APR, rate and points What are Loans? Pre-Approved / Pre- qualified

Total costs The loan process Closing the loan

  The APR must be included as a requirement from the Truth-in-Lending
  law. This is intended to allow you to compare terms of loan products
  from various lenders.

  Accurate comparisons can be made by comparing loans with the same   terms, interest rates and points. If your loan has a lower APR then it is
  a less expensive loan.

How do interest rates affect your payments?
  Your monthly payment is calculated by your interest rate on your loan.
  If it is higher rate, than your payment is higher, and vice-versa. This
  sounds easy enough though can be quite abstract until actually applied
  to your loan.

Points can lower your interest rate.
  The lender is paid fees at the closing of your loan which are called,
  points. A point of $1,000 would be for a $100,000 loan and so on such
  as; $2,000 for $200,00 loan.
  If you have the cash you can save many by paying more points and
  lowering the rate, with most loans. Fewer points is the way to go if your
  low on up front cash and can affect your rates significantly.

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Pre-Approved / Pre- qualified
When you start shopping for a home, it's nice to know just how much home you can afford. Even better, wouldn't you like an edge over other buyers interested in the same home you are?

Here's the difference between these two buyer tools.

Pre-qualification	Pre-qualification
Provides a "ballpark" estimate of your borrowing power Is based on summary information you provide on your income and assets Requires satisfactory review of property, financial documents and program requirements to issue final approval Is offered by most lenders	Provides proof to real estate agents and sellers that you're approved for a specific loan amount Is based on a verification of your income, credit and assets (in some cases, verification may not even be necessary) Requires a satisfactory appraisal and title review and no change in financial condition for final approval Is offered by Wj Capital as a service to you before you find a home at no cost Is quick and easy
How to get it
Contact your local branch Call 1-877-305-LEND (5363) Or try our "How Much Can I Afford calculator	Contact your local branch Call 1-877-305-LEND (5363) Or get pre-approved online now

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Understand the loan process
Once a home has been selected, the processing of the loan can take up to 40 days or more if you use a traditional lender such as a bank.

How a traditional lender (such as a bank or mortgage broker)
processes a loan.

Loan Officer in branch office pre-qualifies you and collects required information and documents. Mails or faxes documents to corporate headquarters.

Processor, in a central office, reviews your information and requests any additional documents. Once documentation is complete, everything is transferred to an underwriter.

Underwriter, a person who typically has no direct contact with you before making the decision to approve or disapprove your loan.

If approved, the Closer assembles the paperwork and mails or faxes documents to the local office.

Escrow or title company closes the loan.


How WJ Capital cuts so many steps out of the loan process.

WJ Capital can significantly reduce the amount of time it takes to process your loan because there is no long chain of approval. Just you and your home loan expert.

Whether you apply online or by phone, everything happens in our dedicated sales and processing center.

A more direct loan process puts you in the door of your new home faster.

In addition to over one hundred loan programs, we also offer special quick approval programs that streamline the loan review process for people with good credit and for current Wj Capital customers. These programs dramatically reduce the amount of documentation required for your loan.

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Although the closing process varies from place to place, many activities are standard. You'll be required to sign certain documents and pay closing costs. If you're wondering how you make your payments after the loan closes, see Choose your payment method.

How much will your closing costs be?
What happens at closing?
Closing documents you receive?

How much will your closing costs be?
Prior to the closing meeting, your title company, escrow company or attorney will review with you a copy of the HUD-1 Settlement Statement. This document will provide the final total for your closing costs. It establishes the total funds you must bring to closing. You'll need to obtain a certified or cashier's check for this amount. Personal checks usually aren't accepted.

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What happens at closing?
Many of the people involved with the purchase of your new home will attend your loan closing. This includes you, the seller(s), their attorney (if they have one), both real estate agents, and, of course, the closing agent. The meeting usually takes about 1 hour and is held at the closing agent's office. You may live in an area where there is no formal closing meeting. In that case, either an escrow, closing agent or attorney processes all the paperwork, arranges for all documents to be signed, and collects and disburses the required funds.

The steps below explain what happens during and after closing:

1. Closing agent reviews settlement sheet with you. Both you and the seller sign the settlement sheet.
2. Signatures are collected for loan documents, such as the mortgage or deed, note and Truth-in-Lending statement. Evidence of required insurance and inspections is presented.
3. If everyone agrees papers are in order, you submit a certified or cashier's check to cover your down payment and closing costs. (Or, in some proceedings, it is drawn from an escrow account established for your home purchase.)
4. Lender provides check covering the home loan amount to the closing agent.
5. If your monthly payments are to include property taxes and insurance, a new escrow account (or reserve) is established.
6. You receive the keys to your new home.

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A few of the key closing documents you receive
HUD-1 Settlement Sheet
Itemizes the services provided and the charges to the buyer and the seller. You should be allowed to review this form shortly before your closing meeting so you know your closing costs in advance.

Truth-in-Lending (TIL) Disclosure
You should be mailed your initial TIL disclosure within 3 business days after applying for a home loan. It outlines the costs of your loan and discloses the APR and other terms of the loan, including the finance charge, the amount financed, the payment amount, and the total payments required. Since it's possible that the annual percentage rate (APR) calculated at your loan application will change a little before closing, your lender is required to give you the final version of your TIL disclosure at or prior to the closing meeting.

Deed of Trust or Mortgage
(also Security Instrument)
Documents conveying a lien in your property as security for repayment of your home loan. (If you default on your loan, your lender has the right to foreclose your ownership interest and take possession of the property.)

The Note
The mortgage (or promissory) note is a legal "IOU." The note represents your promise to pay the lender according to the agreed terms, including the dates on which your home loan payments must be made and the location to which payment must be sent.

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Fees Collected at Application
What fees will be required of you at the time you apply? Find out here.
like most lenders, will need to collect two fees (explained below) from you at the time of application. Both fees are for services supplied by third parties. Payment for these fees may be made by check, Visa or MasterCard. All lenders typically require these fees.

On a "no out-of-pocket cost" loan, these fees will be refunded at closing.

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Closing Costs
(Costs vs. "No Out of Pocket Costs")
You can pay your closing costs up front, roll them into your loan, or cover them with a higher interest rate over the life of the loan. Decide what's right for you.

Refinance loans have many of the same closing costs as your original home loan. You have 3 choices on how to handle these costs:

Bring a check to closing (just like you probably did when you purchased
  your home)
Roll your closing costs into the principal balance of your loan
Cover lender and third-party closing costs through acceptance of a
  slightly higher rate for your loan

Which option is best for you? That depends on your goals for refinancing and the amount of cash you have available for closing costs. At the very least, all 3 options usually require you to pay at closing for pre-paid interest on your new loan and the costs, if any, of setting up an escrow account for taxes and insurance. For more information, see Taxes, Insurance and Interest.

Current Wj Capital customers will be able to transfer their existing escrow account. You will also be required to bring the rough equivalent of 1 month's payment to closing. This will cover the prepaid/accrued interest plus 1 month of taxes and insurance so your escrow/ impound account remains on schedule.

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How much will you need for closing?
If the above information wasn't enough, check in our Lending Division to learn more about the variables that may be needed at closing to help determine how much you may need.

Taxes, Insurance and Interest
The amount needed to fund an escrow/impound account will depend on whether your current loan is with Wj Capital or another lender. We'll explain.

When you refinance a home, there may be some necessary charges to cover one or more of these pre-paid costs.

Your current home loan is with Wj Capital and taxes and insurance are included in your current monthly payment
In this case, we can simply roll your current escrow account into your new escrow account. At closing, the pre-paid costs for which you will be responsible will be pre-paid/accrued interest and 1 month of taxes and insurance. This is roughly equivalent to 1 months payment (PITI Payment).* See pre-paid/accrued interest below.

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*If your escrow/impound account is not on schedule, you may be asked to bring additional fees to closing or to increase your monthly payments to make up the shortfall.

Your current home loan is with Wj Capital and your current monthly payment does not include both taxes and interest
If you pay taxes and insurance separately, you will have to show proof of payment for insurance at closing. You will also be responsible for pre-paid/accrued interest. See pre-paid/accrued interest below. If your property taxes are due, you may be required to pay the taxes prior to closing.

Your current home loan is with another lender and you pay both taxes and insurance as part of your monthly payment
Wj Capital will set up an escrow account for your taxes and insurance. Depending on the time of year, the due date of taxes and the renewal date of your insurance, Wj Capital may require several months or more of your yearly property taxes and insurance. At closing, you'll be required to pay these amounts to fund the escrow account and be responsible for pre-paid interest. Accrued interest will be reflected in your loan payoff from your current lender. Any refund you're due from your former escrow account you'll normally receive in 6 to 8 weeks. See pre-paid/accrued interest below.

Your current home loan is with another lender and your current monthly payment does not include both taxes and insurance.
If you're going to pay taxes and insurance separately, you will have to show proof of payment for insurance at closing. You will also be responsible for pre-paid interest. Accrued interest will be reflected in your loan payoff. See pre-paid/accrued interest below.

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Pre-paid/Accrued Interest
When you refinance, you pay both the accrued interest on your existing loan and the pre-paid interest on your new loan for the current month. This is because the last loan payment you made was for the previous month, not the current month (loan payments are always for the month just finished, not the month ahead.)

Here's an example. Say you close on May 21st. You will need to pay the accrued interest from May 1st-21st on your old loan, plus pre-pay the interest from May 22nd-31st on your new loan.

It is a common misconception on a refinance loan that, like a purchase loan, you get to "skip a payment." This is not true on a refinance loan because you have the accrued interest on the old loan and pre-paid interest on the new loan (purchase loans only have pre-paid interest). Regardless of the time of the month you close your refinance loan, there will be a total of 30/31 days interest (typically, an amount slightly less than your current monthly payment).

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Wj Capital gives you a wide range of refinance loan options on primary residences, second/vacation homes and investment properties. We offer:
Loan amounts up to $2 million
Fixed or adjustable rate loans
Financing for single family residences to 1-4 unit properties

Quick help for selecting the right loan:
Have our interactive Loan Advisor suggest a loan for you
Read the information here about the special features of Wj Capital's
  loan programs
Get general information on refinance loans in Loan Choices.
See our home loans for those with less than perfect credit offered by
  Wj Capital Home Loans' Lending Division.