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Frequently

Asked

Questions

  • How much can I afford to borrow for a home loan?

Your borrowing capacity depends on factors like income, debt, and credit history. Click HERE to apply today.

  • What is the down payment requirement, and can it be less than 20%?

Your down payment with vary but can be less than 20%, especially with certain loan programs.
The minimum down payment required for a conventional loan is 3% of the purchase price.

  • How does my credit score impact my mortgage application and interest rate?

A higher credit score can lead to lower interest rates and better loan terms.

  • What is the pre-approval process, and why is it important?

Once reviewing your application, we can then provides an estimate for a loan amount. Click HERE to learn more about the process.

  • What documents are needed for the mortgage application?

Typically includes proof of income, assets, employment, and credit history. Click HERE to view our document checklist.

  • What are closing costs, and can they be negotiated?

Fees associated with closing the loan; they can be negotiated to some extent. Click HERE to learn about up-front & closing costs.

  • Is private mortgage insurance (PMI) required, and how can I avoid it?

PMI is always required with a down payment less than 20% but can be avoided with a down payment of 20% or more.

  • What is the difference between pre-qualification and pre-approval?

Pre-qualification is an estimate, while pre-approval is a more thorough process that most realtors require when submitting an offer.

  • How long does it take to close on a mortgage?

It varies, but is typically 30 to 45 days, although our team has achieved expedited closures in as little as 14 days.

  • What is the difference between points and interest rates?

Points are fees paid to lower the interest rate.

  • Are there penalties for paying off the mortgage early?

Typically no, although some loans may have penalties for paying off the mortgage early.

  • What is an escrow account, and how does it work?

This is an account that is often used to manage and disburse payments for property-related expenses like property taxes, HOI, & PMI to ensure budgeting and payments are made on time.

  • How does the loan-to-value (LTV) ratio affect my mortgage application?

This is a crucial factor that influences your mortgage terms, interest rates, and the overall cost of homeownership. A lower LTV ratio often results in more favorable loan terms and fewer additional costs, making it a key consideration for both lenders and borrowers in the mortgage lending process.

  • What types of mortgages are available (e.g., FHA, VA, conventional, jumbo)?

The most  common types of loans are Convention, FHA, VA, and Jumbo loans. Click HERE to learn more about each type.

  • Can I refinance my mortgage, and when is it a good time to do so?

Determining the best time to refinance your mortgage depends on several factors, and it's a decision that should be carefully considered based on your financial goals and the current market conditions. Learn more about refinancing HERE.

  • What factors influence the mortgage approval decision?

The most common and crucial influences are income, credit, debt, and property value.

  • What happens if I miss a mortgage payment?

You will receive a 15-day grace period between monthly payments. If you still miss a payment, this can lead to late fees, impact credit, and risk foreclosure.

  • How does the appraisal process work, and who pays for it?

It's important to note that the appraisal is an objective assessment conducted by a third party and is separate from a home inspection, which focuses on the property's condition. The appraisal is a crucial factor in the mortgage approval process and is typically paid for by the buyer.

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