Frequently Asked Questions
Being pre-qualified is based on your provided information, which will then give you an estimate on the amount that you are able to borrow. A Pre-approval means that your information is evaluated thoroughly. It is a closer estimation of how much you will be approved for.
You [and your co-borrower, if applicable] will need the following documents when applying for a loan:
- Social Security Number
- 2 Years Proof of Employment (If self-employed then please provide most recent 2 years business tax returns and current YTD profit/loss statements as well as balance sheets)
- 2 Most Recent Paystubs
- 2 Most Recent Years of Tax Documents (W-2 statements and tax returns)
- Bank Account Information (2 Most Recent months of asset statements-checking, savings, retirement, etc.)
- Credit Information (Provide details of any new accounts or accounts not currently reporting on your credit report)
- Monthly Expenses (Housing, etc.)
There are many factors that could impact the type of loan that you qualify for. You could reach out to your local loan originator to find out what loan you qualify for. If you need more information on the various types of loans, check out our Loan Types page.
An appraisal is the process of having a licensed and trained individual report on the worth of a home. This individual is completely unbiased and will be able to provide the lender, buyer and seller an accurate value of the home. Having an appraisal done on the home establishes protection for all parties involved. They will determine if repairs are needed, if the price is fair in comparison to other homes within the area, and a detailed report calculating the true value of the home.
An interest rate is the amount it will cost you to borrow the principal loan amount. It could either be a variable or fixed amount and will always be expressed in percentage form. An APR measures a mortgage and includes the interest rate plus discount points, closing costs and broker fees. APR’s are expressed in percentage form.
Closing costs include:
- Loan Origination fees
- Appraisal fees
- Discount Points
- Title Insurance
- Credit Report charges
- Deed-recording fees
- Title Searches
Refinancing is when you replace your current loan with a new loan. This new loan should include improved terms and features than the prior loan. If your current loan is too expensive or risky, then you should look into refinancing. Typically, refinancing is beneficial because you can: Save money Lower your payments Shorten your loan term Change your loan type Consolidate your debts Pay off a Loan with a Due-date or balloon payment
Yes, you can qualify for a mortgage as long as the seasoning requirements for the specific loan type have been met. This is something you can discuss with your Mortgage Loan Advisor in detail.
Cash-out refinancing can help homeowners who want to consolidate high-interest, non tax-deductible debt. Because your mortgage interest rate is likely to be lower than rates on credit cards or other types of bank loans, consolidating debt may reduce your overall monthly debt payments. In addition, your mortgage interest may be tax-deductible, while your credit card interest is not.
Yes. We offer variety of options that allow you to tap into your home’s equity and take cash out. Consult your Mortgage Loan Advisor, for the best cash-out refinancing option for you.
Yes. Keep in mind that we don’t just look at your credit history, but also at your ability and willingness to pay in the future. We may be able to help you buy a home, even if your credit isn’t perfect.
Private mortgage insurance (PMI) is insurance written by a private company that protects the lender from losses in the event the borrower defaults on the mortgage. Borrowers are required to pay the premium for private mortgage insurance. Private mortgage insurance limits a lender’s exposure to financial loss resulting from loan default. If you make a down payment of less than 20%, even if you have a good credit profile, lenders generally require private mortgage insurance.
Your down payment depends on the type of loan you’re looking for and your credit. We have lots of options – as little as 3.5% down for FHA loans, 5% down for conventional loans, 10% down for vacation homes, and 100% loans for veterans choosing to use their VA benefits.
The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
- Earnest Money: The deposit that is supplied when you make an offer on the house
- Down Payment: A percentage of the cost of the home that is due at settlement
- Closing Costs: Costs associated with processing paperwork to purchase or refinance a house.
We can sometimes arrange to provide a credit towards those closing costs.
The amount that you can borrow will depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value with a lower down payment. We will help you determine exactly how much you can afford.