› How do I apply?
› Can I feel secure about providing information on-line with Downeast Mortgage Corporation?
› Why should I use Downeast Mortgage Corporation for my mortgage needs?
› After I apply for a mortgage, what can I expect?
› How long will it take to process my loan application?
› When can I lock in an interest rate?
› How much of a mortgage can I afford?
› How can I determine what mortgage program is best suited for my situation?
› What is the difference between fixed rate and adjustable rate mortgages?
› What is the difference between the interest rate and the APR?
› What type of documentation will I need for my loan application process?
› How do I know when it is a good time to refinance?
› What is the "Mortgagee Clause" that I need to provide to my homeowners insurance company?
 Q: How do I apply?
A: You can apply one of three ways. 1) Find the Downeast Mortgage location nearest you and speak directly with one of our Loan Officers (Find Location)
2) Download the forms you need and fill them out (Download Forms) and return them to us or
3) Apply securely online (Online Application)
Q: Can I feel secure about providing information on-line with Downeast Mortgage Corporation?
A: When you apply for a loan online with Downeast Mortgage, all of their
information is encrypted and transferred via secure socket layer (SSL) into
a secure account. Your information remains encrypted while residing on the
secure server. When you click on the 'Submit' button at the bottom of the
online application on our web site, a separate database is automatically
created for your file. This adds to the security and integrity of the degree
of privacy afforded because your loan file is not mixed in with other
borrowers. This method of creating individual files for each application
prevents what could happen if all borrowers were in a relational database on
a server in which hundreds or thousands of borrowers files could be exposed
if there were ever a security breach of the database.
Q: Why should I use Downeast Mortgage Corporation for my mortgage needs?
A: Downeast Mortgage Corporation is set up to provide you with flexibility and options that very few mortgage companies across the United States can match. While we exist as a locally owned and operated corporation headquartered out of Maine, we have grown to one of the leading mortgage companies in New England. Our size, underwriting authorities and industry credentials allow us to provide our customers with the programs offered by the largest nationwide companies while still allowing us to give our customers the personal attention that they require to ensure the easiest and most efficient mortgage process possible. Beyond that, we actually live within the communities and states that we serve. We know Maine, New Hampshire and Massachusetts best because that is exactly where we live and work - allowing us a great familiarity with the sometimes unique property types and real estate customs that are common in our area.
Q: After I apply for a mortgage, what can I expect?
A: Once your loan application is received you will get notification from Downeast Mortgage Corporation that your loan is in process. Within 2 business days we will mail you a loan package via U.S. mail with a set of loan documents that will need your signature. This mailing will also include a list of documents we will need to complete your loan application. From there, we will order credit reports, appraisals, title searches, flood certifications and attempt to gather any additional verifications necessary to complete your loan application process.
Q: How long will it take to process my loan application?
A: Following receipt of your completed application package and fees, it usually takes about two to three weeks to complete the mortgage request, including appraisal, and a week or so more to settle or close the mortgage. (Provided that all conditions to your loan approval are met quickly.) Please keep in mind that these are only estimates, and your actual application may take a shorter or longer period of time to process, approve and close. Your Loan Officer at Downeast Mortgage Corporation should be able to give you a reasonable estimate of how long it will take to close your loan when you begin the application process, based upon the intricacies or your individual file.
Q: When can I lock in an interest rate?
A: An interest rate cannot be locked in until you have started your formal loan application process at Downeast Mortgage Corporation and have placed a home "Under-Contract" for purchase. (In other words, you need to have identified the property that you want to mortgage in order to lock in an interest rate, as rate locks are specific to particular properties.) In general, rate lock periods are usually 30 or 60 days but there are exceptions to this rule based upon which loan program you will be utilizing.
Q: How much of a mortgage can I afford?
A: There are dozens and dozens of different mortgage programs available at Downeast Mortgage Corporation and each program has unique guidelines and parameters as to how much a particular borrower might qualify for. For an accurate assessment of how much of a mortgage you can qualify for, contact one of our loan officers at the location nearest you for an individual assessment of your financial situation.
Q: How can I determine what mortgage program is best suited for my situation?
A: When you contact one of our Loan Officers to review your qualifications we will help you to assess what program would be the best fit for your specific situation. We'll take into consideration your income, employment history, credit history, savings history, availability of down payment, debt ratios and what type of home that you want to purchase - then present you with the options that best fit your needs.
Q: What is the difference between a fixed rate mortgage and an adjustable rate mortgage?
A: A fixed rate mortage is a loan where the principal and interest payment never change during the life of the loan.
An adjustable rate mortgage (ARM) is a loan where the interest rate can change periodically. The changes in the interest rate are tied to the appropriate index at the time the rate is subject to change. ARM's typically start out at interest rates lower than fixed rate mortgages, which makes them attractive to some borrowers. The rates on ARM's, though, can adjust upward if interest rates go up. (Or downward if interest rates go down.) There is a predetermined cap which defines how high or low the interest rate can adjust.
Fixed rate mortgages are beneficial to those who prefer the security of a fixed payment schedule.
ARM's are advantageous to those who do not plan to keep the mortgage for a long time, for those borrowers who do not qualify at higher fixed rates, or for those borrowers comfortable with payments that fluctuate.
Q: What is the difference between the interest rate and the APR?
A: The interest rate is the cost for borrowing a lender's money while the APR takes into account the total cost of a mortgage, including closing fees and points over the life of the loan, not just the interest due.
Q: What type of documentation will I need for my loan application process?
A: There is no single list of documents that are needed from every applicant, because the documentation required will vary depending upon an applicant's particular financial situation. The following list gives an overview of some of the documentation that might be required, for a more specific list 'click here to' contact one of our Loan Officers at Downeast Mortgage Corporation to discuss the particulars of your situation.
Employment and Income Data: Most recent two monthly statements for all asset
accounts. Most recent 2 years W-2's and most recent 2 pay stubs if you are
employed. If you are self employed, your two most recent years tax returns
(personal and corporate, if applicable) and year-to-date profit and loss
statement.
Asset Data: All pages of most recent statements on all asset accounts. (Savings, checking, 401k, IRA's, brokerage accounts, stock accounts, money market accounts, investment accounts, info on gift funds from relatives.
Liabilities: Names, account numbers, payments and balances on obligations outstanding. Divorce Decree and/or Separation/Settlement Agreement, if applicable.
Property and Realtor information: Purchase and Sales Agreement, listing sheet, copy of deed, copy of earnest money check, name and phone numbers of Realtors involved in transaction.
Again, please note that the list of documentation needed from you might be much shorter (or perhaps longer) than the list above. Check with one of our loan officers at the location nearest you for a more detailed list tailored to your situation.
Q: How do I know when it is a good time to refinance?
A: The thing to consider when deciding upon when to refinance is how much money you can save monthly by lowering your interest rate as compared to the costs involved with refinancing. It can sometimes be beneficial to refinance even if your interest rate will be declining by less than 1%. Again, it depends upon your specific and unique situation. Check with one of our loan officers at the location nearest you to see if refinancing makes sense for you.
Q: What is the "Mortgagee Clause" that I need to provide to my homeowners insurance company?
A: Downeast Mortgage Corporation
Its Successors and/or Assigns, As Their Interests May Appear
261 Gorham Road
South Portland, Me. 04106
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