Frequently Asked Questions

Mortgage Basics FAQ

What are the closing costs?

Closing costs are fees you have to pay at closing on top of your down payment. Generally range between 2%-5% of the loan amount depending on the property size, property taxes, insurance and other factors

What fees are part of the closing cost?
  • Appraisal
  • Title Work
  • Government fees: such as tax transfer and recording fees
  • Initial Escrow Payment: Which will Include pre-paying for 3-6 months of the property taxes, mortgage insurance and home insurance
  • Miscellaneous / Other fees based on your loan program
  • The best way to anticipate what will be part of the closing costs is to ask for the loan estimate
Do you charge any fees?


What’s a loan estimate?

This loan estimate explains your estimated interest rate, monthly payment, closing costs for your loan, and other important loan details

What is included in my monthly loan payment?

Your payment will include principal and interest payments of the mortgage. Property taxes, home insurance and, if applicable, mortgage insurance may also be included depending on the loan ratio and program.

What is an escrow account?

Depending on your loan program your lender may establish an escrow account when you close on your loan, to collect a pre payment for the property taxes, mortgage insurance and home insurance.

What if I don’t have enough money for a down payment?

We will accept gift funds from a family member or a relative towards your entire down payment or a portion of it

What are points?

A point is simply a percentage of your loan amount. 1-point = 1% of the loan, so therefore, one point on a $100,000 loan is $1,000. Discount points are simply fees used to lower the interest rate on a mortgage loan.

Should I pay points to lower my interest rate?

It depends on the market conditions, interest rates and how long you plan to stay in the property. No worries, that’s why we’re here, we will present different scenarios and help guide you to reach the best decision for you

What does it mean to lock the interest rate?

From the day you apply for a loan to the day you close, your mortgage rate would be under a “Floating Status”, which means it’s not secured or guaranteed. Subsequently if interest rates rise you may have to settle for a higher rate than initially expected! However, if interest rates decline then you have scored yourself a low interest rate! This is why it’s important to work with knowledgeable mortgage originators like us. We not only monitor interest rates every day multiple times a day during your loan process to score the “perfect” time to lock we also employ multiple locking strategies to lock you with the ideal rate based on your loan terms.

When can I lock the interest rate?

In order for us to be able to change your interest rate from a floating status to locked we need to have an accepted offer on a house and have your loan submitted with a lender

What is an Appraisal?

An Appraisal is the estimate of a property’s fair market value. An appraiser is assigned by a third party company that handles scheduling appraisals during the loan process. The appraiser will go out to the property to inspect the condition, size and other factors pertaining the property compared to comparable properties in the area.

Is an appraisal required to get a loan?

Yes, an appraisal is required during a purchase loan process. In some cases we may able to waive the appraisal for you during the refinance process.

Purchase FAQ

How can I get started?
My pre-approval expired, and I have not found a home, now what?

We will briefly go over a few things with you to make sure nothing has changed and re-issue a new pre-approval.

Do I qualify to purchase another house if I have not sold my current one?

If you are able to financially afford two mortgage payments at the same time, then yes. If not, do not panic! We will work with your realtor, who will on your behalf set up a simultaneous closing – which means, you will schedule the closing to sell your current home on the same day, right before the closing to purchase your new home

I don’t have a home picked out, is that okay?

Yes, in fact congratulations! YOU ARE DOING IT RIGHT. The last thing you want is to fall in love with a home that is outside of your approved range. The best practice is to know what you qualify for and then start looking for a house to make your home

Do you know any good realtors?

We sure do! Just ask us for a list. Using a realtor is the best way to purchase a house because they will look out for your best interest and support you throughout the process. AND it’s FREE to you, the realtor will be paid by the seller.

Your process is really fast, how come?

We have streamlined our process to take out the unnecessary waiting times and have innovative technology to get you closed quickly and efficiently!

Why do I need to put down a deposit when making an offer on a house?

Putting down a deposit on the house shows the sellers that you are serious about purchasing their home. Having a good realtor representing you will help protect your deposit in case you need to retract your offer on that specific house and look for another one.

We Received the inspection report and there are so many repairs, what do we do?

This is why it’s essential to work with a professional and knowledgeable realtor; your realtor will ensure to either address these repairs to the seller/s and come to an agreement that works for you or you can choose to cancel the contract during the inspection period. Your realtor will be able to guide you and ensure that you complete the process within the inspection period.

Refinance FAQ

Can I refinance if I have a second mortgage?

Second mortgages are typically paid off through a refinance. At Loan Allies, we will consolidate both loans into a new first mortgage so you will only have one payment each month. However, if it is preferable to you to keep your second mortgage intact, we may be able to ask your second mortgage lender to retain their spot in second position and allow us to refinance the first loan.

Can I refinance with imperfect credit?

The general answer is yes, we will either find a way to qualify you for a refinance or guide you on some strategies to improve your credit and then help you refinance

How long Is the refinance process?

Typically, refinance transactions close within 30 days from application to closing. However, we have constructed a seamless process, enhanced by our paperless technology that enables us to close loans even faster than the average industry turn-times. All we ask is that you do your part in delivering your needed documentation in a timely manner. We have closed refinances in one week or less!

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