Common Mortgage FAQs


General Questions
Do I have to live in Utah?
Your office is far from my home. Do I ever have to come to the office?
What documentation will I be required to submit for a loan?


Credit, Bankruptcy, & Foreclosure

My credit score isn't perfect. Can I still be approved for a loan?
My credit score is lower than I think it should be. Can you help me resolve the problem?
I had a home foreclosed on in the past. Can I still be approved for a loan?
How long do I have to wait after a bankruptcy to qualify for a loan?

Employment
I am self-employed or an independent contractor. Can I still be approved for a loan?
I am considering a job change. Will it affect my loan if I leave my current employer before my loan closes?
I just started a new job. How long do I have to be with my new employer before I can be approved for a loan?
I recently graduated from college and have just started my first job. Can I still be approved for a loan?


Interest Rates
I keep hearing that interest rates are going to continue to drop. How do I know when to lock in an interest rate?
What if rates drop after I lock? Can I still get the lower rate?
What is the difference between the interest rate and the APR?


Loan Programs
What is the difference between a conventional loan and a government loan?
How do I know which loan program to choose?
What is a “rural housing” loan?


Purchase Loans
Are there any special programs or grants available to first-time homebuyers?
How much will I need for a down payment if I don't want to have mortgage insurance?
Can my parents help with the down payment on my home?
Do I have to be pre-approved for a loan before making an offer on a home?
Do I need to use a realtor for my home purchase?


Refinance Loans
I have a refinance currently in process with Axiom and will be closing soon. When should I stop making payments on the original loan?
Can I still refinance if my home is worth less than it was appraised for when I got my existing loan?


Closing & Funding
What do I need to bring to my closing?
There are two borrowers on our loan and our schedules conflict. Is it possible to close us at different times?
How long will it take for my loan to fund?











Do I have to live in Utah? Back to Top
We are licensed in the state of Utah. You do not have to live in Utah, however the property you are purchasing or refinancing must be in the state of Utah.



Your office is far from my home. Do I ever have to come to the office? Back to Top
No! While we love to meet our clients in person, it is easy to take care of the entire loan application and closing process over the phone and via email. Our convenient loan application makes applying for a loan as simple as a few keystrokes and mouse clicks. We can even arrange for the loan to close at a title company very close to your home.

What documentation will I be required to submit for a loan? Back to Top
The specific documentation required does vary by loan and situation, but here is a list of the most commonly requested documents:
  • Copies of checking and savings accounts for the past 2 months
  • Evidence of any other assets such as bonds, stocks, or money saved in retirement programs
  • Recent paycheck stubs
  • W-2 withholding forms, or income tax returns for the past 2 years
  • Residence history for the past 2 years
  • Sales contract (for purchase loans only)
  • HOA information if property is part of a condo or homeowner's association

My credit score isn't perfect. Can I still be approved for a loan? Back to Top
Yes! Perfect credit is not required for loan approval. We have loan programs for many different credit score levels. Contact us today or fill out our easy online application so we can review your specific situation.


My credit score is lower than I think it should be. Can you help me resolve the problem? Back to Top
In order to protect the consumer, credit bureaus generally will not work with a third party to resolve credit matters. However, we can take an active position in helping draft letters, conduct research, make phone calls and/or steer you in the right direction. We will do whatever we can to help you understand the process and improve your credit situation.


I had a home foreclosed on in the past. Can I still be approved for a loan?
Back to Top
Guidelines regarding foreclosure vary depending on the loan program, but with some programs it is possible to be approved if the foreclosure was as recent as 24 months prior to making application for the new loan.


How long do I have to wait after a bankruptcy to qualify for a loan?
Back to Top
Most loan programs require a seven year waiting period from the date the bankruptcy was discharged.



I am self-employed or an independent contractor. Can I still be approved for a loan? Back to Top
Yes! While the guidelines for self-employed or 1099 income are slightly different than those for W-2 income, it is still possible, and very common, to be approved for loan even with self-employment or 1099 income.

I am considering a job change. Will it affect my loan if I leave my current employer before my loan closes? Back to Top
Yes. We will call to verify your employment on the day of funding, so any change in your employment status will cause funding to be withheld.


I just started a new job. How long do I have to be with my new employer before I can be approved for a loan?
Back to Top
Before it can be submitted to underwriting, we will need copies of your first two pay stubs, so we will not be able to submit your loan for underwriting until you have received your first two pay checks. However, it is best to begin your loan process as soon as possible so it will be ready to submit as soon as the pay stubs are available.


I recently graduated from college and have just started my first job. Can I still be approved for a loan?
Back to Top
Yes. If you are currently working in the field you studied in college and have no gaps between school and employment, you may still be approved. You will need to provide your two most recent pay stubs and may be asked to provide a copy of your employment agreement.



I keep hearing that interest rates are going to continue to drop. How do I know when to lock in an interest rate? Back to Top
(Answer in process)


What if rates drop after I lock? Can I still get the lower rate?
Back to Top
(Answer in process)


What is the difference between the interest rate and the APR?
Back to Top
The interest rate is the interest a lender charges the borrower to use money for a specific length of time. It is calculated by dividing the amount of annual interest by the amount of the loan. (For example, if a lender charges $50 per year on a loan amount of $1,000 the interest rate would be 5%.)

The Annual Percentage Rate, or APR, includes the annual amount of interest plus any additional costs being financed into the loan (such as private mortgage insurance, closing fees, or prepaid interest). Using the example above of a $1,000 loan, if the borrower pays yearly interest of $50 plus another $5 per year in pro-rated mortgage insurance and closing costs, the APR would be a total of $55 divided by the loan amount of $1,000 – or 5.5%.

The APR is typically higher than the interest rate because it includes the additional costs.


What is the difference between a conventional loan and a government loan? Back to Top

There are many differences in terms of the specific qualifying guidelines for each type of loan, but in general, a conventional loan is a loan that is not guaranteed by either the federal Housing Administration (FHA) or the Department of Veterans Affairs (VA).


How do I know which loan program to choose?
Back to Top
Once you have submitted your loan application, your mortgage consultant will meet with you to review all of the options available to you so you can make the best choice for your financial needs and goals. We can’t make the decision for you, but won’t recommend a loan to you that we wouldn’t recommend to our own mothers!


What is a “rural housing” loan?
Back to Top
(Answer in process)


Are there any special programs or grants available to first-time homebuyers? Back to Top
(Answer in process)


How much will I need for a down payment if I don’t want to have mortgage insurance?
Back to Top
The minimum down payment requirement for a conventional loan with no mortgage insurance on a primary residence is 20% of the purchase price of the property. (Larger minimum down payments are required for investment properties and second homes.) However, all FHA loans include mortgage insurance.


Can my parents help with the down payment on my home? Back to Top
Yes, if you will be financing the purchase with an FHA loan and if the money from your parents is a true gift that does not need to be repaid. (Gift funds may not be used for a conventional loan.) Gift funds need to be in your own bank account for two months prior to closing your new loan, so you’ll need to keep that in mind when you agree to a settlement deadline in your purchase agreement.


Do I have to be pre-approved for a loan before making an offer on a home?
Back to Top
No, but some sellers request a pre-approval letter from your lender prior to accepting your offer to ensure that you will qualify for the purchase price you are offering. Whether or not the seller asks for a pre-approval letter, many real estate agents suggest a pre-approval letter to strengthen your offer.


Do I need to use a realtor for my home purchase?
Back to Top
No, but if a home is listed, as are 80% of all homes for sale, it costs you nothing to have a real estate professional represent you in the transaction. The buyer’s agent is always compensated by the seller. A real estate agent will help you save time by searching for homes that meet your criteria, negotiating an offer, completing the purchase contract, protecting your interest, and helping get you the best value possible. If you are not currently working with an agent, we would be happy to refer you to one of our trusted partners.


I have a refinance currently in process with Axiom and will be closing soon. When should I stop making payments on the original loan?
Back to Top
It is critical to be on time with your payments. Continue to make payments on your existing loan until the new loan closes and funds.


Can I still refinance if my home is worth less than it was appraised for when I got my existing loan?
Back to Top
Yes, if your existing loan is currently with Fannie Mae or Freddie Mac and the new loan is no more than 105% of your home’s current value (additional qualifying criteria must also be met).


What do I need to bring to my closing?
Back to Top
All borrowers on your loan will need to bring a government-issued photo ID. If you will be bringing funds to your closing, they will need to be in the form of a cashier’s check. Your mortgage consultant will call you with the exact funds needed to close after your loan has received final approval.


There are two borrowers on our loan and our schedules conflict. Is it possible to close us at different times?
Back to Top
Yes. It is our mission to make things as simple and convenient for you as possible. We can close you separately or arrange a time to close you outside of regular business hours if you prefer to come together.


How long will it take for my loan to fund?
Back to Top
A purchase loan will fund the next business day after your closing. Refinance loans have a three-day rescission period, so it will fund on the third business day after you close.


- Client Appreciation -
Hunger Games Private Early Screening


Join us for an exclusive screening,
two days before its release!

By Invitation Only.

Axiom Home Loans | 350 West Center Street, Orem, UT 84057 | (801) 434-7337 / (866) 902-5363
All rights reserved. Nothing contained in this website constitutes an offer or commitment to lend. Equal Housing Lender. OAC. Privacy Policy