Why should I use Dart Bank for a mortgage?
As one of Michigan’s leading mortgage lenders, Dart Bank is solely focused on getting our clients to the closing table as quickly and efficiently as possible, every single time. Our expert staff ensures your needs, goals and circumstances are all understood as we guide you through the mortgage process.
How do I know how much I can afford?
Is there a fee to submit my application online?
No, applying online is free. You may 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”?
Pre-qualification is a lenders judgment of your ability to make payments on your mortgage, based on your verbal statement of income, assets and employment history. Pre-approval is the underwriting decision that you are conditionally qualified and is subject to the lender’s review of your completed application, verification of your income, assets, employment history, credit check appraisal and other determining factors.
What if I have filed bankruptcy in the past few years?
Depending on the type of filing- Chapter 7 vs. Chapter 13- and other factors, you may have to wait anywhere from two to four years before you can obtain a mortgage loan. Short sales and foreclosures are different. Discuss what options might be available with your Mortgage Banker.
What will my rate be?
Rates are based on a variety of factors such as the loan purpose, your credit history and ability to repay, the value of the collateral and the loan amount.
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.
ALL ABOUT APR: “What is APR?” “What is the difference between APR and my interest rate?”
Essentially, The Annual Percentage Rate (APR) is the annualized cost of financing, as well as a universal measurement that can assist you in comparing the cost of mortgage loans offered by different mortgage lenders. Your interest rate is the rate you agree to pay for your mortgage loan. It is used to determine the interest portion of your monthly payment. The Annual Percentage Rate (APR), includes both your interest rate and any additional costs or prepaid finance charges, such as:
- Prepaid Finance Charges ( which might include, but not limited to: loan discount fees, origination fees, underwriting fees, processing fees, prepaid interest, lender’s title insurance, administrative fees, and other credit costs, etc.)
- Upfront (PMI) Private Mortgage Insurance- Conventional Loans
- FHA Mortgage Insurance Premium- FHA Loans
- USDA Guarantee Fee- USDA/RD Loans
- VA Funding Fee- VA Loans
What are closing costs?
Closing costs include items like appraisal fees, title insurance fees, attorney fees, recording fees, pre-paid interest, documentation fees, escrow account, and processing and underwriting fees. You will receive a good faith estimate of your closing costs in advance of your closing date for your review.
What is Private Mortgage Insurance (PMI) and why is it required?
Private Mortgage Insurance (PMI) protects the lender against taking a financial loss in the event the mortgagor stops making payments. Private Mortgage Insurance is generally required for a loan with an initial loan to value (LTV) percentage in excess of 80%. In most cases, PMI is required if your down payment is less than 20% of the value of the home you are purchasing or refinancing. The cost of mortgage insurance is typically added to the monthly mortgage payment. The option of Lender Paid Mortgage Insurance (LPMI) also may exist. With this option, the lender pays the mortgage insurance, which is offset by a higher interest rate charged to the borrower. Your Mortgage Banker will be able to evaluate the best options with you.
What is an escrow account and how does it work?
An escrow account is a separate account that holds funds for the purpose of paying property taxes and homeowners insurance when those bills come due. Spreading the cost of these expenses over 12 months makes it easier for homeowners to budget these expenses, as you will not have to come up with additional cash when these bills become due. For some loans, escrow accounts are a requirement.
What is an escrow analysis?
Each year, your account is reviewed in order to make sure the escrow portion of your total monthly payment is sufficient to pay your property taxes and insurance premiums, while also maintaining the required minimum balance. Changes to your property taxes and insurance premiums may cause your monthly escrow payment to change. You will receive an escrow analysis statement annually, which will detail what was paid and what is projected to be paid the following year. This statement will also provide you with your new escrow payment for the upcoming year.
Do I need to provide my tax and insurance bills each time they are due?
No. We receive and or obtain the bills from your local tax office and insurance company. We will contact you if you will be required to send the bills to us.