Mortgage
Frequently Asked Questions
Here are some of the most common questions members ask us about mortgages. If you still have questions or would like more information on any of the topics listed here, please give us a call at 781.433.2929. We’ll be happy to help you.
- Why should I apply with Direct Federal?
- What are the advantages of applying online?
- I’ve never done this before. Can you tell me what to expect?
- What happens after my application is approved?
- What if I currently have my mortgage with Direct Federal?
- What if I have more questions along the way?
Why should I apply with Direct Federal?
At Direct Federal we are committed to be the easiest, most dependable place to do business. We deliver on this promise by offering:
Flexible programs – We offer a wide range of loan products, including Fixed Rate Loans, Adjustable Rate Loans, No Income Verification Loans, Low Down Payment Loans and Purchase Pre-Approvals. So, whatever your needs and budget, we can provide a program that's perfect for you.
Easy application – Our application takes 15 minutes or less to complete. We only ask for information relevant to your situation.
Immediate approval – Once your application is submitted, you will receive a decision within 7 business days. We will then tell you exactly which documents we need to complete the process. As we receive these documents you can track the status of your application through MortgageDirect.
Personalized service – After we receive your application, a Mortgage Loan Officer may contact you. He or she will be will answer any questions you may have and will be your personal loan advisor throughout the process of your closing. Having a single point of contact enables us to focus on your needs and provide you with personalized service. Your personal loan advisor is an expert in the mortgage process and will answer any questions you may have along the way.
Guaranteed closing costs – Once we provide you with your closing costs, they are guaranteed. There will be no shock of hidden fees or unpleasant surprises along the way. And we don't charge "junk" fees, such as underwriting, processing or document preparation fees. We use every dollar of your closing costs to provide the third party services required to close your loan.
Local, in-house servicing – We service virtually all of the mortgages we originate. So, if you ever have a question about your payment, real estate taxes, year-end forms, anything—you'll know exactly who to call.
What are the advantages of applying online?
There are many advantages to applying for a mortgage through our MortgageDirect online service:
Savings – Online loan applications cost less for us to process and we pass these savings on to you. Our rates are generally 1/8% - 1/4% lower than those of traditional lenders. And, our closing costs are among the lowest in the market.
Convenience – You can research and apply for a mortgage anytime—day or night.
Real-time information – By the time you see a rate in the newspaper, it may no longer be accurate. At MortgageDirect, you get accurate rates in real time.
Security – MortgageDirect uses a powerful combination of encryption, authentication and firewall security technologies to ensure your personal and financial information is protected.
I’ve never done this before. Can you tell me what to expect?
Completing your mortgage application online is just like completing one on paper—except it’s easier and more convenient. MortgageDirect guides and prompts you through each stage of the application process (which should only take about 15 minutes to complete). At any time, you may stop and save your work to return and complete the application later. A series of relevant Helpful Tips will appear in the box on the right as you go from screen to screen. Here’s what you’ll see:
Start App – You’ll be asked to select a username and password to ensure security and privacy. Create and enter your username and password here. You may want to make a note of your username and password for your records.
Personal Info – Provide the name, date of birth and Social Security number for each borrower.
Property Info – Enter the address, price and other information related to the property you are purchasing or refinancing.
Select Loan – Based on the information you’ve provided, MortgageDirect will offer a range of mortgage programs for which you qualify. Just select the one you want. You can also get a summary of cash needed for closing and estimated monthly payments.
Income Info – Provide your employment and salary information.
Asset Info – We need a list of your financial assets, including bank accounts and investments, so we can verify you have access to sufficient funds to complete the transaction.
Expenses Info – Because it is important for us to review the relationship of your income to your expenses, we ask you to list current debts, such as auto loans, personal loans and credit cards.
Submit App – After a few final questions, submit the application to Direct Federal and you’ll receive an answer immediately. If your application is approved, we’ll ask for a deposit to cover the cost of the appraisal on your home.
That’s all there is to it. Apply now and be on your way to the simplest home loan ever!
What happens after my application is approved?
Once you’ve submitted your application, a Mortgage Loan Officer may follow up with you to provide additional help and guidance. During the mortgage process your Mortgage Loan Officer will be your single point of contact. They will send you an approval letter, order an appraisal from a licensed appraiser familiar with home values in your area and prepare your loan for closing. The closing will take place at the office of our attorney in your area, who will act as our agent. A few days before closing, your Mortgage Loan Officer will contact you to walk through the final information and answer any lingering questions you might have.
What if I currently have my mortgage with Direct Federal?
If you currently have your first mortgage with Direct Federal, you may qualify for our Streamlined Refinance Program. The Streamlined Refinance Program allows you to refinance your current mortgage at reduced closing costs. To apply, simply complete the standard mortgage application.
What if I have more questions along the way?
Each page of MortgageDirect provides a new set of FAQs specifically related to the topics and content contained on that page. You can also always reach us at 781.455.6500.
