Frequently Asked Questions
+ How do I get started?
It’s less intimidating than you think! Let’s get to know each other so we can tailor a mortgage solution that’s right for you. We’ll need to collect a 2-year work and residence history, along with gross monthly or annual income. We’ll also discuss assets, down payment preference, and unique financing structures that best suit your needs. Plan for a 10-minute phone call or face-to-face meeting. You can also visit our mobile or web-friendly applications, if preferred. But above all, let’s work together to ensure you’re comfortable.
+ Is my credit score going to be impacted?
We will never retrieve a credit report or credit score without your permission. A mortgage credit inquiry is different than a credit inquiry for other consumer debt, such as a credit card or auto loan. While it makes sense that your credit scores drop when you go applying for new credit cards or charge cards, fortunately, credit bureaus have learned that mortgage shopping behavior does not carry the same risks. As such, the bureaus no longer treat a slew of mortgage inquiries the same as credit card inquiries.
If you allow multiple mortgage companies to check your credit report within a limited period of time, all those inquiries will be treated as a single inquiry. That time period depends on the FICO system the lender uses. It can range from 14 to 45 days.
+ What is the difference between prequalification and preapproval?
This is simply the difference between a conversation and hard copy documentation. A verbal or online disclosure of income, assets and down payment is all it takes to get prequalified. A preapproval, however, requires verification your financial information. Ultimately, a preapproval takes a little more time and documentation, but it also carries more value with a prospective seller. Additionally, with a preapproval, you can be sure your lender and you view your income in the same way.
+ I’ve heard I need at least 20% down payment to buy a home. Is that accurate?
Dependent upon credit and other criteria, most homebuyers can qualify with as little as 3% to 3.5% down payment. Other loan programs, such as VA or USDA, offer as much as 100% total financing so, no, you do not necessarily need 20% down payment to qualify for a home purchase.
+ What are closing costs and how much should I expect them to be?
“Closing costs” refer to all of the charges you’ll need to pay at closing once your loan is completed. These include lender, attorney and any state fees. Closing costs vary depending upon credit, down payment, loan program, interest rate and more. Generally they are 1.5 to 3% of the loan amount.