The SIMPLE & EASY Loan Approval & Funding process
NO COST or OBLIGATION to obtain a PRE-QUALIFICATION letter so you can start making offers or be approved for a refinance!
FAQs About eMortgageaz.com
Sometimes the best properties get away; don’t let your dream home or property slip away because of mountains of paperwork. eMortgageAZ.com works fast to get you a pre-qualification letter for making offers or refinancing. Best of all, your pre-qualification letter requires no obligation, and it won’t cost you a penny.
How Does the eMortgageAZ Loans Approval and Application Process Work?
Approval for an eMortgageAZ loan is simple. Here’s how it works:
- Complete our loan application on this website. We’ll review your application and call you to discuss your qualifications.
- If approved, we’ll ask you to visit our office. You’ll receive your loan pre-qualification letter or start your refinancing as soon as we get your signature on the official forms. All you’ll need to bring is:
- A valid ID, such as your Arizona driver’s licence or a passport
- A copy of your purchase contract — if currently under contract
- Insurance information, if refinancing
- Cash on hand for a refinance or a bank statement copy proving you have enough for your down payment
- For owner / occupant buyers and refinancers only (investment property buyers do not need the following): the previous two years’ W-2s and federal tax returns and 30 days’ pay stubs. In lieu of the returns and W-2s, you can provide the last 12 months’ bank statements. We’ll divide your monthly deposits by 12 to estimate your average monthly income.
3. If buying, you can now start making offers with your pre-qualification letter. When you have an accepted offer, ask your realtor to send us your accepted contract and we’ll move ahead with the Loan. (If refinancing, skip this step.)
4. We’ll ask you to make an appointment with us to finalize the desired loan terms and adjust it to the address and price of the property you’re buying or refinancing. At this time, you’ll need to bring:
- A money order, check or cashier’s check for $535 payable to eMortgage Inc. to put toward your loan fees (you’ll pay additional fees to the title company in escrow or have them deducted from your loan proceeds at closing) — or cash
- A money order, check or cashier’s check for $350 payable to Mark Huffman for the appraisal — or cash
5. We wait on your title company to contact you and sign your loan documents, and then we fund your loan! At this time, direct any questions about additional fees, closing costs and the down payment to your title company.
6. The title company records the deed in your name — you now own your home or property!
7. Even if you used another title company, Grand Canyon Title Agency Account Servicing will provide you with a payment coupon book at closing for repayment.
How Do I Know If I Qualify?
eMortgage Loans have easy borrower qualifications. Here’s what you’ll need:
- Investors: Proof of down payment, working capital funds and a copy of the lease(s) if applicable
- Owner-occupants: Cash for down payment, loan fees and closing costs and proof that less than 45 percent of your gross income (before taxes) will go toward the loan and other debts (such as car payments, student loans and credit cards)
- No credit
- Bad credit
- A low credit score
- A foreclosure or short-sale in your history
- Bankruptcy or other credit issues in the past
- An ITIN number instead of a social security number (for non-citizens)
- A $535 non-refundable application fee to eMortgage Inc.
- A $350 fee to Mark Huffman the appraiser (the fee may vary, but this fee is applicable to most single family homes under $200,000)
- Underwriting ($595): This means assessing the loan’s risk. To determine if the loan is viable, we must review and assess information about you, including the purchase contract and any applicable addendums, appraisal, credit report, the flood certification report, the application and any backup documentation.
- Document preparation ($395): This means preparing your documents for closing.
- Lender inspection ($395): This means visiting the property and neighborhood to determine if it is the kind of property suitable for collateral.
- Loan application ($535): This means gathering your information and data, discussing your different loan options, evaluating your circumstances, evaluating collateral and determining the eMortgageAZ Loan best for you. We also use this fee toward obtaining the preliminary title report, working with the title company, negotiating title issues with the escrow officer and working with realtors, insurance agents and appraisers.
- Title insurance
- Lender’s title policy
- eDoc fees
- Courier fees
- Wiring fees
- Document recording fees
- The account servicing agent’s loan servicing setup fees (around $325)
- Prepaid home owners insurance for one year (somewhere between $400 and $1000 annually)
- Appraisal fees (usually between $350 and $450)
- The title company’s tax service fee ($85) to keep account servicing up to date on the property’s real estate taxes
- Pre-paid prorated interest (fluctuates, depending on the day of the month of closing)
- The impound account’s initial deposit as a cushion toward future real estate taxes and insurance (fluctuates)
- The lender bank’s wiring fees ($30 to $60) to wire your loan funds to the title agency
- The credit reporting agency’s credit report fees ($18 to $28). Once we have a current credit report on file, if you come back regularly, we won’t charge for a new one more than once every three months.
- Flood certification ($18) to determine if your property is in a flood zone (if so, the property will require flood insurance)
- Courier services (typically $30 to $60) for shipping documents between the lender, the title company, and in some cases, the borrower
At eMortgage Inc., it is NOT a problem if you have:
Do You Require Any Upfront Fees to Start the Loan Process?
There is no upfront fee to start and receive your pre-qualification letter. However, there are fees later in the process, once you have a property under contract. There are also fees to refinance. These fees are:
These fees are non-refundable once you’ve paid them, even if you don’t go through with the loan. However, if we decide not to close on your loan, we will refund your application fee.
Will the Home or Property Be Titled In My Name?
Yes! Your title company will record the deed in your name with the county recorder in public records. As soon as the title is in your name, you will own the home. In addition to the title, your mortgage (deed of trust) will be recorded in your name to use as collateral for the loan.
What Are Origination Fees?
You may also hear origination fees referred to as “points.” A mortgage broker charges an origination fee as a commission for arranging your loan and/or to enhance the rate of return to the lender. These fees are usually fully tax deductible on purchases and, in the case of refinances, are tax deductible when spread out over the loan’s term. The interest you pay on a monthly mortgage is also tax deductible. Please direct your additional tax-related questions to an accountant or tax advisor.
How Much Cash Equals One Point?
There is no single-point cash equivalency. A “point” equals one percent of a loan amount. For example, one point on a $50,000 loan is $500. Points are charged on the loan amount, not on the purchase price. A buyer purchasing a $70,000 home taking out a $50,000 loan has points calculated on the $50,000, not the $70,000.
What Are the Administrative Fees?
The administrative fees — which total $1920 altogether — include the following:
What Are the Closing Costs?
eMortgage Inc. does not determine your additional closing costs. Third parties charge fees averaging between $900 and $1500 for miscellaneous items, depending on the loan’s size and the total purchase price. These fees include:
In addition to the miscellaneous fees, you should expect to spend between $3,000 and $3,800 total (more if your loan is over $100,000) on fees such as:
Remember: eMortgage Inc. has no control over these fees.
What Is a Loan Servicing Agent? Who Keeps Track of My Payments and Maintains My Impound Account to Pay My Insurance and Taxes When Due? Why Do Lenders Require Impound Accounts?
A loan servicing agent is a third party in charge of keeping track of your payments. You may choose another title company to close your loan, but we use Grand Canyon Title Agency Account Servicing for repayment.
Your loan servicing agent will assign you an account number and send you a payment coupon book. Repayment with the loan servicing agent happens like this:
- You tear out the monthly payment coupon and mail your payment to the loan servicing agent.
- The loan servicing agent, Grand Canyon Title Agency Account Servicing, processes the payment:
- Holding a pre-determined amount in your impound account to pay insurance and real estate taxes when due
- Forwarding the interest, and if applicable, the principal, to the lender
3. All monthly payments include an approximately $30 Arizona hard-money-lenders-loan-servicing fee and impounds of 1/12 taxes and insurance.
4. The loan servicing agent keeps track of payments. At the beginning of the year, they will send you a year-end statement for tax income deductions that reports how much you paid in taxes, insurance and interest in addition to any impound account adjustments
Unpaid or late tax and insurance payments are a liability for the lender. If we didn’t set up an impound account, a tax lien could be set up on the property, or insurance coverage could lapse and damage to the property wouldn’t be covered. Requiring a loan servicing agent and an impound account protects your property and our collateral and is a standard lending practice.
What If I Need to Pay Off My Loan?
If you need to pay off your loan before planned — a common occurrence when refinancing or selling the property — you or your title company only needs to contact the loan servicing agent for the payoff statement. This indicates how much is necessary to pay off the loan completely. You will make the payment to your loan servicing agent, who forwards the payment to eMortgageAZ.com and releases the lien on your property.
What If I Sell or Pay Off My Loan and Leave Unspent Money In My Impound Account?
Impound account money is your money. Under most circumstances, the loan servicing agent will directly refund you this money.
In some cases of foreclosure, deed in lieu of foreclosure, or other default, your impound balance may be applied toward money owed to the lender.
What Is the Difference Between Interest-Only Loans and Fully Amortized Loans?
Car loans are usually fully amortized loans, meaning loans where your payments include both interest payments and additional funds applied toward the principal amount. Interest payments take priority, and whatever is left over is applied toward the principal. Eventually as the principal decreases, your interest payments decrease and more of your monthly payments each month — which usually stay the same — are put toward the principal. Amortized loans allow you not only to pay interest on time, but to work on getting your principal amount down so that you reach repayment. Eventually your loan is paid off and the lender no longer has a lien on your property.
An interest-only loan is a type of loan where the entirety of the monthly payment goes toward the interest due each month. You do, however, always have the option to pay additional funds to be put toward paying down your principal. An interest-only loan is a flexible option for borrowers who are looking for low monthly payments, as long as they are paying additional money toward paying down the principal whenever they have the extra cash. Paying down the principal will eventually decrease their minimum monthly payment, since as the principal goes down, the interest does as well.
Are There Any Late Fees?
As with any loan, there are late fees. You will have to pay toward your eMortgageAZ Loan monthly. All payments are due on the first day of the month, but we allow a short grace period. Payments made after the 5th are late. You will be charged late fees daily equal to two percent of your principal and interest payment retroactive to the payment due date.
Do You Conduct a Credit Report?
Yes, but be aware that we do not base our loan approval decisions on credit scores. The credit report gives us a clearer picture of your financial situation and lets us know about your other financial obligations. We require your authorization before running a credit report, so you don’t have to worry about us checking anything without your knowledge.
When Should I Choose the Loan Program With Balloon Payment? What Happens When the “All Due” Date Approaches?
If you already plan on selling your property at a future date — quite common with investors or with people moving for jobs temporarily — the balloon payment is a viable option. When you apply for the loan, you set a specified date on which you will pay off the rest of the loan, including any unpaid interest or late fees. You can use the money you earn on the sale of the property to pay off this large lump sum.
If you’re not having luck selling the property or your plans change, contact us as soon as possible — preferably at least six months before that “all due” date. We’ll discuss refinancing to a conventional loan if you qualify or paying a fee for an extension if possible. A last option is to seek additional financing elsewhere.
Will My Loan to Value (LTV) Amount Be Based on Purchase Price or Appraised Value?
If you’re buying, we come up with your LTV amount based on the purchase price or purchase price plus renovation costs — regardless of the market or appraisal. If you’re refinancing a property you’ve owned for at least a year or a property you’ve substantially improved in less than a year, we will determine your LTV based on the appraised value or on the cost of acquisitions plus the cost of improvements.
Do You Have Loan Programs That Will Help Finance Renovation Costs if I Buy a Property That Needs Renovations?
Yes, we do — you can roll your costs associated with renovation into your eMortgageAZ loan. Check out the Renovations Included loan program on our Loan Programs page for more information.
Can Property Be Purchased and Financed as an IRA, 401(k), LLC or Corporation?
Yes, we do fund loans for real estate purchases in your self-directed IRA or 401(k).
If you’re looking to finance in the name of an LLC or a corporation, contact us. We’ll review your case and may suggest having an individual borrower close the loan and title to the property in his or her name and then deeding the property immediately to the LLC or corporation. However, if that’s an inconvenience, we may be willing to discuss an exception.
Will My Loan Appear on My Credit Report?
In general, no; however, remember that foreclosure proceedings are a matter of public record. Those will appear on your credit report. If you need to apply for a refinance in the future, your loan servicing agent can provide you with a printout of your payment history.
What Are 100-Percent Loan to Value Loans?
These loans are available with cross-collateral loans only. Cross-collateral refers to the borrower securing the loan by allowing the lender collateral to an additional, typically lien-free property. More than one property can be used as collateral for a 100-percent LTV loan.
With a 100-percent LTV cross-collateral loan, you’re pledging your additional properties as securities for your loan instead of a cash down payment. The following is an example:
- Buyer A wants to buy a $100,000 property with no cash down.
- She owns another property worth $80,000 that is “free and clear,” i.e., she owes no money on the property, and it’s not currently collateral for another loan.
- We loan her 100 percent of her purchase price, no money down because she’s using both the $100,000 property and the $80,000 one as collateral.
If I’ve “Cross Collateralized,” Will I Have to Pay Off the Loan to Sell or Refinance One of the Properties?
No, but you will have to pay an amount called a “release price.” This is the portion of your loan that will release the property you need to sell or refinance from the lien. Your lender usually determines this amount before you finalize the initial loan.
What Do the Terms “Hard Money,” “Private Money” and “Equity” Loans Mean?
“Hard money,” or “equity,” is based on the value of the property more than the borrower’s credit rating. Also known as “private money loans,” these loans are more flexible than their traditional bank counterparts because they’re not subject to strict FDIC-mandated lending requirements. The funding for these loans comes from private sources, like investor’s pension plans, personal funds and other non-traditional sources.
Call 480-948-0880 today if you have any other questions. You can also send us a message online and we’ll get back to you ASAP!