We have compiled a list of frequently asked questions for your review:

1. What's the difference between a banker or a broker?

A banker actually funds the loans, while a broker shops all different banks for the best rates and terms.

2. Do I pay more by working with a broker?

No. Most banks have two different departments…Wholesale (to brokers) and Retail (to public). The wholesale department will quote rates and points to the broker that will allow for the broker to get paid a commission on the loan, but still allow the broker to be as competitive or lower then the retail quotes to the public. Therefore the consumer will get the better rates from the broker by searching all of the banks to obtain the lowest rate available for the consumer.

3. What if a lender from another state contacts me? The lender who contacts you will have already identified the fact that they will be able to lend in your specific state. Avis Mortgage is able to process loans electronically to make the transaction close faster.

4. Do I write a check to lender at the beginning of the application?

Usually a check is necessary upfront to order both the appraisal and the credit report on a loan file. On a refinance the appraiser is usually paid by the homeowner when the inspector arrives at the property.

5. What are loan points?

Loan "points" are a percentage of the loan amount which is factored in to the closing costs.

6. How can Lender's advertise no points loans?

The cost of a mortgage is calculated by combining the interest rate and points. If the points are 0 the rate is usually higher. The lower the rate the higher the points. The true cost of the loan can usually be determined by analyzing the APR or Truth in Lending Disclosures.

7. Should I lock in my interest rate at application?

This is the toughest question of them all. When you "lock-in" your interest rate the lender usually pays a fee on Wall Street to reserve the specific amount of money for your loan. Therefore most banks will not allow negotiations on interest rates after they are locked-in, even if the rates are lower. When you lock your loan make sure that it is the interest rate that you are willing to accept no matter what happens.

8. How long does the loan process take?

The loan process can take as little as two weeks providing all of the proper information is received upfront. The more information that is provided at the beginning of the loan, the faster we can process that information and have the loan underwriter approve your loan.

9. What information will I need upfront?

The most common items needed are: Last Two Years Tax Returns, Recent Paystubs, Two Months Bank Statements, Mortgage Holder or Landlord Address and Account Number, Last Credit Card Statements if Balance is Carried Forward, Copy of Certificate of Title for Automobiles.

10. Do I have to use the Lender recommended by the builder/Realtor?

In most states it is illegal for a builder or Realtor to force a lender's service upon you. It is your right to pick a lender that you feel the most comfortable with and who offers you the most competitive rates. If you have been told that you are not allowed to use your lender of choice, call your local Dept. of Real Estate to verify what choices you have.