Frequently Asked Questions
What is an Annual Percentage Rate (APR)?
Intended to reflect the actual cost of borrowing money and commonly used as a gage to compare the costs of loan programs from different lenders. Both California State and Federal law require interest rates to be displayed with equal prominence when used in advertising.
What is the difference between pre-qualifying and pre-approval?
Pre-qualifications issued by loan officers, are based on information supplied by the borrower and therefore are subject to verification of the facts. A pre-qualification letter is not a commitment to lend, it does, however, indicate to the seller that you are a serious buyer.
Pre-approval is very close to loan approval, and provides you with a pre-approval certificate which can help you negotiate a better price on your home and help you close your loan faster once you find the home you want.
What is a FICO Score?
FICO is a reliable means of credit evaluation, which condenses a borrower's credit history into a single number.
How can I increase my FICO Score?
Though difficult to increase a credit score over the short run, click above for some tips on how to increase your score over a period of time.
Can I correct errors that appear on my credit report?
YES. Report any errors in your report to the credit bureau; click above for the name and phone number of the three major credit bureaus in the United States.
What is a rate lock?
The ability of a borrower to lock in a specific interest rate, for a specific period of time and benefit from that rate regardless of whether rates go up during the loan process. The longer the length of the lock the higher the points or the interest rate. The reason being that the longer the lock the greater the risk for the lender, because if rates move higher, they are forced to give you the original rate you locked in.
What is meant by the term "index"?
Index's, which are used to make adjustments in variable rate loans, represent a statistic that indicates some current economic or financial condition. Click above for some well-known statistics.
What is meant by the term "margin"?
Margin identifies a fixed number added to the index to compute the actual rate.
What are variable rate loans?
Variable or adjustable rate transactions are loans whose interest rate fluctuates over the period of the loan. Click above for terminology relating to variable/adjustable rate loans.



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