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| What is mortgage insurance? |
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| Mortgage insurance, also known as PMI, is insurance that protects the lender from losses when a mortgage with a low down payment defaults. A low down payment is usually defined as less than 20% of the purchase price or appraised value, whichever is less.
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| What are closing costs? |
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| Closing costs are money paid by the borrower in connection with the closing of a mortgage loan. Depending on the specific loan, this may include an origination fee, discount points, appraisal, credit report, title insurance, attorney's fees, survey, and pre-paid items such as tax and insurance payments.
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| How can I estimate my closing costs? |
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| Closing costs are different from case to case. Generally, these costs are estimated between 3% and 6% of the sales price of your new home.
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| At what point do I need to obtain a hazard (homeowner's) insurance policy? |
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| At least five (5) business days prior to closing you need to provide Sovereign Bank with a copy of the "Declaration Page" of your hazard (also known as homeowner's) insurance policy that insures the subject property from the day prior to your closing. You will also need to provide evidence of payment in full of the policy premium for at least one year.
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| What information do I need to include on the mortgage holder's line of my hazard (homeowner's) insurance policy? |
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Sovereign Bank, ISAOA ATIMA
PO Box 628
Amelia, OH 45102
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| What is a flood certification? |
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| Sovereign Mortgage is required to obtain a flood certification on all loans secured by residential real estate. A flood certification indicates if the subject property is located within a designated flood zone. If the subject property is located within a flood zone, the borrower must obtain flood insurance.
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| Does Sovereign Mortgage® offer construction loans? |
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| We offer a variety of lending options that meet the unique needs associated with building a home, with interest-only payments during the construction period. Your loan will automatically roll into a mortgage upon completion of your home. Email us or call any one of our offices for more information.
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| How can I get a copy of my credit report? |
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| To obtain a copy of your credit report visit annualcreditreport.com or call 1-877-322-8228. The law allows you to order one free copy of your report from each of the nationwide consumer reporting companies every 12 months. Reviewing your credit report prior to applying for a mortgage will give you the opportunity to identify and resolve any credit issues or discrepancies.
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| How quickly can I be pre-qualified for a mortgage loan? |
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| After providing a Sovereign Mortgage loan representative with all of the necessary information, you will receive an answer within a few minutes.
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Equal Housing Lender - Member FDIC
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