Archway Lending---A Residential & Commercial Mortgage Broker.

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TESTIMONIALS
"My husband and I were absolutely thrilled with the professionalism and responsiveness to our
needs throughout the loan process ." S. Doty, Insurance Agent
"Archway Lending goes above and beyond the call of duty in making my clients' home buying experiences a true pleasure." C. Allen, Realtor

"I recommend Archway Lending to all my buyers. I also refer Archway Lending to other real estate agents because they fulfill their promises and meet closing deadlines." P. Pataro, Realtor

1.	When should I contact a mortgage professional? Answer
2.	Which mortgage professional is best for me? What do others say about Archway Lending? Answer
3.	How much can I afford to pay for a home? Answer
4.	How much will I need for the down payment? Answer
5.	How much total cash will I need to purchase a home? Answer
6.	How important is my credit history? Answer
7.	How do I know which type of loan program is best for me? Answer
8.	How long does the loan process take? Answer
9.	What does my mortgage payment include? Answer
10.	I currently own a home, and I’m thinking about refinancing. When does refinancing make sense? Answer
11.	What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
12.	How is an index and margin used in an ARM? Answer

Q :	When should I contact a mortgage professional?
A :	If at all possible, consult with a mortgage professional prior to starting the home buying process, especially since a mortgage professional can provide you with a realistic price range. Moreover, many real estate agents and sellers want to know if you are pre-qualified for a loan prior to even showing you a house! Fortunately, we’re here to help. Contact us, and we’ll do everything we can to get you pre-qualified and issue a Pre-Qualification Letter that you can present to real estate agents and sellers in order to give them comfort that you are a legitimate buyer...all at no cost to you!

Q :	Which mortgage professional is best for me? What do others say about Archway Lending?
A :	Although fees and interest rates are always an issue to consider, mortgage professionals can’t stay in business long if they aren’t competitive. In light of that fact, we recommend that you seek a mortgage professional who is knowledgeable, friendly, willing to listen, responsive and eager to make your transaction run as smooth as silk. To assist you in that process, please consult with your family and friends. After all, if they won’t tell you the truth, who will? Furthermore, take a look at the testimonials on the left side of this page and see what realtors, home builders and borrowers have to say about us. At Archway Lending, we strive to exceed your expectations each day. Contact us, and we’ll make our work schedule fit yours!

Q :	How much can I afford to pay for a home?
A :	Before you begin the home buying process, you need to have some idea of what you can afford. Many so called “experts” state that you can purchase a home with a value of two or three times your annual household income, depending on your savings and debt of course. However, this guideline may cause you to become “house rich, cash poor.” As a general rule, your monthly housing costs (including mortgage payment, taxes and insurance) should not exceed 28 percent of your gross monthly income. Furthermore, your monthly housing costs plus other long-term debt (such as car payments, credit card payments, student loan payments, etc.) should not exceed more than 36 percent of your gross monthly income. There are, however, exceptions to this general rule! For example, FHA/VA loan programs are more flexible on the percentages mentioned above. To assist you with this determination, check out our financing calculators. In order to get a true estimate of what you can really afford, it’s best to contact a mortgage professional and let them assist you. At Archway Lending, we perform this task at no expense to you.

Q :	How much will I need for the down payment?
A :	Due to the wide variety of loan programs on the market today, there is no set minimum. In fact, there are some loan programs that don’t require a down payment at all! Contact us, and we’ll discuss the options that are available for your particular situation.

Q :	How much total cash will I need to purchase a home?
A :	The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply: Earnest Money: The deposit that is supplied when you make an offer on the house Down Payment: A percentage of the cost of the home that is due at settlement Closing Costs: Costs associated with processing paperwork to purchase or refinance a house, as well as escrows and prepaid expenses such as taxes and insurance (typically 2.5% to 3% of the home purchase price).

Q :	How important is my credit history?
A :	In residential lending, a critical determination to loan approval is your credit history. Although the lender will consider the value of the home as collateral, the lender will also want to know that you can (and will) make the monthly mortgage payments. Thus, if you have credit problems or have had credit problems in the recent past, be prepared to discuss them in detail with your mortgage professional. Always remember…a good mortgage professional is there to help you, not judge you.

Q :	How do I know which type of loan program is best for me?
A :	Unfortunately, there isn’t a quick and easy answer. The right type of loan program depends on many different factors: What are your financial goals? Do you want to retire early? Is this your dream home or just a place to hang your hat? Where do you want to be in 5 years? How about 10 years? Are you willing to endure fluctuations in interest rates? If you don’t want to escrow monthly amounts for property taxes and insurance, do you have enough discipline to put this money aside? For example, a 15-year fixed-rate mortgage can save you thousands of dollars in interest payments over the life of the loan, but your monthly payments will be higher than those of a 30-year fixed rate mortgage. If you’re considering an adjustable rate mortgage (ARM), it will typically have a lower monthly payment than a fixed-rate mortgage. However, once the “fixed rate period” of the ARM expires, the payments will increase or decrease based on the fluctuation of the designated index. In sum, the best way to find the perfect loan program is to discuss your finances, your goals and your willingness to take risks with a mortgage professional. Contact us, and we’ll discuss your options openly and honestly.

Q :	How long does the loan process take?
A :	Unfortunately, there’s not a simple answer. It all depends on the type of loan program you choose (for example, VA/FHA vs. Conventional), your ability to provide the mortgage professional with complete information promptly and the workload of other professionals involved in the transaction (such as surveyors, appraisers, escrow agents and attorneys). For many home buyers, this waiting period can be quite stressful. In light of that fact, we recommend that you and the mortgage professional keep in touch and inform each other about progress updates and/or changes in the transaction. At Archway Lending, we want to make sure that you have a positive lending experience. In order to meet that goal, we only work with the best and most responsive wholesale lenders and appraisers in the industry. Furthermore, we will periodically inform you (or your real estate agent if you desire) of the status of the transaction and any issues that need to be resolved. Without a doubt, our desire and commitment is to provide you with exceptional service throughout the loan process.

Q :	What does my mortgage payment include?
A :	For most homeowners, the monthly mortgage payments include three separate parts: Principal: Repayment on the amount borrowed Interest: Payment to the lender for the amount borrowed Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.

Q :	I currently own a home, and I’m thinking about refinancing. When does refinancing make sense?
A :	Refinancing makes sense if: Your current home loan has a high interest rate and you want to take advantage of lower interest rates currently available (as well as lower your monthly payments) You want to eliminate the Private Mortgage Insurance (PMI) you currently pay each month You want to eliminate any 2nd mortgage on your home You want to convert from one loan program to another (such as converting from an Adjustable Rate Mortgage (ARM) to a fixed rate program) You want to tap into your home's equity for home improvement, reducing credit card balances, starting a business or tuition costs At Archway Lending, we routinely assist our clients with refinancing. Contact us, and we’ll help you determine if refinancing is a good decision.

Q :	What is the difference between a fixed-rate loan and an adjustable-rate loan?
A :	With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to a mortgage professional. Contact us, and we'll discuss your options candidly.

Q :	How is an index and margin used in an ARM?
A :	An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).