The mortgage process can be intimidating to the average home buyer. We are happy to simplify the home loan process. We pride ourselves in making the transaction smooth so our clients can continue to enjoy their daily activities without having to worry about their loan.
Here are a few common questions we get from clients. Have another question? Contact us and we'll be happy to help.
Do I need to put 20% down on a mortgage?
There are many loan options that do not require 20% down. Putting 20% down will ensure that you are not required to pay for Private Mortgage Insurance (PMI). Veterans are eligible for loans with no money down. A conventional FHA loan only requires 3.5%.
What is the difference between pre-qualification vs. pre-approval?
Pre-qualification is the first step in the mortgage process. With pre-qualification, the buyer provides the lender with all of the relevant information. The lender in-turn will provide an estimate of what they qualify for. Pre-approval happens once the lender physically verifies the borrower’s income, assets and credit. Agents usually accept an offer from a pre-approved buyer, but not a pre-qualified buyer.
Is it really cheaper to own vs. rent?
Buyers planning to live in a property over an extended period of time will see more benefit to owning as opposed to renting. Owning a home over time gains equity. Costs and payments going into a home are considered by many as an investment and see tax deductions as another benefit of owning.
Is a 30-year fixed mortgage the best deal?
Depending on how long a buyer stays at their residence is a determining factor. The longer the term of the loan, the higher the interest rate a buyer will get. Many military families who frequently relocate benefit from a shorter-term low interest loan knowing that they will be out of the property before the higher interest rate takes effect.
Will I get the advertised interest rate?
Typically advertised rates are reserved for borrowers with a near-perfect credit score, low debt-to-income ratios and a large down payment. The interest rate takes all of these factors into consideration along with the term of the loan and points purchased.
Should I pay off my home loan early?
Most experts suggest investing any extra money rather than paying off a mortgage loan early. The interest earned on investments may be greater than the amount payed on a mortgage. Consult a financial advisor to determine what your best course of action is.