What is the difference between a broker and a banker?
A mortgage banker and a mortgage broker can both help you get a home loan. A mortgage banker works for a bank, in this case the Bank of England, which actually provides you the money for the loan. A mortgage broker doesn't represent one institution but works with many to shop for a loan for a specific individual. The banker is a direct lender. The broker is a middleman between you and the lender.
Can I get a quote without pulling credit?
Yes, as long as you know approximately what your credit score is. Your credit score is directly tied to the interest rate on the loan and having that information be as accurate as possible is essential.
Does pulling credit affect my credit score?
Anytime your credit is checked, an inquiry is noted on your credit report. Depending on who is checking your credit and why it's being checked, this inquiry will be classified
What is the difference between pre-qualification and pre-approval?
A pre-qualification letter is essentially information given to a lender verbally and a letter is produced solely on the information provided to the lender. A pre-approval letter on the other hand is taking it a step further, in addition to taking the basic information in the loan application we would also want to verify income and asset documents, providing paystubs, W2’s, tax returns, bank statements and other items based on your finances. A pre-approval letter carries more weight when it comes time to place and offer on a home and a seller may often times accept an offer that is pre-approved over a customer that is only pre-qualified.
How long does it take to get Pre-approved and how long is that good for?
Getting pre-approved takes as long as it takes you to provide the documentation that we need. Typically, from the time you provide the documents needed for pre-approval it takes about 24 to 48 hours to review them and provide the pre-approval letter. A pre-approval letter is good for as long as your credit report is, which is 120 days. With that said you should check in with your mortgage advisor every 30 to 60 days to make sure that nothing has changed with your financial picture that might have impacted your loan and loan options.
What do I need to get Pre-Approved?
When you are ready to start the pre-approval process you should plan to have some basic information available, such as your social security number, the last two years of address and work history, as well as your basic financial information ,which includes paystubs, W2’s, tax returns, or if you are self-employed, your business tax returns, the source of any funds for down payment, and account statements for any other accounts you may have.
How is my mortgage payment determined?
Your mortgage payment is calculated by the rate you qualify for along with the amount that you finance. Obviously, if your loan amount is higher, your mortgage payment will be higher. Often times the mortgage company will require you to include your taxes and insurance into the mortgage payment, so you will want to consult them as to how much the property taxes are and get an insurance quote as well for the property.
What is debt to income ratio?
The debt to income ratio is how we determine if you qualify from an income standpoint. To do that, we take your gross monthly income and we compare that to your gross monthly liabilities, things like your mininum credit card payments, student loan payments, car payments, which we add to your future mortgage payment and if you are under a certain ratio, then you qualify for the loan.
Can I use money from my 401k?
Yes, you can use money from your 401k to cover down payments and closing costs associated with your loan. In some cases that will be a straight distribution from your 401k, in which case you just have to pay the taxes to take the money out. What has become more common is to borrow against your 401k in the form of a loan. Depending on your loan type, we may have to account for that 401k loan payment in your debt to income ratio, so before you make that decision it would be a great idea to consult your mortgage advisor to make sure you still quailify for the loan with that added payment.
How long do I need to be employed with my current job before applying for a loan?
As a standard, a mortgage company would verify the last two years of your employment history. That doesn't mean you have to be actively employed for the entire previous two years, but situations where we might want to see a longer timeframe would be if you recently transitioned from being paid on a W2 to being paid on a 1099, or maybe you started your own business. We may also require a longer time frame if there are a number of job changes or a large gap in your employment history.
How long does the loan process take?
Typically, the loan process will take 30 days from start to finish, and will depend, in part, on how fast you are able to provide us with the documentation required for your mortgage loan.
Will my monthly payments change during the loan term?
Since most loans are fixed-rate loans, meaning that the principal and interest rates are locked for the the life of the loan, most borrowers will not see their monthly payments change during the life of the loan. If you are in an Adjustable Rate Mortgage (ARM), you will need to consult with your mortgage advisor to see how that will impact your monthly payments over the life of the loan. One thing to keep in mind is if your insurance and taxes are included in your mortgage payment, those can flucuate throughout the life of the loan and affect the monthly payments.
When is my first mortgage payment due?
Your first mortgage payment is going to be due the month after you close. For instance, if you were to close anytime in March, your first payment would be due May 1st. Moving forward, your payment would always be due on the 1st of every month and would be considered late if paid after the 15th.
What is pre-paid interest?
At closing your mortgage company is going to collect pre-paid interest. Your mortgage payment is going to be due a month from when you close, and anytime you make that mortgage payment, for instance if you close on the 30th of March there are two days you would pay pre-paid interest, the 30th and the 31st.
What is PMI?
PMI stands for Private Mortgage Insurance, which is required on any conventional loan with less than 20% down. This can either be paid up front, added to your monthly mortgage payment, or paid through the interest rate as lender paid Mortgage Insurance.
Is there a pre-payment penalty on loans?
At the Bank of England Mortgage we do not have any loans that have a pre-payment penalty. There are some lenders in the marketplace that do, typically a three year pre-payment penalty.
What's an Escrow account?
An escrow account is essentially money that is collected on a monthly basis for your home owner's insurance and your taxes that are paid on a yearly basis from your mortgage lender.
How does the appraisal work?
When ordering an appraisal, you would do that at the point of making a morgage application. You are under contract, you have met with the mortgage orginator and you are starting the process. At ENG Lending we have a list of apprasiers, who are independent contractors. You do not need to be at the home during the time of the appraisal as the appraiser is not a home inspector, but only there to determine the value of the home, which is important for you to determine that you are getting a good value out of your home.
What is loan processing?
The loan processor is the person between the loan officer and the underwriter. The loan processer works closely with the loan officer, looking closely at the documents and making sure everything is in order before sending it along on the process. The last thing the client wants to hear at the very end, right before the closing of the loan, is that you need another document. The processors job is to make sure all the documents are in order and up to date before sending it on to the underwriter.
What is an underwriter?
An underwriter is essentially the man/woman behind the curtain and they are here to protect the bank and the borrower from biting off more than they can chew. What an underwriter does is take a look at the entire profile of the borrower, including credit, assets, income, employment history, etc, to see whether a borrower proposes a particular risk for payment struggle in the future.
When do I need homeowner's insurance?
You need to have homeowner's insurance at closing. We can shop the homeowner's insurance for you, and you can shop with whomever you want, but typically as we get closer to closing you are going to need that homeowner's policy bound and in place. We are going to collect one year of homeowner's insurance at the closing as part of your closing costs.
What are discount points?
People often ask, what is your interest rate if I pay points? One discount point is equal to one percent of your loan and as a customer you have the ability to pay discount points up to a certain amount depending on your loan type to buy down the interest rate on your loan.
What is a closing disclosure?
A CD, or closing disclosure, is a document as to the reciept of the transaction of the loan. You are going to recieve this at least three days prior to close. Our goal in providing that to you is to give you something very close to the final numbers, however, often times in our industry those numbers are overestimated and you will recieve another CD twenty four hours before closing.
Bank Of England Mortgage
NMLS #418481
Useful Links
Contact Us
Bozeman, MT 59718
Phone: (406) 203-5018
Fax: 406-556-1807
Email: info@engloan.com
Connect
© 2025 ENG Loan. All rights reserved.
Privacy Policy | Terms of Service
Bank of England Mortgage has tried to provide accurate and timely information; however, the content of this site may not be accurate, complete or current and may include technical inaccuracies or typographical errors. From time to time changes may be made to the content of this site without notice. Bank of England Mortgage may change the products, services, and any other information described on this site at any time. The information published on this site is provided as a convenience to visitors and is for informational purposes only. You should verify all information before relying on it and decisions based on information contained in our site are your sole responsibility. If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at (406) 203-5018. This contact information is for accommodation requests only. Bank of England Mortgage is a division of Bank of England. NMLS 418481. Bank of England Mortgage is not affiliated with any government agency. Member FDIC.