Q: Are there mortgage application fees?

A: 24 Funding does not charge any application fees.

Q: What factors should I consider when applying for a mortgage besides interest rate?

A: Since your interest rate is a factor for determining your monthly payment, it is a very important consideration. However, asking yourself some of the following questions will also help you decide which mortgage is best for you: How long will you occupy your home? How much of a payment can you afford? How will a new mortgage affect your budget? How much of a down payment can you afford? With the wide variety of products available, answering these questions will help determine the best mortgage for your personal needs and financial situation. 24 Funding Loan Advisors are available toll free at 1-888-349-3501 to answer your questions and help you determine the right product for your individual needs.

Q: Should I get approved before finding a home?

A: Yes! A mortgage approval from a lender is a formal commitment to lend money to you for your home mortgage and allows you additional leverage when negotiating your contract with a seller.

Q: What do the letters "APR" represent?

A: APR stands for the Annual Percentage Rate and is a measure of the cost of credit expressed as an annual rate. The APR includes interest and other fees and is designed to let you compare the true cost of credit between lenders.

Q: What is the difference between an interest rate and an APR?

A: The interest rate is the actual note rate that you pay on the loan. The APR is a measure of the cost of credit that takes the interest rate plus certain credit fees into account when amortized over the life of the loan.

Q: What is an appraisal? Why do I need one?

A: An appraisal is an estimate of the fair market value of the property and contains comments about the property's physical condition and neighborhood, then compares it to other homes in the area. Lenders use appraisals to determine if the property will provide sufficient security for your loan.

Q: What is loan to value (LTV)?

A: Loan to value, commonly referred to as LTV, is the mathematical relationship between the value of the property and the amount of the mortgage loan, expressed as a percentage. The loan to value is derived by dividing the loan amount by the value of the property.

Q: What is title insurance?

A: A type of insurance that protects the homeowner and/or the lender against claims made relating to legal ownership of the property.

Q: What is an escrow account?

A: You can establish an escrow account at the time of your closing. This account is held by the lender for the future payment of recurring items related to the mortgaged property, such as real estate taxes and insurance premiums, as they become due.

Q: I am worried about security. Do I need to apply online?

A: We utilize the strongest security measures to ensure that all information you submit remains confidential. If you are still concerned about security, please call a Loan Advisor toll free at 1-888-349-3501.