Mortgage FAQs

How can I start my application?

York Traditions Bank has a wide variety of mortgage products. Our Mortgage Service Partners are known for helping their clients achieve their homeowner goals regardless of the economic environment. To begin the application process with YTB, please contact one of our Mortgage Services Partners or Apply Online.

Do you require a property inspection?

An inspection is not the same as an appraisal, although both are used to protect you, the buyer, from hidden issues with the property that may arise at a later date. A home/property inspection is not required in the state of Pennsylvania, but YTB will order an appraisal, or a valuation of the property. If you are purchasing a property, ask your agent if a home inspection is necessary, depending on the home’s age or condition.

Do I need an attorney?

The state of Pennsylvania does not require a buyer to have a real estate attorney present at closing. If you feel more comfortable having an attorney review the contract and other paperwork, you may hire and pay for the attorney.

What is the difference between “locking” and “floating?”

Locking in a rate means to set the rate. In working with your Mortgage Service Partner, you will be given a range of rates and points to choose from. They will help you make the most sense of the rate structures, keeping your mortgage goals in mind. A Floating rate is a rate that has not been set. It is still subject to market conditions and will fluctuate until locked in.

Does York Traditions Bank charge prepayment penalties for its residential mortgage loans?

No. You can pay off your residential mortgage loan at any time.

Will homeowners insurance be required at closing?

Yes, Homeowner’s Insurance will be required in order to close a mortgage loan. This policy protects both the homeowner and the mortgage lender in case the home incurs a loss or is destroyed. The cost for a Homeowner’s Insurance Policy often depends on what it would cost to replace the home and which additional endorsements or riders are attached to the policy.

What is the difference between private mortgage insurance and homeowners insurance?

Private Mortgage Insurance, or PMI, is required on a conventional loan if the loan to value is greater than 80%. York Traditions Bank will secure the PMI as protection against possible payment default. Homeowner’s Insurance is secured by you, the homeowner. It protects your home and it’s contents from damage or loss.

How long do I have to pay for private mortgage insurance (PMI) on my loan?

PMI payments continue until the loan balance reaches 78% of the original loan amount. At this point in time, the PMI is automatically dropped. With respect to an FHA loan, the MIP is paid for the life of the loan if the term is a 30 year or a 15 year with a down payment of 3.5%.

What is title insurance?

Title Insurance is a form of indemnity insurance which protects an owner’s or a lender’s financial interest in real property against loss due to title defects, liens or other matters.

Is purchasing title insurance mandatory?

Yes, Title Insurance is needed on any mortgage that is obtained through YTB. It is used to protect the borrower and the lender against any title defects, liens or other matters.

I have another question. Who can help me?

Any of our Mortgage Services Partners are more than happy to answer your specific questions. Contact us today!