. recommends an attorney be utilized for your loan closing.  An attorney provides many things that a settlement service does not, at the same cost to the borrower.  These include a review of the purchase contract, resolution of title disputes, legal protection, malpractice insurance, regulatory oversight, explanation of documents, and responsibility to you beyond the closing date.  Professional legal advice is provided for every aspect of this, one of the largest transactions you will ever take part in.