Frequently Asked Questions About Mortgages

Get answers to your questions about mortgage loans, M&T's mortgage lending process and learn the important terms you may hear throughout the process.

What types of contruction mortgage loans does M&T Bank offer?

M&T offers several types of construction loans with fixed and adjustable rate options. It’s best to contact an M&T Certified Construction Specialist at 1-888-539-1160 to review your options and determine which program is best for you.

Review the important construction financing terms (PDF) you may hear throughout the construction financing process.

​​Points (also called discount points) are an amount paid at mortgage closing to lower the interest rate charged on your loan. Each point is equal to 1% of the loan amount. By paying points, you can lower your interest rate and monthly payment amount over the term of your loan. Points vary by loan program and market conditions. Paying points to lower your interest rate is optional.


A successor in interest is someone who has an ownership interest in real estate property as a result of a transfer from an original borrower/owner.
You may qualify as a successor in interest if the property was transferred to you:

  • As a surviving heir, due to the death of a relative or property co-owner
  • From a living spouse or parent
  • As a result of a divorce or legal separation
  • As part of a living trust

Learn more about Successor in Interest >

​With the one-close option, the construction phase and the permanent phase are combined into one loan. With the two-close option, you have two loans – one is for the construction period and the other is a refinance to a permanent mortgage after the house is complete. There are advantages with each type of loan, so it’s best to talk to an M&T Certified Construction Specialist at 1-888-539-1160 to determine which option is best for you. 

Review the important construction financing terms (PDF) you may hear throughout the construction financing process.

Mortgage Insurance is required on most conventional loan programs when purchasing a home with less than a 20% down payment or refinancing with less than 20% equity. This insurance protects the lender against losses if the borrower does not repay the loan.

Once you learn that you have a qualifying real estate property ownership interest, you will need to apply to be a successor in interest and provide us documentation to confirm your identity and your interest. The necessary documentation will vary depending on your specific situation.

You can contact us for documentation information in one of two ways:

  • Submit a written request to:
    M&T Bank
    PO Box 1288
    Buffalo, NY 14240
  • Call 1-800-724-2224 (Monday–Friday 8:30am–9:00pm ET)

Learn more about Successor in Interest >

​M&T accommodates flexible construction timeframes to build your new home including 6-, 9- and 12-month construction periods.

Review the important construction financing terms (PDF) you may hear throughout the construction financing process.

​​Title is a document that outlines the ownership of a property and the right to use it. Owner's title insurance protects the owner against most unforeseen problems and financial losses resulting from issues related to the property title.

Please send us with the following documentation:

  • A legible copy of the death certificate with a visual seal
  • A copy of the Letters of Testimony appointment an Executor of the Estate, if applicable

Documentation can be sent in the following ways:

  • Mail.
    M&T Bank
    PO Box 1288
    Buffalo NY, 14201
  • Fax. 1-866-409-4652
  • Email.

If you now have an ownership interest in the property as a result of the death, learn how to apply to be confirmed a successor in interest.

M&T may consider any equity in the land as part of the down payment. Your M&T Certified Construction Specialist will provide you with more information.

Review the important construction financing terms (PDF) you may hear throughout the construction financing process.

​​APR is a calculation expressing the total cost of credit as a yearly percentage. An APR must be provided to the borrower under the Federal Truth in Lending Act. It includes upfront costs (prepaid interest) and any other finance charges associated with obtaining the loan. For this reason, the APR is usually higher than the interest rate on the mortgage note.

A draw schedule, also known as a disbursement schedule, is the timeline that shows when construction costs are paid out for work completed during the construction period. While every construction project is unique, each draw schedule typically has 5 to 7 disbursements depending on the size and scope of your project. 

Review the important construction financing terms (PDF) you may hear throughout the construction financing process.

​​The Loan Estimate is a federally required notice that provides details of the cost of obtaining a mortgage loan and the terms of the mortgage loan for which you have applied. This notice includes the Annual Percentage Rate (APR). The APR should not be confused with the mortgage note's (interest) rate, which is used to calculate the loan payment.​

You are required to select a construction period that’s consistent with the term of your construction contract. If the construction of your home takes longer than the construction period you selected, you will need to obtain an extension and pay any additional charges and fees related to that extension. Your interest rate may be affected by delays.

Review the important construction financing terms (PDF) you may hear throughout the construction financing process.

​​Yes, the borrower receives a copy of the home appraisal.


Yes, you are responsible for making interest-only payments based on money that has been disbursed. Additionally, you are responsible for real estate tax and insurance payments during the construction phase.

Review the important construction financing terms (PDF) you may hear throughout the construction financing process.

An M&T Mortgage Loan Officer can guide you through the process --  reviewing the mortgage programs available to you and helping to determine how much you can borrow.

​No, our program allows you to purchase the lot as part of your construction loan financing.

LTV is a comparison between the value of your loan and the value of your property, typically expressed as a percentage. For example, if you are borrowing $80,000 for a house that is worth $100,000, your LTV is 80%.

DTI is the percentage of your gross monthly income that goes toward paying housing and debts. It is one way that mortgage lenders measure a borrower's ability to manage monthly payments and repay debts.

For example, if your mortgage payment and other monthly debts equal $1,000, and your monthly gross income is $4,000, your DTI is $1,000 divided by $4,000, or 25%.

​An account established to pay property taxes, homeowner's insurance and flood insurance, if applicable. Funds for your tax and insurance payments are collected as part of the monthly payment, and the lender makes payments on your behalf.  

​​​When purchasing a home, it's important to know how much you can afford. With a pre-approval, you'll determine in advance how much you may be able to borrow and the best mortgage options for you. This will help prepare for your future budget. Also, when making an offer, the seller will want to know that you are a serious buyer, and being pre-approved shows that you are.

​​Credit history is considered when applying for a mortgage loan. Your credit score, also known as a FICO® score, helps determine the types of home loans you can qualify for and affects your interest rate. To assess creditworthiness, lenders review your score to see how you've handled past credit obligations. This is a good indication of how you will handle them in the future. A higher credit score may help you qualify for a better interest rate and a lower down payment.

By law, you are entitled to one free credit report per year. Visit or contact any of the following credit reporting agencies:

There are a few key steps during the mortgage process. Understanding what happens during each step will help you prepare and will make the process go more smoothly.


It's important to know how much you can afford to borrow. Pre-approval will help during your home search and seller negotiations.
Start the Pre-Approval Process >​


Your M&T Mortgage Loan Officer will discuss financing options and help you complete a mortgage application when you're ready. After you’ve completed your application, you will receive a Loan Estimate outlining all costs associated with your loan, and your application will be submitted for processing.

Loan P​​​rocessing

Your Loan Processing Team obtains third-party information (for example, a property appraisal) that is required to complete the transaction. The Loan Processor prepares your file for a credit review and decision. Your Loan Processing Team will then contact your Attorney or Settlement Agent to ensure that all parties are working toward the desired closing date.

Credit Re​​view/Underwriting

Your loan file will be reviewed and a credit decision made. If you are approved, you will receive a written Mortgage Commitment that summarizes your mortgage loan and lists any conditions that must be met.

Closing Disclosure

Your Attorney or Settlement Agent provides M&T with the information required to prepare the Closing Disclosure, which you will receive approximately 3 to 7 business days before closing.  The Closing Disclosure confirms the details of your mortgage loan including the estimated funds needed for closing. It's important to review your settlement statement and ask any questions you may have prior to closing.​

Loan Closi​​ng

Depending on the state where your property is located, your Settlement Agent or Attorney will confirm the scheduled closing date with you and review the funds needed to close. On the closing date, you will sign your paperwork and complete the loan closing.

​​​Your lien release or mortgage discharge will be mailed to the address we have on file 10 business days after the loan is paid in full.

​​​​​View more information about bank-owned properties, or call M&T Mortgage Servicing at 1-800-724-2224.


By Mail
Account payments will be credited to your account on the day received, not the postmarked date.

Payments must be:

  • Made in United States Funds (by check or money order paid to M&T Bank) 
  • Accompanied by an account payment stub (remittance coupon)
  • Received at our address indicated on the payment stub by 5pm on any day, Monday through Friday that is not a legal holiday

Payments are not accepted at M&T mortgage origination offices.

At a Branch
Account payments made at an M&T Branch must be:

  • Made in United States Funds in cash, by check or money order made out to M&T Bank
  • Received by the business day cutoff for that specific location, in order to be credited to your account on the date received

Payments received after the cutoff for that specific location, may be processed the following business day.

All lending products are subject to credit and property approval. This is not a commitment to make a mortgage loan. Products are not available in all states. Certain conditions and restrictions apply. Refinancing to reduce total monthly payments may lengthen repayment term or increase total interest expense compared with your current situation. NMLS #381076.