Explanation Of Mortgage Terms - This is a glossary of terms used in the mortgage industry that will help you to understand the mortgages.

We understand that applying for a mortgage can be confusing. Here are a few questions most customers ask us.

Question Directory
  1. When should I apply for a mortgage loan?
  2. What documents are typically needed to apply for a loan?
  3. Will I automatically be disqualified if I've ever been late on my monthly payments?
  4. What is a "credit score"?
  5. Will there by any up-front, out-of-pocket expenses?
  6. What is an appraisal?
  7. What type of loan programs do you offer?
  8. How will I work with you to close my loan if you are in Texas and I am in another state?
  9. Is it safe to transmit personal information and financial information about myself on your site and will information I submit remain confidential?
Question and Answers
Q. When should I apply for a mortgage loan?

A.  When you need cash for any reason-to pay your bills, improve your home, get a new car, finance your children's education, take a vacation - City Mortgage can help you get the money you need when you need it.

Q. What documents are typically needed to apply for a loan?

A.  The information below shows which documents are normally required when applying for a mortgage loan. Your Loan Officer will tell you if any additional documents are needed. Help speed up your approval by getting these documents together now, so you will be ready to close your loan right away.

EMPLOYMENT INCOME DOCUMENTS

If you are a salaried employee:
  • W-2 forms for the most recent 2 years.
  • Payroll stubs for the past 30 days (showing year-to-date earnings).
  • Most recent three months bank statements including checking, savings, any mutual funds, stocks, and or any retirement accounts both personal and business.
If you are self-employed or receive commissions:
  • You will be asked to document your income with two years tax returns you have filed for both your personal and business.
  • Year to date income and expense documentation.
NON-EMPLOYMENT RELATED DOCUMENTS

Rental Income:
  • Federal tax returns for the past two years along with your rental agreements.
Retirement/Social Security:
  • Award letter, tax returns, or bank statements if direct-deposit.
Alimony/Child Support:
  • Divorce decree/separation agreement along with proof of payment.
Interest Dividends:
  • Federal tax returns for the past two years.
Other Income:
  • Provide appropriate documentation.
ASSETS

  • Most recent three months bank statements including checking, savings, any mutual funds, stocks, and or any retirement accounts, both personal and business.
IF YOU ARE RE-FINANCING:

  • Copy of HUD Statement (Closing Settlement Statement) from your previous closing.
  • Copy of homeowner's hazard insurance policy.
  • Copy of property tax bill.
  • Copy of survey (if available).
  • Mortgage statement.
IF YOU ARE BUYING:

  • Purchase/deposit agreement (signed by both buyer and seller).
  • Condos and PUDs may require additional documentation
  • If you are buying the property that you have been leasing and your landlord is a private investor twelve months cancelled checks to verify your rent payment will be required.
Q. Will I automatically be disqualified if I have ever been late on my monthly mortgage?

A.  No. City Mortgage looks at the whole picture, not just your credit report and income statements. We specialize in helping customers who have challenging credit situations. That means you do not have to worry about less than perfect credit. We have no allegiance to any one lender, so we can search for a product that fits your credit profile. We do not take the first product that fits your needs. Instead, we look for the best product. Call us to discuss your specific credit situation Toll Free 888-635-CITY or apply on-line.

Q. What is a credit score?

A.  A credit score, sometimes called a FICO score, is a system that has been developed by companies such as Fair Isaac & Co., to rate a borrower’s credit history. The predictive factors used to model the data have proven to indicate future credit performance. Most lenders use this information to evaluate your loan application. It is our job to work with you to ensure that the information is accurate and to work with the lenders to make sure they understand your whole situation. We have helped many different types of people in many different types of situations. We will do everything we can to help you as well. Remember... "We at City Mortgage Offer Home Mortgages for ALL People Regardless of Credit Scores."

Q. Will there by any up-front, out-of-pocket expenses?

A.  There are absolutely no upfront, out-of-pocket expenses paid to City Mortgage. The only out-of-pocket cost you may incur is for a home appraisal if you have not had one prepared in the last three months. An appraisal is required because all lenders provide loans based on the security of the value of your home. Your appraisal is yours to keep and is valuable to have because it provides you with a comparison to other homes in your neighborhood. The home appraisal will cost between $250 and $350 dollars, depending on the size of your home. We can arrange to have your appraisal conducted by one of the companies we have approved based on their track record in providing fair and accurate appraisals of homes or you can use an appraiser you are familiar with. In either case, you will pay the appraiser directly and the appraiser will send us a copy to include in your loan application.

Q. What is an appraisal?

A.  An appraisal is a qualified estimate of the value of your property. City Mortgage will arrange for an appraiser, who is qualified by the lender, to visit your property at a time you have agreed to inspect and review it for its current market value. The appraisal is yours to keep and provides you with valuable information about your property and how it compared to similar houses in you area. And, all lenders require an appraisal be conducted before your loan is approved because it provide an assessment of your home, which is the collateral the lender uses for your mortgage.

Q. What type of loan programs do you offer?

A.  We have access to a nationwide network of over 100 lenders who have products that meet almost any unique need. Because our allegiance is to you, and not to one lender, we look for the best product for your situation. "City Mortgage Offers Home Mortgages for ALL People ...Regardless of Credit".

Q. How will I work with you to close my loan if you are in Houston and I am out of town?

A.  It is never a problem. We schedule your loan closing with a certified closing agent in your area. And, you can always call us during your closing 1-888-635-2489 if you have any last-minute questions or concerns. All other activities related to applying for and closing your loan can be done from the comfort of your home of office. Any time you need us, simply call us...we are available to talk to you from 8:00 a.m. to 5:30 p.m., Monday through Friday, Saturday and Sunday by appointment.

Q. Is it safe to transmit personal information and financial information about myself on your site and will the information I submit remain confidential?

A.  City Mortgage and the lenders and credit agencies work together to recognize your right to confidentiality and are committed to protecting your privacy. We use the information you provide for the sole purpose of finding the right loan to meet your needs. We protect your account information against unauthorized access or release. We will not give, sell, rent or loan any identifiable personal information to any third party other than our certified lenders and credit agencies, unless you have authorized us to or we are legally required to do so. From time to time, we may enter into agreements with other companies to send promotional e-mails on our behalf to such companies' customers. If we do, we may provide a list of our customer's e-mail addresses to the other company so that you, as a citymortgagetexas.com customer, will not receive repetitive promotional materials. Other than e-mail addresses, no other information will be shared with the other company. Such companies will be prohibited from using the e-mail list for any other purpose and will be bound to share non-personal summary, or aggregate customer data with partners and other third parties.


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