Mortgage FAQs (Frequently Asked Questions)
Q: Is it Better to Use a Local Mortgage Broker?
A: When it comes to getting a mortgage, one of the decisions you will need to make is whether to use a local mortgage broker or a national one. While both options have their benefits, in this article, we will explore why using a local mortgage broker can be advantageous.
What is a Mortgage Broker?
Before diving into the advantages of using a local mortgage broker, let us first define what a mortgage broker is. A mortgage broker is a professional who acts as an intermediary between you and potential lenders. Their job is to help you find the best mortgage for your needs by searching and comparing offers from various lenders. Mortgage brokers can be either national or local, with national brokers servicing customers nationwide, while local brokers operate within a specific region or city.
Advantages of Using a Local Mortgage Broker.
One of the primary advantages of using a local mortgage broker is that they have a better understanding of the local market and its nuances. A local broker is familiar with the local real estate market, property values, and zoning regulations. They will have established relationships with local lenders and an understanding of their lending criteria and underwriting requirements. This knowledge can be valuable when it comes to finding the best mortgage deals and navigating the mortgage application process.
Local mortgage brokers offer a more personalized service than national brokers. They are often more accessible and can meet with you in person to discuss your needs and answer any questions you may have. This level of personalized service can be particularly beneficial if you are a first-time home buyer or have complex financial needs.
Local mortgage brokers can provide you with expertise and advice tailored to the local market. They can advise you on the best neighborhoods to buy in, what to expect during the home buying process, and local factors that can affect your mortgage. This knowledge can be particularly beneficial if you are new to the area or are relocating from another state or country.
Local mortgage brokers can provide a faster response time than national brokers. They are often more familiar with the local lending landscape and can quickly identify the lenders that are most likely to approve your application. This can save you time and frustration when it comes to securing a mortgage.
Local mortgage brokers typically offer better customer service than national brokers. They are often more responsive and attentive to their client’s needs, providing a more personalized experience. This level of customer service can be particularly important if you have complex financial needs or require a more firsthand approach.
When it comes to choosing between a local mortgage broker and a national one, there are several advantages to using a local broker. They have a better understanding of the local market, offer a more personalized service, and can provide expertise and advice tailored to the local area.
Q: How does the loan process work?
A: A qualified broker/lender work with you to choose the best loan program and interest rates available to you. You then need to provide a list of the documents/documenation needed to complete your loan and once this is done your final loan papers are signed by you and you get a date when the loan will be completed.
Q: How do I know if I can get a loan?
A: A good start is, you try our mortgage calculators to see how much mortgage you could pay. You are also welcome to contact us using any of the methods provided on the menu.We will help you evaluate your loan potential. We are in the business and know what kinds of mortgages programs are out there and can help you choose a program that might be right for you. Another good idea is to get pre-qualified for a loan. That means you apply for a mortgage before you actually start looking for a home. Then you'll know exactly how much you can afford to spend, and it will speed the process once you do find the home of your dreams.
Q: How do I find a lender?
A: Contact us.
Q: What is a credit score?
A: A credit score is an indication of your credit history and assist in measuring your ability to repay a debt in the future.
Q: Can I become a home-buyer even if I have had bad credit, and don't have much for a down-payment?
A: Yes. Your credit doesn't have to be perfect to purchase a home. Difficult financial situations are often because of illness, divorce, or temporary unemployment. If you can demonstrate that the problem was in the past, and you have been able to re-establish a good track record for a sufficient amount of time, you may be in a good position to get a mortgage loan.
Q: What documents I need to have ready while applying for a mortgage?
A: Good question! You should at least have:
- If you and your spouse are applying for the loan, social security numbers for both you and your spouse
- Consecutive pay stubs for the last month
- Copies of your checking and savings account statements for the past 6 months
- Evidence of any other assets like bonds or stocks
- List of all credit card accounts and the approximate monthly amounts owed on each
- List of account numbers and balances due on outstanding loans
- Copies of your last 2 years' income tax statements Depending on your lender, you may be asked for other information/documents too.
Q: I don't have the standard documentation necessary to get a loan, can I still apply for loan?
A: We offer special loan programs for such type cases, for further information contact us using the "contact us form".
Q: When should I refinance my mortgage?
A: To determine whether you should refinance, compare the following:
- Current interest-rates compared the rate you are currently paying.
- Your current payment compared to what your payment would be with a lower rate, or features such as interest-only payments.
- The amount of time you expect to live in your home.
- The cost to refinance your mortgage.
Q: How can a shorter term save me money on a Fixed-Rate Mortgage?
A: Simple, if you go for a shorter term, you can save thousands of dollars in interest expense because you'll be paying off the loan sooner. Although your payment will be more each month, it may not be as much as you may think.
Q: What is a good faith estimate (GFE)?
A: A good faith estimate (GFE) 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.
Q: How are the funds from my escrow account used?
A: The funds from your escrow account are used to pay property taxes and insurance. The payment is called an escrow payment, and a mortgage servicer withdraws the money.