General Mortgage FAQs :
When will I receive my renewal notice?
Approximately 45 days before your maturity date, you will receive an ‘Offer of Renewal’ notice in the mail. The renewal notice will provide you with details on how to proceed with renewing your mortgage as well as a list of rate and term options to choose from. You can either sign and return the renewal agreement or contact us to discuss your options in detail.
Do I need to re-qualify at renewal?
You do not need to resubmit a full application for mortgage approval. Bridgewater Bank will review your credit, mortgage payment and client history upon renewal.
How will I know the renewal rate?
Your renewal rate options will be mailed to you in an ‘Offer of Renewal’ notice approximately 45 days before your mortgage maturity date.
If I sell my house and buy a new one, can I transfer my mortgage to the new property?
Yes, in most cases Bridgewater Bank can move your mortgage with you. Your Bridgewater Bank mortgage is portable or assumable subject to borrower and property qualification.
Home Buying FAQs:
What is the minimum required down payment when purchasing a home?
You will need a minimum of 5% of the home purchase price as a down payment on an owner occupied property. Mortgage default insurance is required on any property with less than 20% down payment. If you are purchasing a rental or income producing property, you will require a minimum of 20% of the property purchase price to qualify.
Are there restrictions on where the down payment money comes from? For example, can I borrow my down payment money or have my parents lend me the money?
There are many resources you may be able to use in order to achieve your down payment sooner. Down payment resources are broken into two categories: traditional and non-traditional down payment options.
What is a mortgage amortization?
Amortization is the estimated number of years it will take to pay off your mortgage entirely. Amortization periods range up to 30 years. The longer your amortization is, the lower your mortgage payments will be, but the higher the total amount of interest you’ll pay over the life of the mortgage. An amortization is made up of a number of mortgage terms.
What is a mortgage term?
It is the length of time a lender will lend mortgage funds to a borrower. Most mortgage terms run from six months to five years. Certain lenders may offer longer terms, e.g., 6, 7 or 10 years.
After this period, the borrower can either repay the balance — the remaining principal plus interest — of the mortgage or renew the mortgage for another term. The total length of a mortgage is usually made up of several terms.
How long does it take to get a mortgage?
Typically you should allow for a minimum of 30 days and as much as 90 days to complete your mortgage qualifying and approval process.
What other costs should I consider when buying a home?
There are several possible extra costs involved in purchasing a home. Some are one-time closing costs, such as land transfer taxes, legal or notary fees, fire insurance, survey fee or title insurance, and applicable sales tax. Others, such as property insurance, are ongoing monthly expenses. We recommend that you budget 1.5% – 4% of the price of your new home to cover these types of costs.
- How do I know my credit rating and is there a minimum credit score that I need to qualify for a mortgage?
I just got a job. Can I get a mortgage?
Under most circumstances, you must be employed for a minimum of 3 months and be past the probationary period at your place of employment for the lender to consider your current employment and salary.
What is a Mortgage Registration?
Your lender will register what is known as a “charge.” This process provides a means of securing a mortgage or other loan against your property. There are two types they may use: standard and collateral. Bridgewater Bank registers all mortgages as a standard charge mortgage.
What is an Anniversary Date/Interest Adjustable Date?
Interest adjustment date (IAD) is your term start date. Your anniversary date is every 12 month period following the interest adjustment date.