FAQ
Q: Is there a fee for pre-application consultation appointment?
A: No, there is no cost to set an appointment. It is your opportunity to ask questions and make sure we are a fit.
Q: What kinds of documentation will I need to provide?
A: This depends on the loan program. Some programs require income and asset statements and previous tax filings, while others need limited documentation. Once we identify the best loan program, I can provide a full list of the necessary documents.
Q: Once I’ve submitted my application online, when will I find out if I’ve been pre-qualified?
A: After receiving your application, I will evaluate it to determine if further information is required. Regardless, I will contact you within 24 - 48 hours with an update on the status and estimated timeline.
Q: Is there any way I can avoid paying a down payment?
A: That depends on the program type, sales price, and your qualifying characteristics. There are many programs that offer minimum down payments as little as 3%. It is important to factor in your credit score, employment history, and location. After you submit an application, we can assess if this option is available to you.
Q: What is Mortgage Insurance (aka MIP or PMI) and why is it required?
A: Routinely, MIP/PMI is required on loan with a loan to value (LTV) greater than 80%, or a loan with less than 20% equity to the home value. Mortgage insurance safeguards the lender from financial loss if the borrower defaults on the loan (ceases making payments). It is mandatory for mortgage programs with minimal or no down payment, like FHA or First Time Home Buyers loans. There are various methods to avoid mortgage insurance, and we can discuss these options once we have your application on record. For more info, visit the blog tab.
Q: What if I’ve filed bankruptcy recently? Can I still qualify for a mortgage loan?
A: Yes, it's possible. Depending on various factors, such as whether you filed for Chapter 7 or Chapter 13, there might be a waiting period of 2-4 years before you can be approved for another mortgage loan. I'm more than willing to arrange a call with you to go over your options based on your current circumstances.
Q: What are some of the benefits of Government loans (FHA, VA, USDA Rural Housing)?
A: Government-backed loans have rapidly emerged as an excellent choice for applicants. They are easy to qualify for and feature low interest rates, making them highly appealing to buyers. Many of these programs offer incentives like minimal to no down payments, no pre-payment penalties, and reduced fees and charges for setting up the loan. I would be delighted to discuss them with you in detail to identify the best option for you.
Q: What is a physician’s loan?
A: This is a unique home mortgage designed exclusively for MDs and DOs, offering appealing terms and distinct features not offered through conventional loans. Benefits include limited down payment without requiring mortgage insurance.
Q: How is my ARM rate determined?
A: Your Adjustable-Rate Mortgages feature variable interest rates that may fluctuate monthly based on current market conditions. These rates are calculated by adding a margin to an index on a particular date.
Q: What is a balloon loan?
A: This is a short-term loan that features payments that gradually lower the overall initial cost over an extended timeframe. These payments do not settle the loan entirely within the term, leaving the outstanding balance (known as the balloon payment) to be paid in full when the note matures.
Q: What is the difference between the interest rate and the annual percentage rate (APR)?
A: The interest rate is the percentage you agree to pay on your mortgage loan. It helps calculate the interest part of your monthly payment. The annual percentage rate (APR) combines your interest rate with prepaid finance charges to provide an average yearly rate.
Q: What is an escrow account and why do I need one?
A: This is established for you to gather funds for property tax payments and homeowners insurance in equal installments throughout the year. Your escrow account will automatically cover your homeowners insurance and property taxes, relieving you of any concern when they are due.