Click on a question below to find the answer.

If my credit is not very good can I qualify for a mortgage?
What is PMI?
What is the best mortgage for me? 
Can I get a mortgage after a bankruptcy?
What is APR?
What is PITI?
Do you have the lowest rate?
What is a Good Faith Estimate?
What is a Truth and Lending?
Can I buy a house with no money down?
What is Loan to Value (LTV)?
Why should I buy instead of rent?
How do I know which type of mortgage is best for me?
What is a seller concession?


Q. If my credit is not very good can I qualify for a mortgage?
A. Yes, a mortgage can be obtained by people with all kinds of credit (Excellent, Great, Average and Below Average).  Obviously the rates can rise slightly based on the credit risk of the loan but a mortgage can still be obtained.


Q. What is PMI?
A. Private Mortgage Insurance is an insurance from a private company that is required on conforming loans where the borrower does not have a minimum of 20% equity in the home.  PMI is a insurance that protects the bank in case you default on your loan.  Anytime you have less than 20% equity on a purchase or refinance it is considered a higher risk loan to the bank and that is why the insurance is required.


Q. What is the best mortgage for me?
A. There are many mortgage options for a borrower today.  We will assess you’re your situation and provide the best options for you at that time.  We have everything from Conforming, FHA, VA, FHA 203K, RURAL Housing and MHFA loans.


Q. Can I get a mortgage after a bankruptcy?
A. You may still qualify for a loan after a prior bankruptcy.  The best way to find out if you qualify for a loan after a bankruptcy is to meet with a loan officer to discuss your options.


Q. What is APR?
A. APR stands for Annual Percentage Rate, which is the effective rate that takes the lenders bank charges into consideration and express the total of all bank charges in the form of a interest rate.  The APR is a item that all lenders are required to disclose to every potential borrower.


Q. What is PITI?
A. PITI stands for Principal, Interest, Taxes and Insurance.  This is basically the cost of you living in your home.


Q. Do you have the lowest rate?
A. We have loan programs to fits just about every situation with rates that are competitive with anyone.  Many lenders will advertise rates that are simply not available just to get you to talk with them and get you in the process with them.  The fact is the mortgage money that lenders lend comes from the same source.  There is never going to be a lender who is significantly lower than another.  Rather you should choose your lender based on experience, professionalism and the skills of finding the right loan program for you.


Q. What is a Good Faith Estimate?
A. A GFE is a preliminary estimate of the closing costs and fees for your mortgage.


Q. What is a Truth and Lending?
A. A TIL is used in connection with the GFE.  A TIL gives you the total cost of a mortgage with the closing costs and fees included.  A TIL will allow you to determine if a higher rate with lower fees is better than a lower rate and higher fees, or vice versa.


Q. Can I buy a house with no money down?
A. Yes you can buy a house with a 0 down payment.  There are far fewer 100% programs out there today but discuss with your lender what options they have available for you.


Q. What is Loan to Value (LTV)?
A. LTV is the size of your loan in proportion to the value of your home.  For example if you are buying a home for $100,000.00 and you make a down payment of $10,000.00, then your loan amount will be $90,000.00.  In this scenario your LTV will be 90%.


Q. Why should I buy instead of rent?
A. Buying a home is an investment.  When you rent, that money is gone forever.  You are essentially paying your land lord’s mortgage.  When you own a home, you can deduct your mortgage interest from your taxes.  You can also deduct the property taxes you pay as a home owner.  In addition you’re the value of your home may go up over time.


Q. How do I know which type of mortgage is best for me?
A. There is no simple formula to determine what type of mortgage is best for you.  The choice is determined by many factors including your current financial picture and how long you intend to keep the home.  Your loan officer can help you evaluate your choices and help you determine the most appropriate decision.


Q. What is a seller concession?
A.  A sell concession is an agreement in a purchase agreement where the seller agrees to pay (from the proceeds of their sale) some or even all of the buyers closing costs to purchase the home.  This allows the buyer to purchase with less out of pocket.

 

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