General
Why should I use Dart Bank for a mortgage?
As one of Michigan’s leading mortgage lenders, Dart Bank dedicates itself to ensuring a swift and seamless path to closing for our clients. Our experienced team prioritizes understanding your unique needs, goals, and circumstances to provide efficient guidance throughout the entire mortgage process.
How do I know how much I can afford?
What if I have filed bankruptcy in the past few years?
The waiting period to qualify for a mortgage after bankruptcy varies based on the type of bankruptcy (Chapter 7 or Chapter 13) and other factors. It typically ranges from two to four years. Additionally, short sales and foreclosures have different implications. It’s important to discuss your specific situation with your Mortgage Banker to understand what options may be available to you. Furthermore, they can provide guidance tailored to your financial history and current circumstances, helping you navigate the mortgage application process effectively.
What are some of the benefits of Government loans (FHA, VA, and USDA Rural Housing)?
Government backed loans are attractive options for many homebuyers, providing many with access to affordable mortgages. There are FHA, VA, USDA Rural Housing programs that require little or no down payments. Discuss what option might be best for you with your Mortgage Banker.
What are closing costs?
Closing costs are the fees and expenses you need to pay when you finalize buying a home. They cover things like loan processing fees, title insurance, appraisal costs, and other services needed to complete the sale. It’s important to budget for closing costs in addition to your down payment and mortgage payments. Working with a knowledgeable real estate agent or lender can help you understand and prepare for these expenses when you’re ready to close on your new home.
Application
Is there a fee to submit my application online?
No. Applying online is free! You can also apply for an online mortgage consultation.
How do I start the application process for a mortgage?
What documentation do I need to provide?
What is the difference between being “pre-qualified” and “pre-approved”?
When it comes to mortgages, “prequalified” and “preapproved” are different stages in the home buying process. Getting “prequalified” is like getting an estimate. It means a lender has looked at your basic financial information and given you an idea of how much you might be able to borrow. On the other hand, being “preapproved” is more concrete. It means the lender has done a deeper dive into your finances, like verifying your income and credit history. Being preapproved shows sellers you’re a serious buyer and can make your offer stronger. So, while prequalification is a helpful first step, preapproval carries more weight when you’re ready to make an offer on a home.
Rates
What will my rate be?
Your mortgage rate depends on several factors, including the purpose of the loan, your credit history, your ability to repay, the value of the collateral (such as the home), and the amount of the loan.
ALL ABOUT APR: “What is APR?” “What is the difference between APR and my interest rate?”
The APR, or Annual Percentage Rate, represents the total cost of borrowing on a yearly basis, including both the interest rate and any fees or costs associated with the loan. It’s a comprehensive measure that helps borrowers understand the true cost of a mortgage loan. The main difference between APR and your interest rate is that the interest rate is simply the cost of borrowing the principal loan amount, expressed as a percentage. In contrast, APR includes additional costs like origination fees, points, mortgage insurance, and other charges that affect the overall expense of the loan. When comparing mortgage offers, looking at both the interest rate and APR can give you a clearer picture of the total financial commitment involved in each option.
Insurance
What is Private Mortgage Insurance (PMI) and why is it required?
Private Mortgage Insurance (PMI) is a type of insurance that lenders typically require from borrowers who make a down payment of less than 20% on their home purchase. It protects the lender in case the borrower defaults on the loan. The borrower pays PMI premiums, which lenders often include in the monthly mortgage payment. This insurance enables lenders to offer mortgages with lower down payment requirements, making homeownership more accessible. Once the borrower reaches 20% equity in the home, typically through payments or appreciation, the lender can cancel PMI, reducing the borrower’s monthly mortgage costs.
No, you don’t need to provide your tax and insurance bills each time they’re due. Our team handles this process by receiving or obtaining the bills directly from your local tax office and insurance company. We’ll notify you if there’s ever a need for you to send these bills to us.
Escrow
What is an escrow account and how does it work?
An escrow account is like a neutral middleman in the home buying process. When you make an offer on a house and it’s accepted, you’ll often put earnest money into escrow. This shows you’re serious about buying. Later, when you close on the house, your mortgage lender might set up an escrow account to hold money for property taxes and insurance. Each month, a portion of your mortgage payment goes into this account. When taxes or insurance bills come due, the lender pays them from your escrow account on your behalf. It helps you budget because you pay a little each month instead of a big lump sum once a year. Escrow ensures everyone meets their obligations smoothly during the home buying journey.