Can I be pre-approved for a loan before I’ve found a property?
Yes. A pre-approval letter shows real estate agents and sellers that you are a serious buyer because you’ve already arranged financing. In issuing the pre-approval letter, we take into account your current income and debt and credit history to determine the amount for which you qualify. Once you find a property and sign a sales agreement, we can continue processing your loan.
Do you provide home financing for properties in all 50 states and Washington, D.C.?
Yes. UBS Mortgage offers home financing for principal residences, second homes and investment properties in all 50 states and Washington, D.C. As part of a global wealth management Firm, we can also introduce you to an appropriate professional within UBS AG who may be able to help with your international home financing needs.
Rates and Costs
What causes mortgage rate to change?
Mortgage interest rates change based on prevailing economic and market conditions, as well as the supply and demand for mortgages. When the economy is moving into an inflationary period, rates tend to increase. Conversely, if prevailing trends are deflationary, interest rates tend to drop. Inflation is associated with a growing economy. When the economy grows too strongly, the Federal Reserve increases short-term interest rates to slow the economy down and reduce inflation. When the economy is weak, the Federal Reserve decreases short-term rates to help drive growth. But inflationary pressure is only one factor. Yields to investors for other types of investments (stocks, bonds, etc) also have an effect.
Why is the Annual Percentage Rate (APR) different from the interest rate?
The APR can be an effective means to compare mortgage rates from various lenders. However, the APR should be specific to the particular type of loan you consider because APRs will vary depending upon the loan and terms you select.
The APR typically is higher than your interest rate because it reflects the total cost of your mortgage loan. To calculate the APR, lenders consider the interest rate on your mortgage loan, the term of the loan and other loan fees such as closing costs, points, etc. It is important to check the criteria each lender uses to determine the APR. The actual APR that you will pay will appear in the Truth-in-Lending statement.
In contrast, the "interest rate" (also known as the mortgage note rate) represents the rate used to calculate your monthly payment. It does not include the total cost of your mortgage.
How often do interest rates change?
Interest rates change regularly, usually daily and sometimes, more than once a day, based on fluctuations in the interest rate market. Once you "lock" your rate, it will not increase as long as you close on your loan on or before the rate expiration date. For more information about interest rates and to learn what current rates are, contact an experienced UBS Mortgage Banker.
When should I lock my rate?
If you have a contract on a property and are within 90 days of closing, you can usually lock your rate. If you are refinancing, you can typically lock it within 45 days of closing. With all programs, you must lock your rate at least 5 days prior to closing. Because rates can change daily, and sometimes more frequently, many borrowers choose to lock their interest rates as soon as they begin the loan application process.
What if interest rates go down after I lock my rate?
Once you lock the rate, it cannot be changed. For that reason, it's important to carefully consider the timing of your rate lock.
What impact does UBS Mortgage relationship have on pricing?
UBS Mortgage takes a personalized approach to your home financing. Whether you request a referral from your UBS Financial Advisor or contact us directly, you'll work closely with a UBS Mortgage Banker who will review your financial situation and your real estate investment or purchase criteria to help you integrate your home financing with other aspects of your overall wealth management strategy.
Loan Decision
How long is my Approval Letter valid?
As long as the information you provided us is unchanged, the letter of approval will remain valid for six months.
If you wish to change your Approval Letter or if any of the information you provided changes, such as your income or debt, please contact your UBS Mortgage Banker to obtain a new loan approval.
Will my Wealth Management relationship with UBS be taken into consideration?
UBS Mortgage takes a personalized approach to your home financing. As a UBS client, you may be able to streamline your application experience.
Whether you request a referral from your UBS Financial Advisor or contact us directly, you'll work closely with a UBS Mortgage Banker who will review your financial situation and your real estate investment or purchase criteria to help you integrate your home financing with other aspects of your wealth management strategy.
This is an Internal Revenue Service (IRS) form that authorizes a mortgage lender to directly obtain copies of a borrower's tax returns from the IRS.
Closing
How soon can I close on my loan?
Your UBS Mortgage Banker and Loan Coordinator will work closely with you to understand your needs and ensure a timely closing on your loan. We can schedule your closing as soon as all conditions have been satisfied and all costs finalized. The length of time is dependent on how long it takes to receive your property approval, the availability of your closing agent and the amount of information that must be gathered from third parties.
What is a HUD-1 and when should I expect to receive it?
This form is used by the settlement agent to itemize all charges imposed upon the borrower and seller in a real estate transaction. It will be sent to you by your title company, closing attorney or escrow agent and you should receive it at least one day before your closing. No monies should be exchanged until you sign the HUD-1 settlement statement for refinance transactions.
We can help you with your home financing strategies.
Contact Us
