E-mail me with other questions not listed + Why do I need to get pre-qualified for a mortgage loan? When shopping for a new home, an important first steps is knowing not only how much you can afford, but if the monthly payment is comfortable within your personal budget. Getting pre-qualified will help determine wat the rest of the home buying process looks like for you. + How do I get pre-qualified? After completing an initial application, we can perform a comprehensive review of your credit, income and financials, we can determine the best path to achieving your home buying goals. We will perform an income/debt analysis to determine not only what you can afford, but what those potential monthly payments look like and if they are comfortable within your personal budget. + Do I need to work with a local lender – why not just use an online company? While technology has certainly made our lives better in many ways (and also can play a part in our loan process), working with a lender you can have a conversation with can be very important to the home buying process. Every scenario is unique – from the buyer and their source of income, to the property type, and potential best loan program – there will be important details that can be learned on both sides of the conversation. + How do I know what the best type of loan is for me? The great news is there is no one universal loan product that is appropriate for all borrowers. Depending on the individual scenario – There are low down payment programs available; grant programs for down payment assistance; loans for unique property types; loans for Veterans; home construction loans…the list is extensive. Working with an experienced lender will help you find the best loan program you are able to qualify for and that meets your financial needs. + How much down payment will I need? This can vary greatly depending on the loan product that you may qualify for. While a 20% down payment is a great goal, it is not a necessity. Many programs offer limited down payment options, some with as little as 3% down – or even 0% down if you potentially qualify for a VA or USDA loan. + What is Mortgage Insurance and why do I need it? Be aware, a down payment of less than 20% typically will involve a loan with Mortgage Insurance (MI) as part of the monthly payment. This ‘Insurance’ protects your lender in the event of a default on the loan, since there was less than the benchmark 20% down payment. This amount can vary greatly depending on the loan program – whether it is a Conventional loan (through Fannie Mae or Freddie Mac), or a government loan (like FHA, USDA or VA). The amount you pay monthly depends on a number of factors, including your down payment percentage and credit scores, and will be a defined percentage of your loan amount.
