Common FAQ’s

  • Description text goeNo. You don't have to save for a 20% down payment. You can put down as little as 3.5% with FHA loans, or even no money at all with a DPA, VA and USDA loans. Plus, with Private Mortgage Insurance, you can buy a home without the full 20% down. You've got choices, no matter your situation.s here

  • No. Pre-qualification and pre-approval are not the same. Pre-qualification is a lender's initial assessment that you might be able to get a loan based on your finances. Pre-approval is a more formal promise from a lender to give you a mortgage based on a thorough check of your financial background.

  • A bank is a direct lender that provides you with the mortgage funds, whereas a mortgage broker acts as an intermediary, offering you loan options from various lenders. Working with a mortgage broker offers numerous benefits. They provide valuable assistance early in the homebuying process, helping you gather necessary documents and answering your loan-related questions. A broker's access to a variety of loans means they can tailor options to your specific needs, even if you're looking for less common mortgage types or have unique circumstances such as a thin credit file. They offer customized support, going over loan options and aiding in informed decision-making. Plus, the convenience factor is significant; brokers handle the paperwork and communication with lenders, streamlining the process and saving you time and stress.

  • Private Mortgage Insurance (PMI) is insurance that you might have to pay if your down payment is less than 20% of your home's price when you buy it, or if you owe more than 80% of your home's value when refinancing. It's a protection for the bank or lender, not you, in case you can't pay your mortgage anymore.

  • Yes! Your mortgage advisor can guide you in picking the best options to get money from your home's value before you pay off your mortgage fully. This money can be used for home renovations, paying for college, or planning for long-term care, among other things. Have a chat with your mortgage advisor to learn how you can tap into your home's equity for these expenses.

Additional - FAQ’s

  • A Home Equity Line of Credit (HELOC) is a flexible borrowing option that allows homeowners to access the equity in their homes. Understanding how HELOC loans are priced can help you make informed decisions. Here’s a breakdown:

    Interest Rates:

    Variable Rates: Most HELOCs have variable interest rates, which means the rate can change over time based on market conditions. The rate is typically tied to a benchmark, such as the prime rate, plus a margin set by the lender.

    Initial Rate: Many lenders offer a lower introductory rate for a specific period (e.g., the first year) before it adjusts to the standard variable rate.

    Loan-to-Value Ratio (LTV):

    The LTV ratio is a key factor in pricing a HELOC. It compares the amount of the loan to the appraised value of the home. For example, if your home is worth $300,000 and you owe $150,000, your LTV is 50%.

    Lenders typically have maximum LTV limits (often around 80-90%), meaning you can borrow up to that percentage of your home’s equity. A lower LTV may result in better pricing and terms.

    Credit Score:

    Your credit score plays a significant role in determining the interest rate and terms of your HELOC. Higher credit scores generally lead to lower interest rates, while lower scores may result in higher rates or even disqualification.

    Fees and Costs:

    Closing Costs: HELOCs may have closing costs, including appraisal fees, title insurance, and other administrative fees. These can vary by lender.

    Annual Fees: Some lenders charge an annual fee for maintaining the line of credit, which can affect the overall cost of borrowing.

    Draw Period and Repayment:

    HELOCs typically have a draw period (often 5-10 years) during which you can borrow against the line of credit. After this period, you enter the repayment phase, where you pay back the principal and interest.

    The pricing may differ during the draw period compared to the repayment period, so it’s essential to understand how your payments will change.

    Rate Buy Down Options:

    Similar to traditional loans, some lenders may offer options to buy down the interest rate by paying upfront points. This can lower your monthly payments but requires an initial cash outlay.

    Conclusion: HELOC loans are priced based on a combination of interest rates, LTV ratios, credit scores, and associated fees. Understanding these factors can help you choose the best HELOC option for your financial needs.

    If you have any questions or need more information about HELOC loans, feel free to ask! 😊🏡💰

  • A rate buy down is a financing option that allows a borrower to lower their mortgage interest rate by paying an upfront fee, often referred to as "points." This can result in lower monthly mortgage payments, making homeownership more affordable.

    How It Works: When you buy down your interest rate, you pay a lump sum upfront to the lender. This payment is typically expressed in points, where one point equals 1% of the loan amount. For example, if you have a $200,000 loan, one point would cost $2,000.

    Lower Monthly Payments: By paying for a lower interest rate, your monthly mortgage payments decrease. This can make a significant difference in your budget, especially in the early years of the loan.

    Temporary vs. Permanent Buy Downs:

    Temporary Buy Down: This reduces the interest rate for a specific period (e.g., the first few years of the loan). After that period, the rate returns to the original level.

    Permanent Buy Down: This lowers the interest rate for the entire life of the loan, providing long-term savings.

    Cost vs. Savings: It’s essential to weigh the upfront cost of buying down the rate against the potential savings in monthly payments. If you plan to stay in the home for a long time, a permanent buy down may be more beneficial.

    Benefits:

    Affordability: A rate buy down can make your monthly payments more manageable, allowing you to afford a larger home or stay within your budget.

    Flexibility: It provides options for both short-term and long-term savings, depending on your financial situation and how long you plan to stay in the home.

    Potential for Lower Interest Rates: In a rising interest rate environment, buying down your rate can help lock in a lower rate, protecting you from future increases.

    Considerations:

    Upfront Cost: The initial payment for a buy down can be substantial, so it’s important to ensure it fits within your budget.

    Break-Even Point: Calculate how long it will take to recoup the cost of the buy down through your monthly savings. If you plan to move before reaching that point, it may not be worth it.

    Conclusion: A rate buy down can be a valuable tool for borrowers looking to lower their mortgage payments and make homeownership more affordable. It’s essential to consider your financial goals and how long you plan to stay in the home when deciding if a buy down is right for you.

    If you have any questions or need more information about rate buy downs, feel free to ask! 😊🏡💰


  • What Are Discount Points? Discount points are fees paid to the lender at closing to lower the interest rate on your mortgage. One point equals 1% of the loan amount. For example, if you have a $200,000 loan, one discount point would cost you $2,000.

    How Do They Work? By paying discount points upfront, you can secure a lower interest rate, which can lead to lower monthly mortgage payments. This can be especially beneficial if you plan to stay in your home for a long time, as the savings from the lower rate can add up over time.

    Temporary vs. Permanent Buy Down: Discount points can be used for a permanent buy down, where the lower rate lasts for the entire loan term, or for a temporary buy down, where the rate is reduced for a specific period.

    Cost vs. Savings: It’s important to consider the upfront cost of discount points against the potential savings in monthly payments. If you plan to stay in the home long enough to recoup the cost, it may be a smart financial move.

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    What Are Lender Credits? Lender credits are funds provided by the lender to help cover closing costs. In exchange for these credits, you may agree to accept a higher interest rate on your mortgage.

    How Do They Work? When you opt for lender credits, the lender essentially gives you a portion of the loan amount to offset your closing costs. This can be particularly helpful if you’re short on cash for closing or want to minimize your out-of-pocket expenses at the time of purchase.

    Impact on Interest Rate: Accepting lender credits usually means you’ll pay a slightly higher interest rate over the life of the loan. It’s essential to weigh the immediate savings against the long-term costs of a higher rate.

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    Choosing Between Points and Credits: Deciding whether to pay for discount points or accept lender credits depends on your financial situation and how long you plan to stay in the home. If you have cash available and plan to stay long-term, paying points may be beneficial. If you need to minimize upfront costs, lender credits could be the way to go.

    Conclusion: Both discount points and lender credits are valuable tools that can help you manage your mortgage costs. Understanding how they work and how they impact your overall loan can help you make informed decisions that align with your financial goals.

Various Loan Options for Every Buyer

  • Start your journey to owning a home with confidence, as we offer loans for your needs. Whether you're self-employed, have assets, investing from another country, or working on your credit, we have mortgage options for you. Use our easy qualifiers and expert support for a smoother path to your new home or investment property. We believe every buyer should have the opportunity to achieve their property goals, and our customized loan programs can help.

  • Self-employed individuals often face unique challenges when obtaining a mortgage, due to non-traditional income streams and tax write-offs that can affect the way lenders evaluate their income. Nevertheless, there are mortgage options tailored to self-employed borrowers that consider the entrepreneurial nature of their income. These loans may require more extensive documentation, such as tax returns, profit and loss statements, and bank statements to verify income stability and the viability of the borrower’s business.

    We recognize the importance of providing expert guidance and tools to self-employed individuals looking to navigate the mortgage process. Starting with our Self-Employed Borrower Qualifier, we offer resources specifically designed to assess your unique financial situation. This tool aims to simplify the loan application process by clarifying the types of documents you will need and providing insight into the loan options that may be available to you. With our support, self-employed borrowers can better understand how to secure a mortgage that aligns with their financial and homeownership goals.

  • Borrowers with considerable assets but potentially complex income situations, such as retirees or investors, might find traditional mortgage qualification criteria less accommodating. However, asset depletion loans or asset-based mortgages offer an alternative path. These loan types allow borrowers to qualify based on liquid assets rather than regular income streams. Lenders convert your assets into an income stream by dividing your total assets by a set number of months to determine your ability to pay the mortgage.

    We are here to assist high-net-worth individuals in navigating mortgage options that leverage their financial strengths. With our Asset Depletion Mortgage Qualifier, we provide specialized tools and advice to explore how your assets can work in your favor when applying for a loan. This resource is designed to offer a clear perspective on the borrowing potential your assets provide and to guide you through a mortgage process that complements your wealth management strategies. With our expertise, borrowers with considerable assets can unlock the potential to obtain a mortgage that is informed by their unique financial landscape.

    We recognize the importance of access to homeownership, regardless of past credit challenges. Our Blemished Credit Mortgage Qualifier is a dedicated resource for potential buyers with credit issues. This tool offers a preliminary assessment of what kind of loan terms one might expect and what steps can be taken to improve the chances of loan approval. We provide guidance on how to address credit issues, what documentation will be necessary, and how to construct a strong case for underwriting. With our specialized support, buyers with blemished credit histories can explore pathways to homeownership that were previously thought to be closed, enabling them to work towards securing a loan that is manageable and sustainable.

  • Real estate investors often require specialized mortgage products that cater to the investment-driven nature of their property purchases. Unlike primary residence buyers, investors look for loans that provide flexibility and favorable terms that align with their investment strategies, whether for short-term gains or long-term income. Options such as investment property loans typically come with different approval requirements, interest rates, and down payment conditions, considering the higher risk associated with rental or flip properties.

    To aid real estate investors in securing appropriate financing, we offer tools and expertise, starting with our Real Estate Investor Loan Qualifier. This tool helps investors understand the range of mortgage products available to them, including interest-only loans, fix-and-flip loans, and more traditional long-term rental property loans. By assessing your investment goals, financial health, and the projected income from the property, we provide targeted advice to facilitate the best possible loan terms for your situation. With our support, real estate investors can navigate the mortgage landscape with confidence and acquire properties that complement their investment portfolio and financial objectives.

  • Foreign buyers looking to purchase property in a different country can encounter unique challenges, as they may not have a credit history or other financial benchmarks typically required by lenders in that country. To serve the needs of non-resident buyers, certain mortgage products are designed with more flexible requirements that take into account international income and assets. These foreign national mortgage loans often necessitate a larger down payment and come with higher interest rates, reflecting the perceived increased risk.

    Our commitment to serving global clients includes providing resources like our Foreign Buyer Mortgage Qualifier. This tool is designed to help international buyers understand the specific lending requirements and navigate the complexities of purchasing property abroad. It accounts for factors such as foreign income verification, currency exchange rates, and international credit considerations. With our expertise, foreign buyers can gain clarity on the mortgage process in a different country and obtain the financing needed to secure a property, whether as an investment, vacation home, or primary residence.

  • Buyers with blemished credit histories may believe that owning a home is out of reach, but there are mortgage options specifically designed for individuals with less-than-perfect credit. These loans, often referred to as subprime mortgages or non-qualified (non-QM) loans, provide an opportunity to those who have faced financial difficulties, such as late payments, foreclosures, or bankruptcies, which have negatively impacted their credit scores.

    We recognize the importance of access to homeownership, regardless of past credit challenges. Our Blemished Credit Mortgage Qualifier is a dedicated resource for potential buyers with credit issues. This tool offers a preliminary assessment of what kind of loan terms one might expect and what steps can be taken to improve the chances of loan approval. We provide guidance on how to address credit issues, what documentation will be necessary, and how to construct a strong case for underwriting. With our specialized support, buyers with blemished credit histories can explore pathways to homeownership that were previously thought to be closed, enabling them to work towards securing a loan that is manageable and sustainable.

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