Frequently Asked Questions
Oceanside Mortgage Company is a direct lender, not a broker, that specializes in FHA government mortgages. Since 1996 we have built our reputation by offering low rates and fast, honest processing. All Oceanside Mortgage Loan Representatives must pass a rigorous background and credit check, state licensing tests, and be licensed by the department of banking in your state. We are proud of our A+ rating with the Better Business Bureau and our 5-star ratings on Google and Facebook.
What is an FHA streamline?
An FHA streamline is a refinance option that allows the underwriters to reuse much of the information from the original loan. Only an existing FHA loan can be refinanced with the FHA streamline refinance option. Oceanside Mortgage Company offers the streamline refinance with No Closing Costs, No Appraisal Fee and No Lender Fees. A streamline refinance is a great option for existing FHA borrowers looking to take advantage of lower interest rates.
How do I know Oceanside is legitimate?
We get this question a lot! Many borrowers believe our programs are too good to be true. We want you to feel very secure and safe when doing business with us:
- We have been in business over 20 years and have focused on government lending since our inception.
- Please review our testimonials on our website.
- We are BBB accredited with an A+ rating.
- We have hundreds of 5-star ratings on Facebook, Google and Zillow.
Are you BBB accredited?
Yes, we are BBB accredited! We have met all of BBB’s standards of trust and are proud of our A+ rating. BBB accreditation indicates many things, but above all, it indicates proper practices of honesty, clarity, and privacy within the company and its relationships with customers.
Who do I make my payments to after the loan closes?
In many instances, you will pay your loan payments to Oceanside Mortgage Company after you close. In the rare occurrence where your loan is sold to another lender after you close, you will receive a First Payment Letter/Coupon which will guide and instruct you on where to mail or send your mortgage payments. If you ever have questions of confusion on where to send your payments, please contact us for assistance. If your loan is sold to another investor, the loan terms will remain the same.
What is UFMIP and Do I have to Pay it in Cash?
UFMIP is the acronym for Upfront Mortgage Insurance Premium. It is the fee that FHA charges on just about every FHA loan to defray the costs of the program. As of April 2013, the fee is typically 1.75% of the full loan amount. So, if you open a $100,000 mortgage, your final FHA loan amount will be $101,750. For FHA streamlines, you can wrap this fee into the new loan and do not have to pay it out of pocket. If you wish, you have the option to pay it out of pocket, which reduces your loan amount. Most FHA borrowers finance it into the new loan. You also may be entitled to a refund of the UFMIP you paid on your current loan. This credit will be applied to reduce the amount of UFMIP paid on your new loan.
When should I refinance?
If current mortgage rates are 0.5% lower than the current rate on your loan, it may be time to talk with us about refinancing. It may save you quite a bit of money in the long run, especially if you have years left on your term.
How can I get a higher credit score?
When improving your credit score, the two most important things are paying your bills and doing so on time. Other factors that can improve your credit score include having fewer recent credit applications, a long credit history, and having “good debit” accounts and fewer “bad” ones. Applying for too many new lines of credit (e.g. Credit cards, loans, etc.) can negatively affect your credit score; however, not applying for enough or the right kinds of credit can also be a negative force. Work on being debt free and having two or three solid lines of credit to improve your score in a substantial way.
What does the process of closing on a house look like?
Closing is when, after all the paperwork and hard work, ownership of a home is transferred to the new owner! Most of the paperwork at this point in the process is filled out by real estate agents and lawyers after the borrower takes their final walk-through (this is simply to ensure all light fixtures and other agreed upon items are still in the space). Once this is complete, all documentation is forwarded to a title or escrow firm to disburse closing costs, a check will be delivered to the seller, and the keys are handed over.
How do lenders judge my credit score?
Credit scoring is a tool used by lenders to check how much credit to give a potential borrower. The higher the credit score, the more creditworthy a lender will find a borrower. Typically, things like history of late payments or high amounts of debt will decrease an individual’s credit score. Lenders usually check the FICO credit scoring system, in which an individual’s credit will fall within the 350-850 range, with 850 being the best.
Will I have to pay closing costs?
Oceanside Mortgage does not charge any lender fees and we pay the 3rd party closing costs for many of our loan programs.
Are you part of the FHA/VA/USDA/Government?
We are not. We are an approved FHA/VA/USDA lender who is authorized and approved to offer home loans. We do not represent the government.
What is the “Initial Closing Disclosure”?
The “Initial Closing Disclosure” is provided once your application is approved and your payoff received. This is still an estimate, as we may still be waiting for your property taxes and current escrow balance to be verified. Your loan officer will review the final closing disclosure with you prior to closing. By signing the initial closing disclosure, you are just acknowledging receipt and we can close your loan sooner.
Where do I go for my closing?
Our goal at Oceanside Mortgage is to make your loan process as effortless and easy as possible. We offer the option to close at your home or any location you desire at the time you prefer.
What is the FHA Mortgage Insurance fee for?
FHA loans require a minimal down payment and have more relaxed credit standards. The FHA charges a reasonable upfront and monthly fee to insure the loan. Essentially the FHA is charging this funding fee to have funds available should they need to step in and assist the lender in cases where the borrower is in loan default. The FHA mortgage insurance is an insurance policy for the loan. Banks are willing to make FHA loans since they have the backing or guarantee of the US government.
What is an APR?
APR stands for annual percentage rate and it reflects the yearly interest rates on a mortgage (often it is higher than the rate advertised because it accounts for extra costs and fees). The APR is often referred to as the “true cost” of a mortgage loan. Points, private-mortgage insurance, and pre-paid interest are usually factored into APR, as well as loan-processing, underwriting, document-preparation, and escrow fees. Some additional costs which may be left out of the APR calculations include fees associated with borrower attorneys, home-inspection, recording, transfer taxes, credit reports, or appraisals.
What is PMI?
PMI, or Private Mortgage Insurance, is used on conventional loans for individuals who cannot make a minimum down payment of 20%. It acts as a protection for the lenders if a borrower defaults on a payment. These work on an individual basis and should be discussed with the lender.
What are points?
A “point” is a single percentage of a loan’s amount. For example, one point on a $200,000 loan is $2,000 (1% of 200,000 is 2,000). Points are used to measure costs paid to a lender under the terms of a mortgage. Lenders sometimes use this term to talk about costs in more basic units. Oceanside Mortgage typically does not charge any points on the loans we originate.
What are appraisals?
An appraisal is an estimate of a property’s value based on factors such as location, condition, and amenities. These are used by lenders before a loan is approved to make sure that the loan amount does not exceed the property value.
Oceanside Mortgage Company has loan officers ready to assist you 24 hours per day, 7 days per week. As a Better Business Bureau accredited business with an A+ rating, you’re sure to get the help you need with Oceanside. Call us today by clicking the button below, or call us at (800) 955-8965.
Oceanside Mortgage Company is a private corporation. Oceanside Mortgage Company is not acting on behalf or at the direction of HUD/FHA/VA/USDA or the Federal Government. By refinancing your existing loan, your total finance charges may be higher over the life of the loan. NMLS# 80015 Visit the Nationwide Mortgage Licensing System & Registry consumer access website for licensing information: www.nmlsconsumeraccess.org Website authorization by the New York State Department of Financial Services is pending. Until this website is authorized, no mortgage loan applications for properties located in New York will be accepted through this site