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Guiding Your Mortgage Decision

At Bank of England Mortgage, we are dedicated to serving as your partner in attaining the American Dream of Homeownership. Our goal is to ensure that borrowers make well-informed decisions when selecting a mortgage.

We provide this information, so that borrowers learn about the types of home mortgage loans, understand the mortgage process and the marketplace.

To attain that goal, we created, "A Straightforward Guide To The Mortgage Application Process - Some Facts, Myths To Beware, and Answers To Frequently Asked Questions."

What is the typical home loan process?

A typical home mortgage loan process consists of 10 easy to complete steps:

  1. Complete the pre-qualification worksheet.
  2. Pre-purchase consultation with one of our well-trained, experienced home mortgage bankers.
  3. Gather and prepare necessary documents.
  4. Receive a credit approval.
  5. Perform a property inspection.
  6. Mortgage banker orders home mortgage loan documents.
  7. Borrower purchases homeowner's insurance.
  8. Your mortgage banker updates you on your document status.
  9. Seven-day pre-closing confirmation.
  10. Easy, smooth, on-time closing!

Once I sign my application am I committed to borrowing money?

No. Your pre-closing signatures are not binding, though they do allow your mortgage banker to negotiate and approve you for a loan.

Can I use Internet statements?

Internet statements are not allowed because Fannie Mae and Freddie Mac are not convinced that they cannot be altered. They require that a consumer submit ALL PAGES of a hard copy statement, even if the first page is an advertisement.

Who orders the appraisal and survey, and when is it ordered?

Your mortgage banker will order the appraisal and survey for you. (Unless your home is new construction and then your builder will order your survey.) Most contracts have option periods that allow you to dictate when the appraisal and survey are ordered.

What does the term "locking my rate" mean?

Locking your rate refers to guaranteeing an interest rate for a specific period of time. Shorter lock periods usually have lower interest rates. For more information or to compare mortgages and rates, contact our qualified home mortgage bankers!

Do you "sell" your loans?

We serve as both a broker and a banker and that means we can service or sell your loan.

A mortgage banker will originate, process, underwrite, close and fund the loan in-house.

A mortgage broker will sell your loan to an investor who has guaranteed your loan program, and therefore, your loan will be serviced and funded by that investor.

What are origination and discount points?

Origination and Discount points are both a percentage of your loan.

Usually 1% of the total amount of the loan (often tax deductible*). Clients with low or no down payment can still obtain a loan, but will usually pay a slightly higher interest rate.

What is Annual Percentage Rate, or APR?

Usually higher than your quoted interest rate because it includes, in addition to interest, some of the additional costs of obtaining your financing.

* - Please consult a tax advisor