Frequently Asked Questions

INTRODUCTION

Whether you are seeking a mortgage because of a home purchase, or because you are refinancing, or for other reasons, you should know all your options. Are you getting a great rate? Are your loan fees competitive? Understand that, in part, loans are based on borrowers’ credit worthiness, their income, and the loan-to-value ratio (the amount of the proposed loan relative to the appraised value of the property).

In order to compare rates, loan fees, and monthly payments, and to determine how much you are able to finance, you need to compare the various loan products. I am happy to discuss our products with you and walk you through the advantages and disadvantages of each. If you expect to be in your home for more than 5-10 years, a fixed rate mortgage is what many borrowers prefer. If you will be selling you home within 1-7 years, you might want to look at one of our ARM (Adjustable Rate Mortgage) programs as well our fixed rate mortgage products.

Working with me, my clients have access to a wide range of products such as Jumbo loans, first time buyer loans, very competitive ARMS and the like. If you email me or call me I can either quote you today’s rate or you can visit my firm’s web site.

FREQUENTLY ASKED QUESTIONS

Q: How much of a mortgage can I qualify for?

A: This will depend on several factors such as your amount of down payment and your credit score, but what especially will be looked at are your housing expenses (including mortgage payment, insurance, and property taxes) as a percentage of your total gross income. Email or call me to determine your debt to income ratio.

Q: Why get pre-approved?

A: In the current mortgage climate, sellers and their listing agents, like to know that someone making an offer on their home is capable of getting a mortgage; otherwise, they may not accept the offer. The stronger your offer, the better chance you will have at having your offer accepted.

Q: When does refinancing make sense>

A: When after comparing your present rate and monthly payment against current loan programs and loan costs, you see you have an advantage.

Q: What are considerations when comparing lenders?

A: Look at comparable interest rates and closing costs (calculated within the Annual Percentage Rate (APR) and determine the best interest rate and the lowest closing costs available. If you have decided on an ARM, compare not only start rates but rate caps also.

Q: What information is needed at the time of application?

A: Usual documentation needed will include: a copy of the signed Purchase and Sale (P & S) Agreement; pay stubs from two months of earnings; W-2s for the last two years; and documentation of the source of your down payment and closing costs. Additional information, such as current debt obligations, your assets, and other potential sources of income, will also need to be disclosed and verified.

Q: How long does it take to close on my loan?

A: We can move very quickly. Many of our closings occur within 30 - 60 days after submission of an application.

Q: Can I lock in an interest rate?

A: Many programs allow for a lock in for 30, 60 or 90 days.