Mortgage FAQ


What are the advantages of going through AAA? +

As a AAA member you have access to our wholesale mortgage services.  Even if you simply use us for information and advice, we are happy to help guide you through the home financing process.  If you choose to use one of our selected lenders, you can be assured we will negotiate a great value on a mortgage to fit your needs.

What does the home loan process entail? +

At AAA Northeast we strive to close your home loan as quickly as possible.  We will connect you with a loan officer to discuss loan program options, submit your loan application and assist you with the process of closing your loan.  When purchasing a home, we do our best to meet the agreed upon closing date between the buyer and the seller.    

Do you offer first time home buyer programs? +

Yes. If you are looking to purchase your first home, please contact us and we are happy to discuss your loan options with you.  We also offer first time home buyer webinars.  If you are interested, please visit our free webinar page to view and enroll in an upcoming webinar.
An account your mortgage company sets up to collect funds to pay your real estate taxes, homeowner’s insurance, and private mortgage insurance (when required).  Your monthly mortgage payment will include the amount to be paid to Escrow.  If you meet the escrow waiver requirements and choose to waive escrow, you will be responsible for paying your real estate tax and homeowner’s insurance on your own.
Points are a percentage of a loan amount.  When applying for a home loan you can choose to pay points (offers lower interest rate in exchange for higher closing costs), choose a zero-point loan (market rate) or choose to receive lender credits towards your closing costs (higher interest rates in exchange for lower closing costs).    
Yes, we have many products from lenders that specialize in this type of financing.
Yes, if you have higher interest rate debt, we can help you determine if a consolidation loan is right for you. 
The amount of your down payment will depend on the loan program you choose.  We offer programs that could finance 100% of the purchase price.  However, generally the more you put down the easier it is, and the cost is often reduced.  Typically, a down payment is anywhere between 3.5% to 20% of the value of the home.  If you can put 20% down, you may avoid paying Private Mortgage Insurance.
Private Mortgage Insurance is insurance provided by a private company to protect the mortgage lender against losses that might be incurred if a loan defaults.  Private Mortgage Insurance is required on any home loan when the deposit amount is less than 20% of the value of the home.

A home inspection is typically not required by the lender to purchase a home.  However, it is in the best interest of the buyer to conduct a home inspection.  The home inspection will determine if there are any major issues or complications with the home that a potential buyer may not notice on their own.

An appraisal is often required by the lender.  The appraisal will determine the market value of the home.  This protects the lender and the buyer from getting a loan that is higher than what the home is worth.  In certain circumstances, the lender may agree to an appraisal waiver.

A prequalification determines how much money a potential homebuyer can spend on a new home.  Before searching for a new home, a pre-qualification is strongly recommended.  In some cases, a prequalification is required by the real estate agent before a showing can be scheduled.
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