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A: Why use a Connecticut Mortgage Broker?
Connecticut Mortgage brokers.
Apply for a Connecticut Home Equity Loan
Apply for a Connecticut Home Mortgage Loan
Contact Us
First Time Buyer in Connecticut Seminar Sign Up
Get Pre-Approved or Pre-Qualified
Refinance your Connecticut Home Mortgage Loan
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Q: Why can't we get the rates that we see advertised all over the internet and television etc.,?
A: Bankers affectionately call these rates 'teaser rates' and only about ten per cent of the population of Connecticut are eligible for these rates. But it is not just based solely on your credit score, many other factors are taken into consideration by Connecticut mortgage underwriters before a Connecticut property loan proposal is sent out. The calculation of your total monthly gross income to total monthly debt payments (your debt ratio) is a heavy factor in determining how much you can borrow and at what Connecticut mortgage interest rate.
A lesser, but still important consideration, is your total net assets. This is determined by adding up all your outstanding liabilities, usually car loans, credit card debts, student loans and existing CT mortgage obligations if the property isn’t to be sold, and subtracting the value of all eligible assets such as deposit accounts, other savings, 401Ks, financial investments, equity investments and the current value of your motor vehicle(s).
The whole mortgage application process in Connecticut is quite complex. So why not leave it up to us to find you the lender that best fits your requirements and situation, and save yourself a lot of time and effort and stress in talking to lenders directly? You will not have to complete the standard CT mortgage application form yourself, you will not have to concern yourself over how you present yourself to the underwriter and you will not have to worry about understanding who is offering you the best loan. We will do all that for you, that’s our job and we do it every day and we do it well.
Before You Apply
Q: We have not yet applied. Who do we contact for general information and questions regarding your services?
A: If you have not been assigned a personal loan officer, you can speak with one of our qualified loan consultants by calling 1 800-339-0680. Our business hours are Monday through Friday 8am - 5pm EST.
Q: Can we apply for a loan if we have filed for bankruptcy?
A: Yes. We can often provide you with a loan but we usually require that your bankruptcy discharge was at least six months ago and that you've had excellent credit since the discharge.
Q: Can we get 100% financing for our loan?
A: Yes, we can arrange for 100% financing by a combination of two loans in first and second position of security against the purchased or refinanced property. We usually go to the closing with the two mortgages being extended by the same lender. This avoids unnecessary complications over who did what, when where and why. The second loan will have a higher interest rate than the first to evidence the greater risk being taken by the lender. At a later stage the second loan can often be refinanced through a home equity line of credit at a lower interest rate and we will help you with that as well. Please call us at 1 800-339-0680 to complete an application over the phone with a qualified loan specialist or contact us via our website secure messaging at Acorn Home Mortgage Connecticut.
Q: Do you require a minimum loan amount?
A: Our loan minimums are based on property type and use. For a detailed explanation of online loan minimums and down payment requirements, please click here.
Q: Is there any cost to apply?
A: No. We do not require an up-front fee to submit an application and begin the loan process. You may be required to pay in advance for any appraisal fees not covered by any of our introductory offers.
Q: How do we determine how much we can afford to borrow?
A: The process of determining how much you can borrow is a more complex calculation than any online calculator can easily achieve. This is why realtors are not permitted to accept internet automated pre-qualifications. The reason for this is that other factors outside mere interest rates have to be taken into consideration. The amount that you can borrow is based on your total debt service liabilities against your gross income and then factor in credit score and the property tax rates in the town where you will purchase the property. See what we mean? Just call us toll free on 1 800-339-0680 because, as Connecticut mortgage specialists, we have all the updated numbers on our desks so one of our loan officers will be happy to make the calculation for you.
Q: We don’t have a lot of money for a down payment but can you still help us to get a loan?
A: We are specialists in helping people realize their dreams of owning their own homes in Connecticut. There are many different techniques and structures for enabling buyers to qualify for Connecticut home loans with programs offering up to 100% financing, without having to pay mortgage insurance. Just call us to introduce yourself or contact us via our website secure messaging at Acorn Home Mortgage Connecticut.
Q: Do we have to apply online or can we phone, fax or mail our application?
A: No one really applies for a mortgage completely online as the process requires some human intervention. Don’t frustrate yourself at this keyboard, just give us as much information as is easy for you and we’ll take it from there. We can either mail you a standard application form, or we can complete the form for you over the phone, whichever you prefer, but we would prefer to talk to your directly, every time.
Q: We live near your office so can we come in to complete an application?
A: Absolutely! We'd love to meet with you and assist you in person.
Q: Will you check our credit if we complete your online questionnaire?
A: You can tell us in the comments box if you don’t want us to check. The sooner we can review your credit history, the faster we can qualify you for a Connecticut home loan and send you a proposal. However, if you would prefer to speak with a Connecticut loan consultant before we review your credit history, we can do that, too.
Having said that though, credit inquiries are only damaging to your credit score when you have too many of them and spread out over a period of time. If you conduct all your mortgage-related credit inquiries within a three week period, they will generally be counted as one transaction. So, do all your mortgage ‘shopping’ within a three week period. However, with a mortgage broker like us, we can do all the shopping for you as we have over thirty lenders from which to choose, and the best bit is, they pay us to work for you.
Q: What documents will we need to provide with our application?
A: Our streamlined loan process minimizes the number of documents that you are required to provide; however, the actual documents that you need to send us will vary based on your situation. For more information, please visit our Connecticut Mortgage Documents page.
Q: What criteria do you use to evaluate our loan application?
A: In addition to the information you submit in the online application, we review your personal finances, including your credit history, employment and income, collateral, liabilities and assets.
Q: What if we don't have an email address?
A: You don’t need to have an email address to complete our online questionnaire. If you want one then there are many websites that offer free email accounts. Hotmail (http://www.hotmail.com), Yahoo (http://www.yahoo.com), and MSN (http://www.msn.com) are some of the most popular providers, and all three allow you to set up your email account in a matter of minutes, free of charge. But you can also talk to one of our loan officers over the phone at 1 800-339-0680 and have them take your information or send us a fax or mail.
Q: How long does it take to complete your online questionnaire?
A: It’s quick and easy with very few compulsory fields or just contact us via our website secure messaging at Acorn Home Mortgage Connecticut and don’t bother with the form.
After You Apply
Q: What should we expect once we complete the online application?
A: After completing one of our online forms, a loan officer will contact you to answer any questions you may have, discuss your loan program options and complete the application process. Please review our Next Steps for detailed information.
Q: How long will it take for our loan to be approved?
A: Upon receipt and verification of all required supporting information and documentation, we can approve your loan within one business day if your loan qualifies for one of our automated underwriting systems. Even if you do not qualify for desktop underwriting, your loan can be approved quickly, provided we have obtained sufficient up-front information from you.
Q: Who do we contact once our loan is in process?
A: Once we have received your completed application and supporting documentation, a Connecticut mortgage loan officer will be assigned to your relationship with us. Your Connecticut loan officer will be responsible for collecting any remaining documents, preparing your application for approval, and clearing your file for closing.
Q: How can we check the status of our application or loan?
A: During the application process, your Connecticut loan officer is available to answer your questions and offer advice. Once your loan is in process, your Connecticut loan officer can provide you with status updates and any additional information you may require.
Interest Rates
Q: What is the difference between the APR and the stated interest rate?
A: APR calculates the total cost of a Connecticut mortgage loan and expresses it as a yearly rate. That means that APR takes into account Connecticut mortgage insurance, points and certain fees paid at origination, in addition to your monthly interest payment. This generally results in a rate slightly higher than the stated interest rate on the Connecticut loan.
APR is often said to be the best comparison method from one Connecticut loan to another because it is calculated according to a federally mandated procedure. For example, some Connecticut mortgage lenders will state a very low interest rate, but then tack on several origination fees, increasing the actual cost of the Connecticut loan. Other lenders may state a higher rate, but then decide to charge minimal origination fees, thereby balancing out the total cost of the CT loan. If you were to compare the stated interest rates alone, you would likely assume that the lender offering the lower rate has the best price, but that may not always be the case. Since items, like origination fees, are included in the APR calculation, it is a more accurate depiction of the actual cost of the loan.
Q: What are the differences between fixed and adjustable rate mortgages?
A: Connecticut adjustable rate mortgages (CT ARMs) offer a lower initial interest rate than most fixed rates CT loans; however, the interest rate can change periodically (usually in relation to an index) and your monthly CT mortgage payment will go up or down accordingly. With a fixed rate CT mortgage, your interest rate and monthly CT mortgage payments will stay the same for the life of your loan, regardless of market conditions. When weighing the advantages and disadvantages of both, it is important to consider how much risk you are willing to assume. For many people, a CT ARM is the right mortgage choice, particularly if your income is likely to increase in the future or if you only plan on being in the home for three to five years. On the other hand, if you are looking to put the children through college then a fixed rate CT mortgage is a safer choice.
Q: How do we know if it's best to lock our rate or let it float?
A: Mortgage interest rate movements are as hard to predict as the stock market, and no one can really know for certain whether they'll go up or down.
If you have a hunch that rates are on an upward trend, then you'll want to consider locking the rate as soon as you are able. Before you decide to lock, make sure that your loan can close within the lock in period. It won't do you any good to lock your rate if you can't close during the rate lock period. If you think rates might drop while your loan is being processed, take a risk and let your rate "float" instead of locking. You can watch rates and lock in at any time.* It's a good idea to discuss your options with your Connecticut loan officer - he or she is an excellent resource for rate information.
*You must lock your rate at least 5 days prior to closing.
Q: When can we lock our rate?
A: Once you have completed the application process, your Connecticut loan officer will discuss your rate lock options. You must provide a property street address in order to lock your rate. Call 1 800-339-0680 for complete details.
Pre-Approval
Q: Can we apply for a loan before we find a property?
A: If you are in the process of looking for a property we recommend that you obtain a Pre-Approval. In fact, most prudent realtors will not accept internet pre-approval letters because they want a proper consultation too have taken place with a ‘real’ CT loan officer. A pre-approval will help you determine how much you can afford to borrow, based on your salary, estimated debt, property taxes in the area in which you are looking to live and the amount of money you have available to make a down payment and cover your closing costs. It is also an excellent tool for negotiating with real estate agents and sellers, since it lets those involved in the home buying process know that you are financially qualified to purchase a home.
Never give a pre-approval letter which we have written for your realtor to a potential seller, we will draft an alternative for that purpose to help you with negotiations.
Please note that we cannot lock your rate until you specify a property address.
Q: Why should we obtain a pre-approval?
A: A Pre-Approval helps you put your buying power in perspective, even before you find a property. Why waste time looking at houses you cannot afford, when a pre-approval can tell you, up-front, how much you qualify for? A pre-approval also lets others involved in the home buying process know that you are financially qualified to purchase a home. In fact, many real estate agents require borrowers to "pre-qualify" before they will even begin working with them. And most homebuyers feel that a pre-approval letter gives them greater flexibility and leverage while shopping for a home. We can issue pre-approval letter within 24 hours or less.
Q: What's the difference between getting pre-approved and applying for a mortgage?
A: The Pre-Approval is designed to help individuals who have not yet found the right property, but are in the process of looking. You may find that a pre-approval letter is required by your real estate agent or potential sellers, since it lets those involved in the home buying process know that you are financially qualified to purchase a home. A pre-approval will also help you to determine how much you can afford to borrow, based on your salary, estimated debt and the amount of money you have available to make a down payment. However, you cannot lock in your interest rate until you specify a property address.
If you have already found a property, you are ready to apply for a mortgage. Either complete our online questionnaire or contact us via our website secure messaging at Acorn Home Mortgage Connecticut.
Home Equity
Q: What is a Connecticut Home Equity Loan?
A: A Connecticut Home Equity Loan, also known as a Connecticut second mortgage, allows you to borrow a one-time disbursement of funds, using the equity in your current home or property as collateral. Your interest rate is usually fixed and the loan is amortized over a fixed term. Like a traditional mortgage, you borrow a set amount, you receive the set amount of funds in one disbursement and then you pay that loan back with interest over a set amount of time.
You may borrow up to 100% of the equity in your home. Because you have the option to rescind or cancel your loan for up to 3-days following the closing, your money will not be distributed until the end of this 3-day rescission period.
Q: What is a Connecticut Home Equity Line of Credit?
A: A Connecticut Home Equity Line of Credit allows you to periodically access an account of funds via various means, using the equity in your current home or property as collateral. This loan is similar to a credit card account in that you are only charged interest on the outstanding balance, and there is usually a credit limit or maximum that you can draw against. For instance, you may have a credit limit of $100,000, but if you only withdraw $5,000 of that, you will only pay interest on that $5,000. The interest rate is usually tied to the Prime Rate with a margin. In most cases the interest on Connecticut home equity loans and Connecticut lines of credit can be tax deductible. Consult your tax advisor about your specific situation.
You may borrow up to 100% of the equity in your home. Because you have the option to rescind or cancel your loan for up to three days following the closing, your money will not be accessible until the end of this three day rescission period.
Q: What is the difference between a fixed rate and a variable rate?
A: With a fixed rate loan, the interest rate will not change during the term of the loan. With a variable rate, the interest rate will move up or down, according to a pre-selected index, over the term of the loan. Connecticut Home Equity loans offer a fixed interest rate, and Connecticut Home Equity Lines of Credit feature a variable rate. Interest rates are based on the amount you borrow and the loan term.
Q: What can we use Connecticut Home Equity money for?
A: Connecticut Home Equity Loans and Connecticut Lines of Credit can be used for almost anything. The most common uses include debt consolidation, home improvement, purchase/payoff of auto, boat or other high-value items, purchase of investment property and college tuition fees.
Q: Is the interest tax deductible?
A: In most cases the interest on Connecticut home equity loans and Connecticut lines of credit can be tax deductible. Consult your tax advisor about your specific situation.
Q: Will our first mortgage be affected by a Connecticut home equity loan?
A: Your first Connecticut mortgage balance is used to determine your borrowing options, but your Connecticut home equity loan/line is totally separate and has no effect on your first Connecticut mortgage. It stands as a second charge against the assets of your property but can be used to enable you to purchase a property with a reduced down-payment.
Q: How much can we borrow?
A: Your Connecticut loan amount is determined by taking a percentage (up to 100%) of your home's fair market value and subtracting the balance of any outstanding Connecticut mortgages on the property.
Q: How can we access our Connecticut Home Equity Line of Credit?
A: You have several convenient options to access your Connecticut Home Equity Line of Credit:
Line of credit checks
Credit card tied exclusively to your Connecticut Home Equity Line of Credit
ATMs
Closing
Q: If we apply for a Connecticut mortgage, where will the closing take place?
A: Usually, the closing is held at an attorney's office. We can recommend some real estate specialist attorneys if you don’t have one but we do recommend that you only use attorneys specializing in the Connecticut real estate market. We can be present at the closing if you want but in any event we will deliver all the relevant Connecticut loan documents and ensure that your loan funds are with the settlement attorney at least 24 hours prior to closing.
Q: When will we know the exact amount of money we will need at closing?
A: Just to make sure there are no surprises at closing, your Connecticut loan officer will contact you a few days before the closing date to review your loan terms. The settlement attorney will also contact you at least 48-24 hours before your closing to tell you the exact amount that you'll need to bring with you. The funds you bring to closing must be in a certified form, such as a certified check or money order, and made payable to the settlement attorney.
Q: What happens at the loan closing?
A: The closing will take place at the office of a title company or attorney in your area. If you are purchasing a new construction Connecticut home, the seller may also be at the closing to transfer ownership to you. During the closing, you will be reviewing and signing several loan papers, including the Settlement Statement, the Truth-in-Lending Statement, the Note and the Mortgage or Deed of Trust. Just to make sure that there are no surprises at closing, your Connecticut loan officer and the settlement attorney will contact you a few days before closing to review your final fees, loan amount, first payment date, etc.
Q: What's included in closing costs?
A: Closing costs are expenses over and above the price of the Connecticut property. Closing costs include attorney's fees, taxes, prepaid insurance, points, title insurance and survey fees. Closing costs usually amount to between two and six percent of your mortgage. A complete list of your closing costs can be found on the Settlement Statement, and your Connecticut loan officer will go over your closing cost items with you as well. Connecticut Mortgage Closing Costs
Mortgage Insurance
Q: What is Private Connecticut Mortgage Insurance or PMI?
A: PMI is a type of insurance provided by a private Connecticut mortgage insurance company that protects the lender in the event that you default on the loan. Connecticut Mortgage insurance is usually required on a conventional Connecticut loan when your down payment is less than 20%. We structure most of our Connecticut loans today without using Connecticut mortgage insurance because it is more cost-effective to take out a Connecticut second mortgage at a higher but tax-deductible interest rate than pay non-tax deductible insurance premiums. We can show you how this works if you contact us via our website secure messaging at Acorn Home Mortgage Connecticut.
Q: How do we pay for Connecticut mortgage insurance?
A: Connecticut Mortgage Insurance premiums can be paid annually from an escrow account, paid up-front as a closing cost or financed in your loan amount and paid monthly as part of your Connecticut mortgage payment.
Q: How can we avoid Connecticut mortgage insurance?
A: The easiest way to avoid Connecticut mortgage insurance if you don’t have the necessary 20% down payment is to work with us. If you do not have the down payment, we will structure a second trust loan, often called a piggyback loan. The most common type of second trust is an 80/10/10, where a down payment of 10% is made, 80% is financed as usual, and the remaining 10% is financed in a second trust at a higher interest rate. We are also able to structure Connecticut home loans for up to 100% of the purchase price depending on your circumstances.
Q: When can we cancel our Connecticut mortgage insurance?
A: Typically, Connecticut mortgage insurance will no longer be required once your loan balance falls below 80% of the home value. You can reach this 80% level by 1) paying off enough of your loan over time to reduce the principal balance, 2) your home appreciating (increasing in value) enough that your loan balance is less than 80%, or 3) a combination of the two.
You should verify that your Connecticut home loan agreement allows for Connecticut mortgage insurance to be cancelled once you reach the 80% loan-to-value ratio. Sometimes, your Connecticut mortgage insurance will be cancelled automatically once you have paid enough; however, we will not know if your house increases in value. You will need to provide us with a certified appraisal of your house in order to verify the current market value.
Privacy and Security
Q: How secure is the information we am supplying to you?
A: To protect your information from any possible misappropriation, our website secures your data with the Secure Sockets Layer (SSL) system, the latest in encryption technology. SSL creates a secure connection between you and our servers so that the data you transmit cannot be seen by anyone else. It is scrambled into a code which cannot be easily broken into by a third party (it would take a modern high-powered main frame computer over 300 years to break a SSL encrypted code)
If you have any concerns or questions about privacy, security or applying online, please call us at 1 800-339-0680. We would be happy to take your application over the phone, via mail or fax.
Q: We've been told that requests for our credit report are damaging?
A: Credit inquiries can negatively affect your credit score. Having said that though, credit inquiries are only damaging to your credit score when you have too many of them and spread out over a period of time. If you conduct all your mortgage-related credit inquiries within a three week period, they will generally be counted as one transaction. So, do all your mortgage ‘shopping’ within a three week period. However, with a mortgage broker like us, we can do all the shopping for you as we have over thirty lenders from which to choose, and the best bit is, they pay us to work for you.
Q: Do you share our information with other companies?
A: The Connecticut mortgage process involves communicating personal financial data, and we understand the need for a safe and secure environment in which to share this information. We respect the trust you are giving us, and we do not use your information for any purpose other than to get your loan underwritten and to approve your loan. We do not share, rent or sell any of the information you provide to us. Please read our Privacy Policy.
Q: Is Acorn Home Mortgage a mortgage broker?
A: Yes, we are a licensed Connecticut mortgage broker for both first and second Connecticut mortgages under license numbers 15319 and 15321.
Q: Do you finance mobile home loans?
A: We do not provide loans for mobile homes.
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