What types of mortgage options does Mutual of Omaha Mortgage offer?

Mutual of Omaha Mortgage offers a range of competitive loan programs and options, including:

What is a prequalification letter and why do I need one?

It’s simple – buying power. A prequalification letter comes from the lender. The letter states that the lender agrees to provide a mortgage to you, the home buyer, under certain conditions. Prequalification letters help you set realistic goals while you’re house hunting. And, they can provide you with the same negotiating ability as a cash buyer, which will enable you to move quickly once you find the perfect home. Home sellers feel more confident working with a home buyer who has a letter of prequalification.

Should I get prequalified before I begin searching for a home?

Yes, we highly recommend home buyers start their journey by getting prequalified. It is the best way to get a realistic assessment of how much home you can afford. Plus, it will help you get your credit score and finances in order prior to your house hunt. And it doesn’t cost you a dime. It is a complimentary service we offer our customers.

The prequalification process is simple:

  1. Gather your personal financial information such as bank statements, W-2 forms and paycheck stubs, and meet with your Mutual of Omaha Mortgage loan officer.
  2. Your Mutual of Omaha Mortgage loan officer will pull your credit report and evaluate your financial documents. With this information, you and the loan officer are able to discuss the best home financing options that will help you achieve your financial and homeownership goals.
  3. Once you are prequalified, Mutual of Omaha Mortgage will give you a prequalification letter to inform your real estate professional and the seller of the property that you’re a preferred and serious potential buyer. This will give more weight to any offer you extend on a property as well as allow you to relax and enjoy the process of looking for your new home.

When I apply for a home loan, what documents will I need?

The typical documents you’ll need are those that verify your income, employment and assets.

Is it still possible to qualify for a loan with less than perfect credit?

Yes, and you are not alone. Everyone finds themselves in tough financial situations at one point or another. Don’t let previous problems discourage you from making a fresh start and investing in your financial future.

How does the Annual Percentage Rate (APR) differ from the interest rate?

According to the Consumer Financial Protection Bureau (CFPB): "The interest rate is the cost of borrowing money expressed as a percentage rate. It does not reflect fees or any other charges you may have to pay for the loan. An Annual Percentage Rate (APR) is a broader measure of cost to you of borrowing money. The APR reflects not only the interest rate but also the points, broker fees, and certain other charges that you have to pay to get the loan, including a portion of your closing costs. For that reason, your APR is usually higher than your interest rate."

Will I get a copy of my credit report and appraisal?

You can get a copy of your credit report through the credit bureaus. You will receive a copy of your appraisal a minimum of three days prior to your closing.

How do I know which home loan solution is right for me?

Everyone’s situation is unique. Your lifestyle and financial situation are the best guides for deciding on the best loan program for you. Consider these questions:

  • How long do you plan to stay in this home? Three years? Ten years? Forever?
  • Do you anticipate a significant change to your income or finances over the next few years?
  • Are you comfortable with a mortgage rate that may change or “adjust” on a monthly basis?
  • How quickly do you plan to pay off your mortgage? For example, do you plan to pay off your mortgage before your children start college or when you retire?

Based on your answers, your Mutual of Omaha Mortgage loan officer can discuss different home loan programs that will suit you financially and help you reach life’s milestones comfortably.

What is the difference between a VA and an FHA loan?

A VA loan is guaranteed by the Department of Veterans Affairs. Individuals who have served in the armed forces for a specified time may be eligible for this type of loan.

An FHA loan, on the other hand, is guaranteed by the Federal Housing Administration. FHA is a government agency that works with approved lenders such as Mutual of Omaha Mortgage.

Your Mutual of Omaha Mortgage loan officer will help you identify any special programs that you may qualify for, such as VA or FHA loans.

How do I know what my interest rate will be?

Your Mutual of Omaha Mortgage loan officer will advise you of the rates available for your loan product. When you are ready, you can lock in your interest rate. You can lock in your rate for up to 180 days (additional restrictions and fees may apply for lock terms in excess of 90 days). This guarantees your rate for the entire lock period.

Can I use Mutual of Omaha Mortgage’s calculators to learn more about my home loan options?

Mutual of Omaha Mortgage’s online calculators give several options for the various stages and goals in life. We’ve customized the calculators to help you with information you might be looking for such as payments on a new home, a lower interest rate, cash back on a refinance or simply changing the way you currently pay your mortgage. If you don’t see an online calculator that gives you the information you need, please give us a call. Our expert loan officers are ready to answer any questions you have.

Fixed-rate or ARM, which is the right loan for me?

When deciding on the type of rate you want, it’s all a matter of time. You’ll want to think about a fixed-rate mortgage if you plan to live in your home for more than a few years. Fixed rates provide you with stable payments and protection against increasing mortgage interest rates. An adjustable-rate mortgage would be more suitable for you if you foresee living in your home for only a few years. With an adjustable-rate mortgage, you open yourself up to the possibility of having your monthly payments increase or decrease each time your interest rate changes.

What are “origination points,” “discount points,” and “origination fees?”

Paying origination or discount points allows you to lock in a lower interest rate.

Typically, origination points are applied and disclosed at the time of locking in an interest rate. On the other hand, discount points can be added at the time of lock or later in the process if you choose to pay to reduce your interest rate.

Origination fees are the fees required to originate the loan. They can include processing fees, underwriting fees, administrative fees, and several others. Your loan officer can give you a complete breakdown of these fees as they vary from state to state.

How much will I need for a down payment?

Depending on your situation and eligibility, we have several down payment options. Your Mutual of Omaha Mortgage loan officer will be able to help you find a loan program that best fits your financial goals and needs.

What is LTV (loan-to-value) ratio?

To find your LTV, simply divide your current loan amount by the total value of your home. For example, if your home is worth $220,000 and you owe $160,000, your LTV is 73 percent.

What is “PITI?”

PITI is principal, interest, taxes and insurance – the basic components of a monthly mortgage payment if escrow is being included.

How do I know if I should waive escrow withholding?

When you waive escrow withholding, you take the responsibility for paying your taxes and insurance yourself rather than having them included in your monthly payment. Waiving escrows may add a fee to your closing costs. You can only waive escrow if your loan program allows for this.

What is a “prepayment penalty?”

A lender may charge a prepayment penalty if the borrower decides to pay off the home loan early. Some loans with lower rates will contain a prepayment penalty, which discourages refinancing if interest rates fall. Although home loans are structured in various ways, a prepayment penalty is typically a percentage of the unpaid balance or the amount of interest on a specified number of months.

Statistically speaking, most home buyers will either move or refinance before paying off the loan, so they rarely see the benefit of a slightly lower interest rate in exchange for a possible prepayment penalty. None of Mutual of Omaha Mortgage’s loans carry prepayment penalties.

What inspections or appraisals will Mutual of Omaha Mortgage require?

Mutual of Omaha Mortgage requires a home appraisal on most transactions. If the appraiser recommends repairs or if repairs are mentioned in the contract, we may require that those repairs be completed before closing. The appraiser then will perform a final inspection to ensure that the repairs were completed.

Where should I send my house payment if I haven’t received my payment booklet/coupons?

Refer to your “First Payment Letter” in your closing documents to determine where to send your first mortgage payment.

Will I need to make two separate payments if I have a second lien?

The second lien is often from a different lender than the first lien (or loan). Borrowers with a second lien, therefore, will make two separate payments each month – one on the first lien and one on the second lien.

What is the difference between a mortgage broker and a direct lender?

A mortgage broker serves his or her client by shopping around for various lenders who will approve the home buyer’s loan. While this sounds convenient, many times the buyers end up paying higher costs for their mortgage because of the broker’s fees. A direct lender, on the other hand is just that – a direct connection between the home buyer and one company, from start to finish. As a direct lender, Mutual of Omaha Mortgage delivers a fast and efficient process to our buyers from the initial application, to approval of a competitive loan and to the final closing.

If I have any other questions, who can answer them?

In addition to getting in touch directly with your loan officer, you are always welcome to contact us at 1-800-310-0929 or email us through our Contact Us page.

*A prequalification is not an approval of credit, and does not signify that underwriting requirements have been met.

Our mortgage calculators will help you find a mortgage you can afford!

Mortgage Calculators