Frequently Asked Questions

What if I’ve had credit problems?
Your credit history is only one factor in qualifying for a loan and having made some late payments doesn’t have to keep you from buying a home. Someone who has consistently made payments on time in the past may have more financing options than someone who has not, but that doesn’t mean a mortgage is off limits if you’ve had credit problems.

Which type of loan is best for me?
We would like to find out more about you before throwing out loan options. You wouldn’t want a doctor to suggest surgery before they assessed your medical situation, would you? We will gather information about you and your financial goals before suggesting a certain loan type. Check out these loan types and we will explain the pros and cons to each. Then we will decide together which loan is right for you

Fixed-Rate Loans: You will pay the same interest rate and same monthly payment of principal and interest for the duration of the mortgage. The most common terms are 30, 20 & 15 years. Fixed-rate mortgages are best if you plan on being in your home for a while.

Adjustable-Rate Loans: (ARM) The interest rate stays fixed for an initial interest rate period, which ranges from 1-7 years. Then the rate will adjust up or down annually for the life of the loan based on a specified index. An RM is a good option if you believe interest rates will go down over the next few years or if you plan on staying in your 5 to 7 years or less.

Combination Loan: A loan where you receive a first mortgage combined at the same time with a second mortgage. This option may help you avoid the costs of mortgage insurance and/or the higher rate of a larger loan with as little as 10% down. The most popular combinations are 80-10-10 (80% first mortgage, 10% second mortgage, 10% down) or 75-15-10 (75% first mortgage, 15% second mortgage, 10% down)


What is the Interest Rate & Annual Percentage Rate?
The Annual percentage rate (APR) is derived by a complex calculation that includes the interest rate and all the other related lender fees divided by the loan’s term. However, keep in mind that:

• There is no way to accurately compute an APR for an adjustable loan

• And APR does not account for early payoffs.


What will Old Virginia Mortgage, Inc. - Virginia Beach Branch look at when I apply for a mortgage?
We will consider many factors in evaluating your loan application, but we will mainly focus on:

• Income and Debt: How much money you make and what other bills you have to pay helps us determine whether you can afford to make mortgage payments.

• Assets: We need to make sure you have enough money to cover the costs of buying a home.

• Credit: Whether you’ve met other financial obligations helps us predict whether you will repay your mortgage.

• Property: The home you want to buy has to be worth enough to act as collateral for the mortgage.


How much time does Old Virginia Mortgage, Inc. - Virginia Beach Branch need to close?
Average loan processing time periods fall between 21 & 45 days. To properly write a purchase contract, you will need to include a closing date, and that date should be coordinated with your real estate agent and Old Virginia Mortgage, Inc. - Virginia Beach Branch . We will evaluate your loan and anticipate:

• How quickly do you want to close?
• Are there any obstacles that could possibly prolong a closing?
• How long after final application approval will the loan close?


What will my mortgage payments include?
For most borrowers, each monthly mortgage payment goes toward the following:

• Principal: the total outstanding balance of the loan (interest not included).

• Interest: the cost of borrowing money.

• Taxes: Levied on the property by the local government.

• Insurance: protects the owner and the lender from the losses caused by fire and natural hazards.


What closing costs will I have to pay?
Closing costs vary (generally 2-3%) based on a number of factors. You will be provided an estimate of your closing costs soon after your application has been received. Closing costs depend on the mortgage type, the mortgage program, purchase contract, and location, but closing costs usually include the following:

• Lender Fees: Included in these are appraisal fees, credit report fees, origination points and discount points.

• Third Party Fees: Charges for services not provided by Old Virginia Mortgage, Inc. - Virginia Beach Branch , including settlement fees, title insurance and attorney’s fees.

• Prepaid Items: Certain mortgage costs must be paid to Old Virginia Mortgage, Inc. - Virginia Beach Branch in advance. The most common of these are pre-paid interest, hazard insurance and deposits to set up an escrow account.


What documents do I need to provide to Old Virginia Mortgage, Inc. - Virginia Beach Branch ?
Other documentation may be required depending on your loan situation, but the most common requirements are:

• Pay stubs covering the most recent 30 day period.

• W-2 forms for the most recent 2 years.

• Most recent 2 months bank statements (all pages) for all bank accounts.

• Photo ID and evidence of Social Security Number.

• Tax returns for the most recent 2 years will be required for self employed clients.


What are discount points and should I pay them?
Discount points are equal to 1% of the loan amount. Therefore, 2 points on a $100,000 loan cost is $2,000. This is often called “buying down” your rate. The more points you pay, the lower the interest rate. In addition, discount points are tax deductible. So does paying points make sense for you? The answer depends primarily on how long you plan to stay in your home. First, we’ll let you know how much lower your monthly payments will be if you pay point. Then, we will calculate how long it will take for those monthly savings to add up to the cost of the points. If it would take five years to break even and you’re planning on staying in your home for at least ten years, paying discount points may be a smart move.




Old Virginia Mortgage, Inc., Virginia Beach Branch, provides home loans in Virginia, and North Carolina. We provide home mortgages in Virginia, home mortgages in North Carolina. Click here to apply for a home refinancing or home mortgage in Virginia and North Carolina.