Communicating effectively with underwriters
Frequently Asked Questions
Straight answers to the questions we hear most.
No. The APR is an annualized rate that reflects the cost of the loan each year. The total interest paid is the sum of all interest payments over the entire life of the loan, which will be a much larger dollar figure.
The Closing Disclosure and Final Walkthrough are two critical, final steps in the homebuying process. The CD ensures the financial and loan details are correct on paper, while the walkthrough ensures the physical property meets your expectations. A problem discovered during the walkthrough could directly impact the financials on the CD if it results in a request for a repair credit from the seller.
You must proactively contact your mortgage servicer (the company you send your payments to) to request forbearance. Be prepared to explain your financial hardship. It is crucial to call as soon as you anticipate difficulty making a payment. Do not simply stop paying, as this could lead to foreclosure.
The interest rate is the cost of borrowing the principal, while the APR includes the interest rate plus other fees and costs, giving you a more complete picture of the loan’s true annual cost. Always compare both.
Some lenders charge additional fees for processing and underwriting the loan. An origination fee is a common one, often a percentage of the loan amount. Knowing this upfront helps you compare the true cost between different lenders.
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