Loan Applications (Short and Complete)
You will have the option of saving and returning at a later time if you wish.

 Print Application and fax back to - 888-771-2543.
 

 LOCK-IN PROCEDURE  

1. Rates may be checked by going to our website at www.aami.net however it is always best to do so by emailing us as the Rates (Terms and Conditions - T&C's) can change often, and the website may not reflect all new updates.

•  When ready to lock-in your loan, email with your specific lock-in request between 11:30 a.m. and 3:45 p.m. EST.  E.g., "To whom it may concern, please lock-in the T&C's which are on my  signed and dated GFE, TIL and Amortization Schedule which I e-mailed or faxed to your earlier."  Please note that just by signing the Loan Application, GFE, TIL, etc. does NOT automatically lock your rate and terms.  These docs are required to be signed BEFORE you can be locked in, but you need to make a specific separate request (e-mail) to be locked-in.  The Branch manager or Processing supervisor will email or fax you back with confirmation once your loan if registered and accepted.   
   

• Your loan Processor will then email the "Addendum to Financing Agreement" to you the "Borrower" when lock confirmation is received. Please sign and mail back to AAMI as soon as possible.  Settlement/Funding must occur on or before the expiration date on the Addendum to Financing Agreement or the T&C's (e.g. interest rate and discount points, etc.) will need to be extended or re-negotiated at your initial lock-in request or at the current interest rate and points (T&C's), whichever are higher and or according to the Lender's lock-in policy.
   

• Once a loan is locked in, no changes in the loan can be made by the Applicant.

• 60 day lock- We can lock you in if you have filled out your Loan Application, signed and faxed back the GFE, TIL, and initial docs, and we have pulled your credit. 

• 45 day lock- The above must be completed, in addition your Appraisal must be ordered with an est. delivery date of less than 10 days or less, Title work must of been ordered and Borrower must have already logged into LTracker. 

• 30 day lock- The above must be completed, in addition to having all of the required LTrack docs and signed disclosures returned by the Borrower and received by the AAMI Processor. 

• 12 day lock - The above must be completed, in addition to having all of the required LTrack docs and signed disclosures returned by the Borrower and received by the AAMI Processor; in addition the loan has to be completed approved.. 

               Bird's Eye View of a Loan Cycle


The process of making a mortgage loan has five distinct steps called the loan cycle. The loan cycle is comprised of the steps taken to make and maintain a loan. The mortgage loan cycle begins when a prospective Borrower inquires about a residential mortgage loan, and it ends when the Borrower pays off the loan. AAMI will take you through the first four steps as we don't "service" the loans.

The loan cycle involves five major stages:

I. Application
II. Processing
III. Underwriting
IV. Closing
V. Servicing

Each of these functions involves many activities.

I. Application
The application process has several purposes:
Obtaining the basic information from the Applicant/Borrower that the lender needs to underwrite the loan according to its standards and to reach a decision on whether to grant the loan
Assisting the applicant in selecting the appropriate loan programs
Informing the applicant of the details of the mortgage loan program, including a full disclosure of all costs and expenses - (see Understanding Your Good Faith Estimate and Truth In Lending Statement (TIL.)
Pre-qualify applicant for ability to repay a loan
Explain how a Purchase Contract works and how to fill in the appropriate information.
You can fill-out the loan application by going to the bottom of this page and click on the appropriate hyperlink.

II.      Loan Processing
Loan processing includes the collection and verification of detailed information on the Borrower and on the real estate transaction itself. The Lender is primarily interested in two things: the subject property, and your financial situation (which includes your credit history.) The process gathers the information to help determine your ability and your desire to replay the loan.
Gather, organize and verify all the information the underwriter will need in order to underwrite the loan.
Entering Information into computer from Loan Application
Deposits (i.e. credit report fee, appraisal fee)
Disclosure Forms sent to Borrower
Verifications--Employment history, Credit history (the credit bureau will show how you have handled past debt and credit accounts. You may have to provide a written explanation of any problems that appear on your credit report., Assets Review, Verification Responses, Ratio Analysis Appraisal is performed and reviewed for accuracy and completeness (a service for which you may be charged). A professional appraiser will estimate the market value of the house. This information is required because the lender will loan you not more than a given percentage of the value of the property (LTV).

Suitability of loan terms for which Borrower has applied is reviewed:

.Pre-Underwriting
.Customer Communication via the Loan Tracker and or phone calls.
.Submission to Underwriter
.Copying and Stacking
.Proofing
.Delivery/Courier
.Loan Locks

III.    Loan Underwriting
The mortgage loan file next enters the Underwriting (UW) stage. Loan UW is a process that determines whether the loan is a good risk for the lender.
The main task during the UW stage is to avoid as many undue risks as possible.

.Borrower Review
.Property Review
.Conditions
.Follow-up
.Re-review of Conditions
.Approval
.Commitment Letter

IV. Loan Closing
If the loan is approved, the final stage in creating the mortgage loan is the funding and loan closing. In loan closing, the final details of the loan transaction are completed and the loan funds are disbursed. Most frequently, closing is handled by a title company or closing attorney.
Loan closer obtains a title company/attorney’s opinion as the condition of the title to the property--its ownership. This opinion of title is reviewed very carefully to verify that the seller owns the property and that there are no unknown claims outstanding against it. Also, the Borrower must provide adequate hazard (and in some cases flood) insurance for the property.
Next the loan closer prepares the loan’s legal documents and makes certain other legal requirements are met, such as up-to-date payments of real estate taxes. The mortgage loan file and legal documents are double-checked for completeness and accuracy. Some federally mandated disclosures are usually provided to the Borrower.
Finally, the loan amount must be properly disbursed so the Borrower will be liable for repayment. The appropriate parties must receive the correct amounts in order for the legal conditions for the best to be met.
The mortgage is recorded on the public record, and the lender makes a final review of the loan file for quality control purposes
At this point, the closing of the loan is complete.
Post-Funding Audit

V.       Loan Servicing

• Loan Servicing includes all activities that occur from the time a loan is closed until the time it is repaid. Servicing activities help ensure that the loan is repaid in a timely manner and that the lenders’ legal claim to repayment of the funds is maintained.

• See that loans are paid as agreed

• Identifying and following up promptly on any delinquent payments by sending reminder notices, making telephone calls, or visiting the home of the delinquent Borrower. If efforts fail, foreclosure is the legal action that bars a defaulted Borrower’s right to reclaim the mortgaged property. This action is taken to satisfy the outstanding balance on the mortgage; usually results in property being sold at public or private sale.

• Paying taxes and insurance - Servicer wants to make sure that these taxes are paid because government tax claims can take precedence over the lender’s claim on a property
  If property is destroyed or damaged by fire, wind, etc. without insurance the loan is no longer adequately protected. When a Servicing company services loans for lenders, it collects a fee ranging from .25 to .50 percent. For example, when a loan is closed at an eight percent interest rate, the Servicer passes through principal and interest of approximately 7 5/8 percent to the Bank, Insurance Co., etc. The Servicer keeps the difference as a servicing fee.

• Advising Borrowers of changes in rate for ARMs

• Transferring the loan to a new owner or Servicer

• Payment Processing

• Pay-offs

• Recordings

Remember to use the Loan Tracker to get up to date information concerning the progress of your loan:
 LTrack Allows our clients to check their loan status information 24 hours a day, 7 days a week.

We will be available during the application process all the way to the settlement table. Also, please use our Human Click feature or send us an e-mail with any questions. If you need to call us, we can be reached at 1-800-600-AAMI.



Pre-payment penalty explanations: (There are basically two types of Borrowers who get a pre-pay penalty; people who have credit issues and have no choice, and people with good credit who choose a loan with a prepayment penalty so they can get a lower rate and pay less in Closing Cost as the Lender will offer either a lower Margin and or lower fees associated with the Margin if they knew we were planning on keeping their mtg. for one or more years.)
You will find the associated letter (e.g., A, B, C, etc.) next to each pre-pay penalty located on the Rate Sheet. A 3-yr. pre-pay penalty will offer a lower Margin and less Closing Cost than a 1-yr. pre-pay. You will also find these T&Cs (depending upon the pre-pay of your choosing) on your Truth-In-Lending statement which will be provided to along with a GFE prior to being "locked-in." Moreover, you will find the same T&C's (the pre-pay penalty of your choosing) on the "Acceleration Provision" contained in the terms of your Note and/or the Instrument which will be provided to you at Settlement/Escrow.

(A) - 1 yr. (hard) pre-pay - You can pay down your mtg. to $1.00 at any time; however, a 2% penalty charged (based upon the original loan balance) if you sold or refinanced during the 1st year of your new Option ARM mtg.

(B) - 1 yr. (hard) pre-pay - if you sold or refinanced, or pre-paid by more than 20% of your beginning balance during the 1st year of your new Option ARM mtg.; the penalty would be an amount equal to 6 months advance Interest on the amount by which you pre-paid over the twenty percent (20%.)

Example if you paid your Note in full:

If you had a $300k original principal balance, take $300k x 80% = $240k x the current fully-indexed Rate (Index + Margin - let's assume 5.9%), ÷ 12 x 6 = $7,080 penalty. Here is the math again: $300k X 80% X 5.9% ÷ 12 X 6 = $7,080

Example if you pre-paid over 20% but did not pay Note off in full:

If you had a $300k original principal balance, let's assume you paid 21% of the principal bal during the 1st yr. Take $300k X 21% = $63k (the allowable pre-pay amount was 20% or $60k in this example.) Since $3k is the amount over the allowable 20%, take $3k X the current fully-indexed Rate (Index + Margin - let's again assume 5.9%), ÷ 12 X 6 = $88.50 penalty. Here is the math again:
$300k X 21% = $63,000 - $60,000 = $3,000 X 5.9% ÷ 12 X 6 = $88.50

(B1) - 1 yr. (hard) pre-pay - If you sell or Refi within the 1st 12 months you would be required to pay a penalty in an amount of two months' advance interest on the amount by which the prepayment exceeds 1/3 of the original principal amount

(C) - 3 yr. (soft) pre-pay - You can pay down your mtg. to $1.00 at any time; however, this 3%-2%-1% penalty is based upon the original loan balance. If you sold or refinanced during the 1st year the penalty would be 3% of the original balance, in year two (2) the penalty would be 2%, and year three it’s 1% (1.) However, if you plan to sell after 12 months and the new Buyer assumes your existing Option ARM mortgage with all existing terms and conditions the pre-pay penalty will be waived.  Moreover, if you sell after 12 months and obtain the same Option ARM mortgage/program on your new house (same day Settlement/Closing), your pre-pay penalty could be waived.


(D) - 3 yr. (hard) pre-pay - If you sell or Refi within three years or if you pre-pay over 20% of original principal balance of your Note for the first three years you would be required to pay a penalty in an amount equal to 6 months advance Interest on the amount by which you pre-paid over the 20%.
Example if you paid your Note in full:

If you had a $300k original principal balance, take $300k X 80% = $240k X the current fully-indexed Rate (Index + Margin - let's assume 5.9%), ÷ 12 X 6 = $7,080 penalty. Here is the math again:

$300k X 80% X 5.9% ÷ 12 X 6 = $7,080
Example if you pre-paid over 20% but did not pay Note off in full:

If you had a $300k original principal balance, let's assume you paid 21% of the principal bal during the 1st yr. Take $300k X 21% = $63k (the allowable pre-pay amount was 20% or $60k in this example.) Since $3k is the amount over the allowable 20%, take $3k X the current fully-indexed Rate (Index + Margin - let's again assume 5.9%), ÷ 12 X 6 = $88.50 penalty. Here is the math again:

$300k X 21% = $63,000 - $60,000 = $3,000 X 5.9% ÷ 12 X 6 = $88.50

(E) - 3 yr. (*soft) pre-pay penalty =  2-2-2 :  You can pay down your mtg. to $1.00 at any time; however, you would be required to pay 2% fee of the original loan balance if you sold or refinanced during the 1st, 2nd or 3rd year of your new mtg.
The criteria for determining whether or not there is a prepayment penalty are based on product type, loan program and/or yield spread premium.
A pre-pay penalties will apply to your particular mtg. (only if a pre-payment penalty is requested by you, i.e., if you wish to pay zero (0) points:

(F) - 3 yr. (hard) pre-pay - If you sell or Refi within three years you would be required to pay a penalty in an amount of two months' advance interest on the amount by which the prepayment exceeds 1/3 of the original principal amount
 Example: 

If you paid your Note in full assuming you had a $300,000 balance and you only had this mtg. for less than 36 months:

Take $300k x 66.66% - (or 1/3 of the original principal amount) x 5.9%- (assuming this is your Fully-indexed Rate or Index + Margin) x 2 = $1966.47- (or pre-pay penalty.)