Frequently Asked Questions

Here you will find answers to our most frequently asked questions.



An interest rate is the rate at which interest is paid by consumers for the use of money that they borrow from a lender. The APR (Annual Percentage Rate) is a measure of the cost of credit, expressed as a yearly rate, that relates the amount and timing of value received by the consumer to the amount and timing of payments made.

The DTI (Debt to Income Ratio) compares your monthly debt expenses to your monthly gross income (before taxes). It is an important factor lenders make when processing your loan because it helps determine how much you can afford and how likely you are to be able to repay the loan.
To determine your DTI make the following calculations:

  • Add up all payments you make a month like your car loans, credit cards, housing expenses, and more.
  • Divide your monthly debt by your gross income per month.
  • Multiply that number by 100 to get a percentage.


The LTV (Loan to Value Ratio) calculates how much equity you have in your home. The LTV is calculated by dividing the amount of the proposed loan amount by the appraised value or the purchase price of the home, whichever is less.

It is important because it helps lenders determine a consumer’s qualification for loans and rates. Your LTV has a direct effect on your rate.


The note is the consumer’s promise to pay back the loan. It outlines the terms and conditions of the loan as well as where and when to make payments.

An Escrow Account is money held by the loan servicer in reserve, which is collected monthly, for the purpose of paying mortgage insurance, real estate taxes, and insurance.

Closing costs are fees associated with the loan and may include lender fees, third party fees (e.g. appraisal, credit and flood certification fees), and Title/Escrow fees.



Yes, we do not charge a fee for getting pre-qualified at NFM Lending. Getting a pre-qualification letter is great because it helps when putting in an offer for a house. Sellers and Realtors® feel more comfortable negotiating a contract with people who are already pre-qualified. Also, it gives you a clear idea of how much you can afford.

To learn about all of our loan products in detail, please visit our Loan Products tab.

Our loan products include: Conventional, FHA, VA, USDA, Jumbo, Renovation, refinance loans, and more. Loan programs are available for both purchase and refinancing needs.


Contact one of our licensed Mortgage Loan Originators by clicking here to help you decide which loan product best suits your needs.

Having all of the information regarding where a consumer’s money is coming from allows for our Underwriters to make an informed decision on loan qualification. This helps ensure that the consumer can afford the loan and is in the correct loan program.

A Loan Estimate (LE) is a form that the consumer receives within three days of applying for a mortgage. It details everything you need to know about the loan you have applied for, including the estimated interest rate, monthly payment, closing costs, and any other fees. It will also inform you of any special features in the loan, such as a prepayment penalty.

The Loan Estimate (LE) is a federally required document that outlines all the costs associated with obtaining a mortgage loan including, but not limited to: Lender charges; Title/Escrow Company charges; third party charges such as Appraisals, Credit Reports, various inspections and surveys; as well as recordation fees and transfer taxes charged by local municipalities and state governments. The Total Settlement Charges are simply the accumulation of all the aforementioned fees added together on one document known as the Loan Estimate.

A copy of your current mortgage note is required on a refinance to determine the loan benefit to the consumer.

NFM Lending is held accountable by various agencies as well as State and Federal Regulators for all documents provided to us by the consumer. We need all of the pages to ensure completion and accuracy.

For a list of items needed to be submitted to your Mortgage Loan Originator, please click here



Once a signed application is received by NFM Lending, the process will take approximately 30 days. This time frame may vary if all required documents are not received, and depending on your loan type or situation.

This may be an option for some consumers. Your closing agent or your Title/Escrow company will be able to tell you the acceptable forms of payment. You may select a Title/Escrow company yourself, or NFM Lending may contact one on your behalf.

Houses built or surfaces painted prior to 1978 may contain paint made with lead. When ingested this paint may cause illness or even death specifically in minors and the elderly. For more information about the Guidelines for the Evaluation and Control of Lead-Based Paint Hazards in Housing, click here.

On refinance loan, yes, provided the program allows for it and the borrower has sufficient equity.

NFM Lending will order the appraisal through one of our approved vendors.



NFM Lending does not offer any mortgages that have a pre-payment penalty to the borrower and most states actually prohibit the practice.

Pre-payment, where permitted, works in the following way: If you pay off your mortgage early, sometimes you can be charged a fee (pre-payment penalty). Pre-payment penalties will be applied depending on the type of loan you secured. For example, you may get a lower rate on a mortgage in exchange for a pre-payment penalty. In general, if you want the option to refinance or move before you’ve paid off your mortgage, you may not want to agree to terms that include pre-payment penalties.


At the time of closing, one of the documents that should be provided to the consumer is a “First Payment Disclosure,” which provides the address and amount of the first payment. Unless the consumer receives a subsequent document, the first payment should be made in accordance with that disclosure.

Payment information will be provided by your Mortgage Loan Originator.

Consumers will be notified typically within 30 days of closing when the servicing changes take place and to whom the payments there after will be made to. The new loan servicer will provide new payment options.


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