/Frequently asked questions
Frequently asked questions 2017-12-12T09:58:21+00:00

Frequently Asked Questions

How do I know how much I can afford?
Our complimentary mortgage calculator can help you with this question. But you can easily receive a pre-approval which is an evaluation that determines the loan amount that DMC would be willing to lend. The pre-approval process involves a thorough look into the verified income of the borrower.

 

What is the difference between pre-approval and approval?
Pre-approval is the underwriting decision (conditional approval) that you are conditionally qualified and is subject to the lender’s review  (unconditional approval) of your completed application, verification of your income, assets, employment history, credit check, appraisal and other determining factors.

The Pre-approval lists one or more conditions you must meet before the lender will issue a loan commitment. The conditions include submission of required documents to complete your mortgage package.

A pre-approval is a written statement from DMC stating the DMC’s preliminary determination that a borrower would qualify for a particular loan amount under that DMC’s guidelines. The determination and loan amount are based on income and credit information. Thus the pre-approval can then help you find a home that is within your loan amount range. There are many reasons why you should get pre-approved. The most important reason is that you will get an accurate idea of how much home you can afford. This can help to target your home search and ensure you only look at houses that are truly in your price range. Once the DMC has enough information to approve your loan, we issue a unconditional approval.

 

How fast my loan application can be approved?
You can receive a Pre-approval online without delay by submitting minimum of information.  And once you have submitted your complete mortgage package it will take only one business day to receive your approval.

 

What documents do I need to apply for mortgage?
Mortgage loans usually require documents that verify your employment, income and assets, credit history, evaluation of real estate. DMC’s Loan Origination Process explains application process step-by-step.

 

Want a lower down payment or monthly payment?
A buydown is a mortgage-financing technique with which the buyer obtains a lower interest rate for the mortgage by paying higher origination fee.

A buyup is a receiving a rebate to origination fee in exchange fora higher interest rate. It can be economically advantageous to a borrower- if the borrower expects to hold the mortgage for a short period of time.

 

What is buy-up/buy-down?
Possibility to adjust and apply the interest rate margin and/or origination fee according to individual needs.

You may pay a percentage of the loan amount to the DMC to buy down or lower an interest rate or vice versa: save the money for loan disbursement fee by increasing the loan margin (apply buy up). It means that DMC may “give cash” for a higher interest rate (buy-up) or “receive cash” for a lower interest rate (buy-down).

 

What is the difference between the interest rate and the annual percentage rate (APR)?
The interest rate is the rate you agree to pay for your mortgage loan. It is used to determine the interest portion of your monthly payment. The annual percentage rate (APR) includes your interest rate and prepaid finance charges to give you an average yearly rate.

 

How to use the DMC pre-approval app?
You can access the web app here.  Download this PDF file to see full user guide. In case of technical issues e-mail support@dmcbonds.com.