GEO Mortgage Service Frequently Asked Questions Laredo Texas

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Our Rates!!

30 Yr Fixed Conforming 6.000% APR 6.123%

15 Yr. Fixed Conforming 5.500% APR 5.620%

*updated as of 7/15/2008 - quoted rates reflect good credit scores with a 20% down payment on $150,000 home - offer may terminate at any time without notice - rate and annual percentage rate calculated on a 365 day year with typical/normal closing costs, Rates/APRs subject to change with closing costs - properties and applicants must quality - other restrictions may apply.

1.	How does the mortgage process work? Answer
2.	How do I know how much house I can afford? Answer
3.	What does my mortgage payment include? Answer
4.	How much cash will I need to purchase a home? Answer
5.	How do I know which type of mortgage is best for me? Answer
6.	What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
7.	How is an index and margin used in an ARM? Answer

Q :	How does the mortgage process work?
A :	Once you select GEO Mortgage to obtain your home loan, you'll be amazed at how quickly and simply the loan process moves. Before you know it, you'll have a mortgage that suits your lifestyle and saves you money. Throughout the loan-application process, we provide you with regular updates. You can also e-mail us with questions or new information. And if you want assistance, a mortgage expert who can answer questions is just a phone call away. Here's an overview of the loan-application process. Note: The below process assumes the borrower(s) will be approved for the loan. *STEP <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />ONE -- Determine how much you can borrow* *Prequal link* to find out how much home you can buy, even before you begin looking. Once you've answered a few simple questions, we'll calculate your buying power, based on standard lender guidelines. *STEP TWO -- Pre-Qualify and save money* To complete the pre-qualification step, contact your Loan Officer. You'll need to supply some brief information about employment, assets, etc. We'll also ask for authorization to obtain your credit report. Once we've reviewed this information, we'll issue your Pre-Qualification Letter, which gives you the clout of an "all-cash" buyer. As you begin looking for a home, we'll begin looking for the best loan to meet your specific needs. Your Real Estate Agent will use your Pre-Qualification Letter to negotiate the best deal for you. Important Note: Do not allow anyone to obtain free credit reports for you. These reports will have to be obtained later anyway, which may lower your "credit-risk score"! This score is extremely important to your overall credit evaluation in the underwriting process for your mortgage loan. STEP THREE -- Apply Now! Getting started is easy. When you've selected a property and have a contract with the Seller, the next step is to complete your loan application, which can be done easily through our website. Click on the Shop Rates menu selection to learn more about available loans and current rates, or click on Apply for a Loan to start your application. GEO will take care of ordering all required third party reports for you. At the appropriate times, we will order an appraisal report, title commitment, and property survey. We make home buying easy by taking care of all the details. *STEP FOUR -- Your Loan is Approved and Funded* Your Real Estate Agent or the Seller will designate an Escrow/Title Company to handle the closign and funding of your loan, along with many other factors which make your purchase go smoothly. We will coordinate with the escrow team and you'll sign the final papers at their office. Simple, Straightforward, Cost Effective, FAST, and EASY!

Q :	How do I know how much house I can afford?
A :	Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.

Q :	What does my mortgage payment include?
A :	For most homeowners, the monthly mortgage payments include three separate parts: Principal: Repayment on the amount borrowed Interest: Payment to the lender for the amount borrowed Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.

Q :	How much cash will I need to purchase a home?
A :	The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply: Earnest Money: The deposit that is supplied when you make an offer on the house Down Payment: A percentage of the cost of the home that is due at settlement Closing Costs: Costs associated with processing paperwork to purchase or refinance a house

Q :	How do I know which type of mortgage is best for me?
A :	There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. GEO Mortgage Services, Inc can help you evaluate your choices and help you make the most appropriate decision.

Q :	What is the difference between a fixed-rate loan and an adjustable-rate loan?
A :	With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.

Q :	How is an index and margin used in an ARM?
A :	An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).