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Frequently Asked Questions
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Loan in Process
- Who do we call regarding the loan status?
Once your loan has been reviewed by our underwriters, a Loan Representative (Processor) will be assigned to you loan. A preliminary letter will be sent to you which will include their name and telephone number. You can contact them regarding any updates and the status of your loan application.
- Who do we send our documentation to?
Your documentation (income and bank statements) should be forwarded to your Loan Representative (Processor) or your Home Loan Advisor.
- Who do we call regarding locking-in our interest rate?
Please contact your Home Loan Advisor to handle the lock-in process, as well as assist you in determining the best loan program to meet your financing needs.
- Who do we contact for a closing date on our home?
Please contact your realtor and builder for your anticipated closing date on the purchase of your home. If your loan is for a refinance, please contact your Loan Representative (Processor) to schedule a closing date with the title company.
- Who can I refer my friends and relatives to for a mortgage?
Please have anyone interested in a mortgage call the UAMC Home Loan Center toll free at 1-877-648-7462 and ask for one of our knowledgeable Home Loan Advisors.
Loan Questions
- What constitutes a loan approval?
Most lenders base their decision on three factors: credit, capacity and collateral. Credit refers to the quality of your current credit rating. Capacity is your ability to repay the loan based on job stability, current income and other factors. Collateral is the amount of equity in your home, and the likelihood of appreciation. Once everything checks out, you’re approved!
- Should I pre-qualify or get pre-approval before I begin searching for a home?
Real Estate agents and home sellers will generally consider you a more serious buyer if you receive a pre-approval from a reliable mortgage company like UAMC. Not only does it allow you to narrow your price range, it also assures the seller that you qualify when you do find the home of your dreams.
- What are discount points?
A discount point is a fee that you can pay to reduce your interest rate. One "point" equals 1% of the loan amount. For example, one point on a $100,000 loan would equal $1000. If you’re going to be in your home for a relatively short period, it may not be worth it to you to pay discount points. If you would like to lower your monthly payments by lowering your interest rate, then paying points up front may be the best way to accomplish this.
- Do I have a choice of points or no points? How do I determine whether or not to pay points?
Yes, you do have a choice. The primary idea of points is to pay a fee at closing in order to lower your interest rate. Depending upon how long you keep your loan, you may save substantially more money over the life of the loan. Points are a good idea if you plan to keep your loan for a long time.
- Why would I consider refinancing?
(a) To switch to a lower mortgage rate - To determine if this option makes sense for you, contact a UAMC Home Loan Advisor to help you figure out your break-even point — how long would you need to make payments at the lower rate before the cost of refinancing has been paid? If you are planning stay in your home long enough, refinancing could be a smart decision for you.
(b) To get cash from your home’s equity - As you make your monthly mortgage payment you increase the equity in your home. It can make sense to borrow against your own equity, and by refinancing you can free up some of this money for other purposes. The interest may be tax-deductible (consult your tax advisor). UAMC has a variety of cash-out refinance programs that allow you to borrow up to 95% of the appraised value of your home.
(c) To switch to an Adjustable Rate Mortgage for short-term savings - If you are planning to stay in your home for just a few more years, it may be to your benefit to refinance to a lower adjustable rate mortgage . Ask your UAMC Home Loan Advisor to provide guidance on the right decision for you. To figure out the amount of cash available in your home if you were to refinance, please click on the “ Should I Refinance?” calculator on our Home page.
- What is a Home Equity Lines of Credit (HELOC)?
A home equity line of credit (HELOC) is another way to borrow against the equity in your home. The principal difference between a HELOC and refinancing is that the HELOC is typically a second mortgage and a refinance pays off your current mortgage and replaces it with a new first mortgage.
Since HELOCs are secured by your home, interest rates are typically lower than other forms of borrowing. There may also be tax-deductible benefits with these loans (consult your tax advisor about your personal situation).
Many Lennar customers who do not see an immediate need for additional funds at time of closing may apply for a convenient UAMC No Closing Cost HELOC*. It’s a smart financial management tool to have access to, should you ever need it. Some customers consolidate higher interest credit cards and pay them off with the proceeds from a HELOC. Others choose to use their money for larger purchases such as a pool or car. Whatever the choice this No Closing Cost HELOC could provide peace of mind by knowing that it is there whenever the customer might need it – either for fun or for an actual emergency.
* There are literally no closing costs associated with opening this line of credit.
- Will one late credit card payment or loan default disqualify me from getting a mortgage?
If you have less than perfect credit, UAMC has programs to meet your needs. Late payments should by no means automatically disqualify you from getting a mortgage. We understand that almost everyone has forgotten to pay a bill on time, or has had trouble making a payment. Many people find themselves in difficult financial situations. These often result from illness, divorce, or temporary unemployment. If you can demonstrate that a problem is in the past, and you have been able to reestablish a good track record for a sufficient amount of time, you may be in a good position to get a mortgage. There may be a reasonable explanation, so speak to us honestly and openly about the situation. It’s important to remember that lenders don’t just look at your past history, but also at your ability and willingness to pay in the future.
- How does the mortgage process work?
There are four main stages of the mortgage process, as follows:
- Application
- Your UAMC Home Loan Advisor will complete a mortgage application (also called a 1003) either in person, by phone, by mail or online. During your application, your Home Loan Advisor will determine which is the best mortgage program for your needs. We provide an Application Checklist below, which gives an idea of some of the documentation you may need to provide us. You will also be given a Good Faith Estimate, which is an estimate of the funds you will need for loan approval and closing. Please review carefully as this will also include all Federal and State required disclosures.
- Underwriting
- Your UAMC Home Loan Advisor will then submit your loan to Underwriting. The Underwriter reviews your loan application, ensures that all the necessary information and documentation (relative to your loan program) in is your file and makes the final decision for loan approval.
- Loan Processing
- Next, your file will be given to a UAMC Loan Processor. He/she will work with you to clear any outstanding conditions required to get full loan approval and they will work with you until you are ready to close.
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- Closing
- Once you are approved and the home is ready, you can close. Several weeks before closing, your Home Loan Advisor will call you to lock the interest rate on your loan. At the closing you will review all of the documents with the closing Agent/Attorney. You must also bring a cashiers’ check for closing costs and additional down payment, as applicable. After you have signed the loan documents - your loan documents will be recorded and you will be an official homeowner. Congratulations!
- What should I bring to my loan application?
The loan program that your Home Loan Advisor recommends will determine what documentation you will need to provide. However, in general, it is a good idea to have the following handy when you complete your application:
- Value of assets, including cars, stocks, real estate, personal property, pensions or investment accounts.
- Two most recent statements for your bank, investment and retirement accounts.
- Pay stub(s) for the last 30 days showing year-to-date and current earnings period.
- W-2s and 1099s for the past 2 years
- Self-employed applicants may additionally need Federal tax returns from the past two years, 1040s and business profit and loss statements.
- Your current monthly payment and your outstanding mortgage balances listed on your credit report.
- What should I bring to my Closing?
- Certified funds
- One of the most important things that you bring is a “cashier’s check” for your “cash to close”. UAMC gives you an estimate of the money needed on your Good Faith Estimate (GFE) and your title company or closing attorney will confirm the exact amount a day or two before closing.
- Identification
- You should bring a copy of your driver’s license, passport or photo ID to closing.
- Hazard Insurance Policy
- If you have not already provided a copy prior to closing, you will need to take the actual policy to the closing table along with a paid receipt for the first year's premium.
- After Closing
- After closing, UAMC will transfer your mortgage to another company that will become your loan servicer. The sale of your mortgage will not change any of the terms of the loan program. You will simply make your loan payment to a name different than UAMC. We guide you carefully through this process and will answer any questions that you may have.
Closed Loans
- Where do I send my first payment?
Your first payment should be sent to our Customer Care Loan Servicing Department at:
Universal American Mortgage Company
Loan Servicing Department
700 NW 107 th Avenue, 3 rd Floor
Miami, FL 33172
The phone number is toll free at 1-800-741-8262.
- Where do I find my loan coupons?
Coupons for your first 3 payments can be found in your closed loan package. If you require additional coupons or assistance please contact our Loan Servicing Department at 1-800-741-8262.
- When is my first mortgage payment due?
Your first payment is typically due 30 to 45 days after your closing date.
- Who do I contact to make a payment by telephone?
Please contact the Loan Servicing Department toll free at 1-800-741-8262. They are available Monday – Friday between 10am and 4pm EST.
- Who do I contact about obtaining my mortgage interest statement for income tax purposes?
Please contact the Loan Servicing Department toll free at 1-800-741-8262. Theyare available Monday – Friday between 10am and 4pm EST.
- How can I obtain a copy of my appraisal?
Please contact the Loan Representative (Processor) that assisted you with your mortgage process by calling their branch or Processing Center.
Credit
- What is My Credit Score?
Credit score is a very important consideration that a lender looks at when determining whether or not to lend to you. It impacts how much you may be pre-qualified/pre-approved for and what interest rate you will ultimately get.
Your credit score or FICO (FICO stands for Fair Isaacs Credit Organization) is a value that ranks your credit worthiness. The number ranges from 300 (low score) to 950 (high score) and is based on credit information gathered and stored by the three national repository companies, also known as credit bureaus. They are Equifax, Trans Union and Experian. All of your creditors (banks, credit unions, credit card companies, collection agencies, etc) provide information to these three bureaus as to whether you pay your bills on time (or not). It’s important for you to conduct an annual “quality review” on your credit report to ensure that all the information is accurate. Occasionally, creditors inadvertently make a mistake in their reporting and if it is a negative error, it will cost you points on your credit score. Generally, the lower your score the higher interest rate you are charged and, of course, strong credit score borrowers are afforded the best rates.
- What is a Credit Score and Why is it Important?
The three credit bureaus use the same statistical model for everyone (FICO being the most commonly used). The model is highly complex but basically it analyses your credit worthiness by applying scores to your credit patterns and forecasts your repayment performance. Once you are granted a loan (i.e. credit card or auto loan), your payment performance is monitored and from thereon your credit score is established.
That’s why it is so critical to pay all your bills on time and as directed because on-time payments are reported and will reward you with a favorable rating. Late payments are also reported and will not only cause a drop in your credit score but could also result in increased interest rates with your creditors. Your creditors, such as banks and credit card companies, monitor your score from time to time and if they see a late payment, even with a creditor other than their organization, they can increase the rate you are charged, without even notifying you.
- Some Additional Credit Score Tips
It’s also important to remember that your credit score is hit hardest by the most recent delinquencies. As you would expect, if the delinquency is repeated that also damages your score badly. If you have joint credit cards or loans, you are just as responsible as the other party, even if they are paying the bills. Furthermore, the number of large outstanding balances is a high indication of risk to the bureaus as is the proportion of these balances relative to the credit limits. Just because you have credit available to you does not translate to the fact or belief that you can manage such a balance. This can actually lower your score so stay below 50% of your credit limits. Finance companies will negatively impact your score more heavily than a credit card. A credit card indicator is relatively low, but does affect the score outcome. So avoid “Buy now, pay later” offers – they signal a postponement of credit responsibility. Finally, the number of credit cards affects your score - even if your balances are at zero they represent available risk. It is best to limit your cards to two or three.
- How to Check Your Credit Report
You can review the credit information gathered by each of the three bureaus. Their contact details are as follows.
Equifax Information Services LLC 1-877-SCORE-11
Experian 1-888-397-3742
Trans Union LLC 1-800-888-4213
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