The Costco Connection

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 application process.

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.

NMLS# 210764

TERESA TAYLOR

NMLS# 120060 eRates Mortgage

JOANNA MANN

NMLS# 216276

First Choice Loan Services Inc.

AMY PATERSON

NMLS# 420766

NBKC Bank

SHAUN HERMANSEN

NMLS# 148697

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.