First-Time Homebuyer Credit
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Frequently Asked Questions
Why Skyline Financial Corp.?
We guarantee what you expect: We will handle every detail of your transaction with integrity and courtesy while maintaining the security of your confidential information. We understand that timing can be everything so we promptly pursue and secure every financing and rate advantage for you.
Why refinance?
Most people refinance to restructure debt and monthly payments, make purchases or reorganize their monthly budget. Refinancing can give you more available cash and monthly payment flexibility so your equity and credit can work to make or save you more money.
When should I refinance?
When you want to; lower your interest rate, lower your payments, pull cash out, convert from an adjustable rate to a fixed rate loan, restructure high interest debt, invest, start up a business, or help family and friends.
How do you know you are getting the best interest rate?
Interest Rates are determined by 5 core factors:
- Your previous credit history.
- Your home’s loan to value (the un-used equity left after borrowing against the value).
- The number of days until you can sign the new loan documents (the faster you go, the lower the new rate can be locked in for you).
- Income and Employment verification (can they be proven easily or is it better to just state what they are).
- Your new forecasted debt to income ratio (how much income is coming into your household versus how much will be going out on a monthly basis, after the refinance).
What is the Skyline Financial Corp. Borrowers Bill of Rights?
All borrowers considering any loan with Skyline Financial Corp. will have the following Rights:
- Right to select the best Par rate from our top 10 mortgage investors.
(Definition of Par rate: the wholesale rate a mortgage investor charges before a lender, banker or broker marks it up to increase their profit and/or commissions.) - Right to review and correct a copy of your complete tri-merged credit report prior to your application being processed.
- Right to receive a written 30 day rate lock commitment signed by the broker of record.
- Right to receive a Good Faith Estimate disclosing all fees properly (including 3rd party).
- Right to turn down any loan with a pre-payment penalty.
- Right to know the total interest cost and/or savings by paying, or not paying, points and/or fees.
- Right to get you loan completed (underwritten approved, funded and recorded) within 30 days.
Can I receive cash back at time of closing?
As long as the value of the home warrants the amount you are looking to borrow. One thing you need to be aware of is how this might affect your interest rate and you may need mortgage insurance. If it is going to push your LTV over 80%, more than likely your are going to be charged a higher interest rate.
Why do I need a Good Faith Estimate?
A good faith estimate must be provided by a mortgage lender or broker in the United States to a customer, as required by the Real Estate Settlement Procedures Act (RESPA). The estimate must include an itemized list of fees and costs associated with your loan and must be provided within three business days of applying for a loan.
These mortgage fees, also called settlement costs or closing costs, cover every expense associated with a home loan, including inspections, title insurance, taxes and other charges.
A good faith estimate is a standard form which is intended to be used to compare different offers (or quotes) from different lenders or brokers.
Note: The good faith estimate is only an estimate. The final closing costs may be different.
At Skyline Financial Corp., we believe in full disclosure. We show you the fees upfront (before you sign) and pass the lowest interest rate you qualify for straight through to you.
What is a Prepayment Penalty?
A prepayment penalty is a provision of your contract with the lender that states that in the event you pay off the loan entirely, you will pay a penalty. Penalties are usually expressed as a percent of the outstanding balance at time of prepayment, or a specified number of months of interest. Usually, prepayment penalties decline or disappear over time. Rarely do they apply after the fifth year. Partial prepayments of up to 20% of the balance usually are allowed in any one year without a penalty. A penalty that applies to a home sale as well as a refinancing, is a "hard" penalty; if it applies only to a refinancing, it is a "soft" penalty.
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