Frequently Asked Questions

What is a mortgage loan?

Mortgage loans usually offer lower interests than the current market interest rate and provide tax benefits that other loans do not offer. The interests of most mortgage loans are tax deductible.

What requirements are necessary to qualify for a mortgage loan?

We are including the following requirement guide to qualify for a mortgage loan. However, remember that these are only guides and that each case is evaluated individually by the bank or lending institution. You should have available funds to cover the down payment and the closing costs. These funds usually proceed from your savings or checking accounts, and you should be able to demonstrate their source, either by bank statements or current employment pay stubs. If you are self-employed, or a business owner, you must document a 2-year history by providing your income, based on the bottom line of your tax returns (Self Assessment tax return­SA100) and / or a financial statement from a certified accountant.
You must get an income or collect the amount that will allow you to provide the payments of the loan you applied for. The income that is reported can be individual or combined between you and your spouse or a cosigner.

What kind of documentation is needed for a mortgage loan application?

To speed the mortgage loan application process, you must provide the following documents during the interview:

Last two employment payment stubs
Bank statements ­ 2-month period account statements Property Legal Description Property Cadastre Number Purchase and Sale Agreement For (if it applies)

Are you prequalified or preapproved?

A loan prequalification is an estimate of your borrowing power. This estimate is based only on the information you provide, such as income sources and current debt. Your prequalification will work as a guide to help you find a residence. Finally, the approval is based on this basic information, in your credit report and the value of the property, if it applies.

What are the closing costs of the mortgage loan?

There are four basic categories of charges during the closing of the mortgage loan:

1. Charges related to the transfer of the deed:
   Title Insurance
   Legal Fees
2. Fees (Government Recording and Transfer Charges):
    Fees paid by the borrower or by the seller, depending on specified terms and conditions.
3. Charges related to the cost of the loan:
   Origination Fees
   Discount Points
   Loan Insurance Premium
   Homeowner¹s Insurance Premium
   Property Taxes Escrow Account
4. Other expenses:
   Property Appraisal
   Credit Report
   Title Search
   Property Survey
        Flood Insurance Certification
        Flood Zone Determination

What should I do with the notification of the payment for ³CRIM²?

It is important that you provide this document to the bank or financial institution that lends you the mortgage before the expiration date. You can bring it to a Customer Service Department or to any branch.  This payment is part of your monthly mortgage payment and it is the bank¹s responsibility to submit it.

Advice: To create and maintain a record on3 CRIM2 provide an additional copy and must be signed.

How do I know if I can afford a house before I apply for a loan?

Answer: You can even apply for a prequalification form from a bank by phone, in person or online. This process will demonstrate your borrowing power and the amount that you can afford.

Advice: If you are planning to purchase a property, you should set up a savings account to afford the closing costs.

Are all types of mortgage loans tax deductible?

Answer: Mortgage loan interests for primary and secondary residences, home equity loans and second mortgages are tax deductible.

Advice: If you need fast cash at a lower interest rate than a personal loan, use the equity in your home to your advantage!

What is the difference between a Mortgage Loan and a personal Home Equity Loan?

Answer: A mortgage loan allows you to purchase a property and a personal home equity is a loan with lower interest than a personal loan, guaranteed by the property you already brought.

Advice: Before acquiring an additional loan for unexpected expenses, find out if you qualify to refinance your current mortgage loan.

I need fast cash to pay for my children¹s college education. What should I do?

Personal Home Equity Loans offer lower interest rates than a personal loan.

The interest is tax deductible and is available within 24 to 48 hours.

Advice: Evaluate all the loans and credit cards that you have with high interests. Consider getting a personal Home Equity Loan to consolidate debts and have a monthly and lower single payment.

I want to reduce my monthly payment and pay my mortgage in a shorter period of time. The best alternative is to refinance your current mortgage. There are mortgages with low interest rates payable in 10, 15, 20 or 25 years. In order to compare interest rates published in print media. You can also call the lending bank of your choice to receive the proper orientation.

Advice: Keep in mind that when you refinance a property the closing costs will be included in the total amount of the loan. You do not have to disburse money, but the payment may vary a little.

Should I move from the city to the Southern area? How can I find the ideal house? 

Start by gathering information from friends or coworkers, read the newspapers, visit the area and write down all the houses available for sale. There are many magazines and specialized guides in real estate that can be very useful. Also you can contact a Real Estate Broker in order to receive assistance and make the best choice in a particular area.

Advice:

The Real Estate Broker will not only show you options within your budget, but also he / she can assist you with the financing.

We are in the process of purchasing our first home. What should we look for? Make a list of your likely home needs. Write down all the important details and features you are concerned about of each house you preview. Don¹t be afraid to ask questions about the neighborhood, restrictions and regulations for designated areas and historic sites. Find out where are the nearest shopping centers, schools and hospitals. Check the structural and land development details of the property

Advice:

If you like very much the property and fulfill most of the requirements, contact an engineer to help you identify any structural imperfection of the property. 

I am going to refinance, and I have a conventional loan. I can change it to another type of loan?

Yes, there are different alternatives that can be adjusted to the necessities of the client. We recommend that you verify the offers published in the newspapers, so that you can compare. Also you can change the term of the loan.

Advice:

First, examine the interest rate that has your present loan and compare. Ask the executive of the finance institution or mortgage bank. He / she will offer you several options.