Home Loans provided by Quicken Loans
Have questions about applying for a mortgage? Here are answers to some of the most common questions we hear. If you have a specific question, please call 877-535-4021.
Applying for a Mortgage
Each buyer is unique. The biggest factors in determining your price range are typically your monthly income and your financial obligations. It’s simple to make an estimate; just run the numbers for yourself using our
Affordability Calculator.
That depends on a number of factors, including:
- How long you think you’ll stay in the home
- How much money you’ll put down
- How you’ll finance the closing costs
Yes. Getting pre-approved lets you know how much home you can buy before you go house hunting. Plus, it lets realtors and sellers know that you’re a serious buyer because your financing is already arranged—which can be an advantage when making an offer.
An appraisal compares the current market value of the home you’d like to buy to other homes in the area that have recently been sold. Tax values can sometimes be higher or lower and may not reflect the actual appraised value of the home. A recent appraisal is necessary to confirm the property’s current value. You should not, however, rely on the appraisal as a warranty for assurance about the condition of the home or its value.
An appraiser will contact you to make an appointment to access the property for an appraisal. Once the appraisal is complete, the appraiser will send the results directly to the lender. You can request for a copy of the appraisal from the lender.
We are committed to meeting the needs of all of our clients, including those with disabilities. All of our facilities have been designed to comply with all applicable accessibility requirements.
We also offer a variety of services that allow you to bank with us from the convenience of your home:
- Online banking
- Banking by phone
- Banking by mail
- Bill pay
- Direct deposit
- Automatic payments
Web Accessibility
We have designed certain features on Schwab.com to improve the usability and accessibility of our website, including the ability to increase the font size of text on each page.
Phone Services for the Hearing Impaired
Customers with hearing impairments can contact us via relay calls through Telecommunications Relay Services or via Teletypewriter (TDD/TTY) for account information and customer service.
If you are disabled and in need of a type of accommodation not addressed here in order to access our services, please contact one of our representatives by calling or emailing, and we will make a good faith effort to provide you with a reasonable accommodation.
Mortgage Rates and Costs
Many people come up with a 20% down payment in order to avoid the need for private mortgage insurance. However, depending on the mortgage program you select and what you qualify for, you can purchase a home with a down payment as low as 3.5% of the purchase price. Some people may opt for a higher interest rate in exchange for credit toward closing costs, reducing the amount of money required for closing, but you’ll still need to come up with money for your down payment.
The annual percentage rate reflects the annualized total cost of your mortgage. To calculate the APR, lenders consider the interest rate on your mortgage loan, the term of the loan, and other loan fees such as closing costs, points, etc. The APR will usually be higher than your interest rate, especially if you’re paying any points. The actual APR will show up on the truth-in-lending statement that you’ll see once you have submitted your application.
Interest rates change regularly with the fluctuation of the market. Once you lock your rate, the interest rate will not increase as long as you close and fund your loan on or before the expiration date.
Whether you choose a fixed-rate or adjustable-rate loan program, you’ll be offered a personalized interest rate that doesn’t require you to pay any discount points. However, you can choose to pay discount points in exchange for a lower interest rate or even receive credits at closing in exchange for a higher interest rate.
Your loan-to-value (LTV) ratio, your credit score, the purpose of the loan, and how you intend to occupy the property as taken into account. Current market conditions will also have an impact on some of these factors.
Your options include:
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Rate lock. You commit to a specific rate and point combination. The rate and point combination will not change, regardless of what happens with interest rates.
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Rate float. If you choose to float your interest rate, you will have until ten days before closing to lock your rate. The interest rate is subject to change until you lock the interest rate.
Talk to a mortgage expert about rate lock options that best meet your individual need. The standard rate lock is currently at 45 days.
Once you lock the rate, it cannot be changed, so it’s important to carefully consider the timing of your rate lock. If you follow the market or plan to watch it closely, be sure you’re comfortable with the trends you see before you lock.
When you lock your interest rate, you are guaranteed to receive that rate as long as you close and fund your loan by the specified expiration date. If your loan closes and funds after this date, you will be required to pay a fee to extend your rate lock.
Points are a percentage of the loan amount paid at closing. For instance, on a $90,000 loan, one point = 1%, or $900. You can choose to pay more points in exchange for a lower rate. Points may also be referred to as discount points and are itemized on your good faith estimate and paid at closing.
Alternatively, you can receive a credit or negative points to offset your closing costs in exchange for a higher rate.
A negative point is a percentage of your loan amount credited to your closing costs to reduce out of pocket expenses in a mortgage transaction. Typically, a lender would offer negative points in exchange for a higher interest rate. For example, a negative point on a $100,000 loan would equal $1,000 credit toward closing costs. This amount appears as a credit on the HUD-1 Settlement Statement that you’ll receive at closing. This credit cannot be used toward the down payment or an escrow account.
Contact your tax advisor or the IRS for more information.
If you need more cash to purchase a home, consider these options:
Our low down payment programs may require as little as 3.5% down.
You may be able to cover part of your closing costs by taking a higher interest rate.
Required by federal law, a good faith estimate (GFE) is a written list of the estimated closing costs associated with your mortgage transaction, including the lender’s charges along with the local closing agent's charges and fees. It also includes estimated amounts for real estate property taxes and homeowner’s insurance.
Required by federal law, a truth-in-lending statement provides detailed information about the total charges that you will incur over the life of the loan. It includes the annual percentage rate (APR), the amount of interest you’ll pay, the amount financed, the schedule of payments, the total of your payments, and late payment charges (if any).
The Loan Decision
If nothing changes, it will remain valid for 90 days. If any of the information you provided changes, such as your income or debt, we will need to re-evaluate your pre-approval.
A mortgage lender generally looks at three areas:
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Income and assets. To determine your ability to repay the loan.
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Debts and credit history. To evaluate your credit profile and your history of repaying other financial obligations.
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Property information. An appraiser compares the home you’re buying to similar homes in your area to make sure the property provides sufficient collateral for your loan.
It doesn’t cost you anything. We’ll give you a loan decision and a rate quote free of charge.
Yes, as long as you meet the criteria for the new loan amount or new program you’ve selected.
Yes. Any earnest money paid is listed under “prepaid deposit for property” on the good faith estimate
Following are some of the more commonly requested documents. This list is not all-inclusive.
- A fully executed agreement of sale for the property being purchased
- Financial statements for bank and brokerage accounts
- A HUD-1 Settlement Statement on the property you’re selling
- Your most recent pay stubs
- Previous W2s
- A copy of a rental lease, if applicable
- IRS Form 4506
- Homeowner’s insurance policy
- Flood insurance policy
IRS Form 4506 authorizes a mortgage lender to obtain copies of a borrower’s tax returns directly from the IRS.
The Loan Closing
In most cases, you’ll go to a local title company or attorney’s office for the closing. If you prefer, the closing agent can meet you at your home or your office.
No. You’ll need a cashier’s check or certified check for the closing. Many title companies will also accept a wire transfer for an additional fee. Since this is such a large transaction, a cashier’s check or wire transfer provides verification that the funds are actually available.
Title insurance protects against losses from disputes over the title of a property, such as an unknown lien or any discrepancies in ownership. A policy to protect your lender is required, but you may want to consider purchasing a separate buyer’s policy to protect your interest as well.
The amount of title insurance needed is based on the value of your home and the amount of your mortgage. Lenders are covered for the full value of the mortgage. This policy is required and will vary from state to state. There is a one-time fee for the policy that you pay at closing. In addition, you can obtain a separate homeowner’s insurance policy to cover the full value of your home. However, this additional policy is not required.
Yes, you are under no obligation to use the lender’s providers. Estimates can vary widely, so please check with the lender to make sure that what you’re getting meets the requirements.
Your homeowner’s insurance policy must cover the cost to rebuild the home. The insured amount may be higher or lower than the actual purchase price, as long as it meets the program requirements. The insurance company you choose can give you an actual quote based on specific information about the property.
The lender will perform a flood hazard determination for your property. If your home is located in a special flood hazard area, federal law requires you to purchase flood insurance. Most standard homeowner’s insurance policies do not cover loss due to flood. If you choose, you can obtain flood insurance coverage even if you aren’t required to do so by the lender.
It depends on your loan program and state requirements. Generally, if your monthly mortgage payment includes money for property taxes, these funds are held in escrow by the lender and the lender pays your property taxes as they become due. However, if your payment does not include property taxes, you’re responsible for paying them by the due date mandated by your state or local government.
Certain inspections may be required under your particular loan program. However, depending on the home and the location, there are a variety of inspections you may want to consider before you close on your new home, even if they are not required under your program, such as:
- Home inspection
- Termite inspection
- Septic tank inspection
- Radon test
Power of Attorney
A power of attorney is a grant from one legally competent person called the "principal" to another individual, called the "attorney-in-fact" to act on behalf of the principal. A power of attorney is only accepted for mortgage loan closing documents when it is practically impossible to have a party to the loan sign personally. Except for a durable powers of attorney, powers of attorney are never accepted for purposes of executing a loan application.
All powers of attorney terminate upon the death of the principal. An ordinary power of attorney terminates at the time the principal is determined mentally incompetent. However a durable power of attorney is different. The principal may specify that the power shall not be affected by the disability or incompetence of the principal. This makes the power "durable."
You must record the power of attorney whenever you intend your attorney-in-fact to have the power to undertake any real estate transaction on your behalf, such as obtaining a mortgage loan secured by real property.
You may revoke your durable power of attorney at any time by communicating your intent to the attorney-in-fact, so long as you are still mentally competent. If a power of attorney has been recorded where you reside or have owned property, you must record the Document of Revocation there, as well.
Charles Schwab Bank
Charles Schwab Bank and Charles Schwab & Co., Inc. are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Investment products are offered by Charles Schwab & Co., Inc. (member SIPC). Charles Schwab & Co., Inc. does not solicit, offer, endorse, negotiate or originate any mortgage loan products and is neither a licensed mortgage broker nor a licensed mortgage lender. Home lending is offered and provided by Quicken Loans, Inc, Equal Housing Lender. Quicken Loans Inc., is not affiliated with The Charles Schwab Corporation, Charles Schwab & Co., Inc. or Charles Schwab Bank. Deposit and other lending products are offered by Charles Schwab Bank, Member FDIC and an Equal Housing Lender.
Licensed in all 50 states. State specific license information: Arizona: Quicken Loans Inc., 16425 North Pima, Suite 200, Scottsdale, AZ 85260, Mortgage Banker License #BK-0902939; Arkansas: Quicken Loans Inc., 1050 Woodward Avenue, Detroit MI 48226-1906 (888)474-0404; California: Licensed by Department of Corporations, CA Residential Mortgage Lending Act; Colorado: Quicken Loans Inc., 1050 Woodward Avenue, Detroit MI 48226-1906 (888)474-0404; To check the license status of your mortgage broker, visit ; Georgia Residential Mortgage Licensee (#11704) - 1050 Woodward Avenue, Detroit MI 48226-1906; Illinois: Residential Mortgage Licensee #4127 - Department of Financial and Professional Regulation, 1050 Woodward Avenue, Detroit, MI 48226-1906; Massachusetts – Quicken Loans Inc., Mortgage Lender License #ML-3030; Minnesota - not an offer for a rate lock agreement; Mississippi – Licensed by the Mississippi Department of Banking and Consumer Finance; New Hampshire - Licensed by the NH Banking Department, #6743MB; New Jersey – Licensed Mortgage Banker - NJ Department of Banking, first(and/or second) mortgages only; New York – Licensed Mortgage Banker - NYS Banking Department; Oregon - Quicken Loans, Inc. – License # ML-1387; Pennsylvania – Licensed as a first Mortgage Banker by the Department of Banking and licensed pursuant to the Pennsylvania Secondary Mortgage Loan Act; Rhode Island - Licensed Lender; Texas – Quicken Loans, Inc., 1050 Woodward Ave, Detroit, MI 48226; Virginia – Licensed by Virginia State Corporation Commission, License # MC-1738. Quicken Loans Nationwide Mortgage Licensing System #3030. Restrictions may apply. Equal Housing Lender.
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