FREQUENTLY ASKED QUESTIONS

How long does it take to complete the process?

Generally, the process of financing or refinancing your home loan takes about 30 days from application to closing. Financing raw land may take a little less. New construction financing can be approved in about the same amount of time, yet the actual construction usually takes about 6 months. All these programs require complete financial and property information, so it is essential that the mortgage loan application be as thorough as possible to avoid unnecessary delays.

What size down payment is required?

Many of our programs do not require any down payment.

What term lengths do you offer?

On home purchases, our most popular terms are 30 and 15 years. These terms are available for fixed-rate and adjustable-rate mortgages. We also offer 25, 20, and 10 year terms (not available for ARMs). In general, the shorter your term, the better your interest rate but the higher your monthly payment. For unimproved property, our term is 15 or 30 years.

What does it mean to lock or float an interest rate during the application process?

Mortgage loan interest rates can change on a daily basis. Some members prefer to avoid this uncertainty by locking in the rate that is valid at the time of their application. Others prefer to "float" their rate, or take a risk on the market, which determines interest rates. A lock agreement must be executed by all parties at the face-to-face application in order for the lock to be valid. Changing from a "Float" to a "Lock" decision can be done over the phone only if you have previously decided to "Float" during the initial application process. Requests for an interest rate lock cannot be allowed via U.S. Mail since rate swings could occur during the mail delivery. Please ask for other features of our rate locks.

What if I change my mind after locking, or I don't meet the deadline for the lock-in period?

If you elect to lock-in, you are locked. You will never close at a lower rate and points than the original lock-in. If your loan does not close within the lock-in period and rates are higher at the time of your loan closing, you will close at the higher rate. If your loan does not close within the lock-in period and rates are lower at the time of your closing, you will close at the lock-in rate. No guarantee can be made that your loan will close within the lock-in period because unusual delays may occur. Typically, from loan application to closing and funding should not last longer than 30 days. Any delays in obtaining critical information or reports may cause loan files to exceed this time frame.

Who are American Dreams Mortgage Services underwriters?

We underwrite our homes to Federal National Mortgage Association (also known as Fannie Mae) and Veterans' Administration (VA) guidelines in order to meet investor-quality criteria. Our underwriting is done locally and will not delay the process as in some institutions.

Does American Dreams Mortgage Services ever sell loans?

American Dreams Mortgage Services may or may not retain the servicing of your mortgage loan. Many of our first lien mortgages will be sold to third parties.