FAQ

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. Your Loan Officer at Pacific Union Financial can help you evaluate your choices and help you make the most appropriate decision.

You can print out a list of what you'll need - just click here.

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. Use our calculators to get a general idea of how much  you can afford. 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 – with no cost or obligation.

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.

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.

The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:

• Earnest Money Deposit: 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.

Pacific Union Financial specializes in helping homeowners with low down payment financing – even if you have had credit problems in the past. We’ll help you find the best loan for your financial situation – it’s all part of the service.

We offer three convenient ways to start the mortgage application process:

• Call us at 888-251-1225
• Drop by our office or email one of our licensed Loan Officers.
• Apply online and receive a follow up call from a Loan Officer licensed in your state.

You’ll create a login on our secure server. Your information is sent to us securely. One of our licensed loan officers will contact you and go over your application, run a credit report, and obtain a pre-approval. It’s fast and easy.

Of course,  you can always call us at 888-251-1225 and we’ll take your information over the phone.

We do not require a home inspection in conjunction with your home loan.

In most instances, we do require an appraisal. An appraisal is required by most mortgage lenders in order to support the value of the real estate security and the terms of your loan.

If you’re buying a home, we highly recommended that you obtain a property inspection and make your purchase offer contingent on the findings of the inspection.

At Pacific Union Financial, our Loan Officers will work closely with you to find the best loan – that best fits your needs. There are lots of options, but we make it easy.

You can use our calculator tools to help you determine which loan products might work best for you and approximately what your payments might be. But you’ll get a much more accurate answer if you contact us at 888-251-1225 or email us here.

We can actually pre-approve you for a home loan right over the phone, or online. It only takes a few minutes!

Though we carry the standard loan products that most lenders have, we have many programs that most lenders don’t offer. We have the ability to “portfolio” our loans – because we close and service your loan as a “direct lender”.

This means we don’t have to be at the mercy of the big banks – we can close loans that no one else can!

We’ve helped thousands of homeowners get a great loan at a great rate – even when other lenders have turned them down.

Interest rates are determined by the credit markets, and change every day – sometimes several times a day.

A rate lock is a written agreement in which we guarantee you a specified interest rate, provided the loan closes within a set period of time.

Upon loan approval, we can lock your interest rate. A “rate lock” can protect you from fluctuations in the credit markets. If you lock your rate, your rate will remain in effect for a fixed period of time. If the terms of your loan change after you lock your loan, your final interest rate may be different.

You will be obligated to close the loan at the rate you locked in.

The loan-to-value (LTV) ratio the amount of a first mortgage as a percentage of the home’s appraised value. If a borrower borrows $150,000 to purchase a house worth $200,000, the LTV ratio is $150,000/$200,000 or 75% (LTV).

Loan to value is one of the risk factors that lenders assess when qualifying borrowers for a mortgage. Lenders can require borrowers of higher LTV loans to obtain mortgage insurance in conjunction with obtaining a loan.

If you provide us with the documentation we need up front, we can often receive preliminary loan approval within just one day, and in many instances can close as quickly as three weeks. We’ll work with you to get your loan done on time.

You will need to provide information including your personal identification, income, residence, and assets.

Here is a list of items we will probably need to close your loan:

Refinance Transactions

• Copy of payment coupon for your current mortgage.
• Photo ID for all borrowers (driver's license).
• Tax Returns for previous 2 years - all schedules.
• W/2 forms for all jobs, and all borrowers, for the past 2 years.
• 2 most recent paystubs (30 days of activity) for all borrowers.
• Bank statements covering 30 days of activity.
• Name of insurance company, agent, policy number and phone number.
• Name and phone number of the person who can verify employment at your place of employment.
• Name and phone number of title company if you have a specific title company to close your loan.

Purchase Transactions

• Copy of executed sales contract.
• Copy of payment stub for your current mortgage.
• Photo ID for all borrowers (driver's license).
• Tax Returns for previous 2 years - all schedules.
• W/2 forms for all jobs, and all borrowers, for the past 2 years.
• 2 most recent paystubs (30 days of activity) for all borrowers.
• All Bank statements needed to show the funds necessary to close. 30 days of activity on each account.
• Name of the insurance company and insurance agent you will be using for home owners insurance.
• Name and phone number of the person who can verify employment at your place of employment.
• Name and phone number of title company if you have a title company to close your loan.
• Copy of your earnest money deposit check given to Realtor. We'll need proof it it clearing your account.
• Name, phone number and email address of your Realtor(s).

You can save time and your application will go faster if you have this information available when you apply.

To determine your income, we’ll need to review your tax returns for the last two years, bank statements, and a profit-and-loss statement to document your year to date income.  

Unlike many lenders, we don’t charge any up-front fees or deposits. We even pay for a credit report, if one is required to qualify you or obtain loan approval.

If your loan is approved, we will require you to pay the appraiser before an appraisal is done. You’ll pay the appraisal company directly – not us.

There is no charge to apply for a loan at Pacific Union Financial.

At loan closing, you may be required to pay an underwriting fee of $995, an appraisal fee (determined by the appraisal company in your area) and other costs associated with your loan in your state. If you are purchasing a home, there may be escrow, title, attorney, termite inspection, and other fees associated with your purchase.

In certain instances, we may help you by paying your closing costs for you. Please discuss this with your loan officer.

All lender fees and charges will be clearly disclosed to you prior to you becoming obligated for a loan.

Points are fees expressed as a percentage of the loan. Each point is 1 percent of the loan amount. For example, 1 point on a $100,000 loan would be $1,000.

In some instances,  you may be able to pay more “points” and lower your interest rate – in essence “buying down” the rate and payment on  your loan for the entire term of the loan. 

Some borrowers choose to pay fewer or no points – and pay a higher rate, and lower closing costs. Your loan officer will discuss these options with you, and find the perfect combination to meet your needs. 

Please see a qualified tax adviser regarding the tax deductibility of your loan. In some instances, the interest on a home loan may be tax deductible – saving you thousands of dollars at tax time!

If your credit is good, we offer FHA loans with a down payment as little as 3 ½%. We’ll work with you to find a loan program that fits your needs.

Most conventional loans require a down payment of 20% or more. We have conventional loan programs using mortgage insurance, that can be obtained with as little as 5 or 10% down.

Yes, with our loans, you can make larger principal payments without paying a pre-payment penalty.

Yes! We can pre-approve you for a loan, with no cost or obligation, in as little as one day.

Pre-approval can help you save time and money, as you’ll know the price range you should be looking in. Plus, many home sellers are demanding that buyers get “pre-qualified” before making an offer to purchase a home.

Most people prefer the security of a fixed rate mortgage, especially as we are at near record lows for mortgage rates. However, in some instances, an adjustable rate mortgage (ARM) may make sense – if income and property values will likely be  higher in the future, or if you plan to move on in a short period of time.

Ask your Loan Officer to go over the advantages and disadvantages of ARM loans versus fixed rate loans.

We can help you understand your options if you are facing payment challenges. If this is the case, please contact our Servicing Department at 888-375-3357.

Send payments to:
Pacific Union Financial
PO Box 7168
Pasadena, CA 91109-7168

No, we only make loans secured by Real Estate, in states we are licensed in.

We make loans secured by Real Estate. If you do not make the payments on your loan, you risk losing your home in the foreclosure process.

If you cannot make your mortgage payment, please contact us immediately toll-free at 888-375-3357. We may be able to help you.

Here are some links that may help you if you are in this situation:

How To Avoid Foreclosure
FHA Loans and Your Rights
FNMA – Know Your Options

When you apply for a mortgage, we are required to tell you the interest rate and the annual percentage rate, or APR. The APR is designed to help you shop for loans by making them more comparable.

The Annual Percentage Rate will vary due to differences in loan amount, interest rate, your credit profile, your down payment or equity in the property, whether you choose to pay or not pay “buydown” points, any costs the seller or other parties may be paying, what state you live in, and the type of loan you are applying for. In accordance with the Real Estate Settlement Procedures Act (RESPA) we will disclose all closing costs in advance as required by law.

The Real Estate Settlement Procedures Act (RESPA) insures that consumers throughout the nation are provided with more helpful information about the cost of the mortgage settlement and are protected from unnecessarily high settlement charges caused by certain abusive practices.

The most recent RESPA Rule makes obtaining mortgage financing clearer and, ultimately, cheaper for consumers. The new Rule includes a required, standardized Good Faith Estimate (GFE) to facilitate shopping among settlement service providers and to improve disclosure of settlement costs and interest rate related terms. The HUD-1 was improved to help consumers determine if their actual closing costs were within established tolerance requirements set by the Federal Government.

Your loan documents will outline the late payment provisions of your loan. These are clearly outlined for you in the documents you will be provided when you apply, and again at loan closing. Most loans have a late payment charge if payments are received at fifteen days or longer past the due date.

Pacific Union Financial does not make short term loans. We specialize in long-term mortgages for homeowners across America. Our loans are often sold to FNMA, FHLMC, and other institutional investors, and we abide by their Federally mandated rules and regulations. Our primary products are FHA loans insured by the Federal Housing Administration (FHA).

We do not offer short term, or “Payday Lending” type financing in any instances.

Pacific Union Financial does not offer “Section 32” high cost mortgage loans.

Branch Locations

Corporate Headquarters
1990 N. California Blvd., Ste. 16
Walnut Creek, CA 94596
877-500-0111

Southern California Retail Division
2850 S. Redhill Ave., Ste. 105
Santa Ana, CA 92705
888-251-1225

Southern California Wholesale Division
2850 S. Redhill Ave., Ste. 120
Santa Ana, CA 92705
877-500-0111

Virginia
3702 Pender Dr. #140
Fairfax, VA 22030
877-500-0111