Laurie Lawton Scott       NMLS# 203321

Frequently Asked Questions (FAQ)

Question: What is a mortgage?

A mortgage is a loan provided from a mortgage lender to purchase a property.

Question: What is the difference between the interest rate and the annual percentage rate (APR)?

Interest rate is the contractual rate that you agree to pay for your mortgage loan. This rate is used to calculate the interest portion of your monthly mortgage payment. Annual percentage rate (APR) includes your interest rate and factors in the prepaid finance charges to give you an average yearly rate. APR can be a good tool to use when you’re comparison shopping for rates.

Question: What is a mortgage broker?

A mortgage broker is an independent agent that acts as the middle man for both the borrower and the lending institution. A mortgage broker will seek the best lender to fit your individual loan needs, possibly submitting your mortgage application to more than one lender in order to find the right loan for you.

Your mortgage broker will help you decide the affordable size of your mortgage, down payment and monthly payment; determine which type of loan and lender best fits your needs; supply you with a Pre-Qualification Letter that enables you to approach a home seller with confidence; walk you through the loan application process and coordinate the paperwork with your loan officer and with the escrow agent.

The commission for these services is paid by the borrower when the loan closes.