How do I qualify for a loan?

Lenders review three main components for clients. 1. Income 2. Credit 3. Equity. Each client has different qualifications so lenders use a loan application to discern qualifications. The first step in any qualification is the loan application. Once received, our team will pull credit and produce an items needed check list. Once we have all the items, we research our 50 lenders for the best loan product options. We review interest rate, loan program, and closing costs in detail to ensure you're comfortable with the transaction. 

 

What types of loans do you offer?

We offer fixed rate and adjustable rate mortgages. We have 10-year, 15-year, 20-year, 25-year, and 39-year fixed rate options. For adjustable products, we have 3-year, 5-year, 7-year, and 10-year fixed options. These loans adjust after the short term initial fixed period. We also offer construction lending and apartment lending. Contact us for more information on these programs. 

 

What are your fees?

Closing costs are made up of escrow fees, appraisal fees, lender fees, and credit report fees. Many lenders will pay some or all of these fees on your behalf in return for a higher interest rate. When reviewing fees we will show you the difference in interest rate when the lender is paying fees and when the lender is not paying fees. Closing costs are different on every loan. The client determines which closing cost program is used. 

 

When should I refinance?

This question is best answered based off client needs. When the interest rate is lower and the closing costs are easily recouped then it usually makes sense to refinance. Many clients refinance to take cash out and access their equity, and some refinance primarily to change their loan terms. It is common to not only reduce your interest rate but also to shorten the length of pay back. We do a calculation to help clients understand the variety of options available. These are client-centric conversations and are based on the current market.

 

What is an APR? 

APR stands for “annual percentage rate.” The industry explanation for this is the total cost of credit. Your APR includes your interest rate plus additional fees and expenses associated with taking out your loan. The calculation is the total amount of closing costs spread out over the term of the loan and added to the interest rate. This in term produces the total cost of credit and a way for clients to compare programs and interest rate. 

 

What does it mean to lock an interest rate?

Locking your interest rate prevents it from changing between the time you apply for a refinance and the time you close on your new loan. If interest rates go up or down during the period when your rate is locked, your locked rate will remain the same.

 

Should I pay closing costs or not?

This comes down to how long you will keep the loan. Example: If closing costs are $2,000 and your monthly savings are $200 per month, it takes 10 months to recoup the costs. If you retain the loan longer than 10 months it will make financial sense. We often recommend having the lender pay some or all of the fees, unless there is no intent to ever refinance again. 

 

Should I do a fixed rate or adjustable?
The fixed rate option is better long term, but if you are likely to sell or refinance in less than 5 years the adjustable is typically a lower interest rate and a better deal. This comes down to how long will you retain the loan, and if a short term lower payment makes a difference. 

 

How long until my loan is processed?

This is more defined by lenders, as each lender has a different amount of staffing and coordinators. For a purchase transaction we usually close within 30 days, assuming the lender is able to move efficiently. For a refionance transaction it may take an extra 5-15 days depending on lender workflow and complexity of the file.

 

What can I do to improve my credit score?

Your credit score significantly affects your ability to qualify for a loan. You can take a few steps to improve your credit score to unlock lower rates and more loan types. There are four main ways you can positively influence your credit score:
1. Pay your bills on time. Building a history of paying bills on time is extremely important.
2. Credit usage is vitally important. If your credit limit is $5,000 and your balance is $4,000, then you are at 80% credit usage. Lenders may see you as a risky candidate if you're spending more than 30% of your total available credit each month.
3. Do not allow creditors to pull your credit unless you intend to open an account with them. Credit inquiries, especially if they are for different purposes (car loan, credit care, mortgage), can bring your credit score down very quickly. 
4. Subscribe to a credit reporting agency and review your credit consistantly. It is not uncommon that credit data is inaccurate. Having correct balances, payment history, and usage is very important to your credit score. If you find anything inaccurate, contact the creditor and ask them to correct it immediately. 

 

How do I get preapproved to purchase a home?

Preapproval is the process of determining how much money you can borrow to buy a home. To get preapproved, we will take a comprehensive look at your finances including income, assets, and credit score to determine what loans you could be approved for.