Mortgage FAQs

+Should I get pre-approved for a mortgage before I begin searching for a home?

Yes. It not only gives you a good idea of what you can afford, but it will also show a Realtor® or seller that you’re a serious buyer.

+What makes up a credit score and how important is it?

Your credit score is a good indicator of how you’ve handled your debts in the past. Although your score is not the only factor that lenders use when analyzing a loan application, it plays a huge part in determining what kind of financing you qualify for and can even impact your interest rate. FICO® scores have become the industry standard and are used by more than 95% of the top mortgage lenders.

For more details on credit scores, visit our blog post on Toll Talks!

+How soon after signing my agreement of sale do I apply with TBI Mortgage Company?

If you are purchasing a Toll Brothers home, you are required to apply with TBI Mortgage Company within 14 days of signing the sales contract.

+Is there a cost to apply with TBI Mortgage Company?

No, TBI Mortgage Company does not charge an upfront application fee.

+What documentation will I need to provide in order to apply for a loan?

Typically you will be required to submit recent pay stubs covering the past 30 days, two months of bank statements, W-2s for the past two years and possibly tax returns. Other documents may be needed based on your credit, employment or financial situation.

+When should I lock my interest rate?

Whether you lock now or later depends on your projected settlement date and your expectation about the direction of interest rates. TBI Mortgage Company offers long-term rate protection with their LockSolid® program.

+What are points?

Points or commonly known as “Discount Points” represent a fee paid to the lender in return for a lower interest rate. In other words, you are pre-paying interest up front in exchange for a reduced interest rate, which results in lower monthly mortgage payments. Generally, one point equals 1% of your loan amount.

Is buying points a wise investment decision? Check out our blog post on Toll Talks for more information.

+What is the difference between an interest rate and an APR?

The interest rate is the cost of borrowing money expressed as a percentage rate. It does not reflect fees or any other charges you may have to pay for the loan.

The APR represents the yearly costs of funds over the term of a loan. This includes fees or additional costs associated with the loan.

+What is Private Mortgage Insurance (PMI)?

PMI is required if you put less than 20% down (80 loan-to-value ratio) to help protect the lender in case of default. PMI fees can vary depending on the size of the down payment, type of loan and credit score.

+What is a Good Faith Estimate (GFE)?

A GFE is an itemized list of fees and terms associated with the loan. Some of these settlement costs include mortgage fees, inspections, title insurance and taxes. A GFE must be supplied by the mortgage lender within 3 days after you apply for your loan.

+What is a Truth-in-Lending disclosure?

The Truth-in-Lending discloses the total costs associated with the loan. This includes the APR, finance charges, the amount financed, whether you can prepay your loan without a penalty, and other important terms.