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1.	I haven't decided on a mortgage company yet. I am just starting to shop around. What should I know before making a decision on whom to choose? Answer
2.	How do I know how much house I can afford? Answer
3.	What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
4.	How is an index and margin used in an ARM? Answer
5.	How do I know which type of mortgage is best for me? Answer
6.	What does my mortgage payment include? Answer
7.	How much cash will I need to purchase a home? Answer
8.	What sort of paperwork will I need to provide during the loan process? Answer
9.	Once I've decided to move forward with a loan, what comes next? Answer
10.	I am buying a home, and I do not have the funds needed for a 20% down payment. I've heard that I might need to get private mortage insurance, or a 2nd mortgage. Is one option better than the other? Answer
11.	I'm currently involved in a refinance transaction. The loan closing is just a few days away, and I have some payments coming up on my monthly bills. What should I do? Answer
12.	I'm currently in the market to buy a home. Do I really need a realtor? Answer
13.	I'm currently in the market to buy a home. Do I really need an attorney? Answer

Q :	I haven't decided on a mortgage company yet. I am just starting to shop around. What should I know before making a decision on whom to choose?
A :	First off, make sure that the loan officer(s) that you are speaking to are registered loan originators. Under, law, all Illinois loan originators are required to be registered with the state. We have included the "lookup link" to their website (www.idfpr.com) in our Links section. If your prospective loan officer is not registered, that's not a good thing. Secondly, I'm sure you've seen a bunch of advertisements offering rates that are too good to be true; most likely, they are. Some mortgage companies will advertise low rates, but hidden finance charges, prepayment penalties, balloon payments, adjustable rates, and/or negative amortization might be included. Owl Tree Mortgage Company provides a listing of current rates on our site, but we will also support our quote with a written Good Faith Estimate and Truth-In-Lending disclosure if you contact us for additional information. If a loan officer cannot provide a Good Faith Estimate and Truth-In-Lending disclosure, chances are, their rate isn't worth the newspaper it's written in. Third, get a reference on your loan officer. Christopher R. Kopec was able to found Owl Tree Mortgage Company due to years of customer referrals. It's the best form of advertising in the world. We can supply the names of customers that have worked with Chris in the past. All you need to do is ask.

Q :	How do I know how much house I can afford?
A :	Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.

Q :	What is the difference between a fixed-rate loan and an adjustable-rate loan?
A :	With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.

Q :	How is an index and margin used in an ARM?
A :	An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).

Q :	How do I know which type of mortgage is best for me?
A :	There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Owl Tree Mortgage Company can help you evaluate your choices and help you make the most appropriate decision.

Q :	What does my mortgage payment include?
A :	For most homeowners, the monthly mortgage payments include three separate parts: Principal: Repayment on the amount borrowed Interest: Payment to the lender for the amount borrowed Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.

Q :	How much cash will I need to purchase a home?
A :	The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply: Earnest Money: The deposit that is supplied when you make an offer on the house Down Payment: A percentage of the cost of the home that is due at settlement Closing Costs: Costs associated with processing paperwork to purchase or refinance a house

Q :	What sort of paperwork will I need to provide during the loan process?
A :	The documentation that you provide will depend upon the loan program under which you qualify. However, it is always a good idea to gather up your income and asset information in advance and have it prepared for submission. Please refer to the "Customer Checklist" page under the Resources section; you'll find a comprehensive list of information that you should prepare in advance to ensure a smooth loan process.

Q :	Once I've decided to move forward with a loan, what comes next?
A :	There are a number of steps and several different parties involved in a typical mortgage transaction. To give you a more clear sense of how the loan process operates, please refer to the Resources section, under the subject of "Processing Timeline".

Q :	I am buying a home, and I do not have the funds needed for a 20% down payment. I've heard that I might need to get private mortage insurance, or a 2nd mortgage. Is one option better than the other?
A :	The answer depends on a number of factors, including your income, the current interest rate environment, the overall amount financed, and how long you intend on staying in the home. This is a question that is best answered during the initial loan consultation. However, we have placed some helpful PMI-related links in the Resources section, and recommend that customers review the information provided.

Q :	I'm currently involved in a refinance transaction. The loan closing is just a few days away, and I have some payments coming up on my monthly bills. What should I do?
A :	Owl Tree Mortgage Company always recommends that the customer make all their monthly payments on or before their respective due dates. If you fail to make your payments by the due date, late payments will be incurred; if you fail to make your payments within thirty (30) days of the due date, then you will be reported late to the credit agencies, which will have a negative impact on your credit. For these reasons, regardless of the timing of your closing date, we will never advise a customer to hold off on making payments.

Q :	I'm currently in the market to buy a home. Do I really need a realtor?
A :	Some customers choose to engage is for-sale-by-owner-transactions, whereby a real estate professional is not used. While customers are free to engage in such transactions, we encourage all customers to speak with a realtor at some point prior to deciding upon a home. Realtors can provide valuable information that many potential homebuyers might not normally consider. So while a realtor is not mandatory, we firmly believe that a well-qualified real estate professional can make the difference between a dream home and a nightmare transaction. Owl Tree Mortgage Company works closely with dozens of reputable realtors, and would be happy to provide you with their contact information if requested. Important: If you opt not to use an realtor, Owl Tree Mortgage Company will not be available to assist you in matters that are normally the task of a realtor. Under the law, we act only as an Illinois residential mortgage licensee.

Q :	I'm currently in the market to buy a home. Do I really need an attorney?
A :	As you might expect, our answer is similar to the one above. Some customers choose to forego an attorney to save money (the average attorney charges anywhere from $250-$500+ for their services). While customers are free to act without an attorney, we encourage all customers to speak with an attorney at some point prior to deciding upon a home. The legal review of the sales contract, title documentation, and survery is extremely important; only an attorney can represent your interests in this matter. So while employing an attorney is not mandatory, we firmly believe that having an attorney to represent your interests is well-worth the potential cost involved. Owl Tree Mortgage Company works closely with many of reputable attorneys, and would be happy to provide you with their contact information if requested. Important: If you opt not to use an attorney, Owl Tree Mortgage Company will not be available to assist you in matters that are normally the task of an attorney. Under the law, we act only as an Illinois residential mortgage licensee.