The Mortgage
A mortgage is a legal method by which a borrower, otherwise known as the mortgagor, can pledge property to the lender - the mortgagee - as security for a debt.

During the mortgage approval process, the qualification of the borrower is a key step. The borrower should be financially fit based upon specific mortgage measures to carry the mortgage applied for. This is where THEOS Mortgage & Finance comes in. Clients often are not in a financially sound position to carry the mortgage that they are seeking and need guidance in making the right decision.

Due to the amassed wealth of training and experience, THEOS can make the difference.

Mortgage FAQS
What is involved in the home loan process?
Why should one borrow?
What is a second mortgage?
In what situations is a second mortgage necessary?

Mortgage FAQS

What is involved in the home loan process?
The first step in obtaining a Mortgage Loan for a Home is to fill out the Mortgage Loan Application. The Application will ask you for Name, Address, Social Insurance Number, Income, Assets, Debts and Payments etc...

You will need to give at least 2 years worth of Residence and Employment Information on the application.

Once you have completed the Application your credit will be checked and cross referenced with what you have given to make sure that your Debts are listed correctly and that your payments will fit the guidelines for the Loan that you are seeking. After your credit is checked and you fit the guidelines for your loan program your pre-approval will be issued. Once you are pre-approved several things will happen as your loan goes into the Processing Stage:

• A Property Valuation Appraisal will be ordered on your Home to make sure that the value of the property is enough for the Loan Program that you are trying to do.

• A Title Insurance Policy will be ordered on your Home to make sure that there are no additional Liens, Judgments, or any other items affecting your Loan. This Policy of Title Insurance will protect the Lender's interest in your Home as well as your own and the premium is paid one time at closing.

• Verifications of Rent, Employment, Deposit, etc. will be ordered as necessary to verify the information on your Loan Application.

• Once the Appraisal, Title and Verifications are assembled, an Underwriter will look over everything at once to make sure that the file is complete and if it meets the Loan Guidelines, a Loan Commitment will be issued and your Loan will be ready to close.

• At Closing there will be a Loan Document Package that you will sign with the Title Company's Closer. If it is a Purchase Transaction or it is a refinance of a Non-Owner Occupied Home the Loan will Fund after you are done signing your documents. If it is a refinance on your Primary Residence or Second Home you will have to wait for 3 Business days after your day of closing for the loan to fund. These 3 business days are called the Rescission Period and you have the ability to look over all of the documents that you have signed and make sure that the terms of the loan are what you expected. If for some reason you feel that the loan will not fit you or that the terms are different than first presented you have the "right to cancel" the loan transaction prior to midnight on that 3rd business day and your Loan will become Null and Void. The Rescission Period is set up to protect you.

• Once the loan funds, your checks will be sent off to the various parties listed on the closing statement and any money owed to you will be sent

You are now done with your loan transaction and all you have to do is wait to start making payments when they are due.
Let us tell you the truth about:

* High broker fees
* Inflated appraisals
* 2nd mortgages
* No money down
* Balloon payments
* Liens
* Judgments
* Your credit report
* Interest rates
* Realtor fees
* Closing cost assistance
* Predatory lending
* Government foreclosure schemes

Contact us soon and we'll tell you the truth about how your borrowing experience should be.
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Why should one borrow?
* Own your own home
* Pay off credit cards
* Reduce debt
* Build equity
* Create disposable income
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What is a second mortgage?
A second mortgage is a loan taken after the first mortgage, and it is secured against the same assets as the first. It is based on the amount of equity or interest or ownership you have in that property, thus based on the difference between the current value of the property and the amount you owe on it.
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In what situations is a second mortgage necessary?
Second mortgages are arranged for various purposes, such as financing home improvements, college tuition fees, debt consolidation or other emergency expenses. If you have gathered enough equity, another option is to refinance your home and borrow funds in excess of your current loan balance. Usually, a second mortgage carries a higher rate of interest than a first mortgage. So if interest rates are low or start decreasing, refinancing becomes a more appropriate option. Since underwriting guidelines are less strict for second mortgages, it usually takes less time and effort to get a second mortgage than to refinance a loan. Also, a second mortgage may have low transaction costs, so despite higher interest rates on second mortgages, in the long run they may turn out to be less expensive than refinancing.




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