Many of the people we talk with have very similar questions. We have included some of the questions and answers in hope that you will find this helpful. Don't hesitate to call or email us with additional questions—we always appreciate an opportunity to help educate others about their housing loan options.

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Why use Scott Mortgage?
At Scott Mortgage we really do care about our clients. We take each customer's loan very personally, as though we were financing our own homes. You can always reach us—and if you do have to leave a message we will always return your call immediately. Some lenders leave their customers guessing about the status of their loan, but we understand just how stressful buying a new home (or even refinancing) can be and we will do everything in our power to ensure that you feel informed and in control of the process, every step along the way.

We work with numerous lenders to get you a loan with the best possible rate. We shop for you to find the best rate for the kind of loan that fits your needs. And if you have had difficulties obtaining a loan elsewhere we can assist you with a program to improve your credit profile so that we can do that loan for you.

Why not just go to a bank?
When you go to a bank you are dealing with one lender, but if they say "no" you must start the process again with a different bank. You can continue to do this and hope that you find the loan you are looking for and the rate you want. However, there are hundreds of lenders throughout the country and not all of them are banks or names that you would recognize. The advantage of coming to Scott Mortgage is that we do the shopping for you. You apply one time and we find the lender to match your particular needs. And—especially important—your credit report is only pulled one time.

It is important to know that in order to be a mortgage broker, we are required to attend training, pass a test, pass a national test, receive a backround check and fingerprint check as well as our own credit pulled and reviewed. The loan officers at the banks are not required to do any of that. An interesting fact.

Can I get a loan even if my credit isn't great?
Yes! Depending on your credit scores and other credit factors you can still get a loan. Sometimes you will have to put more money down or take less money out than you would with good credit, however, you can still get a loan. The better your credit is is, the better interest rate you will get and the less money you will need to put down when buying a home. This applies as well to refinancing, the better your credit is, the better interest rate you will get and the more money you can pull out of your home.

What does it mean to "lock in" a rate?
When you apply for a loan you can continue the process without the interest rate being locked. This is known as a "float." At some point during the loan application and approval process you as the borrower will have to decide to "lock in" the rate, and the rate for your loan will then be the current rate on the day that you lock in. Basically, the decision to float or lock relates to how willing you are to gamble that rates will be lower tomorrow or next week, etc. It usually makes sense to lock in your rate fairly early in the loan process, but it is important to understand that no lender can absolutely guarantee that rates will not drop (or increase) between the time you lock in and when you close on your loan. Interest rates move up and down on a daily basis.

What is an "escrow" account?
An "escrow," or "impound," account is maintained by your lender to cover the taxes and insurance that must be paid each year for your home. For most loans the lender is provided with the information about the property taxes and homeowners insurance that will be due annually. The lender then divides the total into 12 equal amounts and adds this to the amount that is due on your loan each month. When the taxes and insurance are due the lender makes the payment on your behalf. If you sell your home, any funds leftover in the escrow account will be refunded to you.

What is "PMI?"
"PMI" is Private Mortgage Insurance. When you purchase a home, if your down payment is less than 20% the lender will require that you pay for PMI. This insurance policy is taken out on behalf of the lender, to protect the lender's investment in the event that you default on the loan. It is normally included in your monthly loan payment, along with your normal homeowner's insurance and property taxes.

What is included in closing costs?
In Florida, closing costs include the following:

•  Appraisal fees
•  Lender fees (charges for underwriting, processing, tax services, document preparation, wire fees, etc.)
•  Title Company charges
•  County and State taxes
•  Survey fees
•  Any necessary escrow or impound amounts, normally several months worth paid in advance
•  Your first year of homeowner's insurance

Although it is not possible to exactly predict the total amount of closing costs, in Florida for a home selling for $100,000 closing costs will average around $3,000. Your mortgage broker or lender should provide you with more exact information well in advance of your closing date.

Do I have to document my income?
Yes!

What's involved in obtaining a loan for investment property?
Generally, loans for investment property are similar to those for a home purchase, except that the lender will require a higher down payment (20% - 25%) and the interest rate will be slightly higher. This is due to the higher degree of risk on a loan for investment property as opposed to a home loan.

Can you help me get a loan for commercial property?
Yes! We can definitely help you get the loan you need for commercial property investment. Call us today so that we can go to work finding the loan program that fits your needs.

Does Scott Mortgage handle Small Business Administration loans?
Yes! We can help you with an SBA loan, and this can be a very good option for a business owner who is seeking to purchase commercial property, and maybe also get cash to purchase equipment or do any necessary renovation. If you qualify for an SBA loan you will most likely be able to make a smaller down payment and have a longer term of loan, which can be a substantial benefit to you as a business owner.

Can you help me consolidate my bills into one loan?
Yes! Using the equity in your home, as discussed above, is a terrific way to roll all your credit card payments into one monthly payment. The amount you pay each month is typically less than you would pay on your credit cards, plus there may be tax advantages as discussed above.