Mortgage Loans
Q: How do I apply for a Mortgage?
A: We offer many convenient ways to start the mortgage application process:
- Call us at 1-888-990-2265 x 147
- Stop in at one of our local branches for an application
- Complete the online application and you will receive a follow up call from a home mortgage consultant.
Q: Does Magyar Bank require a home inspection as part of the mortgage application?
A: No, but if you’re buying a home, it’s a highly recommended that you obtain a home inspection and make your purchase offer contingent on the findings of the inspection.
There is a difference between a home inspection and an appraisal. An appraisal is required by most mortgage lenders in order to support the value of the real estate and the terms of the mortgage agreement.
Q: Do I need an attorney to close a Mortgage Loan?
A: The decision to use an attorney is up to you. In general, real estate attorneys are involved in purchase transactions; refinancing generally doesn’t require an attorney. You can use a Title Company for a refinance. There are many areas of the country where attorneys are not typically used in real estate transactions.
Q: What is the difference between locking and floating rates?
A: Locking ensures that your rate will be unaffected during the lock-in period by giving you a specified period of protection from financial market fluctuations in interest rates.
- Floating – or not locking – means your rate will fluctuate with the up and down movements of the market.
- The benefit to floating is if interest rates were to decrease, you would have the option of locking in at a lower level of rates.
Q: When can I lock my rate and how much does it cost?
A: The fee for locking is $1,000.00. This is a re-fundable fee. We credit this fee back to your closing costs.
- You can lock anytime from the date of application, up until five business days before the closing.
- We offer a 60 day rate lock for fixed rates, and 75 days for the adjustable rates.
Q: If I have a Magyar Bank mortgage and want to refinance, will I have to pay closing costs again?
A: Yes. There are costs related to processing any new loan application; they can include fees paid to third parties, such as an appraiser, the title company, and other closing expenses.
Q: What is an origination charge?
A: The origination charge is the amount charged for services performed on the initial loan application and loan processing. This includes all charges (other than discount points) that lenders and brokers involved in the transaction will receive for originating the loan. It includes any fees for application, processing, underwriting services, and payments from the lender for origination.
Q: How much money will be required at closing?
A: The amount you’ll need to close your loan includes your down payment, closing costs, and prepaid amounts for property taxes , and insurance escrow accounts. We will provide you with a good faith estimate (GFE) of settlement costs when your loan application is accepted. Within 24 hours of your closing, the closing agent will provide you with the final amount that you will need to close.
Q:Will homeowners insurance be required at closing?
A:Proof of homeowners insurance will be required before you can close your loan. Typically, you will need to present an insurance binder and pay for one year’s worth of insurance coverage.
Q: How long do I have to pay for private mortgage insurance (PMI) on my loan?
A: Mortgage insurance is required if you have less than 20% equity (or down payment) in your home and protects the mortgage lender from losses if a customer is unable to make loan payments and defaults on the loan.
If you obtained your loan after July 29, 1999, you can request cancellation of PMI when your loan- to-value (LTV) reaches 80%.
Cancellation requires that you have a good payment history, the property value has not decreased, and you can certify that there are no liens against your property.
Lenders are required (by the Homeowner's Protection Act of 1998) to terminate PMI at 78% LTV (based on the amortization schedule) if the loan is current or has reached the midpoint of the payoff.
Q: What is title insurance?
A: An insurance policy protects a lender and/or homebuyer (only if homebuyer purchases a separate policy, called owner's coverage) against any loss resulting from a title error or dispute.
Q: Is purchasing title insurance mandatory?
A: All mortgage lenders require lender’s coverage for an amount equal to the loan. It lasts until the loan is repaid. As with mortgage insurance, it protects the lender but the borrower pays the premium at closing.
Q: Can I have my mortgage payment deducted automatically from my checking or savings account each month?
A: Typically, after closing your mortgage loan, you will have the option of enrolling in an automatic mortgage payment program. You may be asked to provide an authorization form with a voided check or savings account slip attached to set up the draft. The payment is typically debited on a preset day each month.
Q: Who do I contact if I am having trouble paying my mortgage?
A: We can help you understand your options if you are facing payment challenges. Call (888) 990-2265 and ask for the Loan Administration Manager in the Loan Administration Department.
Visit any Magyar Bank location, call 1-888-990-BANK or complete our contact form for more information and to open your account.
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