Dominion Residential Mortgage - DRM offers a full range of loan programs to help make your homeownership dream a reality.

• How Do I Apply
• How Do I Lock My Rate
• Why Our Rates & Fees are Low
• Factors Used to Qualify
• What Are Closing Costs
• What To Expect at Closing
• 12 Common Questions After You Have Applied
   

If you do not see your particular question, please e-mail or call us and we will promptly try to provide you an answer.

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How Do I Apply?

Call us.  Takes about 5-15 minutes to complete.

How long will my approval take?

Through our automated underwriting system, you normally will receive a mortgage approval the same day you apply.

Will I have a contact person to answer questions?

You will always have your own Mortgage Consultant who will assist you from your first phone call to the day of your closing and beyond.

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How Do I Lock My Rate?

When and How May I Lock My Rate?

Typically, you may lock your interest rate during normal business hours by calling our office. For purchase transactions you may need to have a signed sales contract to lock in your rate. Rates change daily and are subject to change due to market volatility.

How Long is My Rate Locked for?

Interest rates are guaranteed for a certain number of days, such as, 30, 60 or 90 days. For example, a 30 day lock means your rate is guaranteed for 30 days from the day you lock. You must close on your mortgage within the number of Lock Days you choose.

Do You Have Extended Locks?

If you are not planning on closing for several months, you may choose an extended period of Lock Days up to 12 months, however, you may pay a higher rate or higher closing costs for this option. We offer many different types of extended locks including free extended locks.

Locking vs. Floating

If you choose to Lock your interest rate, the rate is guaranteed as long as you close within the number of Lock Days you chose. The opposite option of locking a rate is to Float the interest rate. Floating means that your rate is not locked in or guaranteed and you are subject to market fluctuations. In short, if you think rates will increase you should Lock your rate otherwise you may choose to Float and see what happens.

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Why Our Rates & Fees Are Low?

Our pricing and fee structure is a direct result of our basic operating philosophy: high volume and low overhead without compromising our customer service.

Over the years Dominion Residential Mortgage has produced high quality, loan volume that has allowed us to establish relationships with some of the leading mortgage wholesale lenders in the country. This financial backing enables us to offer premium pricing to our customers. We also gain pricing power over our competitors by maintaining a highly efficient operation - our only business is mortgages. We do not need to charge the typical junk fees to cover our overhead (e.g. processing and applications fees, courier fees, commitment fees, etc.). The end result is lower rates and lower costs to our customers.

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Factors Used to Qualify

Several factors are taken into consideration to qualify for a mortgage. Following are the most common:

Total Monthly Debts

As a general rule, your proposed mortgage payment should not exceed 33-35% of your gross monthly income. The proposed mortgage payment will include the principal & interest and any applicable real estate taxes, association dues, PMI and homeowners insurance. Your total monthly obligations should not exceed 41-43% of your gross monthly income. Total monthly obligations would include your proposed monthly housing payment plus monthly installment debt(s) and minimum credit card payments.

How Gross Monthly Income is calculated:

Salaried – We will use your current base salary at the time of your mortgage closing. For example, if you receive a raise the week before your closing we will use your new salary for qualifying. Of course we will still need to verify your income.

Commissions, Overtime and Bonuses – Generally we take a two-year average to determine these dollar amounts.

Self-Employed – If you have 25% or more ownership in a business, from a lender's standpoint you are considered self-employed. Income is calculated by taking a two year average of net income. Net income is your gross revenues less expenses.

If You Do Not Want to Disclose Your Income – There are several programs designed for persons who do not want to supply proof of income. These programs are commonly referred to as No Income Verification or Stated Income loans.

Credit

Although the last seven years of credit history is important, we primarily focus on your payment history for the past two years. We also look at your Credit Score or FICO score. There are three primary national credit bureaus, all of which calculate a credit score for you. In addition, other monthly obligations, total number of debts and total balances owed are also considered.

Down Payment or Equity

The amount of your down payment or equity in your home may increase or decrease available financing options for you. As a rule of thumb, the higher the down payment or equity in your home, the better are your financing options.

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What are Closing Costs?

Closing costs can be broken down into three categories:

• Bank Charges
• Title Company & Government Charges
• Pre-paids (not considered closing costs)

 

Bank Charges

These are charges directly associated with the processing of your mortgage. Following are the basics types of bank charges: appraisal, credit report, underwriting, processing, administrative, document preparation, commitment fee, flood certification, wire transfer, tax service fee and courier fees.  See Closing Costs for a breakdown of our typical closing costs.

Title Company & Government Charges

Title charges are associated with insurance guaranteeing that there are no other liens on the property except the new mortgage. Government fees may include city/county/state tax stamps, transfer fees and recording fees. These government fees may vary dramatically from county, city and state.

When purchasing a home, the seller will choose the title company. Therefore these costs are beyond our and your control. On a refinance you may choose a title company of your own or use one we select, usually with a 40-50% savings.

Pre-Paids (not real closing costs)

Pre-paids are monies you will need at closing but are not considered closings costs. The four most common pre-paids are your real estate taxes, home owner's insurance, PMI and interest from the day you close to the end of the month.

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What to Expect at Closing

Where will my closing take place?

Purchase - If you are purchasing a home, the Real Estate agents and other parties concerned will try to coordinate a convenient time and place for all parties involved. Typically your closing will take place at the seller’s title company. However, the closing may be at the builder’s office, realtor’s office, attorney’s office or some other chosen place. In most cases you will be notified before the closing place and time is confirmed.

Refinance - If you are refinancing an existing mortgage, you will most likely close at the title company we have chosen. Special accommodations can be made if needed.

When Will I Know How Much Money, if any, is Needed For Closing?

Typically, 1-3 days prior to your loan closing your Mortgage Loan Consultant will contact you with your closing statement figures. The closing statement will show you the amount of money you need at closing, if any. We will also offer to FAX your closing statement so you may review the document prior to your closing.

What Form of Money is Acceptable as Payment at Closing?

If you do need to bring money to your closing, the money will need to be in the form of a cashiers or certified check, money order or wire transfer. All checks or money orders should be made payable to yourself or the title company. Personal checks are NOT accepted by title companies. As a reminder, if you are liquidating any funds, be sure to contact that institution to learn their liquidation policy and time frame. Some accounts may take up to two weeks to liquidate.

How Long Will Closing Take?

Purchase - In most cases you should be done in about one hour or less. However, if there are any unforeseen issues with a seller or builder, the closing could take longer.

Refinance - Usually the entire process takes 30 - 60 minutes.

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12 Common Questions After You Have Applied

1.  Who should I contact regarding mortgage status questions?

Please contact your Mortgage Loan Consultant for all questions and updates. As a reminder, every Friday your Mortgage Loan Consultant will call you and all interested parties with a status update.

2.  How long will it take to be approved?

Normally, your loan will be approved within 10-60 minutes from the time you apply over the phone. In some cases the approval may take a few days, however you will be notified of this at the time of your application.

3.  When will I be notified of my mortgage approval?

You will be notified immediately upon your loan approval. In addition, every Friday your Mortgage Loan Consultant will give you and all interested parties (Realtors, builders, etc.) a status update.

4.  May I fax additional documentation to you?

Any additional documentation that does not require an original signature may be faxed. For example, bank statements and paycheck stubs may be faxed.

5.  Who schedules the closing?

Purchase - The seller’s Realtor will schedule (in conjunction with all parties) the closing with the title company.

Refinance - We will contact you after your loan is approved. We will do our best to schedule a time and location that is convenient for you.

6.  When will I know how much money, if any, is needed for closing?

Typically, 1-3 days prior to your loan closing your Mortgage Loan Consultant will contact you with your closing statement figures. The closing statement will show you the amount of money you need at closing, if any. We will also offer to FAX your Closing Statement so you may review the document prior to your closing.

7.  What form of money is acceptable as payment at closing?

If you need to bring money to your closing, the money will need to be in the form of a cashiers/certified check, money order or wire transfer. All checks or money orders should be made to the title company. As a reminder, if you are liquidating any funds, be sure to contact that institution to learn their liquidation policy and time frame. Some accounts may take up to two weeks to liquidate.

8.  What should I do with the re-disclosed forms I received from your bank?

In some cases, the national bank we registered your loan with may be required by their state laws to re-disclose the forms we have already given you. You do not need to sign, mail or do anything with these forms. Also, some of the numbers on these forms may differ from the numbers we have provided. The disclosures you received from us are more accurate since we have a better knowledge of local costs, such as title and government fees.

9.  What is the 3-day right of rescission on refinances?

When you refinance, the title company can not disburse your new loan until three business days have expired. This will give you time to review all of your closing documents.

10.  May I increase or decrease my loan amount?

In most cases, yes, provided we have enough time. Of course you still need to qualify at the new loan amount. Please contact your Mortgage Loan Consultant as soon as possible to see if you may change your loan amount.

11.  When do I get my homeowner’s insurance agent involved?

The simplest way to handle this is to give us your insurance agent's name and number after you select one - the sooner the better. Your agent will then mail or fax us a copy of your policy and the amount of your premium. You will pay the premium at closing, which will be included in your final closing figures.

12.  When is my first payment due?

As a general rule, your first payment is due on the first day of the month, two months after you close. This means that your first payment could be from 31-60 days after you close. Examples: Close April 1, your first payment is June 1. Close April 30, your first payment is still June 1. Close May 1, and your first payment is July 1. Some exceptions may apply, ask your Mortgage Loan Consultant.