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Mortgage Loans FAQ

I am a first time homebuyer. I am concerned about how to qualify for a mortgage. In fact, I'm not looking forward to the process at all.

We know what you're talking about; we remember buying our first home and the anxiety caused by the whole mortgage process. Relax — We're going to walk you through each step. First, we'll listen to your priorities. Is the size of the payment more or less important than the equity you build as you pay off your mortgage? Do you want to pay off your mortgage as quickly as possible or is that not a priority? We won't only ask you those types of questions, we'll outline for you the consequences of your options so that you can make a totally informed decision.

My loan closing is in one week I found out today my job is going to be eliminated in under two years. Do I need to inform the lender?

The underwriting answer is: If you disclose that to the lender, most likely your loan will be declined. Most lenders and investors could discover this information when they contact the employer to do a verification of employment and ask the question "will the employment continue". Verification of employment is typically being done multiple times throughout the loan process. 5-10 days before closing, again prior to purchase by investor, and then follow up can be done when servicing starts. Income sources are required to continue for 3 years. In the case of a wage income job, it is assumed income will continue unless otherwise indicated by the employer.

How much money do I have to put down to qualify for a mortgage?

Guidelines change often. There are still "no money down" options. Generally, the more you put down on a mortgage, the less risk there is and therefore the better the rate. But we can help find you mortgages with attractive terms that require little or no down payment. Contact us and let's talk about your options.

Do you recommend a fixed or adjustable mortgage?

We recommend what works best for you. The answer to this particular question usually relates to how long you expect to stay in the house before selling or refinancing it. Adjustable rate mortgages make a great deal of sense especially if you aren't going to have the mortgage in place for a long time.

I do not have a very pretty credit record. In fact, my credit report shows some late payments. Realistically, what are my chances for getting a new mortgage or a home equity line?

In the final analysis, mortgages are approved based on the amount of risk the lender has to assume. The process starts with a call or email to us. We'll take the information you want to give us whenever you feel comfortable sharing it with us, but the more forthcoming you are from the start, the quicker we can hone-in on what will work for you and let you know what your options are.

I'm not even certain what else I need to worry about – things like pre-payment penalties. Can you help?

This is a great question. Too many people get approved for a mortgage or a loan and then fly-through the documentation and miss some important terms, some of which can cost you a lot of money. We'll highlight the important hidden issues for you so you won't face unexpected costs later on. That's the type of service that we think differentiates a highly professional local firm from the big mortgage companies that may treat you like just another number.

How much house can I qualify for?

It is dependent , everyone has a unique situation based on income and assets and personal needs.

Can you refer a real estate agent to me?

Absolutely. We work with some of the leading real estate agents in the area and would be glad to provide you with names and contact information of agents who have a track record of providing smooth transactions.

If I refinance my mortgage, how much money can I save each month?

Answers to questions such as this one depend on so many variables. What kind of mortgage do you have right now at what terms? Do you want to convert some of the money you have established in equity in your home into cash that you can use for expenses or to consolidate debt? Are you interested perhaps in converting your 30-year mortgage into a 10-year mortgage so that you pay it off sooner? Once we understand what you want to do, we can help you pick the mortgage that meets those needs and then we can compare monthly payments for each of your options.

I have an Adjustable Rate Mortgage. I'm afraid the rates are about to increase on me. Can I replace it with a fixed mortgage?

That may make sense. But it may also make sense to keep what you have or to get a new ARM, or maybe even a second trust or home equity line. We'll tailor a solution to meet your needs and be in-synch with your expectations about how long you expect to stay in your house, what you think about interest rate, and other issues.