What is the process for obtaining a loan?

1. The loan application is completed and all pre-approval checklist items are collected.
2. The credit report is ordered and missing documents are gathered.
3. The completed loan file is submitted to the lender for pre-approval.
4. The appraisal, title report and escrow are ordered.
5. The lender reviews all the remaining conditions prior to final loan approval.
6. The loan documents are prepared and delivered to the Escrow Company.
7. The loan closes after the lender reviews the signed documents.

What are the steps for a successful escrow closing?

1. The Escrow Company will contact you to arrange a convenient appointment to sign the loan documents.
2. The Escrow Company will prepare your closing statement, and tell you how much money to bring to closing.
3. Select a homeowners insurance company. Ask your agent to contact Bellevue Mutual ten days prior to closing.
4. Please make arrangements to wire funds or bring a cashier's check to the Escrow Company.
5. The loan closing may be delayed if closing documents are signed incorrectly, or if the final closing conditions are not satisfied.

What are Progressive Mortgage’s interest rates?

This is an important question. Here is why we don't post our rates on-line:
Interest rates fluctuate, sometimes on a daily basis, and positioning of lenders in the marketplace also changes. Everyday we shop interest rates and discount points with dozens of lenders online. This ensures that we are able to offer you the best overall price on a large variety of products with numerous lenders. Bellevue Mutual's lending network makes comparison shopping easy. Not only can you skip checking rates with multiple banks and mortgage companies, but we help you select from among thousands of mortgages, the one that is right for you.

For more information visit Rate Watch or Low Cost Guarantee.

Why is the annual percentage rate (APR) different from the interest rate?

The Annual Percentage Rate (APR) is the cost of credit expressed as an annual rate. Because you may be paying loan discount "points" and other "prepaid" finance charges at closing, the APR disclosed is often higher than the interest rate on your loan. This APR can be compared to the APR on other loan programs, to give you a consistent means of comparing rates and programs.

The APR is computed from the Amount Financed, and based on what your proposed payments will be on the actual loan amount credited to you at settlement. In a $50,000 loan with $2,000 Prepaid Charges, a 30-Year term and a fixed interest rate of 12%, the payment would be $514.31 (principal and interest). Since the APR is based on the Amount Financed ($48,000), while the payment is based on the actual loan amount given ($50,000), the APR (12.5553%) is higher than the interest rate.

The APR can also be effected by an Adjustable Rate Mortgage (ARM). For example, a One- Year ARM may have a first year interest rate of 6.0%, but will adjust yearly based on the index. The APR attempts to predict an average rate over 30 years. The APR is also increased if the loan has Private Mortgage Insurance (PMI). PMI is required on most loans that exceed 80% of the value of the house. The PMI is considered a "prepaid" finance charge when calculating the APR.

What are the required documents for loan approval?

The items need to process and approve a mortgage loan can vary from lender to lender. Here are the minimum items needed to obtain a credit approval. Additional documentation may be requested upon a review of these items:

1. Last Paycheck Stub
2. Last Bank Statement
3. If Self-employed, Last Two Years Tax Returns
4. Documentation of Down Payment

These items can be faxed to your loan officers  attention at their confidential fax line: 360-653-4488.

What are the definitions of important mortgage terms?

adjustable rate mortgage (ARM) A mortgage that changes interest rate periodically based upon the changes in a specified index.

amortization The repayment of a mortgage loan by installments with regular payments to cover the principal and interest.

annual percentage rate (APR) The cost of a mortgage stated as a yearly rate; includes such items as interest, mortgage insurance, and loan origination fee (points).

appraisal A written analysis of the estimated value of a property prepared by a qualified appraiser.

appreciation An increase in the value of a property due to changes in market conditions or other causes. The opposite of depreciation.

balloon mortgage A mortgage that has level monthly payments that will amortize over a stated term, but that provides for a lump sum payment to be due at the end of an earlier specified term.

bridge loan A form of second trust that is collateralized by the borrower's present home (which is usually for sale), in a manner that allows the proceeds to be used for closing on a new house before the present home is sold.

cash-out refinance A refinance transaction in which the amount of money received from the new loan exceeds the total of the money needed to repay the existing first mortgage, closing costs, points, and the amount required to satisfy any outstanding subordinate mortgage liens. In other words, a refinance transaction in which the borrower receives additional cash that can be used for any purpose.

clear title A title that is free of liens or legal questions as to ownership of the property.

closing A meeting at which a sale of a property is finalized by the buyer signing the mortgage documents and paying closing costs. Also called "settlement."

closing costs Expenses (over and above the price of the property) incurred by buyers and sellers in transferring ownership of a property. Closing costs normally include an origination fee, a closing fee, taxes, an amount placed in escrow, and charges for obtaining title insurance and an appraisal. Closing costs will vary according to the loan type.

closing statement Also referred to as the HUD1. The final statement of costs incurred to close on a loan or to purchase a home.

community property A form of ownership under which property acquired during a marriage is presumed to be owned jointly, unless acquired as separate property of either spouse.

conforming mortgage loan The current conforming loan limit is $240,000 and below.

contingency A condition that must be met before a contract is legally binding. For example, home purchasers often include a contingency that specifies that the contract is not binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector.

credit report A report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness.

deed of trust The document used in some states instead of a mortgage; title is conveyed to a trustee.

down payment The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.

earnest money deposit A deposit made by the potential home buyer to show that he or she is serious about buying the house.

encumbrance Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or restrictions.

escrow account The account in which a mortgage servicer holds the borrower's escrow payments prior to paying property expenses.

Fannie Mae (FNMA) A congressionally chartered, shareholder-owned company that is the nation's largest supplier of home mortgage funds.

Federal Housing Administration (FHA) An agency of the U.S. Department of Housing and Urban Development (HUD). Its main activity is the insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction and underwriting, but does not lend money or plan or construct housing.

first mortgage A mortgage that is the primary lien against a property.

good faith estimate An estimate of charges which a borrower is likely to incur in connection with a settlement.

hazard insurance Insurance protecting against loss to real estate caused by fire, some natural causes, vandalism, etc., depending upon the terms of the policy.

HUD The US Department of Housing and Urban Development.

jumbo mortgage The current loan limit for a conforming loan is $240,000. Loans for amounts above $240,000 are considered non-conforming or jumbo mortgages.

lien An encumbrance against property for money due, either voluntary or involuntary.

lifetime cap A provision of an ARM that limits the highest rate that can occur over the life of the loan.

loan to value ratio (LTV) The ratio of the amount of your loan to the appraised value of the home. The LTV will affect programs available to the borrower. Generally, the lower the LTV, the more favorable the terms of the programs offered by lenders.

mortgage A legal document that pledges a property to the lender as security for payment of a debt.

Mortgage insurance (MI) Insurance written by an independent mortgage insurance company protecting the mortgage lender against loss incurred by a mortgage default. Usually required for loans with an LTV of 80.01% or higher.

note A written agreement containing a promise of the signer to pay to a named person, or order, or bearer, a definite sum of money at a specified date or on demand.

origination fee A fee charged by a lender to cover certain processing expenses in connection with making a real estate loan. Usually a percentage of the amount loaned, such as one percent.

PITI Principal, interest, taxes and insurance--the components of a monthly mortgage payment.

points Charges levied by the mortgage lender and usually payable at closing. One point represents 1% of the face value of the mortgage loan.

prepaids Those expenses of property which are paid in advance of their due date and will usually be prorated upon sale, such as taxes, insurance, rent, etc.

refinancing The process of paying off one loan with the proceeds from a new loan, using the same property as security.

title insurance Insurance against loss resulting from defects of title to a specifically described parcel of real property.

Truth-in-Lending Act A federal law requiring a disclosure of credit terms using a standard format. This is intended to facilitate comparisons between the lending terms of different financial institutions.

Veterans Administration (VA) A government agency guaranteeing mortgage loans with no down payment to qualified veterans.

My question wasn't answered here. How can I contact Progressive Mortgage directly?

We want to give you personal service throughout the loan process. If you have questions or comments at any time, please us at: