Purchasing

• Your first home
• Your next home and move
• An investment property
• A vacation home

Refinancing

• To tap your home equity
• To save money
• To avoid rate increases
• To lower monthly payments

Home Equity

• Loans and lines of credit
• Finance major expenses
• Consolidate Debt
• Invest

What will a lender look at when I apply for a mortgage?

Lenders consider many factors in evaluating your loan application. Lenders will look at your income and debt to determine how much money you can put towards a mortgage payment each month. They will look at your credit score to see if you have been financially responsible in the past. They will also look at the property you are planning to buy to see if it is worth the amount of money you are planning to pay for it.

What if I have bad credit?

Your credit history is only one factor that a lender will look at. While someone with good credit will have more options available to them it doesn’t mean someone with bad credit cannot qualify for a loan. In fact, there are several mortgage programs specifically designed for people with bad credit.

How much money do I need for a down payment?

Traditionally, homebuyers needed a 20% down payment in order to buy their home. In reality there is no minimum down payment required for buying a home. Real estate prices are so high that mortgage lenders have created many financing options to meet homebuyer’s needs. There are many different loan options now available that include little or no down payment, making it easy to find a loan program that is right for you.

What is the difference between a fixed-rate mortgage and an adjustable-rate mortgage?

A fixed-rate mortgage is a loan in which the interest rate never changes and your payments remain stable throughout the life of your loan. An adjustable-rate mortgage (ARM) is a loan in which the interest rate changes at regular intervals, usually once every year, which is based on the current interest rate. For most ARMs rate adjustments begin after an initial period, usually between three months and five years, during which the rate is fixed. A fixed rate is usually best if you plan to stay in your home for the long term and are buying at a time when rates are relatively low. An ARM is usually best if you plan to move before the rate adjustments begin, or if you are buying when rates are relatively high.

What is pre-approval and do I need it?

Pre-approval is the process of getting a loan commitment from your mortgage company before you have found a home. The mortgage company will look at your credit and finances to pre-approve you. While you do not need a pre-approval letter it shows sellers that you’re a qualified buyer and it will give you one step up when you put an offer on a home.

What are points?

Also called discount points, a point is 1% of the amount of the loan. Points are a one-time fee added to your closing costs and generally results in a slightly lower interest rate on your loan.

What is a good faith estimate?

A Good Faith Estimate is an estimate that outlines the costs you will incur during the mortgage process. This is provided to you when you apply for your loan.

What is an Escrow Payment?

The portion of your monthly payment that is held by the lender to pay for taxes, hazard insurance, mortgage insurance and other items as they become due is known as an escrow payment.

What is amortization?

Amortization is the period it would take you to pay off your mortgage in full. As long as you maintain the same terms and payment periods of your loan your amortization period will be whatever the term of your mortgage was when it was first taken out.

What is the advantage of weekly payments over monthly payments?

By making weekly payments you will make one extra payment per year. Though the amount of money you will be paying will not be severe doing this will lower the period in which your mortgage is paid off.