Most Americans believe up to a 20% down-payment is required to buy a home, but the truth is most people can buy a home with as little as 3% down, and in some cases with no money down at all.
Pre-qualification is a basic review of your loan profile to determine if you will qualify for a mortgage, and is not a solid guarantee of your loan. A pre-approval includes a credit check and some financial terms that show buyers you are ready to follow through on an offer.
It’s simple. You need a pre-approval which will require documents on your income, your debt via a credit report, asset via statements.
Surprisingly yes. You can get a loan with a low credit score or no credit score. Low credit scores is actually one of the easiest obstacles to overcome.
There are too many options for you to look through yourself. You should rely on your mortgage professional to choose the right options for you based on the information you provide them. A good lender will review a couple of the top options for you. It does help to have some basic knowledge of the programs so you can ask good questions, but it is not necessary.
There can be several parts to your mortgage which may include:
- Principal
- Interest
- Property Taxes
- Homeowners Insurance
- Home Owners Association Fees (HOA)
- Private Mortgage insurance (PMI), only if you have less than 20% equity in your home
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These fees can include origination fees, title insurance, prepaid escrows, and state and county taxes. Closing costs can vary, but the range is 2-4% of the mortgage amount.
A rate lock guarantees you that day’s interest rate and locks you in for a period of 15 to 60 days typically. With rates very volatile it is smart to do this as soon as possible. Talk with your mortgage professional as locking to soon can result in an expired rate lock can lead to higher closing costs.
These fees can include origination fees, title insurance, prepaid escrows, and state and county taxes. Closing costs can vary, but the range is 2-4% of the mortgage amount.
A rate lock guarantees you that day’s interest rate and locks you in for a period of 15 to 60 days typically. With rates very volatile it is smart to do this as soon as possible. Talk with your mortgage professional as locking to soon can result in an expired rate lock can lead to higher closing costs.
Points are money you pay for up front in order to get a better interest rate. In most cases this is not worth it, but there are exceptions, especially if you will be in the home a very long time and never refinance. You can actually choose a higher interest rate than prevailing rates with some lenders, and they will do the reverse and pay you money back.
Most mortgages take 30 days or longer to close, with some of the bigger banks and lending institutions taking 45-60 days or longer. This time period covers application until closing. If all of your documents are in order, we typically close purchase or refinance loans within 17 days, though most real estate agents do not prefer a close shorter than 30 days, but it’s nice to know your financing is complete ahead of time.