FAQs

Here are some answers to some commonly asked questions. If you have any questions that aren't listed, contact us at 972-580-8200. You can e-mail us at dhmortgagelending@secure-1003.com.

What is your rate lock policy?
Is there a fee to apply?
I’m ready to proceed, what’s the next step?
Can you close a loan fast? How fast?
What documents will you need for underwriting?
How are your rates so much lower than the big banks?
I can't afford 20% to put down on a house?
Do you offer Custom Loan programs?
Can I use some of my IRA or 401(k) plan for a down payment?
What's the difference between a fixed and adjustable rate mortgage?
Is a fixed or an adjustable rate mortgage better?
What is private mortgage insurance (PMI)?
Do I need to get an Appraisal of my property?
I have some credit problems, can I secure a mortgage?



What is your rate lock policy?
When you lock in a rate, you are securing an interest rate and a corresponding cost or credit for a specific amount of time. One of the major ways we are able to provide such low rates is by maintaining a high pull-through rate on locked vs closed loans. Locking rates for loans that do not close cost money and time for both of us, neither of which we want to waste. Once you are ready to lock your rate we will collect a $400 deposit. This is not an additional fee and will be refunded back to you at closing on the settlement statement. However, if after locking in a rate, you back out of the loan or are unable to get approved (for reasons relating to you or the property) we will be unable to refund this deposit.

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Is there a fee to apply?
No, there is not a fee to apply or get pre-approved. We will happily take an application (over the phone or online), run your pre-approval, discuss any scenarios or questions, and deliver you a good faith estimate and a pre-approval letter (if requested). Please note, however, once you request to lock a rate we will collect a $400 deposit. For questions, check out the rate lock policy.

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I’m ready to proceed, what’s the next step?
Great! At this point we need to get an application and process your pre-approval. You can do this by speaking to a loan officer at 972-580-8200 or click “Apply Now” and fill out an application. At that point we will discuss with you your scenario, answer any questions/concerns, run the pre-approval and confirm the rate/costs. At your request, we can then lock in the interest rate and get the underwriting process started.

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Can you close a loan fast? How fast?
We typically like to have 20 business days (1 month), from rate lock to closing, to close a loan. Can we do it faster though? You bet. On average, it takes us 14 business days to close a loan. Fortunately, you will have most of the control over the time frame. We will process your documents and loan as quickly as you can send them in. So the faster you return requested items, the faster we can get your loan approved and closed.

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What documents will you need for underwriting?

Everyone borrower is a little different, but on a whole here are the main items that we will need for underwriting your loan:

  • Signed e-disclosures (these will be provided after application)
  • Most recent 2 pay stubs
  • Most recent 2 months of asset statements (checking, savings, investments, retirement, etc) with all pages of each statement and sourcing any large non-payroll deposit.
  • Most recent 2 years W-2s.
  • If self-employed, file a schedule C or E, report unreimbursed expenses on schedule A, or income is highly commissioned, we will need all most recent 2 year tax returns (personal, business/partnerships, K1s, & W2s)
  • Copy of fully executed sales contract
  • Homeowners insurance agent contact info
  • Property survey
  • Copy of driver’s license

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How are your rates so much lower than the big banks?
Great question! This is one aspect we are most proud of. Our business model is to keep things simple and build a highly competitive pricing structure that is fit for friends and family.

D&H Lending is an independent mortgage bank and not a net branch of a large corporate bank. What that means is we have the same resources and products as big banks (funding our own loans) but due to our smaller size and overhead, we are able to lend with dramatically reduced margins. Unlike many mortgage companies, our loan officers are full time employees dedicated to delivering excellent service. We do not spend money on high commissioned outside loan officers that care more about taking realtors to happy hour rather than taking care of the customer.

Since we recognize we are not sales folks but rather mortgage experts, we have determined our rates must sell themselves. From cutting margins to minimizing overhead and waste, we strive to be a price leader. While it is our rates that bring in many new customers, it is our old fashioned customer service that keeps them and their referrals coming back.

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I can't afford 20% to put down on a house?
Assuming you can qualify for higher monthly mortgage payments and have an excellent credit history, you should be able to find a low (3% or more) down payment loan. However, you may have to pay a higher interest rate and loan fees (points) than someone making a larger down payment.

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Do you offer Custom Loan programs?
Yes, the different types of loan programs being offered are changing every day. Use our Loan Advisor so that we can get some basic information to help determine what loan type will best fit your needs.

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Can I use some of my IRA or 401(k) plan for a down payment?
Under the 1997 Taxpayer Relief Act, first-time home buyers can withdraw up to $10,000 penalty free from an individual retirement account (IRA) for a down payment to purchase a principal residence. This $10,000 is a lifetime limit. The law defines a first-time homeowner as someone who hasn't owned a house for the past two years. If a couple is buying a home, both must be first-time homeowners. Ask your tax accountant for more information, or check IRS rules at http://www.irs.gov. Another source of down payment money is a loan against your 401(k) plan. Ask your employer or plan administrator if your plan allows for loans. If it does, the maximum loan amount under the law is the one-half of your interest in the plan or $50,000, whichever is less. Other conditions, including the maximum term, the minimum loan amount, the interest rate and applicable loan fees, are set by your employer. Any loan must be repaid in a "reasonable amount of time," although the Tax Code doesn't define reasonable. Be sure to find out what happens if you leave your job before fully repaying a loan from your 401(k) plan. If a loan becomes due immediately upon your departure, income tax penalties may apply to the outstanding balance.

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What's the difference between a fixed and adjustable rate mortgage?
With a fixed rate mortgage, the interest rate and the amount you pay each month remain the same over the entire mortgage term, traditionally 15, 20 or 30 years. A number of variations are available, including five- and seven-year fixed rate loans with balloon payments at the end. With an adjustable rate mortgage (ARM), the interest rate fluctuates according to the indexes. Initial interest rates of ARMs are typically offered at a discounted ("teaser") interest rate lower than fixed rate mortgage. Over time, when initial discounts are filtered out, ARM rates will fluctuate as general interest rates go up and down. Different ARMs are tied to different financial indexes, some of which fluctuate up or down more quickly than others. To avoid constant and drastic changes, ARMs typically regulate (cap) how much and how often the interest rate and/or payments can change in a year and over the life of the loan. A number of variations are available for adjustable rate mortgages, including hybrids that change from a fixed to an adjustable rate after a period of years.

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Is a fixed or an adjustable rate mortgage better?
It depends. Because interest rates and mortgage options change often, your choice of a fixed or adjustable rate mortgage should depend on: the interest rates and mortgage options available when you're buying a house your view of the future (generally, high inflation will mean ARM rates will go up and lower inflation that they will fall), and how willing you are to take a risk. When mortgage rates are low, a fixed rate mortgage is the best bet for most buyers. Over the next five, ten or thirty years, interest rates are more apt to go up than further down. Even if rates could go a little lower in the short run, an ARM's teaser rate will adjust up soon and you won't gain much. In the long run, ARMs are likely to go up, meaning most buyers will be best off to lock in a favorable fixed rate now and not take the risk of much higher rates later. Keep in mind that lenders not only lend money to purchase homes; they also lend money to refinance homes. If you take out a loan now, and several years from now interest rates have dropped, refinancing will probably make sense.

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What is private mortgage insurance (PMI)?
Private mortgage insurance (PMI) policies are designed to reimburse a mortgage lender up to a certain amount if you default on your loan. Most lenders require PMI on loans where the borrower makes a down payment of less than 20%. Premiums are usually paid monthly or can be financed. With the exception of some government and older loans, you may be able to drop the mortgage insurance once your equity in the house reaches 22% and you've made timely mortgage payments. The Servicing Lender will have the requirements for canceling the mortgage insurance.

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Do I need to get an Appraisal of my property?
Depending on the specifics of your loan and property, we may be able to get an appraisal value based on similar homes in your neighborhood. Therefore, eliminating the need for a physical inspection. To see if you qualify, call us at 972-580-8200 or apply online and let us inform you of where you stand.

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I have some credit problems, can I secure a mortgage?

You are not alone. Fortunately, there is a large segment of people with less then perfect credit. With that being said, many of the lenders we work with will underwrite a loan for individuals with less then stellar credit. To see if you qualify apply online and let us inform you of what we can offer you.

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