Frequently Asked Questions
Purchasing
Q. I want to buy a house – I’m nervous – what are the first steps to do?
A. First take a deep breath and relax. Think of the first meeting as a get-to-know session. I will get to know you and ask you questions about what you are looking and how I can help you. Based on our discussion, I will take you to the next step so you can obtain a pre-approval letter versus a pre-qualification letter. This will determine the amount of a house you can buy.
Q. What’s the difference between a pre-approval letter and a pre-qualification letter?
A. A pre-qualification letter is a quick conversation about income, asset and down payment. A pre-approval letter is what you provide the seller or the relator letting them know that you are qualified to obtain a mortgage based on the financial information you have provided. This also signals to them that your loan has gone through preliminary underwriting. A pre-approval carries a lot more weight when looking for a new house then a prequalification letter as it provides comforts to all parties that you have taken the extra step to get pre-qualified.
Q. Can I still get a mortgage loan if my credit isn’t that good?
A. Depending what your score is will determine the type of loan you can obtain. If you score is low and do not qualify for a loan at this time, don’t worry I am here to help. I will not push you off if you don’t qualify; I will provide guidance on how to raise your score and work with you until you qualify for a loan. I am with you every step of the way until you get your new house.
Q. Which type of mortgage is best for me?
A. Based on the loan type and what is important to you will determine how your loan is structured. Fuel for thought: Are you looking for low down payment, fast close, overall monthly payment, or interest rate?
Q. If I am self-employed and write-off expenses can I still qualify for a loan?
A. Potentially ‘Yes’. Self-employed borrowers are more difficult in getting a traditional loan such as VA, FHA, or Conventional. You can potentially qualify just using your last 24 months of bank statement deposits.
Q. How much $ do I need to put down?
A. Depending on the loan type you can put as little as 0 – 3.5% down to as much as 20% depending on your credit, payment you want to pay, and the loan you are trying to obtain. If you are looking for a VA Loan – you can but 0% down on the purchase price, to as little as 3.5% for FHA loans, and 3-20% for conventional and varies for Non-QM loans. You may even be able to use gift of funds as the down payment for your new home.
Q. What are closing costs?
A. I get asked this all of the time. In summary, I refer to closing costs as costs to get your loan closed. This means funding your escrow account for taxes and insurance along with broker, lender, title and 3rd party fees to get the loan done. We have the lowest closing cost in the industry. We utilize reputable partners to keep your money in the bank.
Q. What will my interest be?
A. Interest rates vary depending on the market, your credit and the type of loan you are getting. Because interest rates are based on many factors I pride myself with identifying your interest rate based on your specific circumstances.
Q. Do I need to pay for mortgage insurance?
Refinancing
Q. Can I refinance my current mortgage?
A. Usually the answer is Yes. As long as you owe less than your current mortgage and you have built up some equity.
Q. How much can I take out if I refinance my home.
A. Depending on the type of mortgage product you have and what you are looking to do you can do a rate-and-term refinance or a cash-out type loan to pay off debt, or house improvements. Ie. A VA loan you can get 100% of the value as determined by the Veterans Administration.
Q. What will my interest be?
A. Interest rates vary depending on the market, your credit and the type of loan you are getting.
Q. Do I need an appraisal to refinance my property?
A. Yes. Depending on the specifics of your loan, and property you my qualify for an appraisal wavier based on valuation determined by Fannie and Freddie with similar homes in your neighborhood. This is determined when your loan has gone through preliminary underwriting.
Q. Do I still need to pay private mortgage insurance (PMI)?
A. Depending on the value of your home and your loan amount will determine if PMI is needed. If you are at 80% loan-to-value (LTV) or less PMI is not required.