FREQUENTLY ASKED QUESTIONS
IS A PREAPPROVAL NEEDED BEFORE GOING TO OPEN HOUSES AND SHOPPING FOR A HOME?
While the direct answer is no, you really should consider it. In todays current market you will hear the term "low inventory" meaning very few houses for sale. What this means is you need every tool available to stay competitive. In order to place a formal offer on a house you need a certified preapproval, why delay yourself on purchasing your dream home by being one step behind.
HOW DO I GET A PREAPPROVAL?
Its EASY! Reach out to a loan officer today and gather the required documentation. Once you have all the necessary items, we can process it quickly. Depending on the route and loan product you select you will need different items to verify, but the core basis is verification of three things: Credit, income and Assets.
SHOULD I GO FHA OR CONVENTIONAL?
This is a common question and depending on your situation it can go either way, always differ to the advice of your loan officer. FHA is good for first time home buyers with lower credit and looking to put less down with the minimum being 3.5%. Note that PMI will be included of the life of the loan, but the rate will also be more favorable. Conventional on the other hand, still will have PMI up until the moment you have 20% equity on the property, whether that be the down payment or over time when its achieved. 3% minimum down payment. There are other factors that go into this, be sure to ask your loan officer
WHAT ITEMS ARE REQUIRED FOR A QUALIFIED MORTGAGE?
Whether you go FHA or Conventional, this is the basic documents you need to start the process.
-Photo ID
-Social SecurityÂ
-Two current paystubs
-Last two years of W-2s
-Last two years of personal tax returns
-Last two months bank statements - all pages
Once we have all these items we can preapprove you within ten minutes and give you your buying power. Preapprovals expire after 90 days
WHAT'S THE DIFFERENCE BETWEEN A PREAPPROVAL AND PREQUALIFICATION?
The difference between a preapproval and prequalification is a preapproval is that a licensed loan officer has reviewed the three factors of any deal; Credit, Income and assets verses a prequalification is generated based off of verbal communications with no hard proof of any information, this cannot be used for an offer.
WHAT ARE THE OUT-OF-POCKET EXPENSES BEFORE CLOSING?
-Home inspection (Even though it is not part of the mortgage process it is an expense)
-Appraisal
-One full year's worth paid of homeowner's insurance/flood if applicable
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HOW LONG DOES A MORTGAGE PROCESS TAKE?
On average 30 days and if need be can be expeditated.
WHEN SHOULD I REFINANCE?
Contact your mortgage professional and find out what the net benefit is for you.