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Home Purchase Frequently Asked Questions

1. I am a veteran, are there special programs for me?
2. How much will it cost for me to get a loan and buy a home?
3. Why is Freedom my best choice for a lender when buying a home?
4. Is a property survey required when I purchase a home?
5. How much insurance coverage do I need for a homeowner’s insurance policy?
6. Will the closing agent accept my personal check for the down payment and closing costs?
7. Will the property be appraised?
8. Where will the settlement take place?
9. How will the payment of real estate taxes and homeowner’s insurance be handled?

Refinance Frequently Asked Questions

1. Do I have to qualify again in order to refinance for a lower rate?
2. What if I need cash? Can I get it with a refinance of my home?
3. I have a low interest rate on my current Freedom loan. Can I get some cash without giving up that low rate?
4. How will I know if it makes sense for me to do a rate reduction refinance?
5. Do I need to get another homeowner’s insurance policy if I refinance?
6. If I refinance, where will the closing be conducted?
7. Can I include the closing costs into my new rate reduction loan so I don't have to come up with my own money?
8. Can Freedom refinance a loan they do not currently service?
9. I want to refinance in order to get my co-borrower off the title and to be solely responsible for the payments. Do I need to qualify again?
10. I want to refinance to a shorter term. Do I need to qualify again?
11. Why does Freedom want to help me refinance to a lower rate?

Debt Settlement Frequently Asked Questions

1. Who is qualified for our program?
2. Who is NOT qualified for our program?
3. How do you Apply?
4. How will Start Fresh Financial settle my debts?
5. Who can join Start Fresh Financial's program?
6. Is bankruptcy a better option for me?
7. Does Debt Settlement have a negative impact on my credit?
8. Can I still use my credit cards?
9. What will I pay for your services?
10. Do you guarantee that you settle all of my debts?
11. Can I be sued?
12. Can Start Fresh Financial stop my creditors from calling?
13. Does Start Fresh Financial repair my credit?
14. Can creditors Garnish my wages?
15. What are the tax Consequences?
16. Can't I negotiate my debts with my creditors on my own?
17. Do you start negotiating with my creditors immediately after enrollment?
18. Does the Program get easier once I am in it for awhile?
19. What happens if I quit the Program after enrolling?

I am a veteran, are there special programs for me?

Yes. The Department of Veterans Affairs (VA) has programs that offer no-money-down loans to qualifying veterans. Check with a Freedom representative to determine if you qualify. You can contact a local Freedom representative by Finding a Freedom Branch near you and setting up an appointment, or you can speak with a Freedom representative on the phone by calling 800.728.4798. Our Finding the Right Mortgage comparison chart provides helpful information concerning the loan programs available from Freedom Mortgage.

How much will it cost for me to get a loan and buy a home?

Down payment requirements vary by loan type, and closing costs vary by state and according to the amount borrowed. Check with a Freedom representative to determine your specific needs. You can contact a local Freedom representative by Finding a Freedom Branch near you and setting up an appointment, or you can speak with a Freedom representative on the phone by calling 800.728.4798. You will also find helpful information in our online resource material concerning the Homebuying Process.

Why is Freedom my best choice for a lender when buying a home?

Freedom Mortgage knows the mortgage industry. We have a 60-year history of helping people realize their dream of homeownership. Today, we’re one of America’s leading full-service residential mortgage lenders. We have home loan products and programs for every need, with a special focus on first-time homebuyers and customers who require expertise and specialized services to finance or refinance homes.

With an extensive network of offices throughout the country, we are close at hand. Click here to find a branch near you.

Most importantly, Freedom puts the customer first. To learn more about Freedom, visit our About Us page.

Is a property survey required when I purchase a home?

Yes. A property survey is required for all property transactions except in the states of Arizona, California, and Hawaii, which are known as “plat states.” The plat, which is a drawing of the boundaries, is provided by the title company.

How much insurance coverage do I need for a homeowner’s insurance policy?

At the time of closing on a purchase, homeowner’s insurance is required to cover the loan amount as a minimum. A paid receipt for the first-year premium is required at closing or the closing agent will collect the premium. This insurance covers the structure and contents of the home.

Will the closing agent accept my personal check for the down payment and closing costs?

No. The closing agent is required to collect funds in the form of a certified or cashiers check payable to the title company.

Will the property be appraised?

Yes in most cases. The appraisal of the home will be made after the seller accepts your offer, and a copy of the appraisal will be provided to you upon written request.

Where will the settlement take place?

Settlement generally occurs at the office of a title company or closing attorney. The closing agent will coordinate the closing to accommodate the schedules of the parties involved.

How will the payment of real estate taxes and homeowner’s insurance be handled?

The amount required to pay the real estate taxes and homeowner’s insurance premium when due will be included in your house payment. Freedom will then be responsible for paying those bills when they are received.

Do I have to qualify again in order to refinance for a lower rate?

robably not. Streamlined refinances are generally available with no verification of income, credit or debts. The streamlined refinancing process is quick and easy.

What if I need cash? Can I get it with a refinance of my home?

Cash-out refinances are available and the amount of cash available to you depends on the value of your home, how much you owe on it, and the standard qualifying criteria of income, credit and debts. Contact a Freedom representative to get the specific amount you may be able to get on a refinance. You can contact a local Freedom representative by Finding a Freedom Branch near you and setting up an appointment, or you can speak with a Freedom representative on the phone by calling 800.728.4798.

I have a low interest rate on my current Freedom loan. Can I get some cash without giving up that low rate?

Yes. Freedom offers a variety of home equity lines of credit which do not require you to refinance your existing Freedom mortgage. Ask your loan professional for details.

How will I know if it makes sense for me to do a rate reduction refinance?

That really depends on how long you plan on living in your home after you refinance, what the closing costs are for your refinance, and how much the refinance will save you in monthly payments. For example, if the refinance costs total $1000.00 and the new payment is $100.00 less each month after refinancing, the payback is 10 months. In this example, refinancing makes sense if the property will be kept for at least 10 months.

Do I need to get another homeowner’s insurance policy if I refinance?

Generally not. Your current insurance company will likely issue an endorsement to your existing policy.

If I refinance, where will the closing be conducted?

Closing on your new loan will be conducted at the office of the title company or attorney assigned to your closing. Also, it is possible to arrange for a closing agent to come to your home in order for you to sign the necessary papers.

Can I include the closing costs into my new rate reduction loan so I don't have to come up with my own money?

Generally, yes. Most people include the costs of refinancing into the new loan amount.

Can Freedom refinance a loan they do not currently service?

Yes, we can. Contact an Freeom representative to get refinancing details. You can contact a local Freedom representative by Finding a Freedom Branch near you and setting up an appointment, or you can speak with a Freedom representative on the phone by calling 800.728.4798.

I want to refinance in order to get my co-borrower off the title and to be solely responsible for the payments. Do I need to qualify again?

Yes. But this time we will base the underwriting decision on your income, debts, and credit instead of the combined as was done originally.

I want to refinance to a shorter term. Do I need to qualify again?

If you refinance to a shorter term, the resulting higher house payment will require that you qualify. This is a relatively simple process.

Why does Freedom want to help me refinance to a lower rate?

Because Freedom Mortgage wants to keep you as a customer for all your housing needs for a very long time.

Who is qualified for our program?

Start Fresh Financial's debt settlement program is only for people facing a legitimate financial HARDSHIP. This means people who, because of an unfortunate circumstance, cannot make their minimum monthly payments to creditors, are late on paying their debts, have little or no ability to pay their debts in the future, or are facing a possible bankruptcy.

Who is NOT qualified for our program?

This program is not designed to negotiate debts for people who have the means to pay off their debts on a regular monthly basis. If you have the ability to pay your debts in the normal fashion then you should honor your debts and do so. This program is NOT for people who are gainfully employed, have high credit ratings, need to maintain a high credit score, or can meet their monthly debt obligations.

How do you Apply?

Complete the form online or call us directly. A Sales & Debt Consultant will review your information and your financial and hardship situation. After a Consultant has reviewed your situation, she will determine if you are qualified for our Program. A Consultant will then explain the Program to you in full. If you qualify and choose to join our Program, you will begin the enrollment process.

How will Start Fresh Financial settle my debts?

As explained elsewhere on this website, as will be further explained to you in the conversation with the Sales & Debt Consultant, and as you will learn in the enrollment process, you will be asked to put aside and save a set amount of settlement funds on a monthly basis in an account of your choosing. This amount will be determined from your initial analysis; it will be based on the total amount of your unsecured debt and will be in line with your income and expense budget. If you choose to do so, you stop paying your creditors when enrolled in this Program; instead, you will put your money into your settlement account; only once you have saved enough money to settle each debt, will that debt be extinguished. Specifically, once you have accumulated enough settlement funds to make a reasonable offer to your creditors to settle the debt, a Start Fresh Financial representative will begin the actual negotiation process. Each person's situation is different and the negotiation process will begin at different times depending on the amount of your debt and the amount you are able to accumulate in the settlement account. Once a creditor agrees to a settlement amount, we will present this offer to you. If you approve of the settlement, we will instruct the creditor to fax over the settlement offer in writing. After we receive the written settlement offer, we will have a three way recorded conversation with you, the creditor and us to settle the account. Start Fresh Financial then moves through each debt until all of your debts have been paid and you are debt free.

Who can join Start Fresh Financial's program?

Start Fresh Financial's debt settlement program is a hardship program. This program is only for people who:

• have a legitimate financial hardship
• are late paying their unsecured debts
• cannot make their minimum monthly payments
• have no ability to make payments in the future
• bankruptcy is their only other option, but they do not want to file

Is bankruptcy a better option for me?

Anyone considering our Program should also contact a bankruptcy attorney to determine if the situation warrants filing for bankruptcy. Using the Debt Settlement process does not guarantee that you will not have to file for bankruptcy in the future.

Does Debt Settlement have a negative impact on my credit?

YES. Your credit score will decline while in our Program. How much it will decline depends on your own circumstances. Most of the accounts you place into negotiation are likely to “charge off” which will reflect negatively on your credit. However, once this charged off debt is settled, the settlement is reported to the credit bureaus. You should know that federal law prohibits creditors from misrepresenting a consumer’s payment history to credit reporting agencies. Creditors are permitted to report negative information such as delinquencies and charge-offs for seven years.

Can I still use my credit cards?

NO. All credit cards in the Program must be closed and you will not have credit privileges. Any cards you DO NOT put into the Program should not be used. This Program is for you to get out of debt, not to continue the process that got you into debt.

What will I pay for your services?

Start Fresh Financial has a 7% setup fee which is calculated based on the total amount of debt that an individual brings into the Debt Settlement Program. After the setup fees, we will charge you a flat monthly maintenance fee based on the size of your debt for the remainder of the time you are enrolled in the Program.

Do you guarantee that you settle all of my debts?

We cannot legally guarantee that your creditors will negotiate with us or that your debts will be reduced. Your creditors would rather that you spend the majority of your life paying off the debt you owe them. Thus, once you join our Program, many of them will take action such as threaten or intimidate you, continue to charge you interest or increase the interest rate, assess late charges, charge you default costs, and/or sue you.

Can I be sued?

YES. Your creditors certainly have the right to sue to recover their money. Usually the purpose of the lawsuit is to force a settlement on the matter, which is exactly what we do through debt settlement. It has been our experience that many creditors would rather not go through the expense of suing; they would rather negotiate a settlement with us, out of court. However, our clients have been sued, and all clients must recognize that this is a potential risk of joining our Program. If you are sued after joining our Program, we work with you to promptly settle the debt for this particular creditor, although the settlement may be at a higher percentage than if you had not been sued. We are not able to provide you with legal advice, because we are not lawyers at Start Fresh Financial. Our Consultant will further explain the potential risk of lawsuit.

Can Start Fresh Financial stop my creditors from calling?

NO. Your creditors have the right to try and contact you in order to collect a debt and they may still call you even after your join our Program. However, we have been successful in reducing many of the harassing telephone calls. If your account is in collections, collections agencies have to adhere to the FDCPA Guidelines.

Does Start Fresh Financial repair my credit?

NO. No company can remove legitimate negative items from your credit report. Negative items that are accurate will remain on your credit report according to the conditions imposed by the credit reporting agencies. However, the goal of our Debt Settlement Program is to settle your delinquent accounts. When a delinquent account is settled, this is also reflected on your credit report.

Can creditors Garnish my wages?

YES. However, this is can be a long process for the creditors. The creditor first has to sue you, successfully obtain a judgment, and then file for garnishment. If you’re willing to work with your creditors, wage garnishment may be avoided.

What are the tax Consequences?

Your creditors will report cancelled/settled debts exceeding $600 to the IRS and you are required to report the same as income on your annual tax return. However, the IRS permits you to write off any “income” from canceled debts up to the amount by which you were “insolvent” at the time.

Can't I negotiate my debts with my creditors on my own?

YES. You could negotiate your debts with your creditors on your own. As a matter of fact, if you successfully negotiate a debt on your own, it may cost you less in the long run to use this approach than to use Start Fresh Financial's service because we charge fees for our services.

Do you start negotiating with my creditors immediately after enrollment?

As part of your enrollment process, you will send letters to your creditors* that state you are now enrolled in our Program and you will provide them with a Power of Attorney that gives us the authority to negotiate with your creditors on your behalf. We cannot negotiate an actual dollar amount with your creditors until you have saved a sufficient amount of money in your settlement account. Generally, as soon as you reach 30% of a debt in your account, we will call your creditor and begin actual negotiations.

Does the Program get easier once I am in it for awhile?

YES. In the beginning, there is paperwork you must fill out and go through with a Consultant. You will need to understand our Program, and so you will have several conversations with our staff. Creditors often intimidate new clients who have recently joined our Program. The first year is often the hardest, and that is the year where you must put sufficient funds in your settlement account and pay us the majority of the fees that we charge at the same time. However, once you have the first year behind you, and a settlement or two finalized, the path to debt recovery will feel easier. The more you are able to put into your settlement account, and the quicker you are able to do so, will determine how long it will take you to be in this Program. We strongly recommend that should you decide to join our Program, that you complete the Program to reap the benefits available to you.

What happens if I quit the Program after enrolling?

We do not recommend that you quit our Program after enrolling and before settling your debts with creditors. If you do so, you will have paid our initial fees and angered your creditors without realizing any benefits. The benefits of the Program are only realized after you have accumulated sufficient funds in your settlement account and after you begin to actually settle your debts.