Frequently Asked Questions (FAQs)

Getting a new mortgage or refinancing an existing home loan is an important decision that will affect your household budget for years to come. A trained mortgage professional, like the non-commissioned Loan Officers at Nutter, will help you understand the terms and costs associated with your loan package, but be prepared to ask detailed questions in order to get the best deal possible for you.

   
Q What is a P&I payment?
A P&I is the principal and interest you pay your lender each month. The amount of money being borrowed is the principal and the cost of borrowing the principal is the interest. Your P&I account for the majority of your monthly payment, which may also include escrow payments for property taxes, mortgage insurance, homeowners insurance and other costs.
   
Q How do you handle transfer of taxes and insurance?
A Some lenders handle these costs out of escrow; others ask for cash up front. Make sure you know what you’re in for; there’s no reason why you should have to supply the cash up front.
   
Q How long has this company been in business?
A James B. Nutter & Company has been in business in the same home town under the same name since 1951 - that’s stability you can trust.
   
Q How do we provide the lowest rates possible?
A We are a totally online lending service. Most traditional lenders employ Loan Officers who meet with borrowers in person to take loan applications and are generally paid on commission. Since you will complete our online application, there’s no need for a commissioned Loan Officer. We pass on those savings to you by providing the lowest rates and fees available! We’ll assign your file to one of our non-comissioned Loan Officers who will be available by phone, email, or online chat to answer any questions you may have and to guide you through the mortgage process.
   
Q Is there a fee charged or any other obligation if I complete the online application?
A There’s no cost at all for completing our application. After your loan is approved, you can decide whether you wish to pay the application deposit to cover the cost of the appraisal and final credit report - so that you can lock in an interest rate and we can begin to process your request.
   
Q What is the maximum percentage of my home’s value that I can borrow?
A The maximum percentage of your home’s value depends on the purpose of your loan, how you use the property, and the loan type you choose, so the best way to determine what loan amount we can offer is to complete our online application with no obligation!
   
Q Will you service my loan for the duration of the term?
A Other lenders and brokers are strictly middlemen, setting up and then selling off mortgage loans, which means you’re not dealing with someone you will have a long-term relationship. But at Nutter, we’re in it with you for the long haul.
   
Q What’s your markup on the fees related to work done by outside contractors?
A Some closing costs and fees are legitimate, such as fees for title policy and appraisal fees, because the lender has to pay someone else to perform that work. That doesn’t necessarily mean the amount is legitimate, however. If an appraiser charges $100 for an appraisal, and the lender charges the borrower $250 for that appraisal, that’s a 150% markup.
   
Q Can you tell me how each of these fees and closing costs was calculated?
A This is your turn to play “gotcha” with the lender. Many “junk fees” are just dollar amounts arbitrarily tagged onto a loan with no real-world justification whatsoever. These kinds of fees have a wide variety of different names, such as “underwriting fee,” “processing fee,” “table funding fees,” “waive escrow fees,” or “document preparation fee.” Because it’s all smoke, mirrors and make-believe, they can call it whatever they want, and set the price at whatever they think people will fall for. Take the “document preparation fee,” for example. Kinko’s charges less than ten cents a page; if the broker is charging more, ask him why.
   
Q May I have a copy of a Loan Estimate showing rate, terms and itemized closing costs and fees for this loan?
A This is the most important step you can take. Don’t settle for fast talk; by law, mortgage lenders must give you this information. Be sure you get a copy of your own that you can take with you when you leave. Don’t settle for a promise to have that information at the closing; by the time you sign on the dotted line, it’s too late. Also, don’t settle for a single line item combining all closing costs and fees into a single lump sum. That’s a favorite ploy of those who try to slip “junk fees” past an unwary borrower. Closing costs and fees are not standard; they can vary by thousands of dollars.
   
Q Does Nutter provide financing for manufactured homes?
A We define manufactured housing as housing units that are factory built with a steel undercarriage that remains as a structural component and limits the structure to a single story. These types of manufactured homes are sometimes known as mobile homes. We do not consider other factory-built housing (not built on a permanent chassis), such as modular, prefabricated, panelized, or sectional housing, to be manufactured housing. If your home is one of these types, please complete the application indicating that your home is a single family home.

In order to qualify for our loan programs a manufactured home must meet the following requirements:

  • A manufactured home is any dwelling built on a permanent chassis and attached to a permanent foundation system.
  • Be a one-family dwelling that is legally classified as real property.
  • The towing hitch, wheels, and axis must have been removed and the home must be permanently attached to a foundation system that meets state and local codes as well as the manufacture’s requirements.
  • Foundation system must be appropriate for the soil conditions for the site and meet local and state codes.
  • The land on which the manufactured home is situated must be owned by you. We do not provide financing for manufactured homes located on rented or leased land.
  • Must have been built in compliance with the Federal Manufactured Home Construction and Safety Standards that were established June 15, 1976. Generally, compliance with these standards will be evidenced by the presence of a HUD Data Plate that is affixed near the main electrical panel of the home or in another readily accessible and visible location.
  • Must be at least double-width, 24 feet wide, and have a minimum 600 square feet of gross living area. Must be acceptable to typical purchasers in the market area.