What is a mortgage?
A mortgage pledges real property as security for the repayment of a loan that has been given to purchase real estate. When the loan is repaid, the mortgage is canceled.

What is a mortgage broker?
A mortgage broker is an independent professional who works with a large number of lenders to find advantageous funding for the purchase of real estate. Working from Santa Fe, I can provide financing options that are tailored to your specific financial goals with lenders across the country.

Who is a first-time homebuyer?
A first-time homebuyer is defined as someone who has not owned a home during the past three consecutive years. In New Mexico, owning a mobile home is counted as homeownership only if it is attached to a permanent foundation.

What is pre-qualification
Pre-qualification certification is a service provided by Citivest Mortgage based on information you supply that allows us to calculate the dollar value of a loan you are likely to qualify for. It is essential to pre-qualify before you begin looking at Santa Fe real estate so that you have a clear idea of what price range is realistic for you!
Pre-qualify online now!
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What is pre-approval
This involves a verification of your credit and employment history. Getting your loan request pre-approved and getting formal documentation of the pre-approval allows you to move quickly when you find your dream house. This is highly recommended as an important step in making your purchase process go smoothly.

What papers will I need for a loan application?
This will depend on the type of loan we agree best suits your needs, but in general you will need to give us your last two years completed tax returns with all attachments and accompanying W2s, your last three pay stubs, your last three bank statements, name, address, and account numbers for all debts, and a complete copy of your executed purchase contract.

What is a rate lock?
This is optional, and there are trade offs involved in a decision to lock in the rate or let it float. We will discuss whether it is a good idea at the time you apply. A rate lock is the amount of time, usually 30 — 60 days, that a lender will guarantee a loan's interest rate. The longer the length of the lock, the higher the points or the interest rate.

What are points?
One point is 1% of the amount of the loan. You can choose to pay points and have them added to your closing costs in order to obtain a lower interest rate. Again, there are trade-offs in paying points and I will help you decide whether it is a good idea for your particular situation.
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What is included in closing costs?
You will get an estimate of closing costs well in advance of the actual closing. You should read the estimate carefully and question any fees or charges you don't understand at that time.
The costs you will generally pay at closing, in addition to the cost of the purchase, include:
The Lender's fees (origination fees, any points, appraisal, credit report, underwriting, settlement and tax service fee)
Advance payment These charges cover ongoing homeownership costs that you will owe after the closing but before the first monthly mortgage payment. (interim interest, real estate taxes, insurance premiums)
Settlement costs (title insurance, inspection fees, attorney fees, taxes, and recording fees) Some settlement costs are negotiable as to whether the buyer or the seller pays, and this is determined at the time of executing the purchase agreement.

What is included in a monthly mortgage payment?
Principal and interest are always included and often property taxes and homeowners insurance. Private mortgage insurance (PMI) is generally required if you make less than a 20% downpayment.

What factors affect the amount of a mortgage payment?
You can affect the amount of your monthly payment by your choices about the following factors: the amount of the down payment, the size of the mortgage loan, the type of loan and related interest rate, and the length of the repayment term. Choosing the lowest monthly payment may not be in your best interest, depending on your circumstances, and we will help you understand your options.

When should I think about refinancing?
If you plan to be in your house for the next several years, interest rates drop, and you can get a considerably lower rate than what you are currently paying, you should consider refinancing. You may be required to pay all lender and settlement costs again.
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What is an APR?
Annual Percentage Rate (APR) represents the actual cost of your mortgage. It includes any points or other prepaid finance charges. The Truth-In-Lending Act requires disclosure of the APR.

What is Truth in Lending?
The Truth in Lending Act is a federal law that requires lenders to inform consumers about the annual percentage rate (APR) and all finance charges and payment terms that are presented in the note.

Will I have to pay a penalty for prepayment?
Most loans do not include a prepayment penalty, but this is something you need to verify. Prepayments, even partial ones, can help you save interest and reduce the term of your loan. Making one extra payment per year, entirely to principal, will allow you to pay off your mortgage in less time — a 30 year mortgage in 20 years, for example — with significant savings in the total amount of interest paid.

What is private mortgage insurance (PMI)?
Private mortgage insurance is required on loans with less than a 20 percent down payment and is to protect the lender against default. It should not be included in your loan balance and thus subject to interest charges. When the equity in your house increases to 20% of the loan balance, you can eliminate this insurance.
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What is homeowner's insurance?
Lenders generally require a borrower to maintain insurance, to protect against the cost of fire damage especially, that is equal at least to the amount of the mortgage. This basic amount may not cover the actual replacement or even partial rebuilding cost of an equivalent house.

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