FAQ

General Questions

Do you provide loans for properties in all 50 states and Washington, D.C.?

Champion Mortgage and its parent company, Nationstar Mortgage, conduct business in every state and D.C. except Alaska and Hawaii.

Can I be approved for a loan before I’ve found a property?

Pre-approval is the best way to begin the home buying process. By getting pre-approved, you will know exactly what you can purchase before you start looking for homes. Realtors and sellers will be more likely to work with you because your financing is already approved.

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.

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.

Mortgage Questions

Why is the Annual Percentage Rate (APR) different from the interest rate?

The annual percentage rate is intended to reflect the total cost of your mortgage loan. To calculate the APR, lenders consider the interest rate on your mortgage loan, the term of the loan, and other loan fees such as closing costs, points, etc. Your monthly payment is calculated based on the mortgage note rate, not the APR. The APR will be higher than your interest rate, especially if you are paying any points.

Rates & Costs

How often do interest rates change?

Interest rates change regularly with the fluctuation of the market.

What factors go into determining my mortgage rate?

Your credit history and your loan-to-value or LTV, as well as your income, your assets, the purpose of the loan and how you intend to occupy the property all factor into determining your rate.

What are points?

Points are a percentage of the loan amount paid at closing that affect your interest rate. A point is 1% of the total loan cost.

Are discount points tax deductible?

In many cases they are. Contact your tax preparer or the IRS to obtain a qualified opinion and the best expert advice.

First-Time Buyer Questions

What can I afford to buy?

Your income and your debts will typically play the biggest roles in determining your price range. Use our Affordability Calculator to determine how much house you can purchase.

How much down payment will I need?

The minimum down payment on Fannie Mae Owned properties through HomePath is 3% is required. A unique feature of this program is that no Private Mortgage Insurance (PMI) is necessary.

Are there tax benefits to owning a home?

You may be able to deduct the interest you pay on the mortgage loan and some of the financing costs of the home, such as points. Your property taxes could be deductible.

Experienced Buyer Questions

I want to move up to a better home. What can I afford?

Your income and your debts will typically play the biggest roles in determining your price range. Use our Affordability Calculator to determine how much house you can purchase.

I'm buying a second home. Is it a different process?

No. However, you will need to identify sources for your down payment, since you’re not selling your current house and using the proceeds.

Do I have to pay Private Mortgage Insurance (PMI)?

A unique feature of this program is that no Private Mortgage Insurance (PMI) is necessary.