Home Loan FAQ's

Buying a home can be a daunting process, but it doesn't need to be. You can rely on the professional help and experience of Guardian Mortgage lenders to make the process as simple and hassle-free as possible. Here are some clear, plain answers to some of  our most frequently asked questions.

Payments

Answers

Closing Process

Where do I go for closing?

Typically, your closing will take place at a title company or at a closing attorney’s office. The specifics may appear in your sales contract or you can call your mortgage loan originator, processor, or closer for the information. If you are refinancing, you can discuss the location most convenient for you with your loan originator.

How will I know how much money to bring to closing?

Your closing disclosure will provide the final figure. This will come from the title company once they have received our closing package. Upon request, your title company will provide you with the final settlement statement for your review. This will allow you to ask questions prior to closing and also give you the opportunity to obtain a cashier’s check (made payable to the title company) or prepare for your wire.

Can I close on a home without physically going to the title company?

If you are unable to attend closing, your title company may be able to coordinate a “mail-out” to you in order to sign original documents. The signing of the documents must still take place in an authorized location with a notary present.

What items do I need to bring my closing?

Please bring a photo ID, such as a driver’s license and any funds needed for closing. Funds may be wired directly to the title company or may be in the form of a cashier’s check. Some title companies may accept a personal check if the amount required is less than $1,500.00. Be sure to check with your title company to confirm their policy.

Why did I receive another closing disclosure (CD)?

This is your final Closing Disclosure Statement. At the time of application, borrowers are given a preliminary Closing Disclosure. The Truth-In-Lending Act is a federal law requiring lenders to reveal all of the terms of a mortgage. This final CD uses the actual numbers from closing and more accurately discloses your Annual Percentage Rate (APR), Prepaid Finance Charges, Total Amount Financed, and Total Number of Payments. See an example.

To whom do I send my Homeowner's Insurance information?

Please send your homeowner’s insurance information to your mortgage loan originator or loan processor. This “declarations page” should be supplied at least two weeks prior to closing. Typically, you will pay the first year’s insurance premium at closing. The premium will be paid by the title company to your insurance company.

Definitions

What does PITI stand for?

PITI is an acronym for Principal, Interest, Taxes, and Insurance – the components of a monthly mortgage loan payment.

What are discounts points?

A discount point is 1% of the loan amount. For example, 1 point on a $200,000 loan is $2,000. Sometimes it is advantageous to pay points and get a lower interest rate if you plan to live in the home for an extended period of time. In that case you may end up paying less over the life of your loan. Generally, points paid at the time of closing are a deduction for tax purposes. Please consult a tax professional for details.

What is Loan-to-Value (LTV)

LTV is the relationship between the amount of your outstanding mortgage loan balance to the appraised value or sales price, whichever is less. The LTV is expressed as a percentage.
For Example, the LTV for the following scenario would be 60% ($165,000 divided by $275,000)
Appraised Value = $275,000 Sales Price = $280,000 Mortgage Loan Balance = $165,000

What is the Debt-to-Income?

The DTI ratio is used by lenders to determine an applicant’s ability to repay the mortgage, based upon current gross income and liabilities. DTI is the total amount of monthly debt, including all house payments, credit cards, and other loans, divided by the total gross monthly income.

What is Private Mortgage Insurance (PMI)?

PMI is required by a lender when a borrower seeks to finance more than 80% of the home value. This partially protects the lender from loss if the borrower fails to make the mortgage payments. PMI is included in the escrow portion of the monthly payment.

What are closing costs?

Closing costs can be divided into three main categories:

1) Lender fees – Fees can include origination, points, underwriting review, processing, credit report, flood certification, and appraisal.
2) Third-party fees – These fees are charges by entities other than the lender. They can include fees for closing, title search, title insurance, tax certificates, and recording.
3) Pre-paid items – These are items collected at the time of closing that are not yet due and are not really considered closing costs (for example, interest, taxes, and hazard insurance).

What is title insurance?

Title insurance provides coverage for losses resulting from specific title defects listed in the policy. There is always the possibility an error has occurred in cases where land and property have changed hands over time. If an error has occurred, it may be that (1) someone else may be in title to or have an interest in the property, (2) improvements encroach on property lines, or (3) other similar problems may exist. In these scenarios, you could lose your investment in your home if you do not have title insurance.

Lenders require “lender’s coverage,” referred to as Mortgagee’s Policy, to protect their investment. This Mortgagee’s Policy only protects the lender. The purchaser is protected by an Owner’s Title Policy, which is usually paid by the seller at closing.

What is an escrow account?

In addition to the principal and interest, your monthly payment also includes your escrow payment. This represents 1/12 of your annual property taxes, homeowner’s insurance premium, and can include applicable PMI (Private Mortgage Insurance), FHA MIP (Federal Housing Administration Mortgage Insurance Premiums), and flood insurance. These funds are deposited into your escrow account each month when you make a payment. The lender holds the money in this account until something becomes due and makes the payment using these funds on your behalf.

Having an escrow account has two very distinct advantages:
Security: The insurance and tax bills will be paid on time every year, regardless of how much each bill may have increased that year.
Convenience: The funds required to pay your escrowed items are included in your monthly payment, so you do not have to worry about making any large payment for property taxes or homeowner’s insurance.

What is a bi-weekly mortgage?

A mortgage with payments due every other week, totaling 26 payments a year. Since there are only 12 monthly mortgage payments required in a conventional mortgage payment plan, a bi-weekly arrangement will produce one extra payment per year. This will help reduce the loan principal balance sooner and can reduce interest in the long term.

What is Hazard Insurance?

Insurance coverage which provides compensation to the insured in case of property loss or damage.

What is a Homeowner's Insurance Policy?

A multiple peril insurance policy available to owners of private dwellings that covers the dwelling and its contents, as well as personal liability.

What is Flood Insurance?

A standard homeowner’s policy will not cover damages caused by flooding. You must have flood insurance from an insurer that writes for the National Flood Insurance Program (NFIP). If your community participates in NFIPs floodplain management program, you should be eligible to buy the coverage no matter if your flood risk is low, medium, or high. The only people who may have trouble finding flood coverage are residents of “coastal barrier resource system” areas and communities that do not participate in NFIPs plans. Flood insurance is also available to renters, condominium owners, and co-op owners.

What is the difference between the annual percentage rate (APR) and the interest rate?

The APR is the effective rate of interest for a loan based on the original loan amount less certain closing costs. This is the rate that will appear on the Truth In Lending Disclosures you will receive. Please note that the APR is usually higher than the interest rate on your Real Estate Lien Note. A mortgage interest rate is the percentage charged on a mortgage that must be paid in addition to the principal.

What is the difference between a conforming and non-conforming loan?

Conforming and non-conforming loan limits are based on the annual changes in average home prices, as published by the Federal Housing Finance Board and the Office of Federal Housing Enterprise Oversight. Non-conforming (jumbo) loans, cannot be funded by Fannie Mae or Freddie Mac and therefore usually carry a higher interest rate. Please contact your loan officer for current loan limits.

Escrow Accounts

How do I contact the Tax Department?

Mail: Guardian Mortgage, Attn: Taxes, PO Box 833890, Richardson, TX  75083
Email:  taxes@gmc-inc.com
Phone: (800) 331-4799 or (972) 690-1871
Fax: (800) 859-8670

How is my monthly escrow deposit calculated?

Your escrow deposit is equal to 1 month of the total tax and insurance bills we anticipate paying on your behalf during the coming 12 months. 

Example:        
Taxes:             $4000 per year
Insurance:       $2000 per year
Total:               $6000 divided by 12 months = $500 per month. 
 

What is an escrow analysis?

Our analysis cycle runs March – February every year.  Every January, Guardian will perform an escrow analysis of your escrow account and adjust your monthly payment based on the amount(s) that were paid from your escrow account during the prior year.  Generally, your monthly mortgage will change due to the analysis.  The new payment amount will be effective March 1 every year.  If the analysis shows a surplus overage amount over $50.00 in your account, Guardian will automatically send you a refund check.  The refund checks are mailed prior to March 1 every year.  If the analysis shows a surplus overage amount under $50.00, the amount will be spread over 12 months and deducted from the total payment amount. At the end of January, we will mail your Annual Statement which will include your escrow analysis, the interest reported to the IRS on Tax Form 1098, as well as the amount(s) of property taxes you paid for that year. 
Note:  Property tax amounts are not reported to the IRS.

What happens if I have a shortage of funds in my escrow account?

  1. If your escrow account balance is less than the required balance at the time of your analysis, your escrow account will have a shortage.   An escrow account also includes the 2-month cushion amount (per RESPA Law)*.  In simple terms, your escrow account should have the equivalent of 2 months of escrow at its lowest balance within a 12-month period.  This cushion amount is in addition to the property tax and insurance amounts that are disbursed from your escrow account.  The primary purpose of the cushion, is to keep your escrow account from going into a negative balance, because taxes and insurance typically increase each year.
  2. The total shortage amount will be automatically spread (divided) over 12 months to give you the opportunity to gradually pay it back. There are no fees or charges added to an escrow shortage. Our system makes the calculations and spreads the amount over a 12-month period. 
  3. Your monthly mortgage payment will include the monthly escrow shortage amount added to the payment. You have the option of paying all or part of your escrow shortage. If you choose this option, your monthly mortgage payment will be adjusted accordingly.  Please contact our Customer Service Department for more details.
  4. It is important to remember that any time there is an increase in taxes and/or insurance, you will effectively see the increase doubled in the difference of your payment amount. The reason for this is that not only did we pay more than we collected for taxes and insurance in the prior year (escrow shortage), but we are also using those same (higher) amounts as estimates for the coming year. 
 
Example:  If your property taxes and/or insurance (combined) increased +$1200 the prior year, your payment will increase approximately $200 per month, see below:
 
  1. The escrow shortage (prior year) =                    $100 per month ($1200 / 12)
  2. The escrow increase (current year) =                $100 per month ($1200 / 12)
*Approximate payment increase=                                  $200*per month ($2400 / 12)

Who do I contact regarding an increase in my escrow deposit?

In the event you believe our calculations are incorrect or you have access to a better estimate from a taxing authority or insurance company, please contact our Tax or Insurance department(s) to discuss in detail.  We will review your documentation and possibly complete a new escrow analysis that may reduce your monthly escrow deposit.
 
Please remember, only your taxing authority or insurance company can change the amount we pay on your behalf from your escrow account.  You must contact them directly to dispute the invoiced amount(s).
 
Please contact our Tax department if you have applied and been awarded a disability exemption on your property.  These exemptions can drastically reduce your property tax bills.  It is important that you file the proper exemption documentation with the county.  Guardian cannot change your tax escrow account until the county recognizes your exemption and provides an effective date in writing.

What happens if I have a surplus of funds in my escrow account?

If your loan is not delinquent and your escrow account has a surplus of funds at the time of your escrow analysis in January, Guardian Mortgage will automatically send you a refund check for the surplus amount over $50.00. The refund checks are mailed prior to March 1.

A surplus in your escrow account is usually created by a reduction in your property tax bill or homeowner’s insurance premium.

How do I request cancellation of my Private Mortgage Insurance (PMI)?

Please contact our Customer Service Department to submit your request for cancellation. Once your request is received, we will review your account and advise you of the requirements for cancellation.

A few requirements are:
  1. No mortgage payments 30 days or more past due in the last 12 months.
  2. No mortgage payments 60 days or more past due in the last 24 months. Borrower-initiated cancellation can be based on the original value. The original value of the property is determined as the lesser of either the sales price of the property securing the mortgage, as reflected in the sales contract, or the appraised value of the property at the time the subject property was purchased.
  3. Borrower requested termination based on property appreciation (current value) is subject to investor guidelines.

Will PMI automatically terminate once my LTV is less than 80%?

Yes, given certain circumstances. For certain conventional loans (single-family, single unit, owner-occupied homes closed after 7/29/99), PMI will be terminated at the earlier of the following:
1) The date that the mortgage balance is first scheduled to reach 78% of the original value of the property.
OR
2) The first day of the month after the date that is the mid-point of the mortgage amortization period.
 
The original value of the property is determined as the lesser of either the sales price of the property securing the mortgage, as reflected in the sales contract, or the appraised value of the property at the time the subject property was purchased.

In order to qualify for automatic cancellation, the payment due in the month before the termination date and any outstanding late charges must have been paid by the end of the month before the termination date. If this is not the case, the PMI must be canceled later if, and when, the payments become current.
 

General Questions

How do I contact Guardian Mortgage?

Mail: Guardian Mortgage, P.O. Box 833890 Richardson, TX 75083-3890
E-mail: CustomerService@gmc-inc.com
Phone: 1.800.331.4799 or 972.690.1871
Fax: 1.800.859.8670

How do I change my name on Guardian Mortgage's records?

If you have had a legal name change send the following information to the Customer Service department:
  • A copy of the official document showing your name was changed.
  • A signed letter from you requesting your name to be changed on our records. 

How do I change my mailing address and/or phone number on Guardian Mortgage's records?

  • Sign into your account in the ‘My Account’ portal and edit your account information in the ‘Contact Details’ section under the ‘Personal Profile’ menu.
OR
  • Email Customer Service with your new mailing address and/or phone number. Make sure to include the mortgage loan number and your name.

When will I receive my year-end statement of interest paid for tax purposes?

Year-end statements of interest paid on your loan (IRS Form 1098) are mailed prior to January 31 and are also available through the ‘My Account’ online portal. (where you can download and print your 1098)

Does Guardian Mortgage finance all types of properties in all states?

Currently, Guardian Mortgage finances homes in nearly 40 states. See the link below for a state map.
State-Map-Origination.pdf

How do I select the right mortgage loan for my needs?

In order to determine the right loan for your needs, consider the following:
• What amount of liquid funds do you have available for a down payment and costs at closing?
• How long do you intend to own the home?
• Are there any derogatory credit items in your credit history?
• What are your short-term and long-term financial goals?
• Ideally, how old would you like to be when the home loan is paid off?
• Are there any upcoming financial obligations or events to consider (i.e., college tuition, birth of child, retirement)
• Do you have a stable income stream (base salary) or do you have a variable income stream (self-employed or commission income)?
• How much future interest rate risk and volatility are you willing to assume for a lower rate in the short term?

Selecting the wrong mortgage program can cost you thousands of dollars over time; no single loan program is the right fit for everyone.
 

How much must I have for a down payment?

The required down payment can depend upon the home loan type (Conventional, Government, Jumbo, etc.). However, we do have mortgage loan programs available that allow up to 100% financing with a minimum down payment of $500 on 1-unit properties.

How can I lock my interest rate?

You must contact a loan originator to lock in your rate before you have assigned contract. Your loan originator will get some information about your specific mortgage loan requirements, your desired loan product, and credit score.

Do I need to order my appraisal?

No, you do not need to order the appraisal yourself. If an appraisal is required, Guardian will contact an appraiser. The appraiser will contact the Realtor (for a purchase) or you (for a refinance) to schedule a time to review the property. On purchase loans, the appraisal will be ordered when you have made loan application and a fully executed contract is received. On refinance transactions, the appraisal will be ordered at the time of loan application, if required. Cost for the appraisal will be included in the closing costs.

Will I get a copy of my appraisal?

Yes, you will receive a copy of your appraisal. Prior to closing or no later than closing day.

Am I required to have flood insurance coverage on my home?

If you are purchasing a property which lies within a Special Flood Hazard Area (SFHA), federal law requires you to maintain and provide proof of flood insurance coverage. This premium is separate from your Homeowner’s Insurance Premium and is also paid at closing. Flood zones and maps can change. Your property may be deemed as being in a SFHA in the future. Guardian Mortgage will notify you if flood insurance becomes a requirement on your loan due to any change in flood map or zone.

The minimum amount of flood insurance coverage is (1) the unpaid principal balance of your loan – up to 100% of replacement cost of the insurable improvements – or (2) 80% of the full replacement cost of the insurable improvements as shown on the homeowner’s policy – whichever is higher. The deductible may not exceed $1,000.00 or 1% of the policy’s insurance limits. The policy must cover the risk (zone) as disclosed on the Flood Zone Determination.

How much cash will I need for closing costs?

The industry average for closing costs is approximately 2% to 3% of your loan amount. Typically, Guardian Mortgage has closing costs below this average. A mortgage loan originator will provide you with a loan estimate (LE) outlining your estimated closing costs. These estimates will change if you change the product type or loan amount. You will also receive a closing disclosure (CD) prior to closing to finalize the cash to close.

Can I roll my closing costs into a loan on a refinance?

When you refinance, you may be able to include all, or some, of your closing costs into the new loan amount. Much of this is dependent upon your loan-to-value (LTV) and the type of loan program you choose. Please contact your mortgage loan originator for details.

If I refinance my current Guardian Mortgage loan with you, will I have to pay closing costs?

There is a cost to process, underwrite, and prepare closing documents for all loans. Therefore, many of your costs will be duplicated when you refinance your loan with Guardian. However, in some cases certain costs from the purchase can be avoided with the refinance (i.e., appraisal and survey). Please contact your mortgage loan originator for details.

Insurance

How do I contact the Insurance Department?

Mail: Guardian Mortgage, Attn: Insurance, P.O. Box 833890, Richardson, TX 75083
E-mail: insurance@gmc-inc.com
Phone: 800.331.4799 or 972.690.1871
Fax: 866.728.4250

I received an insurance premium bill and I have an escrow account. Where should I send this bill?

Guardian Mortgage, Attn: Insurance, P.O. Box 833890, Richardson, TX 75083
E-mail: insurance@gmc-inc.com
Phone: (800) 331-4799 or (972) 690-1871
Fax: 866.728.4250
 
Policy and renewal information should be sent to the Insurance Department by mail, email or fax. See the section above for contact information.

Please ensure that Guardian Mortgage is listed on the policy. Our mortgagee clause should read as follows:

Guardian Mortgage, a division of Sunflower Bank, N.A. ISAOA
P.O. Box 833890
Richardson, TX 75083

What is the minimum amount of Hazard Insurance coverage?

Our investors require minimum coverage equal to the lesser of the following:
  • 100% of the insurable value of the improvements, as established by the property insurer; or
  • The unpaid principal balance of the mortgage, as long as it equals the minimum amount – 80% of the insurable value of the improvements – required to compensate for damage or loss on a replacement cost basis. If it does not, then coverage that does provide the minimum required amount must be obtained.
The maximum allowable deductible is 5% of the policy’s insurance limits.
Minimum-Insurance-Worksheet.xlsx

To whom do I send my Homeowner's Insurance information?

If you are purchasing a home, please send your homeowner’s insurance information to your loan officer or loan processor. The “declarations page” should be supplied at least two weeks prior to closing. Typically, the first year’s insurance premium is paid by you prior to closing or will be paid to your insurance company by the Title Company or attorney handling your closing. If you have an escrowed loan, your insurance renewal premium will be paid each year by Guardian Mortgage using funds from your escrow account.

If you are a current customer, and have qualified to have a “non-escrowed” loan, we will still need to get copies of your homeowner’s insurance renewal information each year to prove that the property is still adequately insured.

Your insurance company will provide Guardian proof of renewal automatically each year. If you need to send a copy please email or fax to insurance@gmc-inc.com or 866.728.4250.
 

What happens if my Homeowner's Insurance expires before I am able to renew the policy?

If your loan has an escrow account, your insurance renewal premium will automatically be paid each year using funds from your escrow account. If you have a “non-escrowed” loan, it is your responsibility to keep the property adequately insured. When proof of sufficient insurance coverage has lapsed, been canceled, or has not been received, Guardian Mortgage will obtain an insurance policy for the dwelling only – not the contents or liability — as a last resort. This situation is called “Force-Placed Coverage” and is designed to protect our interest in your property as the lender. Again, this is a last resort and Guardian Mortgage will make every effort to notify you ahead of time if we have not received the renewal or verification of sufficient coverage, before we force-place insurance on the property.

Force-placed insurance can be quite costly. The premium for this policy will be charged to your escrow account, if you have one in place. If you do not have an escrow account with us, one will be created for you. This coverage will be different and most likely more expensive than your personal coverage. If we are forced to obtain this insurance, we will cancel it when you provide us with proof of coverage under your own policy.
 

Can I change my insurance company? Whom do I notify of this change?

Yes, you do have the option of changing your insurance company at your discretion, as long as it is with a reputable company. Written authorization is required when changing insurance companies. Please email your request/authorization to insurance@gmc-inc.com and include the name of the new insurance carrier and agent, if applicable. When the new insurance declarations and premium invoice are received, payment will be disbursed from your loan escrow account, if applicable. We will need your replacement policy prior to the expiration of the current policy. Cancellation of the old insurance provider is your responsibility.

Please keep in mind that if you change your insurance policy and company before your current policy expires, you may not receive a full refund from your current insurance company.
 

When was my Homeowner's premium last paid and what was the premium amount?

This information can be found in the ‘Transaction History’ section of your account in the ‘My Account’ portal.

If you have not signed up for the ‘My Account’ portal, then you can contact our Customer Service Department at 800.331.4799 or 972.690.1871 and our Customer Service Representative will provide you with the date the premium was paid and the amount of the premium.
 

I have received an insurance claim check with both my name and Guardian Mortgage listed on it. Why?

When you contact your insurance company and file a claim for damage, your insurance company will issue you a check to cover the damage to the property. The check will typically be issued in the names of both the property owner and the lender, since the lender has an interest in ensuring that the damaged property is repaired. Therefore, Guardian Mortgage will need to endorse (sign) the check before it can be cashed.

Please contact our Customer Service Department at 800.331.4799 or 972.690.1871 for instructions on how to get the check endorsed. Certain claim amounts may require additional supporting documentation such as the insurance adjusters or licensed contractor’s estimate of repair. In the case of some larger claims, funds are not immediately released, instead, draws are made and inspections are required.

What is the Guardian Mortgage mortgagee clause?

Guardian Mortgage, a division of Sunflower Bank, N.A.
ISAOA
PO Box 833890
Richardson, TX 75083

How do I change my insurance company?

We require written authorization to change insurance companies. Please email your authorization to insurance@gmc-inc.com, naming your new carrier and agent if available. When the new declarations and invoice are received, we will disburse from your escrow if applicable. You are responsible for canceling with the old insurance provider.

I have my refund from my old insurance company, what do I do?

Please be sure to return the refund to us to credit your escrow account. You may send a personal check to Guardian Mortgage for the amount of the refund—reference your loan number and state that it is for escrow - or, you may forward Guardian the check from your previous carrier. If you forward, please write on the back of the check, “pay to the order of Guardian Mortgage”. Please be sure to have all recipients sign underneath this statement. Mail the check to Guardian Mortgage, Attention: Insurance Dept., P.O. Box 833890, Richardson, TX 75083. Alternatively, you may deposit the funds via the Guardian website – guardianmortgageonline.com – under the “My Account” portal. You can do this with your next payment, or on its own by marking the box for additional escrow. If you are not making a payment, be sure to uncheck the “pay now” selection and check only the escrow box.

Note: You will not be able to add to the escrow if your monthly mortgage payment is due for that month.
 

What is the minimum amount of Flood Insurance coverage?

The minimum insurance amount is the lower of:
  • 100% of replacement cost of the dwelling; or
  • The maximum insurance available from the National Flood Insurance Program (currently $250,000); or
  • The unpaid principal balance of the mortgage
Deductible may not exceed $5,000.00

Payments

How do I contact the Automatic Payments (ACH) department at Guardian Mortgage?

Mail: Guardian Mortgage, Attn: ACH, P.O. Box 833890, Richardson, TX 75083

E-mail: ACH@gmc-inc.com

Phone: 800.331.4799 or 972.690.1871

Fax: 800.859.8670

How do I make my monthly payment?

1) By Mail:
 Guardian Mortgage
 P.O. Box 833890 Richardson, Texas 75083-3890
(Please include loan # on check or include a coupon or statement and allow 3-5 business days for receipt of payment)

2) Online using the ‘My Account’ portal, ‘Payment Options’ menu on the left of the screen

3) ACH (Automatic monthly payments), and can be set up using the ‘My Account’ portal, ‘Payment Options’ menu on the left of the screen ACH-Agreement.pdf

 4) Phone pay system by calling 855.577.3384 and following the prompts
 

How do I sign up for Automatic payments (ACH)?

ACH Agreement
  1. Sign into your account in the ‘My Account’ portal and complete the ‘Auto Payment Setup’ under the ‘Payment Options’ menu.
OR
  1. Fill out and return the ACH form from your closing package or print and complete the ACH Authorization form and send to the ACH department. A confirmation will be sent to you as receipt of your letter.
  • Guardian Mortgage will process a test (pre-note) transaction with your bank to verify the account number.
  • Please continue to make home loan payments until you receive the confirmation letter notifying you of the first draft date.
  • ACH will continue as long as your account remains in good standing or until you request a change.

What if the draft date I select is a weekend or holiday?

The draft will occur on the next banking day.

How much does it cost?

ACH with Guardian Mortgage is FREE!

What if I don't have enough money in my account?

If you have “overdraft protection” your bank will cover the amount using their guidelines. If your account is NSF (non-sufficient funds) or if the ACH is dishonored for any reason, we will assess an NSF fee to your account and contact you for your home loan payment.

How do I change the account from which my ACH is debited?

  • Sign into your account in the ‘My Account’ portal and edit your account information in the ‘Auto Payment Setup’ section under the ‘Payment Options’ menu.
OR
  •  Complete an ACH Change Request form with your updated account information. When changing your bank account or routing number, it is vital that you note what date the change will take place and include a voided check or savings deposit slip with your request. You can contact Customer Service for a form

How do I cancel ACH?

Email ACH@gmc-inc.com or send a written request to the ACH department with your name, mortgage loan account number, and the effective date of cancellation. 

Can I make my payment online?

Yes. Once you set up your account within the ‘My Account’ portal, you can make payments on your loan using a checking or savings account. Please have your bank account information handy.

What is ACH?

ACH stands for Automatic Clearing House and is the term we use for our automatic payment program. For more information about ACH click here.

When are payments due?

Payments are due on the first day of every month. Guardian has a 15-day grace period. Online and phone payments are date and time stamped when complete. Your payment must be completed by midnight CST on the 16th or a late fee will be assessed.

I have a financial problem that may affect my ability to make my payment in a timely manner. Who should I contact?

Making your payment on time is essential to maintaining a good credit rating. If for some reason you cannot make a full payment on time, please contact us at 972.690.1871 or 800.331.4799. Early notification allows us sufficient time to work with you to resolve your payment issues.

If I make additional principal payments on the loan, can I pay off my mortgage early? How much earlier?

Yes, you can pay off your mortgage early by making additional payments to principal. Payments can be made to principal at any time.

Use the Early Payoff calculator to calculate how much earlier you can pay off your loan. For assistance please contact your loan officer or the Customer Service Department.

How do I apply additional money to my principal?

  1. By mail options:
    1. Option 1: Include the amount with your regular monthly payment. Write the amount to be applied to principal on your coupon.
    2. Option 2: Mail a separate check from your monthly payment check. Write “Additional Principal” along with your account number in the memo field of the separate check.
  2. Online – ‘Pay Right Now’ section of the ‘My Account’ portal:
    1. When making your normal monthly payment online, additional principal can be applied by entering the amount in the ‘Additional Principal’ field and marking the checkbox to include the amount in the ‘Total Payment’.
  3. ACH online – ‘Auto Payment Setup’ section of the ‘My Account’ portal:
    1. You may add, change, or remove the amount of additional principal taken out of your bank account for your monthly payment.
  4. ACH by mail:
    1. Contact Customer Service and request an ACH Change Request form
    2. Complete and sign the form
    3. Return the form to Guardian Mortgage via mail, email, or fax.
    4. Allow at least two business days from date of receipt of the request for the change to be processed. A confirmation letter will be mailed to you once the change has been made.
You may adjust or remove the amount of additional principal at any time.
 

Is it possible to get a lower monthly payment when I make a large payment to principal?

If you have a certain type of conventional loan and would like to make a significant payment to your principal balance, you have the option of modifying, or “recasting” your loan. This means that your loan is modified to allow you to make a lower monthly payment based on your remaining principal balance, your current interest rate, and the remaining term of your loan. There is a one-time processing fee to recast. If you would like to see the effect “recasting” might have on your loan, please contact the Customer Service Department at 972.690.1871 or 800.331-4799 for details.

How do I make an online payment?

Online Payment Steps:

1) Select the ‘My Account’ tab at the top of the GuardianMortgageOnline.com page or go directly to My.GuardianMortgageOnline.com.
2) Sign into your account
3) Select the ‘Payment Options’ menu on the left of the screen
4) Select ‘Pay Right Now’

ON THE PAY NOW FORM:
5) Mark the ‘Monthly Payment’ checkbox
6) Add any additional funds for Principal, Escrow or Fees Due and mark the associated checkbox
7) Confirm the ‘Total Payment’ amount
8) Select ‘Submit’

ON THE ACCOUNT NUMBER ENTRY PAGE:
9) Select ‘Continue’

ON THE PAYMENT ENTRY PAGE:
10) Enter your banking information
11) Enter your email address (the payment acknowledgment will be sent to this address)
12) Select ‘Continue’

ON THE PAYMENT CONFIRMATION PAGE:
13) Check “I have read and accept the above terms and conditions.”
14) Select ‘Accept’.

ON THE YOUR PAYMENT HAS BEEN APPROVED PAGE:
15) Select ‘Print’ to print a copy of the approval for your records.
16) Select ‘Exit’ to return to the Guardian Mortgage Online site or close the browser.
17) Verify the information on the email confirmation is correct.

How do I make more than one regular payment at the same time or in the same amount?

To make more than one payment on a loan follow ALL online payment steps for each payment. Each payment must be processed as a separate transaction.

Note: Do NOT put the regular payment amount in the Additional Principal or Additional Escrow fields to make more than one payment.

If I put my regular payment in the Additional Payment (or Additional Escrow) field will it be applied to the next payment?

No. The Additional Principal and Additional Escrow fields are added to the regular payment amount for the select loan. To make more than one regular payment, each payment must be processed as a separate transaction.

When will an online payment post to my account?

  • Payments submitted on any business day before 6:00 PM CT:
    • Will post to your account with Guardian on the following business day.
    • Will post to your bank account in 1-2 business days.
  • Payments submitted on any business day after 6:00 PM CT OR any non-business day:
    • Will post to your account with Guardian in two business days.
    • Will post to your bank account in 2-3 business days.

Why is the total amount greater than the monthly payment?

Payments made for the current month after 11:59 PM CT on the 16th day of the month or thereafter will be assessed a late fee.

Is there a charge for making an online payment?

Online payments with Guardian Mortgage are FREE!

What if there is not enough money in my account?

If you have “overdraft protection,” your bank will normally cover the amount using their guidelines. If the payment is returned for NSF (non-sufficient funds), we will assess an NSF fee to your account and contact you for payment.
More than two returned payments during a 6-month period will cause your account to be blocked from making any further online payments.
 

Can I cancel the payment?

Once you click “Confirm,” payment is final and cannot be canceled.

Can I apply additional money to principal or escrow?

Additional amounts can be applied to both principal and escrow along with your normal monthly payment. Enter the amount in the appropriate box on the “PAY NOW” form. Confirm the “Total Payment” amount is correct.

Can I use a credit/debit card?

Online payments can only be accepted from a checking or savings account.

Will this recur monthly?

This is a one-time payment. To setup recurring payments use our convenient ACH program. 

Can I schedule my payment for a later date?

At this time payments are not accepted with a future date.

Can I view the online payments that I have made previously?

At this time the history is not available online.

Can I pay off my loan online?

We are unable to process your payoff through our online payment system. Please call our payoff department at 972..690.1871 or 800.331.4799 for further information.

For additional information regarding online payments please contact the customer service department 800.331.4799 or 972.690.1871

How do I contact Guardian Mortgage's Payoff Department?

Mail: Guardian Mortgage, Attn: Payoff, P.O. Box 833890, Richardson, TX 75083

E-mail: payoff@gmc-inc.com

Phone: (800) 331-4799 or (972) 690-1871

Fax: (800) 859-8670

How do I request a payoff figure when I am ready to pay off my loan?

  1. Contact the Payoff Department by phone or payoff@gmc-inc.com.
  2. Sign into your account on the ‘My Account’ portal and submit a ‘Payoff Request’, under the ‘Accounts’ menu item.

Why is there a difference between the payoff amount and the principal balance?

A payoff figure consists of the principal balance, interest owed on the principal balance, and any applicable fees.

If I am closing on the sale of my home, or have requested a Payoff Statement, do I still need to make my payment this month?

Yes. It is important that you continue to remit your monthly mortgage payment as you normally would. If your payment is made using an automatic payment (ACH), it is important to notify us at least 10 days in advance of the next scheduled payment draft. Payments received after the closing of the home but before your payoff funds are received will be refunded to you along with the funds remaining in your escrow account. Payments received after your loan payoff is received and posted will be returned to you.

When will I receive the remaining funds in my escrow account?

Approximately two weeks after your loan is paid in full, a check will be issued to all persons named on the note. The check will be mailed to the mailing address in our system.

Approximately 90-120 days from the date your loan was paid in full, a 'discharge' or 'release of lien' will be mailed to you at the mailing address in our system.

What will I receive when I pay off my mortgage loan?

Paying off your home is different that paying off your car with a lien, there is no "title" to your home that you receive once your mortgage is paid off. When you purchased your home, you were given a copy of the "Warranty Deed" at closing. The seller executes this document and transfers title of the property to you. A copy of this document can be obtained from your county clerk's office for a nominal fee. 

What type of payment is required to pay off my loan?

Guardian will accept a cashier's check, wire from your bank, or we can electronically draft from your bank account with your authorization. 

Will Guardian Mortgage notify my insurance company and taxing authorities that my loan has been paid in full?

No. It is your responsibility to notify your homeowner's insurance company and your local taxing authorities that you can no longer carry a mortgage on your home.

Can I payoff my loan?

We are unable to process your payoff through our online payment system. Please call our payoff department for further information.

What is pre-qualification analysis?

A pre-qualification analysis is typically the result of information shared between a mortgage lender and a potential mortgage borrower and usually does not incorporate information obtained from a credit report. It is the opinion of the loan officer that the borrower would qualify for the home loan, given the verbal information provided by the potential borrower. The end product for a pre-qualification analysis will be a “ballpark” estimate of the maximum mortgage amount for which you may qualify.

What is a pre-approval?

The pre-approval is a more detailed analysis that is backed up with verification of income, credit reports, and mortgage loan application. The end product for a pre-approval is a pre-approval conditional approval letter for the seller and listing agent verifying that the borrower has been conditionally approved for the requested loan amount.

Pre-approval is a process whereby the lender evaluates various risk criteria (capacity, credit history and capital) to determine if the borrower qualifies for a requested loan amount. Each of these items is an ingredient in the recipe that results in the loan approval or loan denial. Therefore, each of these items can present a credit risk or strength for the borrower. The risk of one item can be offset by the strength of the others.

Pre-approval helps you to set realistic goals while you are house hunting, provides the same negotiating ability as a cash buyer, and enables you to move quickly through the loan process once you have located the home that is perfect for you. Most agents will require that their borrower be pre-approved and verification of pre-approval is commonly provided to the seller with the purchase offer.

Why should I get pre-approval prior to shopping for a home?

Getting pre-approval prior to shopping for a home or putting a home under contract is a good idea for the following reasons:
• Pre-approval helps you identify your borrowing ability and limits;
• A pre-approval letter shows realtors, builders, and sellers that you are serious about your offer and that you are a qualified buyer;
• Pre-approval provides you with an advantage over non-qualified buyers that may be submitting offers on the same home.
 

What is required to obtain pre-approval?

In order to grant you pre-approval, your mortgage loan originator will need to evaluate your credit history, calculate your housing and debt ratios, and verify your income and down payment. Please remember, the pre-approval is only as good as the information you provide and is subject to the lender’s verification of that information during the loan process.

The following documents will be required to complete the pre-approval process:
• Completed Uniform Residential Loan Application (Form 1003).
• Two most recent pay stubs for each borrower which reflect at least 30 days year-to-date earnings.
• W2s for each borrower, last two years.
• Please note – upon submission of these items, your loan officer will pull a credit report to verify your credit history.
• In addition, if you are self-employed or if more than 25% of your income is from sales commission, your two most recent full tax returns will be required.

Please understand that the pre-approval process can be completed quickly. However, you must be sure to respond promptly to the lender’s request for information. You may need to contact your employer or others who need to provide the lender with information required for the loan approval.
 

How long will the pre-approval process take?

Generally, your pre-approval will be reviewed and determined within 24-48 hours after you provide all the required documentation and information.

How can I increase my pre-approval loan amount?

Please consider the following ways to increase your buying power:
• Reduce your current debt – This will improve your Qualifying Ratios by reducing your required monthly payments to the debts outside of your total home payment. It will also reduce your credit risk by eliminating your debt load for total repayment.
• Wait to purchase until your income increases – This will improve your Qualifying Ratios by increasing your gross monthly income.
• Find a financing option that results in lower monthly payments - this will improve your Qualifying Ratios by reducing your total future mortgage payment.
 

What does the lender evaluate to determine pre-approval?

Like any other banking entity or lender providing financing for any need (personal or commercial), mortgage lenders look at the “four C’s” of credit:
  1. Capacity
    • Can you repay the debt?
    • Lenders ask for employment information – how long you have worked and how much you earn. They also want to know your expenses – how many dependents you have, whether you pay alimony or child support, and the amount of your other obligations.
  2. Credit History
    • Will you repay the debt?
    • Lenders look at your credit history – how much you owe, how often you borrow, whether you pay bills on time, and whether you live within your means.
    • Lenders also look at signs of stability – how long have you lived at your present address and how long you have worked at your present job.
  3. Capital
    • Do you have enough cash for the down payment and closing costs?
    • Do you need a gift from a relative?
    • Do you have other assets that could be liquidated?
    • Will you have a cushion or reserve remaining after your home purchase?
  4. Collateral
    • Will the lender be fully protected if you fail to repay the loan?
    • Lenders must be sure the value of the property you are buying is sufficient to support your loan.