or lines of credit. First Choice Loan Services Inc. is licensed by the N.J. Department of Banking and Insurance, and licensed by the Department of
Business Oversight under the California Residential Mortgage Lending Act. AZ BK #0918586. Loans in AR, N Y, and PR are originated by Berkshire Bank.
First Choice Loan Services Inc. has no af;liation with First Choice Bank, chartered and located in California. Costco and its af;liates do not take loan
applications, offer, negotiate, arrange or make mortgage loans or lines of credit. Costco does not guarantee products or services offered by First Choice
Loan Services Inc. Berkshire Bank is an FDIC insured Massachusetts chartered bank. Berkshire Hills Bancorp (NYSE: BHLB) is the parent of
Berkshire Bank. Costco is not af;liated with First Choice or any participating lender. Costco does not endorse and is not responsible for any
of the activities of First Choice or any of the participating lenders. SVC000027 0218
underwriter has approved the file. It’s recommended that
homebuyers obtain a prequalification or preapproval before
starting the buying process.
CS: What types of home loans are available?
Shaun Hermansen: Home loans are available for purchase or
refinancing, including cash-out, home improvement, or to change
the rate and/or term. The participating lenders offer Conventional,
Jumbo, FHA, VA and other loan types.
CS: How long does it take to finalize a purchase loan
for a home and what are the common delays?
Joanna: The timeline varies with each applicant, but the loan
process for a purchase is usually 45 to 60 days. Refinancing a
home may take less time, typically 30 to 60 days. Common
issues are documentation delays, appraisals and the title search
on a home.
CS: What is a Loan Estimate?
Amy: A Loan Estimate is an itemized list of all the fees associated
with purchasing or refinancing a house, including the estimated
interest rate and total closing costs. It is meant to give the
borrower the complete overview of loan terms, projected
payments, and whether or not a rate lock is in place. A mortgage
loan originator will explain this document in detail during the
CS: What does the monthly mortgage payment include?
Amy: The monthly mortgage payment typically includes
principal and interest to repay the loan. Other expenses that
may be included in the monthly payment are property taxes, and
homeowners, flood, or mortgage insurance, if applicable.
CS: How do you define fixed rate and adjustable rate loans?
Shaun: A fixed rate loan means the rate is fixed for the entire
term of the loan. Many borrowers like knowing the principal
payment and rate will not change during the duration of the loan.
First Choice Loan Services Inc.
Bofl Federal Bank
With an adjustable rate mortgage (ARM), the rate is fixed for an initial
term of the loan, and then may adjust at regular intervals depending
on market conditions.
CS: What is a rate lock?
Joanna: A rate lock is when the home purchaser requests and the
lender agrees to lock an interest rate for a specific amount of time.
The rate lock is specifically tied to the property, based on value and
other factors such as the buyers’ credit scores. Typically there is not
a rate lock fee, but a fee may be assessed if the loan does not close
within the agreed time frame.
CS: What happens if my rate lock expires?
Joanna: Depending on the reason the lock expired, you may be
able to extend your rate lock. However, a fee may be assessed to
preserve your existing rate lock against changes in the market. Your
mortgage loan originator will discuss your options as you go through
the loan process.
The best part about buying a house? The rewarding feeling of
moving in and turning that house into your own home. Start by
researching your options.
For more information and to start the loan shopping process, visit
CostcoFinance.com or call 1-800-793-0759.