1. What are the most commonly made mistakes in buying or refinancing a house?
2. Should I refinance?
3. Should I pay points? Does a 0 point/0 fee loan really exist?
4. What is a FICO score?
5. Why do interest rates change?
6. What is the difference between pre-qualifying and pre-approval?
7. What is a rate lock?
8. What is PMI? Can I get rid of the PMI on my loan?
9. What is an APR?
10. How can Crown approve loans in 1 hour when most other lenders take 4-6 weeks?
11. Why does it only take Crown 10 days to close a loan?
12. What are Junk Fees?
13. How do I know how much home I can afford?
14. What is the difference between fees and discount points?
15. What is the difference between an FHA and a Conventional loan?
16. Crown is a mortgage banker. What is the difference between a mortgage banker and a mortgage broker?

How can Crown approve loans in 1 hour when most other lenders take 4-6 weeks?

Crown Mortgage Company is a mortgage banker, the approval process for your loan takes place at our Corporate Office in Oak Lawn, Illinois. We have our own staff of underwriters who can approve your loan in 1 hour.

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Why does it only take Crown 10 days to close a loan?

Crown does not send your loan "out" to any other sources for approval, appraisal or document verification. We have our own staff of underwriters who approve your loan, our staff appraisers perform the appraisal on your home within 4 days, our loan processing department gets your file in order and verifies all documentation and our closing department prepares closing documents. Since your loan file never leaves Crown, we have the ability to go from approval to closing in 10 business days.

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What are Junk Fees?

Many lenders make money by adding hidden fees to the borrower's costs, frequently adding up to 1 1/2% of the mortgage amount in additional fees. Fees such as documentation preparation, processing, or underwriting fees are added. These fees are known as "Junk Fees." What usually happens is the borrower commits to the lender before they are aware of these fees. Many lenders advertise a "no fee" loan, but when borrowers receive their Good Faith Estimate, junk fees are added to their costs. Crown Mortgage Company does not charge any Junk Fees. We process your entire loan in-house so you are not charged any excess fees. Our comparison chart, Compare the Value of Crown, shows the savings.

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How do I know how much home I can afford?

Crown Mortgage Company offers a 1-Hour Pre-Purchase Mortgage Commitment. During this appointment, the maximum financing amount to purchase your home is determined along with the costs associated with home ownership. By knowing the costs beforehand, you gain a clearer idea of what you need to do to prepare for home ownership.

Your written Pre-Purchase Mortgage Commitment Certificate is reviewed at application, signed by a qualified FHA, VA and FNMA (PMI) underwriter and is valid for six months. This is Crown's commitment to fund you when you find a home, in essence you become a "cash buyer". The Pre-Purchase Mortgage Commitment is the ideal negotiating tool.Call us for details.

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What is the difference between fees and discount points?

Many lenders make money by adding hidden fees to the borrower's costs, frequently adding up to 1 1/2% of the mortgage amount in additional fees. Fees such as documentation preparation, processing, or underwriting fees are added. These fees are known as "Junk Fees". What usually happens is the borrower commits to the lender before they are aware of these fees. Many lenders advertise a "no fee" loan, but when borrowers receive their Good Faith Estimate, junk fees have been added to their costs. Crown Mortgage does not charge any Junk Fees.

Paying Discount Points can lower your interest rate. "Points" are often used to describe a fee lender's charge. A point means 1 percent of the loan amount. On a $100,000 loan 1 point equals $1,000. Discount points are paid at closing, in return for a lower interest rate.

Should you pay more points for a lower interest rate or pay less points for a higher rate? Keep in mind that the discount points you pay are tax deductible. Since all points are paid at closing, the downside is that you are required to have more cash at closing. If you plan on living in your home for a short period of time, you may decide not to pay points. A higher interest rate with lower or no points allows you to pay interest throughout the life of the loan. If you plan to stay in your home for the length of time it takes to break even on the amount paid for points, it would be a good idea to pay the points and get the lower interest rate on your mortgage.

Everyone's situation is different. Call us and speak with a Loan Officer about your options.

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What is the difference between an FHA and a Conventional loan?

A mortgage offered by the Federal Housing Administration (FHA) is a government insured loan. FHA Loans are issued by FHA-approved lenders. Crown is an FHA approved lender in Illinois, Indiana and Wisconsin. Properties purchased under these programs must meet certain minimum standards and possible loan limits. FHA insured loans offer very low down payments - 3 to 5%. Maximum loans are set by the FHA on a county-by-county basis to allow for differences in area housing prices.

A Conventional mortgage is a loan for $240,000 or less, that meets the standards set by Fannie Mae and Freddie Mac, the largest purchasers of home mortgages on the secondary market. Private mortgage insurance (PMI) is required by lenders if the borrower is going to put down less than 20 percent on a home. Typically, you pay PMI monthly, along with your monthly mortgage payment, and the lender then pays your premium.

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Crown is a mortgage banker. What is the difference between a mortgage banker and a mortgage broker?

A mortgage broker will take a loan application and then turn to other sources in search of someone to purchase your loan. This does not assure the interest rate you are quoted at application; the source which purchases your loan sets the price. This is why many consumers mail their monthly mortgage payment to companies throughout the country. Over the course of a 30 year mortgage, the company which owns your loan may change as often as 10 times. Brokers can also add a large amount of fees to your closing costs. These fees, known as "junk fees", are collected for the many sources which put your loan together. Our comparison chart, Compare the Value of Crown, outlines these expenses. As a mortgage banker we use our own funds to close your loan. Crown Mortgage Company fully services every loan we originate so monthly mortgage payments are made directly to our corporate office in Oak Lawn, Illinois. If you have questions on your loan, you may also contact our Servicing Department in Oak Lawn and speak with a representative 5 days a week.

Crown Mortgage Company serves Chicagoland, Northwest Indiana and Southern Wisconsin.

If we can help you with other questions about the mortgage process, e-mail us and we'll contact you.

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