Q: What is your NMLS ID #?
A: The company’s NMLS ID # is 182489.  David Cole’s NMLS ID # is 182366.  Amare Merz’s NMLS ID # is 207743.

Q: Is Patriot NTNL Mortgage Corporation a lender or a broker?
A: Patriot is licensed as a lender and a broker in Maryland and as a broker in Virginia and Washington, DC. When we are doing loans in Maryland, we work in whatever capacity is to the borrower’s best interest.

Q: What is the difference between a mortgage lender and a mortgage broker?
A: A mortgage lender lends money from it’s own deposits or using a wholesale lending line of credit.  A broker negotiates a loan on your behalf with a lender. The advantage of using a broker is that it allows you to have your loan shopped for the best rate and cost without you having to do the work.

Q: What is the current rate?
A: The rate you are offered depends on many variables including but not limited to the amount of the loan, the ratio of the amount of the loan to the value of the property (LTV or loan to value), your credit score and history, the type of loan you want, the length of the term of the loan, and many other factors. It is impossible to quote you a rate without knowing the particulars of your situation. Please feel free to contact us and we will be happy to discuss it with you.

Q: Do you do construction loans?
A: Yes, we work with lenders who offer one and two close construction loans as well as owner builder loans.

Q: Why do I have to pay for the appraisal up front?
A: The appraisal fee is a fee that is required by the appraisal management company before they will come out to do the appraisal. This is a fee that is incurred regardless of whether the loan closes or not. This is a third party fee that is not retained by the broker or lender but goes directly to the appraisal management company.

Q: Why can’t I choose my appraiser?
A: New laws were put into place in 2009 which require that all appraisals be ordered through an independent appraisal management company to maintain objectivity.

Q: Why do I have to provide my tax returns even if I am not self-employed?
A: There are certain deductions which you may take on your taxes that have to be subtracted from your available income. All lenders are now requiring that all borrowers provide copies of their signed tax returns for the previous two years. The underwriters also compare your W2 income with what was reported on your tax return, and they make sure that there is no business loss which you didn’t declare on your mortgage application. You will also be required to sign a 4506-T and the lender will request copies of your tax returns directly from the IRS to make sure they match what you provided.

Q: Why do I have to provide my photo ID?
A: The Patriot Act requires that all borrowers and co-borrowers provide proof of identification.

Q: I have had a bankruptcy; will I qualify for a loan?
A: It will depend on the type of bankruptcy you filed, if it has been discharged and when, and the type of loan you want. We will be happy to discuss your specific situation with you.

Q: What is the minimum credit score I need to qualify for a loan?
A: It depends on the loan. As a general rule, you may qualify for an FHA loan with a lower credit score than you would if you applied for a conventional loan.

Q: What is the difference between an FHA loan and a conventional loan?
A: An FHA loan is insured by the federal government and requires a smaller down payment than a conventional loan. FHA loans are often available to borrowers with lower credit scores as well.

Q: What is the difference between a pre-qualification and a pre-approval?
A: A pre-qualification is done with just the information that you provide to us verbally. It allows us to give you a general idea of how large a loan you will qualify to carry. It is best viewed as a theoretical exercise. A pre-approval requires you to provide us with documentation to support the information you provided on your loan application. To issue a pre-approval, we will pull your credit, verify your income and employment, and verify your assets.

Q: How much money do I need for the down payment?
A: For a conventional loan with mortgage insurance you will need a minimum of 5% if you meet certain guidelines. For an FHA loan, the minimum down payment requirement is 3.5%. For a VA or USDA guaranteed loan, there is no minimum down payment.

Q: Can I use gift funds for down payment or closing?
A: In certain cases, with certain loan products and with appropriate documentation, gift funds are allowed.

Q:What will my closing costs be?
A: There is no formula for estimating closing costs, because the costs vary depending on a number of factors including the rate you choose, the month and day you settle on the transaction, seller concessions, and the type of loan you choose. We will be happy to discuss your specific situation with you.

Q: What are closing costs?
A: Closing costs can basically be broken down into three sections. Fees that are paid to the lender or third parties associated with qualifying the borrower and the property such as credit report fees, appraisal fees and lender underwriting or administration fees fall into this category as do origination fees. You might also choose to pay fees called discount points to lower your loan rate. The second category is title fees and includes fees for the abstract search, title binder, and title insurance. The third category is known as pre-paids and includes the daily interest charge from the date of settlement to the first day of the next month and the money needed to establish your escrow account for taxes and homeowner’s insurance. If you are purchasing a house, you will be required to pay for the first year of homeowner’s insurance before settlement or at the settlement table.

Q: What are MIP and PMI?
A: MIP is the annual mortgage insurance premium on an FHA loan broken down into 12 equal payments per year and added to your monthly mortgage payment. PMI is private mortgage insurance. PMI is required when you have a conventional mortgage loan that is greater than 80% loan to value.

If you didn’t find the answer to your question in this section, don’t hesitate to contact us and we will be happy to try to answer any additional questions you might have.