Since 1998, AimLoan.com has worked tirelessly to create the most efficient loan origination system in the industry.

* As a direct lender offering mortgages via the Internet, our system eliminates the need for a loan broker and highly commissioned loan officer, the two highest cost components of a mortgage transaction.

* We lend in 43 states from a single location eliminating the cost of brick and mortar branches.

* We utilize state of the art technology, including online rate quotes, online good faith estimates, online loan applications, online disclosures and an automated underwriting system that provides you with a free online loan approval immediately upon the submission of your online application.

There's no cost for completing an online application and obtaining an online loan approval. Upon receiving your online loan approval, you will be given an opportunity to lock your rate. If you wish to lock your rate, you will be asked to submit a $300 appraisal fee by credit card ($400 if investment property; $500 if 2-4 units). These funds will be maintained in a trust account and used to pay for your appraisal, a service performed by an independent third party.

Upon submission of your online application, our automated underwriting system instantly runs your credit and determines whether your application meets our guidelines for online approval. 70% of applications submitted are approved online. If you wish to lock your rate, you will be asked to submit a $300 appraisal fee by credit card. These funds will be maintained in a trust account and used to pay for your appraisal, a service performed by an independent third party.

You will receive an email from your Loan Processor no later than the end of the next business day. The email will list the supporting documentation required to close your loan (paystubs, bank statements, etc.). Attached to the email will be a fax coversheet to be used to send the documentation.

You will receive a call from an appraiser no later than three business days of submitting your application. Our appraisers have agreed to a seven day turnaround on our appraisals. It is important that you schedule the appraisal inspection as quickly as possible to keep the process moving forward.

On purchase transactions, your loan documents will be sent to your closing agent for signing. On refinance transactions, your loan documents will be sent to a notary who will contact you to arrange a convenient time to come to your home for signing.

Our standard lock period is 30 days. We are confident we will close your loan in this timeframe as long as you fax your supporting documentation within three days of request and schedule your appraisal inspection in a timely manner.

You will be asked to support your income with a recent paystub and the prior year's W-2 form. Self-employed borrowers will be asked to support their income with the prior one or two years' tax returns. Funds needed to close the transaction will typically be supported with a copy of a recent bank statement. If proceeds from the sale of another property are being used for the down payment, an estimated closing statement on that transaction will be required prior to closing.

Our standard lock period is 30 days. We are confident we will close your loan in this timeframe as long as you fax your supporting documentation within three days of request and schedule your appraisal inspection in a timely manner. We can close a purchase transaction in as few as 10 days if needed to meet a tight closing deadline. Because we are a direct lender, we have control over the approval process, drawing loan documents and funding the loan. Additionally, the third party service providers we work with, such as appraisers and title insurance companies, prioritize our orders because we provide them with a high volume of quality business.

We offer online locks for 30, 45 and 60 day periods. Refinance transactions may be locked at the time of loan application. Purchase transactions may be locked once you have an accepted offer on a property. You may apply and lock online, 24/7.

How Do I Lock?

When you submit your online application, it will be analyzed by our Automated Underwriting System while you wait and, in most cases, be immediately approved. A rate chart will then appear showing all available rates for your loan request, along with the related points or rebates. You will select the rate you wish to lock. You will receive a Lock Confirmation by email the same day (or the next business day if you lock after hours or on a weekend). In the event our Automated Underwriting System is not able to provide an instant online approval, your application will be forwarded to a Loan Consultant who will contact you the same business day to resolve any issues with your loan application.

Are Any Fees Collected When I Lock?

You will be asked to submit a $300 appraisal fee by credit card at the time you lock your rate ($400 if investment property; $500 if 2-4 units). These funds will be maintained in a trust account and used to pay for your appraisal, a service performed by an independent third party.

What If Rates Drop After I’ve Locked?

At the time we are ready to draw your loan documents, if our posted rates are at least .25% lower than the rate you locked (for the same or less points, or the same or more rebate), you may float down your rate to the current rate plus .125%.

What Happens if the Loan Process Takes Longer Than My Lock Period?

If the delay is caused by us, or a third party service provider selected by us, we will extend the lock at no cost. If the delay is caused by you, you will be required to pay for the cost of the lock extension. Delays caused by you could include requesting the subordination of an existing second mortgage or home equity line, not supplying supporting documentation within three days of our request or delaying appraisal inspections or document signing appointments.

What is the Cost of a Lock Extension?

In the event current rates are better than the rate you originally locked, you will receive a free 7-Day Extension (Original lock must expire within 7-Days to be eligible).

In the event current rates are worse than the rate you originally locked, you may select from the following lock extension periods:

7-Days: .25 point extension fee

15-Days: .375 point extension fee

30-Days: .5 point extension fee

If your loan has not closed by the end of the extension period you select, any further lock extensions will require that the loan be re-priced at the worse-case scenario between the rate you originally locked and current rates.

Can I Choose a Different Program or Rate After I’ve Locked?

You may but you will receive worse-case pricing of either the pricing you originally locked into or the current available pricing. In addition, an extra .125 points will be charged for changing your original terms. Therefore, please carefully consider the different programs and rates being offered before locking.

Can I Relock My Rate if I Cancel and Reapply?

You may but you will receive worse-case pricing of either the pricing you originally locked into or the current available pricing. In addition, an extra .125 points will be charged for changing your original lock terms.

Should I Lock or Float my Rate?

On a refinance transaction, if the savings you will achieve with the new lower rate will recapture the closing costs of the loan in a relatively short period of time, you should probably go ahead and lock your rate and close your loan. Trying to time the bottom of an interest rate cycle is tricky and each month you delay costs you in the form of carrying a higher interest rate on your old loan. If rates fall further, you can always refinance again.

On purchase transactions, in times of stable interest rates, most of our customers lock when they are within 30 days of closing. Locking for a period longer than 30 days increases the cost of the loan slightly but is sometimes a good idea if rates are volatile. If your closing is more than 30 days out, we recommend you compare rates and points on our website for 30, 45 and 60 day locks and make your decision accordingly.

At the time we are ready to draw your loan documents, if our posted rates are at least .25% lower than the rate you locked (for the same or less points, or the same or more rebate), you may float down your rate to the current rate plus .125%.

On a refinance transaction, if the savings you will achieve with the new lower rate will recapture the closing costs of the loan in a relatively short period of time, you should probably go ahead and lock your rate and close your loan. Trying to time the bottom of an interest rate cycle is tricky and each month you delay costs you in the form of carrying a higher interest rate on your old loan. If rates fall further, you can always refinance again.

On purchase transactions, in times of stable interest rates, most of our customers lock when they are within 30 days of closing. Locking for a period longer than 30 days increases the cost of the loan slightly but is sometimes a good idea if rates are volatile. If your closing is more than 30 days out, we recommend you compare rates and points on our website for 30, 45 and 60 day locks and make your decision accordingly.

NOTE: Rates are currently at historic lows. If you are applying for a refinance transaction or a purchase in escrow, we recommend you lock your rate at the time you apply. If rates drop further while your loan is in process, you can take advantage of our float down policy (See FAQ #7). However, if rates suddenly shoot up (which they can do very quickly on unexpected economic news), you will wish you had locked your rate when you applied.

An escrow account, known as an impound account in California, is an account set up at the time you close your loan for the payment of your property taxes and homeowner's insurance. You pay 1/12 of your annual taxes and insurance along with your mortgage payment each month and the funds are placed in the escrow/impound account. Your loan servicer pays your taxes and insurance out of the escrow/impound account when they come due. You receive an Escrow/Impound Analysis Statement each year, showing the activity and balance remaining in the account.

You are not required to have an escrow/impound account unless the Loan-to-Value ratio on your loan is over 80% (90% in California). However, if you decide not to have an escrow/impound account, your points will be .25% higher.

AimLoan.com is a Certified Upfront Lender meaning we fully disclose all fees and closing costs online. To add further assurance, we charge one all-inclusive Guaranteed Lender Fee. Additionally, we have negotiated very competitive guaranteed appraisal, title and settlement agent fees with vendors we supply a high volume of business to.

You may view a breakdown of closing costs and a complete good faith estimate online. Closing costs and other funds required to close are grouped as follows:

AimLoan.com Fees

We charge one all-inclusive Guaranteed Lender Fee, which includes processing, underwriting, credit report, doc prep, funding, tax service and flood cert fees. Additionally, you may elect to pay discount points to buy down your interest rate if you so desire.

Third Party Fees

Third party fees are fees that we collect and pass on to the company actually performing the service. All third party fees are grouped into the following categories: Appraisal, closing agent/attorney and title insurance. Appraisal fees are guaranteed on both purchase and refinance transactions. Closing agent/attorney and title insurance fees are guaranteed on all refinance transactions.

You will notice that our third party fees are extremely competitive due to the high volume of business that we provide to the national service providers we contract with to perform these services.

Government Fees

The county recorder's office will charge a recording fee to record your new mortgage or deed of trust. Additionally, some states, counties and cities charge a transfer tax (aka tax stamps) when you obtain a mortgage to purchase or refinance a property. These government fees will have to be paid regardless of the lender you choose. If some lenders don't quote you fees that include government fees, don't assume that you won't have to pay them. It just means that the lender hasn't done the research necessary to accurately disclose total closing costs.

Required Advances

Certain ongoing costs of homeownership must be prepaid at closing. These are sometimes referred to as prepaid items.

Your mortgage payment due date will be the first of each month. If your loan is closed on any day other than the first of the month, prepaid interest or "per diem interest" will be collected, calculated from the date of closing through the end of the month.

If an escrow/impound account is to be established, funds will be collected to make an initial deposit into the account so that sufficient funds will be available to pay your property taxes and homeowner's insurance when they become due.

If your loan requires mortgage insurance, two months of mortgage insurance will be collected.

If your loan is a purchase transaction, your first year's homeowner's insurance premium will also be collected and paid to your insurance company.

We charge one all-inclusive Guaranteed Lender Fee, which includes processing, underwriting, credit report, doc prep, funding, tax service and flood cert fees.

Our pricing model is different from other lenders in that our profit is built into this flat fee of $1,995 per loan. We can then pass on the pricing we receive in the secondary market directly to our borrowers. Most lenders add points to the pricing they receive in the secondary market and offer the "marked up" pricing to the borrower.

In comparing lenders, we suggest you compare total lender points and fees for the same interest rate. If you compare our total points and fees to the total points and fees charged by another lender for the same rate, we are confident our total costs will be much lower for any given interest rate.

Each point is equal to one percent of the loan amount. We are a direct lender and the points shown reflect discount points paid to obtain a rate lower than our zero point rate.

For most taxpayers, points paid on purchase loan transactions are tax deductible in the year the home is purchased and points paid on refinance transactions are tax deductible over the life of the loan.

Whether you should pay points depends on your tax situation and how long you expect the mortgage to be outstanding. To calculate your "payback period", subtract your estimated tax deduction (up to 50%, depending on federal and state tax brackets) from the cost of the points. Divide the result by the savings in monthly payment achieved with the lower rate. This calculation provides the number of payments you'll need to make before achieving a net savings.

Upon request, we can convert your Guaranteed Lender Fee to points. Please make this request in the comments section of your online application. Tax consequences vary depending on the specifics of the transaction and the taxpayer. We encourage you to consult your tax advisor regarding your tax situation.

A rebate is a credit paid to the borrower by the lender for taking an interest rate higher than the zero point interest rate. The lender hopes to recapture the rebate paid by collecting the higher interest rate over the life of the loan. Rebates can be used to offset non-recurring closing costs, including the guaranteed lender fee and all third party fees, as shown on the good faith estimate.

You can pay off your mortgage any time with no additional charges.

If you apply and lock during regular business hours, you will receive a Lock Confirmation by email the same day. If you apply and lock after hours or on the weekend, you will receive your Lock Confirmation by the end of the next business day.

You will receive an email from your Loan Processor no later than the end of the next business day after applying. The email will list the supporting documentation required to close your loan (paystubs, bank statements, etc.). Attached to the email will be a fax coversheet to be used to send the documentation.

Our system is designed to deliver the very best rates and fees available to qualified borrowers. Our loans are underwritten by an automated underwriting system and, in most cases, FICO scores below 620 will not be approved by our system.

We do not currently offer loan programs for borrowers who are not able to document their income.

Yes. It's always a good idea to know the amount of financing you qualify for before you begin shopping for a home. Additionally, having a lender pre-approval in hand will strengthen your offer in the eyes of the seller. Our pre-approval will help you determine the monthly payment you can afford and the amount of cash required to close the transaction. We'll issue a pre-approval letter online instantly. You can use the pre-approval letter to assure real estate brokers and sellers that you are a qualified buyer. Having a pre-approval for a mortgage may give more weight to any offer to purchase that you make.

When you find the perfect home, you'll simply call your Loan Consultant to complete your application. You'll have an opportunity to lock in our great rates and fees then and we'll complete the processing of your request.

Upon submission, your online application will be run through our automated underwriting system. 70% of applications are approved online and receive an instant online pre-approval letter. The online pre-approval letter will be subject to certain conditions, including verification of your income and funds sufficient to close. Your loan processor will advise you what supporting documentation is needed and provide you with a fax number to send it to. As the supporting documentation is received, your processor will clear conditions and issue revised pre-approval letters.

What is PMI?

Private Mortgage Insurance (PMI) makes it possible for you to buy a home with less than a 20% down payment by protecting the lender against the additional risk associated with low down payment lending. The private mortgage insurance premium is based on the type of loan and the loan to value ratio. Usually, the premium is included in your monthly payment and one to two months of the premium is collected as a required advance at closing.

When Can I Have PMI Removed?

On a 1-unit primary residence or second home, federal regulations require that PMI be automatically cancelled when your loan balance reaches 78% of the original property value at the time the loan was secured.

Depending on the loan program, you may be able to request in writing that PMI be removed sooner, based on an increase in the property value as determined by a new appraisal to be ordered by the servicer. Generally, PMI must have been in place for at least two years and you must have a good payment history for PMI to be cancelled under this scenario.

We offer conforming and jumbo loan programs with as little as 5% down and FHA loans with as little as 3% down. However, significant savings may be achieved with a down payment of 10% or 20% so we encourage you to run multiple loan scenarios on our website if you can afford a greater downpayment.

The percentage of your home's value that can be borrowed on a refinance loan (know as the maximum Loan-to-Value ratio) varies by loan program. Please review "Program Guidelines" under the "Loan Programs" tab.

On conforming and jumbo-conforming loans, there is no maximum debt-to-income ratio requirement. These loans are underwritten by an automated underwriting system that takes many factors into consideration, including your credit score and loan-to-value ratio. With good compensating factors, loans with debt-to-income ratios as high as 70% have been approved.

On jumbo loans, the maximum debt to income ratio is 38% to 50% depending on the loan program.

If your existing second mortgage or home equity line was not obtained in conjunction with purchasing your home, then paying it off with a new mortgage is considered cash out.

Yes, but this does complicate the refinance transaction somewhat. The holder of your second mortgage or home equity line will have to sign what is known as a subordination agreement, subordinating their existing lien position to the new first mortgage. Generally, they will be willing to do so provided the amount of the new first mortgage is no more than the remaining balance of the existing first mortgage.

Your second mortgage lender will ask us to provide some documentation such as a copy of the mortgage note you'll be signing and the appraisal before they provide the subordination agreement. We won't be able to schedule your loan closing until we receive the subordination agreement.

About 70% of applications submitted are approved online. Those that aren't approved online are assigned to a Loan Consultant who performs a complete review of the information you submitted. Often times, the problem has to do with how your information was input into our website and the Loan Consultant is able to obtain an approval for the loan program you applied for. If the Loan Consultant is unable to obtain an approval for the program applied for, he or she will research what other options may be available. The Loan Consultant will contact you within 24 hours of submission with the results of his or her findings.

A conforming loan is one that is less than the maximum loan amounts set by Fannie Mae and Freddie Mac. The loan amounts are revised each year to reflect the change in the national average cost of a home. The current conforming loan amount limits are:

SFR/Condo: $417,000 ($625,500 in Alaska & Hawaii)

2-Unit Property $533,850 ($800,775 in Alaska & Hawaii)

3-Unit Property $645,300 ($967,950 in Alaska & Hawaii)

4-Unit Property $801,950 ($1,202,925 in Alaska & Hawaii)

A super conforming loan is a new loan category that was created by the American Recovery and Reinvestment Act of 2009. The new limits are temporary and vary by state and county. They run as high as $729,750 for one-unit homes. To determine whether your loan request qualifies for super conforming pricing, please perform an Instant Rate Search on our website.

Jumbo loans are loans which exceed conforming and super conforming limits.

An adjustable rate mortgage, or an "ARM", is a loan type that offers a lower initial interest rate than most fixed rate loans. Against the advantage of the lower payment at the beginning of the loan, you should weigh the risk that an increase in interest rates would lead to higher monthly payments in the future. For some people, an ARM may be the right mortgage choice, particularly if if you only plan on being in the home for less than three, five, seven or ten years.

Here's some detailed information explaining how ARM's work.

Adjustment Period: The interest rate and monthly payment are fixed for an initial time period, generally three, five, seven or ten years. After the initial fixed period, the interest rate can change every year.

Index: ARM interest rate changes are tied to changes in an index rate. Using an index to determine future rate adjustments provides you with assurance that rate adjustments will be based on actual market conditions at the time of the adjustment. The current value of the indexes used on our ARM programs are published weekly in the Wall Street Journal and shown on our website. If the index rate moves up so does your mortgage interest rate, and you will probably have to make a higher monthly payment. On the other hand, if the index rate goes down your monthly payment may decrease.

Margin: To determine the interest rate on an ARM, a pre-disclosed amount , called the "margin", is added to the index. When shopping mortgages, comparing one lender's margin to another's can be as important as comparing the initial interest rate, since it will be used to calculate the interest rate you will pay in the future.

Interest-Rate Caps: An interest-rate cap places a limit on the amount your interest rate can increase or decrease at each adjustment. ARMs have three types of caps: initial cap, which limits the interest rate increase or decrease at the first adjustment; periodic cap, which limits the interest rate increases or decreases at all following adjustments; and lifetime caps, which limit the interest rate increase over the life of the loan.

Please see "Program Descriptions" under the "Loan Programs" tab for information on our ARM programs.

A subordination agreement is a document prepared by a second mortgage lender agreeing to remain in second position when a first mortgage is refinanced. Without such an agreement, the second mortgage holder would move into a first lien position when the existing first mortgage was paid off. The second mortgage lender usually charges a fee to process the subordination agreement, which is incurred by the borrower. Additionally, this process often increases the amount of time necessary to process a first mortgage refinance transaction, so an applicant wishing to subordinate a second mortgage may want to take down a 45 day lock to ensure sufficient time to obtain the subordination agreement.

On refinance transactions, Federal law mandates that you have three days, after signing your loan documents, in which to cancel your loan. This three day period includes Saturdays, but excludes Sundays and holidays. Your loan will not be funded until this period has expired.

The function of title insurance is to make sure your rights and interests to the property are clear, that transfer of title takes place efficiently and correctly, and that your interests as a homebuyer/homeowner are fully protected.

Title companies issue two types of title policies: (1) Owner's Policy which covers the homebuyer/homeowner; and (2) Lender's Policy which covers the lending institution over the life of the loan. If the loan is for a home purchase, both types of policies are issued at the time of closing for a one-time premium. If the loan is a refinance, you already have an owner's policy that was issued when you purchased the property, so only a lender's policy will be issued.

After a thorough examination of the records, any title problems are usually found and can be cleared up prior to your purchase of the property. Once a title policy is issued, if any claim covered under your policy is ever filed against your property, the title company will pay the legal fees involved in the defense of your rights. They are also responsible to cover losses arising from a valid claim. This protection remains in effect as long as you or your heirs own the property.

Prepaid interest is paid at the time of closing of your loan to cover the interest that will accrue on your new loan for the remaining days of the month in which it is funded. You will make no payments in the month immediately following the month in which your loan funds. You will then begin making payments on the first of each month for the prior month's interest.

The note rate is used to calculate your interest payment each month. The APR (Annual Percentage Rate) is a calculation based on standardized federal regulations. In addition to the interest rate, it factors in other finance charges such as certain loan fees, to show the total cost of the financing over the scheduled life of the loan. The APR is designed to help borrowers fairly compare different lenders and loan options. Please note that the loan amount will influence the APR calculation, with higher loan amounts reporting lower APR calculations. To get a true comparison, the same loan amount must be used. Lenders like AimLoan.com allow you to input your loan amount into their websites which generally calculates an accurate APR. Beware of lenders that just display a rate chart on their website; these websites are reporting an APR for a set loan amount and your APR will be different.

The Federal Truth in Lending law requires that lenders disclose the APR when they advertise a rate. The APR is a calculation designed to present the total cost of financing over the term of the loan, including interest and certain fees. However, since most people do not keep the mortgage for the entire loan term, it may be misleading to spread the effect of some of these up front costs over the entire loan term. In evaluating ARM loans, the APR can be particularly confusing; Since no one knows exactly what market conditions will be in the future, assumptions must be made regarding future rate adjustments.

You can use the APR as a guideline to shop for loans but you should not depend solely on the APR in choosing a lender and rate/point combination that's best for you. In comparing lenders, it is recommended that you look at a particular program and rate and compare total points and fees being charged by each lender for that particular rate. It is important to remember that rates change every day, so it is important to compare lenders on the same day.