Our online application is very user friendly. You will not need to type in account numbers (although you may) and can estimate loan payment amounts, bank account balances, etc.

The application is broken down into sections and you can track your progress through each section at the top of each screen. It should take less than 20 minutes to complete the application. Move through the application by using the “previous” and “next” arrows at the bottom of each screen.

If you need additional help answering a question, click on the Help button at the button at the bottom of each screen.

If you don’t have time to complete the application once you’ve started, we’ll save the information you have completed When you’re ready to finish,  return to the site and enter your email address and password to continue.

If you can’t remember your password, just go back to the online application, and click on the “forgot your password?” link, enter in your email address and we will immediately email you your password.

The information we need about additional assets that you own does not have to be exact. Estimated values are all we’ll need

Complete the application as if this were your current employer and indicate that you have been there for one month. The information about the employment you’ll be leaving should be entered as a previous employer.

Enter the name of the school you attended and the length of time you were in school in the “length of employment” fields. You can enter a position of “student” and income of “0.”

We need information about all the real estate you own to insure we have a reasonable estimate of your net worth and debt-to-income ratios. If you don’t know the exact value of your real estate holdings, provide your best guess. In most cases that is all we will need to process your new mortgage request.

If you’re not sure about exact amounts, please make an educated best guess. If this is a refinance, websites such as Zillow.com and Eppraisal.com may be helpful. The appraisal (and sales contract, if purchase) will ultimately be used to determine the value of the property. With respect to your loan amount you will
have an opportunity to adjust it at anytime during the loan process all the way up to and just prior to the loan closing.  Once we receive your online application a loan advisor will work with you to ensure that the both structure of the loan and loan amount suits your needs.

If you’re not sure about the annual real estate taxes for a property you are purchasing, estimate them at 2.00% of the purchase price. If you’re not sure about the annual real estate taxes for a property you are refinancing, use your best estimate. Don’t let this hold up your application. We will wind up confirming the exact property taxes thru the public records as well as the property appraisal.

On a Single Family Residence or PUD, there must be a minimum of 60 days of coverage remaining on your policy from the time of funding.  If your policy is coming up for renewal in less than 60 days we will work with your insurance agent to get the policy renewal documents.   On a condo, your association Home Owners Insurance policy must be current as well as your H06 (walls in coverage policy).

An installment debt is a loan that you make payments on, such as an auto loan, a student loan or a debt consolidation loan. We do not consider payments on other living expenses, such as insurance costs, utility bills, or medical bill payments.  We’ll include any installment debts that have more than 10 months.  We will pull this information from your credit report so you will not need to enter these debts into the online application.

All student loans will be included in the loan application for qualifying. We will pull this information from your credit report so you will not need to enter these debts into the online application.

Generally, a co-signed debt is considered when determining your qualifications for a mortgage. If the co-signed debt doesn’t affect your ability to obtain a new mortgage we’ll leave it at that. However, if it does make a difference, we can ignore the monthly payment of the co-signed debt if you can provide verification that the other person responsible for the debt has made the required payments, by obtaining copies of their cancelled checks for the last six months.

In order for bonus, overtime, or commission income to be considered, you must have a history of receiving it and it must be likely to continue. We’ll usually need to obtain copies of W-2 statements for the previous two years and a recent pay stub to verify this type of income. If a major part of your income is commission earnings, we may need to obtain copies of recent tax returns to verify the amount of business-related expenses, if any. We’ll average the amounts you have received over the past two years to calculate the amount that can be considered as a regular part of your income.

If you haven’t been receiving bonus, overtime, or commission income for at least one year, it probably can’t be given full value when your loan is reviewed for approval.

We will always attempt to approve you for the loan without using these sources of additional income to reduce the amount of documentation you need to provide.

Typically, income from a second job will be considered if a two-year history of secondary employment can be verified.

Generally, the income of self-employed borrowers is verified by obtaining copies of personal (and business, if applicable) federal tax returns for the most recent two-year period. However, based on your entire financial situation, we may not need full copies of your tax returns. We’ll review and average the net income from self-employment that’s reported on your tax returns to determine the income that can be used to qualify. We won’t be able to consider any income that hasn’t been reported as such on your tax returns. Typically, we’ll need at least one, and sometimes a full two-year history of self-employment to verify that your self-employment income is stable.

We will ask for copies of your recent pension check stubs, or bank statement if your pension or retirement income is deposited directly in your bank account.

Sometimes it will also be necessary to verify that this income will continue for at least three years since some pension or retirement plans do not provide

income for life. This can usually be verified with a copy of your award letter. If you don’t have an award letter, we can contact the source of this income directly for verification.

Information about child support, alimony, or separate maintenance income does not need to be provided unless you wish to have it considered for repaying this mortgage loan.

I have income from dividends and/or interest. What documents will I need to provide? Generally, two years personal tax returns are required to verify the amount of your dividend and/or interest income so that an average of the amounts you receive can be calculated. In addition, we will need to verify your ownership of the assets that generate the income using copies of statements from your financial institution, brokerage statements, stock certificates or Promissory Notes.

If you own rental properties, we’ll generally ask for the most recent year’s federal tax return to verify your rental income. We’ll review the Schedule E of the tax return to verify your rental income, after all expenses except depreciation. Since depreciation is only a paper loss, it won’t be counted against your rental income.

Credit scores (FICO scores) are based on information collected by credit bureaus and information reported each month by your creditors about the balances you owe and the timing of your payments. A credit score is a compilation of all this information converted into a number that helps a lender to determine the  likelihood that you will repay the loan on schedule. The credit score is calculated by the credit bureau, not by the lender. Credit scores are calculated by comparing your credit history with millions of other consumers. They have proven to be a very effective way of determining credit worthiness.

Some of the things that affect your credit score include your payment history, your outstanding obligations, the length of time you have had outstanding credit, the types of credit you use, and the number of inquiries that have been made about your credit history in the recent past.

Credit scores used for mortgage loan decisions range from approximately 300 to 850. Generally, the higher your credit score, the lower the risk that your payments won’t be paid as agreed.

An abundance of credit inquiries can sometimes affect your credit scores since it may indicate that your use of credit is increasing. But don’t overreact. The data used to calculate your credit score doesn’t include any mortgage or auto loan credit inquiries that are made within the 30 days prior to the score being calculated. In addition, all mortgage inquiries made in any 14-day period are always considered one inquiry. Don’t limit your mortgage shopping for fear of the effect on your credit score. If a lender gives you this advice, it is probably because they do not offer competitive rates and are afraid you will discover this by shopping for a mortgage with other lenders.

If you’ve had a bankruptcy, foreclosure or short sale in the past, it may affect your ability to get a new mortgage. Unless the bankruptcy, foreclosure or short sale was caused by situations beyond your control, we will generally require that two to four years have passed since the bankruptcy or foreclosure. It is also important that you’ve re-established an acceptable credit history with new loans or credit cards.

You must contact the credit agencies directly and dispute the reported item. Following is the information on how to contact the agencies:
Transunion Consumer Relations
PO Box 1000
Chester, PA 19022
800-888-4213
http://www.transunion.com

Equifax Consumer Relations
PO Box 105873
Atlanta, GA 30348
800-685-1111
http://www.equifax.com

Experian Consumer Relations
PO Box 2002
Allen, TX 75013
888-397-3742
http://www.experian.com

If you have been a victim of identity theft, you have certain rights under the law. You should provide a copy of a valid police report to the credit reporting
agencies and request that they block the reporting of the information that appears on your credit report as a result of identity theft. The law provides guidance to the credit reporting agencies on when to block and unblock such information.

The Fair and Accurate Credit Transaction Act of 2003 (FACTA) provides that every consumer is entitled to a free credit report every 12 months from each of the
three national repositories: Equifax, TransUnion and Experian. Customers may obtain their personal credit report through the following website: www.annualcreditreport.com

At Shoreline Mortgage we have worked tirelessly to create one the most efficient loan origination systems in the industry.

* As a company offering mortgages via the Internet, our system eliminates the need for a loan broker and highly commissioned loan officer, the two highest cost components of a mortgage transaction.

* We lend from a single location eliminating the cost of brick and mortar branches.

There’s no cost or obligation for completing an online application.

Making Application
Upon submission of your online loan application, our team will move into action. No later than the end of the next business day, a Loan Advisor will contact you to introduce themselves and to answer any questions you may have. Your Loan Advisor is a mortgage expert and will provide help and guidance along the way. Depending on the strength of your application, we may even secure your approval that same day!!

We’ll Send You an Application Kit and Prepare Your Loan for Closing
A complete set of application forms will be prepared inserting your personal information and transaction numbers. To expedite things as quickly as possible the application forms will be sent to you via email. The email will contain papers for you to sign and a checklist of items we’ll need to verify the information you provided about your finances during the on-line application. Typically this includes documents relating to your income and asset accounts like last year’s W-2 form, recent paycheck stub, and bank statement.
If you prefer regular mail over email we can use a one day delivery service to get your application forms to you. We’ll even include a priority mail envelope to make it as easy as possible for you to return the papers.

There is no loan application fee but you will be paying for your property appraisal using a credit card or even a bank debit card. We accept Visa, MasterCard, Discover or American Express.

We’ll order the appraisal from a licensed appraiser who is familiar with home values in your area. Depending on your finances and the loan amount requested, different types of appraisals are used. Sometimes the appraiser will need to view the home; sometimes they are able to do their evaluation from the street.

Title insurance will be necessary, if you are purchasing a home we’ll work with the Real Estate Broker or seller to insure the title work is ordered as soon as possible. If you are refinancing we’ll take care of ordering the title work for you. We’ll use the title insurance policy to confirm the legal status of your property and to prepare the closing documents.

Your assigned Loan Advisor will keep you informed every step of the way via telephone or e-mail.

We’ll Contact You to Coordinate Your Closing Date
After we receive your application kit, the appraisal, and the title work, we’ll contact you to schedule your loan closing.
The closing will take place at the office of a title company or attorney in your area who will act as our agent. A few days before closing your Loan Advisor will contact you to walk through the final information so that there won’t be any surprises at closing.

That’s all there is to it! Apply Now you will be on your way to the most convenient home loan ever!

You will be asked to support your income with a recent paystub and the prior year’s W-2 form. Self-employed borrowers will be asked to support their income with the prior one or two years’ tax returns. Funds needed to close the transaction will typically be supported with a copy of a recent bank statement. If proceeds from the sale of another property are being used for the down payment, an estimated closing statement on that transaction will be required prior to closing.

Because everyone looks a little bit different on paper with respect to their income sources, asset accounts and credit history, a more complete checklist will be emailed to you once you complete the online application.

Our standard lock period is 30 days. We are confident we will close your loan in this timeframe as long as you fax or email your supporting documentation within three days of request and schedule your appraisal inspection in a timely manner. We can close a purchase transaction in as few as 10 days if needed to meet a tight closing deadline. Because we are a direct lender, we have control over the approval process, drawing loan documents and funding the loan. Additionally, the third party service providers we work with, such as appraisers and title insurance companies, prioritize our orders because we provide them with a high volume of quality business

At the time we are ready to draw your loan closing documents, if our posted rates are at least .25% lower than the rate you locked (for the same or less points, or the same or more rebate), you may float down your rate to the current rate plus an addon.

On a refinance transaction, if the savings you will achieve with the new lower rate will recapture the closing costs of the loan in a relatively short period of time, you should probably go ahead and lock your rate and close your loan. Trying to time the bottom of an interest rate cycle is tricky and each month you delay costs you in the form of carrying a higher interest rate on your old loan. If rates fall further, you can always refinance again.

NOTE: Rates are currently at historic lows. If you are applying for a refinance transaction we recommend you lock your rate as soon at time of application. If rates drop further while your loan is in process, you can take advantage of our float down policy. However, if rates suddenly shoot up (which they can do very quickly on unexpected economic news), you will wish you had locked your rate when you applied

An escrow account, also known as an impound account, is an account set up at the time you close your loan for the payment of your property taxes and homeowner’s insurance. You pay 1/12 of your annual taxes and insurance along with your mortgage payment each month and the funds are placed in the escrow/impound account. Your loan servicer pays your taxes and insurance out of the escrow/impound account when they come due. You receive an Escrow/Impound Analysis Statement each year, showing the activity and balance remaining in the account.

You are not required to have an escrow/impound account unless the Loan-to-Value ratio on your loan is over 80%. However, if you decide not to have an escrow/impound account, your closing costs may be slightly higher.

At Shoreline Mortgage, we fully disclose all closing costs and prepaids.
Closing Costs are “one time costs to obtain a mortgage, paid at closing” and include the following:
Guaranteed Lender Fee: We charge one all-inclusive Guaranteed Lender Fee also known as “Origination Charge” , which includes processing, underwriting, doc prep, funding and wire transfer fee. This is guaranteed at time of your loan application.

Guaranteed Discount Points OR Guaranteed Rebate: You may elect to pay discount points to buy down your interest rate. Or you may choose a slightly higher rate and obtain a rebate to offset some or all of your closing costs. This is guaranteed at time of your rate lock and depends on your choice of interest rate.

Guaranteed Appraisal Fee: Your appraisal fee is collected in advance on a credit card. The funds are used to pay for your appraisal, a service performed by an independent third party. Appraisal fees are guaranteed on both purchase and refinance transactions.

Guaranteed Government Recording Charges: The county recorder’s office will charge a recording fee to record your new mortgage or deed of trust.Guaranteed Government Transfer Taxes: Some states, counties and cities charge a transfer tax (also known as a Mortgage Tax or Tax Stamps) when you purchase a property or refinance a mortgage. Government transfer taxes are guaranteed and per government requirements are based on loan amount. That said, they will only change if the loan amount changes.

Closing Agent and Title Insurance: Closing agent (or attorney) and title insurance fees are guaranteed if you use the national service provider we contract with to provide these services in your state. You will notice that these fees are extremely competitive due to the high volume of business that we provide to these service providers.

Prepaids are “recurring costs of homeownership, partially prepaid at closing” and include the following:

Initial Escrow/Impound Account Deposit: If an escrow/impound account is to be established for the ongoing payment of your property taxes and homeowner’s insurance, funds will be collected at close to make an initial deposit into the account so that sufficient funds will be available to pay these recurring expenses as they become due.

Prepaid Interest: Your mortgage payment due date will be the first of each month. If your loan is closed on any day other than the first of the month, prepaid interest will be collected at closing, calculated from the date of closing through the end of the month.

First Year Homeowner’s Insurance Premium:
If your loan is a purchase transaction, your first year’s homeowner’s insurance premium will be collected at closing and paid to your insurance company.

Each discount point is equal to one percent of the loan amount. Discount points are paid to obtain a lower rate. Whether you should pay discount points depends on your tax situation and how long you expect to be in the property. To calculate how many months it roughly takes to “break even” on the amount paid for points, divide the difference in points ($dollar amount in cost) by the difference in monthly payment.

There may also be tax advantages to paying points. For most taxpayers, points paid on purchase loan transactions are tax deductible in the year the home is purchased and points paid on refinance transactions are tax deductible over the life of the loan. Tax consequences vary so we encourage you to consult your tax advisor.

A rebate is a credit to the borrower by the lender for taking an interest rate higher than the zero point rate. The lender hopes to recapture the amount paid by collecting a higher interest rate over the life of the loan. Rebates may be used to offset any non-recurring closing costs, including the guaranteed lender fee, appraisal, closing agent, title insurance, recording and/or transfer taxes. Rebates may not be used to offset prepaid expenses, such as prepaid interest, initial escrow/impound account deposit or homeowner’s insurance premium.

Yes…you can pay off your mortgage any time in whole or in part with no additional charges.

You will receive an email and phone call from your Loan advisor/Loan processor no later than the end of the next business day after applying. If you need contact sooner, just pick up the phone and call us.

Our system is designed to deliver the very best rates and fees available to qualified borrowers. Our loans are underwritten by an automated underwriting system and, in most cases, FICO scores below 620 on conventional loans will not be approved by our system. On FHA loans, credit scores can be as low as 580.

We do not currently offer loan programs for borrowers who are not able to document their income.

Private Mortgage Insurance (PMI) makes it possible for you to buy a home with less than a 20% down payment by protecting the lender against the additional risk associated with low down payment lending. The PMI insurance premium is based on the loan-to-value ratio and is included in your monthly payment.

On a 1-unit primary residence or second home, federal regulations require that PMI be automatically cancelled when your loan balance reaches 78% of the original property value at the time the loan was secured. Depending on the loan program, you may be able to request in writing that PMI be removed sooner, based on an increase in the property value as determined by a new appraisal to be ordered by the servicer. Generally, PMI must have been in place for at least two years and you must have a good payment history for PMI to be cancelled under this scenario.

The percentage of your home’s value that can be borrowed on a refinance loan (know as the maximum Loan-to-Value ratio) varies by loan program.

For a refinance where you are simply paying off an existing 1st mortgage loan (plus closing costs if desired) there may be no limit as to the loan to value. So even if you have little equity or even or negative equity in the property, we may have options for you.

For a “cash out” refinance, this also will vary based on loan program and will depend on certain factors like occupancy status, credit score and # of units. In general, the maximum loan to value on a “cash out” refinance will be as high as 85% of the property appraised value.

Maximum debt-to-income ratios are determined by an automated underwriting system that takes many factors into consideration, including your credit score, loan-to-value ratio and cash reserves. As a general guide conventional loans can be approved thru our underwriting engine up to a maximum of 50% debt to income ratio.

On jumbo loans, the maximum debt to income ratio is si slightly lower.

On a conforming loan amount if your existing second mortgage or home equity line was not obtained in conjunction with purchasing your home, then paying it off with a new mortgage is considered cash out.

On a jumbo loan amount, and depending on the loan program, paying off a second mortgage loan that is “seasoned” will not be considered a cash out refinance.

Yes, but this does complicate the refinance transaction somewhat. The holder of your second mortgage or home equity line will have to sign what is known as a subordination agreement, subordinating their existing lien position to the new first mortgage. Generally, they will be willing to do so provided the amount of the new first mortgage is no more than the remaining balance of the existing first mortgage plus closing costs.

Your second mortgage lender will ask us to provide some documentation such as a copy of the mortgage note you’ll be signing and the appraisal before they provide the subordination agreement. We won’t be able to schedule your loan closing until we receive the subordination agreement.

When subordinating an existing second mortgage or home equity line, Shoreline Mortgage recommends you take a 60 day lock to avoid potential lock extension fees.

For a No Cash Out refinance, the only requirement is that the home is not listed for sale at the time of loan application. For a Cash Out refinance, the home may not have been listed in the past six months and the maximum loan to value allowed is 70% of the appraised value

A conforming loan is one that is less than the maximum loan amounts set by Fannie Mae and Freddie Mac. The loan amounts are revised each year to reflect the change in the national average cost of a home. The current conforming loan amount limits are as of 1/01/2014 are as follows:

SFR/Condo: $453,100 ($679,650) in Alaska, Guam, Hawaii, and the US Virgin Islands)
2-Unit Property $580,150 ($870,225 in Alaska, Guam, Hawaii, and the US Virgin Islands)
3-Unit Property $701,250 ($1,051,875 in Alaska, Guam, Hawaii, and the US Virgin Islands)
4-Unit Property $871,450 ($1,307,175 in Alaska, Guam, Hawaii, and the US Virgin Islands)

A super conforming loan is a temporary loan category that was created by the Economic Stimulus Act of 2008. The Act allows Fannie Mae and Freddie Mac to purchase mortgages in “high cost” housing markets. These “Super Conforming” limits are set equal to 115 percent of local median house prices up to a current maximum as of 1/01/2018 of $679,650 (higher limits permitted for 2-4 unit properties and properties located in Alaska, Guam, Hawaii and the US Virgin Islands).

Jumbo loans are loans which exceed conforming and super conforming limits.

An adjustable rate mortgage, or an “ARM”, is a loan type that offers a lower initial interest rate than most fixed rate loans. Against the advantage of the lower payment at the beginning of the loan, you should weigh the risk that an increase in interest rates would lead to higher monthly payments in the future. For some people, an ARM may be the right mortgage choice, particularly if you only plan on being in the home for less than three, five, seven or ten years.

Here’s some detailed information explaining how ARM’s work.

Adjustment Period: The interest rate and monthly payment are fixed for an initial time period, generally three, five, seven or ten years. After the initial fixed period, the interest rate can change every year.

Index: Interest rate changes are tied to changes in an index rate. The current values of the indices used on our ARM programs are published weekly in the Wall Street Journal and shown on our website. At each adjustment date, if the index rate has moved up, so will your mortgage rate, and you will have to make a higher monthly payment. On the other hand, if the index rate has gone down, your rate and monthly payment will decrease.

Margin: To determine the new interest rate on an ARM, at each adjustment date, a pre-disclosed amount, called the “margin”, is added to the index to determine the new interest rate.

Interest Rate Caps: An interest rate cap places a limit on the amount an interest rate can increase or decrease at each adjustment. ARMs have three types of caps: an initial cap, which limits the interest rate increase or decrease at the first adjustment; a periodic cap, which limits the interest rate increases or decreases at all following adjustments; and a lifetime cap, which limit the interest rate increase over the life of the loan.

A subordination agreement is a document prepared by a second mortgage lender agreeing to remain in second position when a first mortgage is refinanced.

Without such an agreement, the second mortgage holder would move into a first lien position when the existing first mortgage was paid off. The second mortgage lender usually charges a fee to process the subordination agreement, which is incurred by the borrower. Additionally, this process often increases the amount of time necessary to process a first mortgage refinance transaction, so an applicant wishing to subordinate a second mortgage may want to take a 45 or 60 day lock to ensure sufficient time to obtain the subordination agreement.

On refinance transactions, Federal law mandates that you have three days, after signing your loan documents, in which to cancel your loan. This three day period includes Saturdays, but excludes Sundays and holidays. Your loan will not be funded until this period has expired.

The function of title insurance is to make sure your rights and interests to the property, and those of your lender, are fully protected. Title companies issue two types of title policies: an Owner’s Policy which covers the homeowner and a Lender’s Policy which covers the lending institution. If the loan is for a home purchase, both types of policies are issued at the time of closing. If the loan is a refinance, you already have an owner’s policy that was issued when you purchased the property, so only a lender’s policy will be issued.

Once a title policy is issued, if any claim covered under your policy is ever filed against your property, the title company will pay the legal fees involved in the defense of your rights. They are also responsible to cover losses arising from a valid claim. This protection remains in effect as long as you or your heirs own the property.

Prepaid interest is paid at the time of closing of your loan to cover the interest that will accrue on your new loan for the remaining days of the month in which it is funded. You will make no payments in the month immediately following the month in which your loan funds. You will then begin making payments on the first of each month for the prior month’s interest

The note rate is used to calculate your interest payment each month. The APR (Annual Percentage Rate) is a calculation based on standardized federal regulations. In addition to the interest rate, it factors in points and loan-related fees in an attempt to better show the total cost of the financing over the scheduled life of the loan. The APR is designed to help borrowers fairly compare different lenders and loan options. Please note that the loan amount will influence the APR calculation, with higher loan amounts reporting lower APR calculations

An appraisal report is a written
description and estimate of the value of a property. National standards govern not only the format for the appraisal; they also specify the appraiser’s qualifications and credentials. In addition, most states now have licensing requirements for appraisers evaluating properties located within their states.

The appraiser will create a written report for us and you’ll be given a copy as soon as we secure it. The report will compare the qualities of your home with other homes that have sold recently in the same neighborhood. These homes are called “comparables” and play a significant role in the appraisal process. Using industry guidelines, the appraiser will try to weigh the major components of these properties (i.e., design, square footage, number of rooms, lot size, age, etc.) to the components of your home to come up with an estimated value of your home. The appraiser adjusts the price of each comparable sale (up or down) depending on how it compares (better or worse) with your property. If your home is for investment purposes, or is a multi-unit home, the appraiser will also consider the rental income that will be generated by the property to help determine the value.

Appraisal cost varies depending on such things as type of property, the number of units and if rental property schedules are required.  The typical single family appraisal is approximately $425  The appraisal fee is collected by credit card at the time we order the property appraisal.  You can use Visa, MasterCard, American Express, Discover or a debit card. 

Generally, it takes 5-7 days before the written report is sent to us. If you are refinancing, the appraiser will contact you to schedule a viewing appointment. If you don’t hear from the appraiser within three days of the order date, please inform your Loan Processor. If you are purchasing a new home, the appraiser will contact your real estate agent, if you are using one, or the seller to schedule an appointment to view the home.

Underwriting guidelines require us to use the lower of the appraised value or the sales price to determine your down payment requirement.

We will lend on a home that requires repairs. Certain repairs may need to be performed before closing for items such as broken windows, missing appliances, damaged walls and other items which may affect the value of your home. Upon receipt of your appraisal, our underwriting department will make a determination as to which repairs are required to be made. In addition, the appraisal must indicate the condition of the home to be “average” or better.

Unfortunately not as quality control procedures prohibit us from using any appraisal not ordered directly by us from a licensed appraiser located in the area of the property. We use an appraisal management company to make sure that the assigned appraiser prioritizes our work and will complete the assignment quickly.

As soon as we receive your appraisal, we’ll update your loan with the value of the home. As a standard practice we will provide a copy of your appraisal as soon as we receive it. 

For a loan on a condominium, it is necessary that the common areas of the project, or at least the phase that your unit is located in, are complete. In the event all common areas are not yet complete, your builder will have a program to finance your purchase. Their rates will probably not be as low as ours so keep your closing costs to a minimum and you can refinance through us once the common areas are complete.

In addition, in most cases an HOA certification is required and must be completed by your HOA. The certification must meet underwriting guidelines. There may be a fee assessed by your HOA, which you will send directly to the HOA for completion of the certification.

Federal Law requires all lenders to investigate whether or not each home they finance is in a special flood hazard area as defined by FEMA, the Federal Emergency Management Agency. This is to help to ensure that you will be protected from financial losses caused by flooding. We use a third party company who specializes in the reviewing of flood maps prepared by FEMA to determine if your home is located in a flood area. If it is, then flood insurance coverage will be required, since standard homeowner’s insurance doesn’t protect you against damages from flooding

No, by offering financing only on traditional 1-4 family residential properties, we are able to be more efficient and offer the best possible pricing to our customers.

We do not currently offer land loans.

To ensure there are no surprises at closing, your Loan Processor will send you an estimated closing statement prior to your scheduled signing appointment so you can review your final fees, loan amount, first payment date, etc.

The closing will take place at the office of a closing agent, attorney or title company or if you prefer a mobile notary will be sent to the location of your choice which may be a local title company, your home or office.

You will be reviewing and signing several loan documents. The most important documents include:

Note: This is the document you sign to agree to repay your mortgage loan. The Note will provide you with all of the details of your loan including the interest rate and length of time to repay the loan. It also explains the penalties that you may incur if you fall behind in making your payments.

Mortgage or Deed of Trust: This document pledges your property to the lender as security for repayment of the debt. The Mortgage restates the basic information contained in the note, as well as details the responsibilities of the borrower.

Truth-in-Lending Statement (TIL):  This document provides a full disclosure of the terms and conditions of your mortgage, including the annual percentage rate (APR) and other fees.

HUD-1 Settlement Statement: This document provides an itemized listing of the final fees charged in connection with your loan.

If your loan is the refinance of a primary residence, Federal Law requires that you have three days to decide positively that you want a new mortgage after you sign the documents. This means that the loan funds won’t be disbursed until three days have passed (excluding Sundays and Federal Holidays). The closing agent will provide more details at the closing.

The Internet, email, fax machines and overnight mail services have eliminated the need for proximity to process and close a loan.

On a refinance transaction, we utilize a local title company in your area  or a professional signing service to bring the loan documents to your home or business for signing. We wire transfer your loan funds to your closing agent or attorney prior to closing so that they’ll have plenty of time to prepare for your closing.

By law, you have the right to select your own provider for these services. Certain providers used regularly by us have agreed to an extremely competitive fee schedule. If you wish to use a different provider and agree to pay the fees charged by them, we will be happy to work with them.

If you won’t be able to attend the loan closing, contact your Loan Processor to discuss other options. If someone you trust is able to attend on your behalf, you may be able to execute a Power of Attorney so that this person can sign documents on your behalf. In other cases, we’re able to overnight you the documents in advance so that you can sign them and forward them to the closing agent. We’re sure to have a solution that will work in your circumstances.

Loans may be closed in the name of a Trust as long as the trust meets certain requirements. Talk to your Loan Advisor for more details.

Loans may not be closed in the name of an LLC. If the title of your home is currently vested in an LLC, the title must be changed at or prior to closing on the loan.

On a refinance of a second home or rental property, we will typically close and fund the loan on the same day. On a refinance of a primary residence, there is a three-day rescission period that must pass after you sign your loan closing documents before your loan can fund.

There are a few options here.  1) The closing agent (or attorney) can issue a check and mail it to you. 2) You can arrange for the funds to be wired directly into your bank account or 3) you can pick up the funding check directly from the title company, attorney or closing agent.

We always recommend that you make your payment to avoid any late charges.

Yes, you will have the ability to set up a auto debit to make your monthly payment. Upon receiving notification regarding the final servicer for your loan, you can contact the toll-free number provided to set up the auto debit of your mortgage payment.

Most of our servicers allow you to set up bi-weekly payments. However, you should seriously weigh the merits of this program before setting it up. A bi-weekly payment program pays off the mortgage early by making 13 payments each year (52 weeks in a year divided by 2 equals 26 half-payments or 13 full payments). By simply paying an extra 1/12 of a payment each month, you will pay your mortgage off faster and avoid any administration fees associated with a biweekly payment program.

As long as is no monthly fees for administration of the bi-weekly program, it is an excellent way to pay the loan off quicker. 

Why talk to one of our Licensed Loan Advisors??

Talking to a Licensed Loan Advisor is an important step to getting the right mortgage loan. Everybody has different loan needs and a mortgage banker knows which questions to ask in order to best match you with the right loan and monthly payment. Since we have a strict No Steering policy, you can be assured that the loan option suggested to you will fit your needs.

Your loan advisor will also explain all the steps–from getting started, to locking in your low rate, to closing your loan fast, in little as 30 days or less!!. Because we are a direct lender, if you have any questions during the loan process, you will have one direct number enabling you to get quick answers straight from the source.

Client Testimonials – What Our Customers are Saying

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By far the most convenient, transparent and responsive mortgage broker I have worked with. I've dont multiple loans with Michael and each time he has exceeded expectations.

Jon Shaller Florida

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5 stars , great very smooth process.

Shelley Fromm Plantation, Fl

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We were looking at so many options for our Refi – 15  Year vs. 30 Year, combining two mortgages into one. We tried working with our bank, but became very frustrated at the inflexibility. We decide to talk to Michael because he had helped us so much with our first mortgage almost 10 years ago. Michael gave us the pros and cons of every option we discussed, and was always  open to running multiple scenarios for us. When we  finally chose the right financing plan for our needs, Michael guided us through every step of the way.

Henry Jost Fort Myers, FL

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I am more than satisfied with services of Shoreline Mortgage .  I worked through this process with Michael Minkoff. Since the first day until the closing date he was very profesional , very dedicated to his work , very knowledgeable mortgage person , always available with all questions, always available with the best answers. He made the process very smooth.  His words always were... no worry , we will make it happens .  We did .!!!. I will use Michael and  this company for my future purchases or refinance and will definitely recommend his services to family and friends . I can't thank him enough. Thank you Michael for everything. You made it posible . Thank you!

Maylene R. Miami, Fl

ApplyOnline

Here are 3 Great Choices to get you moving in the right direction

        


Our online application is very user friendly. You will not need to type in account numbers (although you may) and can estimate loan payment amounts, bank account balances, etc.

The application is broken down into sections and you can track your progress through each section at the top of each screen. It should take less than 20 minutes to complete the application. Move through the application by using the “previous” and “next” arrows at the bottom of each screen.

If you need additional help answering a question, click on the Help button at the button at the bottom of each screen.

If you don’t have time to complete the application once you’ve started, we’ll save the information you have completed When you’re ready to finish,  return to the site and enter your email address and password to continue.

If you can’t remember your password, just go back to the online application, and click on the “forgot your password?” link, enter in your email address and we will immediately email you your password.

The information we need about additional assets that you own does not have to be exact. Estimated values are all we’ll need

Complete the application as if this were your current employer and indicate that you have been there for one month. The information about the employment you’ll be leaving should be entered as a previous employer.

Enter the name of the school you attended and the length of time you were in school in the “length of employment” fields. You can enter a position of “student” and income of “0.”

We need information about all the real estate you own to insure we have a reasonable estimate of your net worth and debt-to-income ratios. If you don’t know the exact value of your real estate holdings, provide your best guess. In most cases that is all we will need to process your new mortgage request.

If you’re not sure about exact amounts, please make an educated best guess. If this is a refinance, websites such as Zillow.com and Eppraisal.com may be helpful. The appraisal (and sales contract, if purchase) will ultimately be used to determine the value of the property. With respect to your loan amount you will
have an opportunity to adjust it at anytime during the loan process all the way up to and just prior to the loan closing.  Once we receive your online application a loan advisor will work with you to ensure that the both structure of the loan and loan amount suits your needs.

If you’re not sure about the annual real estate taxes for a property you are purchasing, estimate them at 2.00% of the purchase price. If you’re not sure about the annual real estate taxes for a property you are refinancing, use your best estimate. Don’t let this hold up your application. We will wind up confirming the exact property taxes thru the public records as well as the property appraisal.

On a Single Family Residence or PUD, there must be a minimum of 60 days of coverage remaining on your policy from the time of funding.  If your policy is coming up for renewal in less than 60 days we will work with your insurance agent to get the policy renewal documents.   On a condo, your association Home Owners Insurance policy must be current as well as your H06 (walls in coverage policy).

An installment debt is a loan that you make payments on, such as an auto loan, a student loan or a debt consolidation loan. We do not consider payments on other living expenses, such as insurance costs, utility bills, or medical bill payments.  We’ll include any installment debts that have more than 10 months.  We will pull this information from your credit report so you will not need to enter these debts into the online application.

All student loans will be included in the loan application for qualifying. We will pull this information from your credit report so you will not need to enter these debts into the online application.

Generally, a co-signed debt is considered when determining your qualifications for a mortgage. If the co-signed debt doesn’t affect your ability to obtain a new mortgage we’ll leave it at that. However, if it does make a difference, we can ignore the monthly payment of the co-signed debt if you can provide verification that the other person responsible for the debt has made the required payments, by obtaining copies of their cancelled checks for the last six months.

In order for bonus, overtime, or commission income to be considered, you must have a history of receiving it and it must be likely to continue. We’ll usually need to obtain copies of W-2 statements for the previous two years and a recent pay stub to verify this type of income. If a major part of your income is commission earnings, we may need to obtain copies of recent tax returns to verify the amount of business-related expenses, if any. We’ll average the amounts you have received over the past two years to calculate the amount that can be considered as a regular part of your income.

If you haven’t been receiving bonus, overtime, or commission income for at least one year, it probably can’t be given full value when your loan is reviewed for approval.

We will always attempt to approve you for the loan without using these sources of additional income to reduce the amount of documentation you need to provide.

Typically, income from a second job will be considered if a two-year history of secondary employment can be verified.

Generally, the income of self-employed borrowers is verified by obtaining copies of personal (and business, if applicable) federal tax returns for the most recent two-year period. However, based on your entire financial situation, we may not need full copies of your tax returns. We’ll review and average the net income from self-employment that’s reported on your tax returns to determine the income that can be used to qualify. We won’t be able to consider any income that hasn’t been reported as such on your tax returns. Typically, we’ll need at least one, and sometimes a full two-year history of self-employment to verify that your self-employment income is stable.

We will ask for copies of your recent pension check stubs, or bank statement if your pension or retirement income is deposited directly in your bank account.

Sometimes it will also be necessary to verify that this income will continue for at least three years since some pension or retirement plans do not provide

income for life. This can usually be verified with a copy of your award letter. If you don’t have an award letter, we can contact the source of this income directly for verification.

Information about child support, alimony, or separate maintenance income does not need to be provided unless you wish to have it considered for repaying this mortgage loan.

I have income from dividends and/or interest. What documents will I need to provide? Generally, two years personal tax returns are required to verify the amount of your dividend and/or interest income so that an average of the amounts you receive can be calculated. In addition, we will need to verify your ownership of the assets that generate the income using copies of statements from your financial institution, brokerage statements, stock certificates or Promissory Notes.

If you own rental properties, we’ll generally ask for the most recent year’s federal tax return to verify your rental income. We’ll review the Schedule E of the tax return to verify your rental income, after all expenses except depreciation. Since depreciation is only a paper loss, it won’t be counted against your rental income.

Credit scores (FICO scores) are based on information collected by credit bureaus and information reported each month by your creditors about the balances you owe and the timing of your payments. A credit score is a compilation of all this information converted into a number that helps a lender to determine the  likelihood that you will repay the loan on schedule. The credit score is calculated by the credit bureau, not by the lender. Credit scores are calculated by comparing your credit history with millions of other consumers. They have proven to be a very effective way of determining credit worthiness.

Some of the things that affect your credit score include your payment history, your outstanding obligations, the length of time you have had outstanding credit, the types of credit you use, and the number of inquiries that have been made about your credit history in the recent past.

Credit scores used for mortgage loan decisions range from approximately 300 to 850. Generally, the higher your credit score, the lower the risk that your payments won’t be paid as agreed.

An abundance of credit inquiries can sometimes affect your credit scores since it may indicate that your use of credit is increasing. But don’t overreact. The data used to calculate your credit score doesn’t include any mortgage or auto loan credit inquiries that are made within the 30 days prior to the score being calculated. In addition, all mortgage inquiries made in any 14-day period are always considered one inquiry. Don’t limit your mortgage shopping for fear of the effect on your credit score. If a lender gives you this advice, it is probably because they do not offer competitive rates and are afraid you will discover this by shopping for a mortgage with other lenders.

If you’ve had a bankruptcy, foreclosure or short sale in the past, it may affect your ability to get a new mortgage. Unless the bankruptcy, foreclosure or short sale was caused by situations beyond your control, we will generally require that two to four years have passed since the bankruptcy or foreclosure. It is also important that you’ve re-established an acceptable credit history with new loans or credit cards.

You must contact the credit agencies directly and dispute the reported item. Following is the information on how to contact the agencies:
Transunion Consumer Relations
PO Box 1000
Chester, PA 19022
800-888-4213
http://www.transunion.com

Equifax Consumer Relations
PO Box 105873
Atlanta, GA 30348
800-685-1111
http://www.equifax.com

Experian Consumer Relations
PO Box 2002
Allen, TX 75013
888-397-3742
http://www.experian.com

If you have been a victim of identity theft, you have certain rights under the law. You should provide a copy of a valid police report to the credit reporting
agencies and request that they block the reporting of the information that appears on your credit report as a result of identity theft. The law provides guidance to the credit reporting agencies on when to block and unblock such information.

The Fair and Accurate Credit Transaction Act of 2003 (FACTA) provides that every consumer is entitled to a free credit report every 12 months from each of the
three national repositories: Equifax, TransUnion and Experian. Customers may obtain their personal credit report through the following website: www.annualcreditreport.com

At Shoreline Mortgage we have worked tirelessly to create one the most efficient loan origination systems in the industry.

* As a company offering mortgages via the Internet, our system eliminates the need for a loan broker and highly commissioned loan officer, the two highest cost components of a mortgage transaction.

* We lend from a single location eliminating the cost of brick and mortar branches.

There’s no cost or obligation for completing an online application.

Making Application
Upon submission of your online loan application, our team will move into action. No later than the end of the next business day, a Loan Advisor will contact you to introduce themselves and to answer any questions you may have. Your Loan Advisor is a mortgage expert and will provide help and guidance along the way. Depending on the strength of your application, we may even secure your approval that same day!!

We’ll Send You an Application Kit and Prepare Your Loan for Closing
A complete set of application forms will be prepared inserting your personal information and transaction numbers. To expedite things as quickly as possible the application forms will be sent to you via email. The email will contain papers for you to sign and a checklist of items we’ll need to verify the information you provided about your finances during the on-line application. Typically this includes documents relating to your income and asset accounts like last year’s W-2 form, recent paycheck stub, and bank statement.
If you prefer regular mail over email we can use a one day delivery service to get your application forms to you. We’ll even include a priority mail envelope to make it as easy as possible for you to return the papers.

There is no loan application fee but you will be paying for your property appraisal using a credit card or even a bank debit card. We accept Visa, MasterCard, Discover or American Express.

We’ll order the appraisal from a licensed appraiser who is familiar with home values in your area. Depending on your finances and the loan amount requested, different types of appraisals are used. Sometimes the appraiser will need to view the home; sometimes they are able to do their evaluation from the street.

Title insurance will be necessary, if you are purchasing a home we’ll work with the Real Estate Broker or seller to insure the title work is ordered as soon as possible. If you are refinancing we’ll take care of ordering the title work for you. We’ll use the title insurance policy to confirm the legal status of your property and to prepare the closing documents.

Your assigned Loan Advisor will keep you informed every step of the way via telephone or e-mail.

We’ll Contact You to Coordinate Your Closing Date
After we receive your application kit, the appraisal, and the title work, we’ll contact you to schedule your loan closing.
The closing will take place at the office of a title company or attorney in your area who will act as our agent. A few days before closing your Loan Advisor will contact you to walk through the final information so that there won’t be any surprises at closing.

That’s all there is to it! Apply Now you will be on your way to the most convenient home loan ever!

You will be asked to support your income with a recent paystub and the prior year’s W-2 form. Self-employed borrowers will be asked to support their income with the prior one or two years’ tax returns. Funds needed to close the transaction will typically be supported with a copy of a recent bank statement. If proceeds from the sale of another property are being used for the down payment, an estimated closing statement on that transaction will be required prior to closing.

Because everyone looks a little bit different on paper with respect to their income sources, asset accounts and credit history, a more complete checklist will be emailed to you once you complete the online application.

Our standard lock period is 30 days. We are confident we will close your loan in this timeframe as long as you fax or email your supporting documentation within three days of request and schedule your appraisal inspection in a timely manner. We can close a purchase transaction in as few as 10 days if needed to meet a tight closing deadline. Because we are a direct lender, we have control over the approval process, drawing loan documents and funding the loan. Additionally, the third party service providers we work with, such as appraisers and title insurance companies, prioritize our orders because we provide them with a high volume of quality business

At the time we are ready to draw your loan closing documents, if our posted rates are at least .25% lower than the rate you locked (for the same or less points, or the same or more rebate), you may float down your rate to the current rate plus an addon.

On a refinance transaction, if the savings you will achieve with the new lower rate will recapture the closing costs of the loan in a relatively short period of time, you should probably go ahead and lock your rate and close your loan. Trying to time the bottom of an interest rate cycle is tricky and each month you delay costs you in the form of carrying a higher interest rate on your old loan. If rates fall further, you can always refinance again.

NOTE: Rates are currently at historic lows. If you are applying for a refinance transaction we recommend you lock your rate as soon at time of application. If rates drop further while your loan is in process, you can take advantage of our float down policy. However, if rates suddenly shoot up (which they can do very quickly on unexpected economic news), you will wish you had locked your rate when you applied

An escrow account, also known as an impound account, is an account set up at the time you close your loan for the payment of your property taxes and homeowner’s insurance. You pay 1/12 of your annual taxes and insurance along with your mortgage payment each month and the funds are placed in the escrow/impound account. Your loan servicer pays your taxes and insurance out of the escrow/impound account when they come due. You receive an Escrow/Impound Analysis Statement each year, showing the activity and balance remaining in the account.

You are not required to have an escrow/impound account unless the Loan-to-Value ratio on your loan is over 80%. However, if you decide not to have an escrow/impound account, your closing costs may be slightly higher.

At Shoreline Mortgage, we fully disclose all closing costs and prepaids.
Closing Costs are “one time costs to obtain a mortgage, paid at closing” and include the following:
Guaranteed Lender Fee: We charge one all-inclusive Guaranteed Lender Fee also known as “Origination Charge” , which includes processing, underwriting, doc prep, funding and wire transfer fee. This is guaranteed at time of your loan application.

Guaranteed Discount Points OR Guaranteed Rebate: You may elect to pay discount points to buy down your interest rate. Or you may choose a slightly higher rate and obtain a rebate to offset some or all of your closing costs. This is guaranteed at time of your rate lock and depends on your choice of interest rate.

Guaranteed Appraisal Fee: Your appraisal fee is collected in advance on a credit card. The funds are used to pay for your appraisal, a service performed by an independent third party. Appraisal fees are guaranteed on both purchase and refinance transactions.

Guaranteed Government Recording Charges: The county recorder’s office will charge a recording fee to record your new mortgage or deed of trust.Guaranteed Government Transfer Taxes: Some states, counties and cities charge a transfer tax (also known as a Mortgage Tax or Tax Stamps) when you purchase a property or refinance a mortgage. Government transfer taxes are guaranteed and per government requirements are based on loan amount. That said, they will only change if the loan amount changes.

Closing Agent and Title Insurance: Closing agent (or attorney) and title insurance fees are guaranteed if you use the national service provider we contract with to provide these services in your state. You will notice that these fees are extremely competitive due to the high volume of business that we provide to these service providers.

Prepaids are “recurring costs of homeownership, partially prepaid at closing” and include the following:

Initial Escrow/Impound Account Deposit: If an escrow/impound account is to be established for the ongoing payment of your property taxes and homeowner’s insurance, funds will be collected at close to make an initial deposit into the account so that sufficient funds will be available to pay these recurring expenses as they become due.

Prepaid Interest: Your mortgage payment due date will be the first of each month. If your loan is closed on any day other than the first of the month, prepaid interest will be collected at closing, calculated from the date of closing through the end of the month.

First Year Homeowner’s Insurance Premium:
If your loan is a purchase transaction, your first year’s homeowner’s insurance premium will be collected at closing and paid to your insurance company.

Each discount point is equal to one percent of the loan amount. Discount points are paid to obtain a lower rate. Whether you should pay discount points depends on your tax situation and how long you expect to be in the property. To calculate how many months it roughly takes to “break even” on the amount paid for points, divide the difference in points ($dollar amount in cost) by the difference in monthly payment.

There may also be tax advantages to paying points. For most taxpayers, points paid on purchase loan transactions are tax deductible in the year the home is purchased and points paid on refinance transactions are tax deductible over the life of the loan. Tax consequences vary so we encourage you to consult your tax advisor.

A rebate is a credit to the borrower by the lender for taking an interest rate higher than the zero point rate. The lender hopes to recapture the amount paid by collecting a higher interest rate over the life of the loan. Rebates may be used to offset any non-recurring closing costs, including the guaranteed lender fee, appraisal, closing agent, title insurance, recording and/or transfer taxes. Rebates may not be used to offset prepaid expenses, such as prepaid interest, initial escrow/impound account deposit or homeowner’s insurance premium.

Yes…you can pay off your mortgage any time in whole or in part with no additional charges.

You will receive an email and phone call from your Loan advisor/Loan processor no later than the end of the next business day after applying. If you need contact sooner, just pick up the phone and call us.

Our system is designed to deliver the very best rates and fees available to qualified borrowers. Our loans are underwritten by an automated underwriting system and, in most cases, FICO scores below 620 on conventional loans will not be approved by our system. On FHA loans, credit scores can be as low as 580.

We do not currently offer loan programs for borrowers who are not able to document their income.

Private Mortgage Insurance (PMI) makes it possible for you to buy a home with less than a 20% down payment by protecting the lender against the additional risk associated with low down payment lending. The PMI insurance premium is based on the loan-to-value ratio and is included in your monthly payment.

On a 1-unit primary residence or second home, federal regulations require that PMI be automatically cancelled when your loan balance reaches 78% of the original property value at the time the loan was secured. Depending on the loan program, you may be able to request in writing that PMI be removed sooner, based on an increase in the property value as determined by a new appraisal to be ordered by the servicer. Generally, PMI must have been in place for at least two years and you must have a good payment history for PMI to be cancelled under this scenario.

The percentage of your home’s value that can be borrowed on a refinance loan (know as the maximum Loan-to-Value ratio) varies by loan program.

For a refinance where you are simply paying off an existing 1st mortgage loan (plus closing costs if desired) there may be no limit as to the loan to value. So even if you have little equity or even or negative equity in the property, we may have options for you.

For a “cash out” refinance, this also will vary based on loan program and will depend on certain factors like occupancy status, credit score and # of units. In general, the maximum loan to value on a “cash out” refinance will be as high as 85% of the property appraised value.

Maximum debt-to-income ratios are determined by an automated underwriting system that takes many factors into consideration, including your credit score, loan-to-value ratio and cash reserves. As a general guide conventional loans can be approved thru our underwriting engine up to a maximum of 50% debt to income ratio.

On jumbo loans, the maximum debt to income ratio is si slightly lower.

On a conforming loan amount if your existing second mortgage or home equity line was not obtained in conjunction with purchasing your home, then paying it off with a new mortgage is considered cash out.

On a jumbo loan amount, and depending on the loan program, paying off a second mortgage loan that is “seasoned” will not be considered a cash out refinance.

Yes, but this does complicate the refinance transaction somewhat. The holder of your second mortgage or home equity line will have to sign what is known as a subordination agreement, subordinating their existing lien position to the new first mortgage. Generally, they will be willing to do so provided the amount of the new first mortgage is no more than the remaining balance of the existing first mortgage plus closing costs.

Your second mortgage lender will ask us to provide some documentation such as a copy of the mortgage note you’ll be signing and the appraisal before they provide the subordination agreement. We won’t be able to schedule your loan closing until we receive the subordination agreement.

When subordinating an existing second mortgage or home equity line, Shoreline Mortgage recommends you take a 60 day lock to avoid potential lock extension fees.

For a No Cash Out refinance, the only requirement is that the home is not listed for sale at the time of loan application. For a Cash Out refinance, the home may not have been listed in the past six months and the maximum loan to value allowed is 70% of the appraised value

A conforming loan is one that is less than the maximum loan amounts set by Fannie Mae and Freddie Mac. The loan amounts are revised each year to reflect the change in the national average cost of a home. The current conforming loan amount limits are as of 1/01/2014 are as follows:

SFR/Condo: $453,100 ($679,650) in Alaska, Guam, Hawaii, and the US Virgin Islands)
2-Unit Property $580,150 ($870,225 in Alaska, Guam, Hawaii, and the US Virgin Islands)
3-Unit Property $701,250 ($1,051,875 in Alaska, Guam, Hawaii, and the US Virgin Islands)
4-Unit Property $871,450 ($1,307,175 in Alaska, Guam, Hawaii, and the US Virgin Islands)

A super conforming loan is a temporary loan category that was created by the Economic Stimulus Act of 2008. The Act allows Fannie Mae and Freddie Mac to purchase mortgages in “high cost” housing markets. These “Super Conforming” limits are set equal to 115 percent of local median house prices up to a current maximum as of 1/01/2018 of $679,650 (higher limits permitted for 2-4 unit properties and properties located in Alaska, Guam, Hawaii and the US Virgin Islands).

Jumbo loans are loans which exceed conforming and super conforming limits.

An adjustable rate mortgage, or an “ARM”, is a loan type that offers a lower initial interest rate than most fixed rate loans. Against the advantage of the lower payment at the beginning of the loan, you should weigh the risk that an increase in interest rates would lead to higher monthly payments in the future. For some people, an ARM may be the right mortgage choice, particularly if you only plan on being in the home for less than three, five, seven or ten years.

Here’s some detailed information explaining how ARM’s work.

Adjustment Period: The interest rate and monthly payment are fixed for an initial time period, generally three, five, seven or ten years. After the initial fixed period, the interest rate can change every year.

Index: Interest rate changes are tied to changes in an index rate. The current values of the indices used on our ARM programs are published weekly in the Wall Street Journal and shown on our website. At each adjustment date, if the index rate has moved up, so will your mortgage rate, and you will have to make a higher monthly payment. On the other hand, if the index rate has gone down, your rate and monthly payment will decrease.

Margin: To determine the new interest rate on an ARM, at each adjustment date, a pre-disclosed amount, called the “margin”, is added to the index to determine the new interest rate.

Interest Rate Caps: An interest rate cap places a limit on the amount an interest rate can increase or decrease at each adjustment. ARMs have three types of caps: an initial cap, which limits the interest rate increase or decrease at the first adjustment; a periodic cap, which limits the interest rate increases or decreases at all following adjustments; and a lifetime cap, which limit the interest rate increase over the life of the loan.

A subordination agreement is a document prepared by a second mortgage lender agreeing to remain in second position when a first mortgage is refinanced.

Without such an agreement, the second mortgage holder would move into a first lien position when the existing first mortgage was paid off. The second mortgage lender usually charges a fee to process the subordination agreement, which is incurred by the borrower. Additionally, this process often increases the amount of time necessary to process a first mortgage refinance transaction, so an applicant wishing to subordinate a second mortgage may want to take a 45 or 60 day lock to ensure sufficient time to obtain the subordination agreement.

On refinance transactions, Federal law mandates that you have three days, after signing your loan documents, in which to cancel your loan. This three day period includes Saturdays, but excludes Sundays and holidays. Your loan will not be funded until this period has expired.

The function of title insurance is to make sure your rights and interests to the property, and those of your lender, are fully protected. Title companies issue two types of title policies: an Owner’s Policy which covers the homeowner and a Lender’s Policy which covers the lending institution. If the loan is for a home purchase, both types of policies are issued at the time of closing. If the loan is a refinance, you already have an owner’s policy that was issued when you purchased the property, so only a lender’s policy will be issued.

Once a title policy is issued, if any claim covered under your policy is ever filed against your property, the title company will pay the legal fees involved in the defense of your rights. They are also responsible to cover losses arising from a valid claim. This protection remains in effect as long as you or your heirs own the property.

Prepaid interest is paid at the time of closing of your loan to cover the interest that will accrue on your new loan for the remaining days of the month in which it is funded. You will make no payments in the month immediately following the month in which your loan funds. You will then begin making payments on the first of each month for the prior month’s interest

The note rate is used to calculate your interest payment each month. The APR (Annual Percentage Rate) is a calculation based on standardized federal regulations. In addition to the interest rate, it factors in points and loan-related fees in an attempt to better show the total cost of the financing over the scheduled life of the loan. The APR is designed to help borrowers fairly compare different lenders and loan options. Please note that the loan amount will influence the APR calculation, with higher loan amounts reporting lower APR calculations

An appraisal report is a written
description and estimate of the value of a property. National standards govern not only the format for the appraisal; they also specify the appraiser’s qualifications and credentials. In addition, most states now have licensing requirements for appraisers evaluating properties located within their states.

The appraiser will create a written report for us and you’ll be given a copy as soon as we secure it. The report will compare the qualities of your home with other homes that have sold recently in the same neighborhood. These homes are called “comparables” and play a significant role in the appraisal process. Using industry guidelines, the appraiser will try to weigh the major components of these properties (i.e., design, square footage, number of rooms, lot size, age, etc.) to the components of your home to come up with an estimated value of your home. The appraiser adjusts the price of each comparable sale (up or down) depending on how it compares (better or worse) with your property. If your home is for investment purposes, or is a multi-unit home, the appraiser will also consider the rental income that will be generated by the property to help determine the value.

Appraisal cost varies depending on such things as type of property, the number of units and if rental property schedules are required.  The typical single family appraisal is approximately $425  The appraisal fee is collected by credit card at the time we order the property appraisal.  You can use Visa, MasterCard, American Express, Discover or a debit card. 

Generally, it takes 5-7 days before the written report is sent to us. If you are refinancing, the appraiser will contact you to schedule a viewing appointment. If you don’t hear from the appraiser within three days of the order date, please inform your Loan Processor. If you are purchasing a new home, the appraiser will contact your real estate agent, if you are using one, or the seller to schedule an appointment to view the home.

Underwriting guidelines require us to use the lower of the appraised value or the sales price to determine your down payment requirement.

We will lend on a home that requires repairs. Certain repairs may need to be performed before closing for items such as broken windows, missing appliances, damaged walls and other items which may affect the value of your home. Upon receipt of your appraisal, our underwriting department will make a determination as to which repairs are required to be made. In addition, the appraisal must indicate the condition of the home to be “average” or better.

Unfortunately not as quality control procedures prohibit us from using any appraisal not ordered directly by us from a licensed appraiser located in the area of the property. We use an appraisal management company to make sure that the assigned appraiser prioritizes our work and will complete the assignment quickly.

As soon as we receive your appraisal, we’ll update your loan with the value of the home. As a standard practice we will provide a copy of your appraisal as soon as we receive it. 

For a loan on a condominium, it is necessary that the common areas of the project, or at least the phase that your unit is located in, are complete. In the event all common areas are not yet complete, your builder will have a program to finance your purchase. Their rates will probably not be as low as ours so keep your closing costs to a minimum and you can refinance through us once the common areas are complete.

In addition, in most cases an HOA certification is required and must be completed by your HOA. The certification must meet underwriting guidelines. There may be a fee assessed by your HOA, which you will send directly to the HOA for completion of the certification.

Federal Law requires all lenders to investigate whether or not each home they finance is in a special flood hazard area as defined by FEMA, the Federal Emergency Management Agency. This is to help to ensure that you will be protected from financial losses caused by flooding. We use a third party company who specializes in the reviewing of flood maps prepared by FEMA to determine if your home is located in a flood area. If it is, then flood insurance coverage will be required, since standard homeowner’s insurance doesn’t protect you against damages from flooding

No, by offering financing only on traditional 1-4 family residential properties, we are able to be more efficient and offer the best possible pricing to our customers.

We do not currently offer land loans.

To ensure there are no surprises at closing, your Loan Processor will send you an estimated closing statement prior to your scheduled signing appointment so you can review your final fees, loan amount, first payment date, etc.

The closing will take place at the office of a closing agent, attorney or title company or if you prefer a mobile notary will be sent to the location of your choice which may be a local title company, your home or office.

You will be reviewing and signing several loan documents. The most important documents include:

Note: This is the document you sign to agree to repay your mortgage loan. The Note will provide you with all of the details of your loan including the interest rate and length of time to repay the loan. It also explains the penalties that you may incur if you fall behind in making your payments.

Mortgage or Deed of Trust: This document pledges your property to the lender as security for repayment of the debt. The Mortgage restates the basic information contained in the note, as well as details the responsibilities of the borrower.

Truth-in-Lending Statement (TIL):  This document provides a full disclosure of the terms and conditions of your mortgage, including the annual percentage rate (APR) and other fees.

HUD-1 Settlement Statement: This document provides an itemized listing of the final fees charged in connection with your loan.

If your loan is the refinance of a primary residence, Federal Law requires that you have three days to decide positively that you want a new mortgage after you sign the documents. This means that the loan funds won’t be disbursed until three days have passed (excluding Sundays and Federal Holidays). The closing agent will provide more details at the closing.

The Internet, email, fax machines and overnight mail services have eliminated the need for proximity to process and close a loan.

On a refinance transaction, we utilize a local title company in your area  or a professional signing service to bring the loan documents to your home or business for signing. We wire transfer your loan funds to your closing agent or attorney prior to closing so that they’ll have plenty of time to prepare for your closing.

By law, you have the right to select your own provider for these services. Certain providers used regularly by us have agreed to an extremely competitive fee schedule. If you wish to use a different provider and agree to pay the fees charged by them, we will be happy to work with them.

If you won’t be able to attend the loan closing, contact your Loan Processor to discuss other options. If someone you trust is able to attend on your behalf, you may be able to execute a Power of Attorney so that this person can sign documents on your behalf. In other cases, we’re able to overnight you the documents in advance so that you can sign them and forward them to the closing agent. We’re sure to have a solution that will work in your circumstances.

Loans may be closed in the name of a Trust as long as the trust meets certain requirements. Talk to your Loan Advisor for more details.

Loans may not be closed in the name of an LLC. If the title of your home is currently vested in an LLC, the title must be changed at or prior to closing on the loan.

On a refinance of a second home or rental property, we will typically close and fund the loan on the same day. On a refinance of a primary residence, there is a three-day rescission period that must pass after you sign your loan closing documents before your loan can fund.

There are a few options here.  1) The closing agent (or attorney) can issue a check and mail it to you. 2) You can arrange for the funds to be wired directly into your bank account or 3) you can pick up the funding check directly from the title company, attorney or closing agent.

We always recommend that you make your payment to avoid any late charges.

Yes, you will have the ability to set up a auto debit to make your monthly payment. Upon receiving notification regarding the final servicer for your loan, you can contact the toll-free number provided to set up the auto debit of your mortgage payment.

Most of our servicers allow you to set up bi-weekly payments. However, you should seriously weigh the merits of this program before setting it up. A bi-weekly payment program pays off the mortgage early by making 13 payments each year (52 weeks in a year divided by 2 equals 26 half-payments or 13 full payments). By simply paying an extra 1/12 of a payment each month, you will pay your mortgage off faster and avoid any administration fees associated with a biweekly payment program.

As long as is no monthly fees for administration of the bi-weekly program, it is an excellent way to pay the loan off quicker. 

Why talk to one of our Licensed Loan Advisors??

Talking to a Licensed Loan Advisor is an important step to getting the right mortgage loan. Everybody has different loan needs and a mortgage banker knows which questions to ask in order to best match you with the right loan and monthly payment. Since we have a strict No Steering policy, you can be assured that the loan option suggested to you will fit your needs.

Your loan advisor will also explain all the steps–from getting started, to locking in your low rate, to closing your loan fast, in little as 30 days or less!!. Because we are a direct lender, if you have any questions during the loan process, you will have one direct number enabling you to get quick answers straight from the source.

Client Testimonials – What Our Customers are Saying

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I have dealt with Michael Minkoff in the past. And I found him to be every professional, honest and very forthcoming. This is my third opportunity to have dealt with him on the purchase of Homes and condominiums. And Michael has never disappointed me in any way, during the procedures and purchases of any properties. Over the years I have thought of Michael as more of a friend than a business acquaintance. Michael performs his task over and above its competitors with ease. You guys have a real gem on your hands... Michael Minkoff THE BEST definitely 5 stars.

David Clopton 190 escambi lane Cocoa Beach Florida 32931

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Our friends recommended Michael Minkoff to help us secure a mortgage. It's our first house so we never had any experience with the loan process. From the very first phone call I knew we were in the best hands possible!! Michael took the time and explained very clearly about the different options. He took care of every single detail and went above and beyond to bring us to closing in less than one month. During the loan process, he guided us in a very professional manner and kept us updated on the progress.
The whole process was very quick and smooth and we felt very comfortable throughout it. It was a true pleasure to work with Michael!! I'm sure we will work with him again in the future and will highly recommend him for others. Thank you Michael, you are the best!!

Dikla Miller Coral Springs, FL

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This was my second refinance with Michael Minkoff and Shoreline and I would not deal with anyone else. He offers great guidance and patience through the refinance process. He gets the job done quickly and will smooth any wrinkles in the process. He is always available to answer any questions or concerns before, during and after the refinance. His professionalism is unparalleled! I highly recommend his services.

Kim Monahan Longwood, FL

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I can honestly say Michael Minkoff made my first home buying experience a very pleasant one. From our first conversation he explained each and every option that was available to me and I never felt pressured into any decision. My phone call and email communications were handled in a professional and timely manner. All in all I really couldn't imagine my home buying process being any easier. Even now that the deal is done I would still feel 100% comfortable calling Michael with any questions. He extended his expertise beyond the scope of the business deal and I look forward to contacting Michael for my next home purchase. Thanks for everything Michael! Our hats off to you!!

Max Gonzalez Miramar, FL

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