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Q: What does it cost to get pre-approved for a mortgage?
A: There is no cost to you for the pre-approval process. Your first out of pocket expense will be after you have contracted to purchase a home and it is time to do the appraisal. The appraisal cost is generally between $300.00 and $400.00 depending on the type that is required and the geographic area. The only exception to this is if it is necessary to clean up your credit report. This cost can range from a few dollars to a couple of hundred dollars depending on how extensive the clean-up process is.
Q: I have credit problems, can I still get a mortgage?
A: Your credit is just one of several criteria that will determine your ability to obtain a mortgage. Credit issues, if major, can make it impossible to obtain a mortgage now. However, we will work with you to help you clean up your credit to make the purchase of a home a reality within a realistic period of time.
Q: I don’t have much cash to put down on a house, what can I do?
A: Depending upon your credit, you may be able to qualify for a mortgage with a small down payment or no down payment at all. Certain programs will allow the seller to pay all of your closing costs. There are also non-profit organizations and special government programs that may provide your down payment. If you are not eligible for any of these programs, we will help you establish a savings program to acquire the necessary down payment.
Q: I have already been turned down for a mortgage, is there any point in trying again?
A: Just because you have been turned down once, this does not mean you cannot obtain a mortgage. A large number of banks and mortgage companies have very limited loan programs available. If your situation falls outside of the parameters of their existing programs, they have to turn you down. We have hundreds of programs available for almost every situation. If we cannot provide financing for you now, we will work with you until we reach a point where we can get you the desired financing to purchase a home.
Q: What is the difference between pre-approval and pre-qualification?
A: A pre-approval is more thorough than a pre-qualification. For a pre-qualification, your Mortgage Consultant will make a decision based upon the information you provide regarding your income, debts and credit. A pre-approval involves completing a loan application, pulling your credit and getting you approved through an automated underwriting system. A pre-approval letter can then be issued putting you in a very strong position when you submit a contract to purchase a home. You should always get pre-approved prior to looking at property. Experienced Realtors will require a pre-approval letter before they will show you homes.
Q: When does it make sense to refinance?
A: Determining when to refinance is an individual decision influenced by your personal circumstances and financial goals. For some folks reducing their monthly payment is ample justification to refinance. For others, reducing the term of their mortgage without substantially increasing their monthly payment allows them to meet long term financial goals.
You may need to consolidate multiple mortgages or want to get rid of high interest, non-tax deductible credit card payments. With a debt consolidation loan you may be able to reduce your monthly living expenses by hundreds of dollars and increase your tax deductions at the same time.
To see if refinancing makes sense for you, talk to one of our Professional Mortgage Consultants.
Q: What is a rate lock?
A: A rate lock is an agreement between the borrower and lender. Your interest rate can generally be locked for a period of 10 to 75 days with no upfront costs. Longer locks are also available. Generally, the shorter the lock period, the lower the interest rate.
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