Lending FAQ
Read through valuable information about how to use this site and how to change your information after you have submitted it. Gain insight into how we ensure your information is secure as well as when and how to be approved for a loan.
Call 855.340.HOME (4663) for more information.
General home lending FAQs
- Do you provide loans for properties in all 50 states and Washington, D.C.?
- Can I be approved for a loan before I've found a property?
- What is a Good Faith Estimate?
- What is a Truth-in-Lending statement?
- How can I access my loan after closing?
- Can I view my loan application status online?
- Can I receive my monthly mortgage statements by e-mail?
Do you provide loans for properties in all 50 states and Washington, D.C.?
Yes.
Can I be approved for a loan before I've found a property?
Absolutely! We not only support the idea, but strongly encourage it. By getting approved now, you will know exactly what you qualify for before you begin shopping. Realtors and sellers will know you are a serious buyer because your financing is already arranged. This may be an advantage when making an offer. We take into account your current income, debt and credit history in order to approve you and determine the amount for which you qualify. Once you find a property, and sign a sales agreement, we can continue processing your loan.
What is a Good Faith Estimate?
Required by federal law, the Good Faith Estimate (GFE) is a written list of the estimated closing costs associated with your mortgage transaction, including the lender's charges along with the local closing agent's charges and fees. It also includes estimated amounts for real estate property taxes and homeowner's insurance. Once you've been approved, you can access your GFE online at ameriprise.com/loanstatus.
What is a Truth-in-Lending statement?
Required by federal Law, the Truth-in-Lending statement provides detailed information about the total charges that you will incur over the life of the loan. It includes the Annual Percentage Rate (APR), the amount of interest you'll pay, the amount financed and schedule of payments, the total of your payments, and late payment charges.
How can I access my loan after closing?
After you have closed on your loan, you can access information online regarding your existing Ameriprise Financial-originated mortgage loan via the Message Center. Simply access your mortgage loan account and follow the registration directions.
Can I view my loan application status online?
Yes. All sites are secure, user-friendly and accessible 24 hours a day, 7 days a week. View your loan application status now.
Can I receive my monthly mortgage statements by e-mail?
Yes. The online Message Center allows you to receive your monthly statements and notifications of when payments are made by e-mail. In addition you can:
- Review current payment information
- View transaction history
- View escrow account balances and payments
- View year-end interest and tax statements from last year
- View information on PMI removal
- Arrange to have your mortgage payments taken directly from your bank account(s)
- Make fast, easy online payments.
Purchasing a home FAQs
Rates and costs
- When should I lock my rate?
- Once I have selected a program, what are my rate options?
- What if interest rates go down after I lock my rate?
- What happens if my loan doesn't close before the rate lock expiration date?
- If I selected rate protection and do not exercise my one-time float down option, what will happen?
- What are points?
- Are discount points tax-deductible?
The loan decision
- Can I change the loan amount, down payment or program after I've received my loan decision?
- What documents will I need to provide to complete my loan transaction?
Closing
Rates & costs
When should I lock my rate?
If you have a contract on a property and are within 90 days of closing, you can lock your rate. If you have selected the rate protection option, you can lock between 15 and 5 days of closing. With all programs, you must lock your rate at least 5 days prior to closing.
Once I have selected a program, what are my rate options?
You will be presented with rate options that apply to your loan type and closing date, which may include:
- Rate protection
If interest rates go up, your rate does not. Rate protection sets the maximum interest rate you will pay, as long as you close your loan by the expiration date of the rate protection program. If rates decrease, you will have a one-time option to lock in your loan at a lower rate. Simply call your loan processor. - Rate Lock
A rate lock, or committing to an interest rate, can be done only one time. Your rate will not change regardless of what happens in the interest rate market, as long as you close on or before the rate lock expiration date. You must lock in a new rate at least 5 days before closing. If you are refinancing, you can lock in your rate within 15 days of closing.
What if interest rates go down after I lock my rate?
Once you lock the rate, it cannot be changed. For that reason, you may want to consider our rate protection program to help safeguard against changes in interest rates. To get the details of rate protection and determine if it's right for you contact your advisor or speak with an Ameriprise Bank Mortgage Loan Consultant at 855.340.HOME (4663).
What happens if my loan doesn't close before the rate lock expiration date?
When you lock your interest rate, you are guaranteed to receive that rate as long as you close your loan by the specified expiration date. If your loan closes after this date, you are no longer guaranteed your locked interest rate. Instead, you will receive the higher of the current market rate or your locked rate. Please note that you cannot receive a lower rate by allowing your lock to expire.
If I selected rate protection and do not exercise my one-time float down option, what will happen?
Your rate will automatically be locked at the market rate five days prior to your closing date. If the rate has gone up and over your capped rate, you will receive the capped rate. If the rate is lower than the cap, you'll be locked in at the lowest rate available to you.
What are points?
Points are determined as a percentage of your loan amount, paid at closing. For instance, on a $90,000 loan amount, 1 point = 1 % or $900. You may have the option to pay points to buy down (reduce) your interest rate. Alternatively, the lender may pay points to offset your closing costs in exchange for a higher rate. These are called negative points.
Are discount points tax-deductible?
In many cases they are. Consult your accountant or tax expert for advice.
The loan decision
Can I change the loan amount, down payment or program after I've received my loan decision?
Yes, as long as you meet the criteria for the new loan amount or new program you've selected. Your dedicated Ameriprise Bank Mortgage Loan Consultant can help you determine if you do. If you have not decided upon a rate lock option, you can make changes to your information online and resubmit for a new loan decision.
I already put a deposit down on the property. Is this included on the Good Faith Estimate?
Yes. Any deposit or earnest money paid will be listed under "Prepaid deposit for property" on the Good Faith Estimate.
What documents will I need to provide to complete my loan transaction?
Requirements for documentation can vary state by state and depend on a variety of factors. Here is a list of some of the more common documents needed:
- Fully executed agreement of sale for the property being purchased
- Financial statements for your bank and brokerage accounts
- HUD-1 settlement statement on the property you are selling, if applicable
- Copy of your most recent pay stub
- Previous W-2s
- Copy of a rental lease, if any
- Homeowner's insurance policy
- Flood insurance policy
Closing
How do I know if I need flood insurance?
We will perform a flood hazard determination for your property and inform you if your home is located in a Special Flood Hazard Area. If it is, federal law requires you to purchase flood insurance. Most standard homeowner's insurance policies do not cover loss due to flood. If you choose, you can obtain flood insurance coverage even if you are not required to do so by law.
How are my property tax bills paid?
It depends on your loan program and state requirements. If your monthly mortgage payment includes money for property taxes, those funds are held in escrow by the lender, who pays your property taxes as they come due. If your mortgage payment does not include property taxes, you are responsible for paying them by the due date.
For more information about property taxes or any aspect of buying a home, contact an experienced Ameriprise Bank Mortgage Loan Consultant at 855.340.HOME (4663).
Refinancing FAQs
- What are some reasons to refinance?
- How does a cash-out work and when will I receive cash-out funds?
- What is the rescission period?
What are some reasons to refinance?
Refinancing is the process of paying off one mortgage loan with the money from a new loan, using the same property as security. Homeowners typically refinance to shorten the term of their loan, to get cash-out of their property's equity, or to take advantage of a lower interest rate.
The decision to refinance really depends on your personal objectives. Here are some of the most common reasons:
- To reduce monthly mortgage payments
When a lower interest rate on your loan is available — usually one percent or more — refinancing can help you save money every month. - To cash-out a portion of the equity in your home
You can get extra cash by obtaining a new loan for a balance larger than the one on your existing loan. Use the cash for anything from home improvements to college tuition. - To obtain a stable interest rate
You can switch from the uncertainty of a variable interest rate to a more stable fixed rate. - To consolidate debt
Similar to a cash-out refinance, you can take a new loan for a larger balance than your existing mortgage. Use the cash difference to pay off any higher interest debts you may have. - To pay off your mortgage sooner
You can switch to a shorter repayment term, which can help you save thousands of dollars in interest payments.
To help decide if it makes good financial sense to refinance, enter your financial information into the refinance calculator. If the results indicate refinancing is an option for you and you'd like to get started, or if you'd like to discuss refinancing contact your advisor or call an experienced Ameriprise Bank Mortgage Loan Consultant, at 855.340.HOME (4663).
How does a cash-out work and when will I receive cash-out funds?
As you continue to make monthly payments on your mortgage, you build equity in your home. You can cash-out by taking a new, larger mortgage against that equity. Many people use the money obtained from a cash-out for home improvements, college tuition, weddings or other major events - the choice is yours!
The funds will be distributed after the three-day right of rescission period on the new mortgage has ended.
What is the rescission period?
Also known as a "right to cancel" period, it allows you to reconsider, and even cancel a refinancing loan with a new lender o r where you get cash-out for any reason, for three business days after you have signed the loan document. As required by federal law, the loan will not be finalized and no money will be issued until the rescission period has ended.
Home equity loans FAQs
- What are home equity lines of credit and home equity loans?
- What are some reasons to use a home equity line of credit or home equity loan?
- What is a draw period?
- How does adding a home equity credit line to my mortgage benefit me?
What are home equity lines of credit (HELOC) and home equity loans?
They are convenient ways to borrow money using your home's equity as collateral. Considered second mortgages, both often have a shorter repayment period than a first mortgage, and feature much lower interest rates than credit cards.
What are some reasons to use a home equity line of credit or home equity loan?
Many homeowners use the equity in their home to pay for home improvements, cars and trucks, weddings, vacations, college tuition, or to consolidate existing debt at a lower interest rate. To learn more uses and discuss your goals, contact your advisor today or speak with an experienced Ameriprise Bank Mortgage Loan Consultant at 855.340.HOME (4663).
What is a draw period?
The time frame during which you can access the cash in your home equity line of credit.
How does adding a home equity credit line to my mortgage benefit me?
- Access cash quickly for unexpected expenses
- Consolidate higher interest-rate debt
- Meet the rising costs of education
- Make home improvements
- Purchase a vacation home, new car or boat
- Provide a ready source of potentially tax deductible funds for seasonal expenses like holiday shopping or tax time
Ameriprise Bank, FSB an Equal Housing Lender and Member FDIC, provides deposit, lending, rewards points and personal trust products to Ameriprise Financial Services, Inc. Ameriprise Bank and Ameriprise Financial Services are subsidiaries of Ameriprise Financial, Inc. Ameriprise financial advisors may receive compensation for selling bank products. Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients.
Financial advisor may not arrange for, promote or suggest that a client use mortgage or home equity loan proceeds to purchase securities or other investment products offered by financial advisor.
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