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Banker
vs. Broker?
Question:
What are the differences between using a Mortgage Banker or a Mortgage
Broker?
Answer:
Well it used to be that a Mortgage Banker could shorten the process
by a few days because of in-house underwriting and drawing of the
documents. But the cost and interest rates were close to being the
same as a Mortgage Brokers.
Now,
with overnight mail service and automated underwriting as well as
the internet, there are no differences in the process time and often
we can beat a Mortgage Banker in that area, and our rates are among
the best and lowest in town.
Repairing credit
Question:
How do you go about repairing your credit to get a home loan?
Answer:
Often credit can be cleaned up; however it will take time. First
you will need a copy of your credit report. If you have ever applied
for a loan and been turned down due to the condition of your credit
report, you are entitled to a copy of your credit report. Next you
need to contact the creditor who is reporting the delinquency and
confirm the reported information. If you are disputing, you must
do all correspondence with them in writing and they are obligated
to do so in return in a timely manner. Also, utilize your good credit,
establish new credit and keep it clean so the good will out number
the bad. Lenders are really looking for at the past 24 months, so
keep it clean.
After bankruptcy?
Question:
How difficult is it to obtain a mortgage if you've had a bankruptcy?
Answer:
For an FHA loan, most lenders want a 2-year history of good credit
after the bankruptcy. However there are some lenders we use that
will give you a mortgage the day after your bankruptcy is discharged.
Your credit score generally determines the rate and term of these
loans.
After
foreclosure?
Question:
What about getting a mortgage after a foreclosure? Is it possible?
Answer:
Yes, it is possible. For loans like FHA and VA, you need three years
from the date that the claim was paid. But, we do have lenders that
will give you a mortgage after just one year.
FHA
vs. Conventional
Question:
What are the advantages and disadvantages of getting an FHA loan
as opposed to a conventional loan?
Answer:
Typically FHA loans are great for first time home buyers because
you can get in with very little down payment and FHA underwriting
tends to be a bit lenient on the qualifying ratios. The down side
would be that FHA imposes loan limits usually $280,479.00 (this
could vary depending on the property location). Also depending on
the market, the interest rates and points on FHA loans could be
more costly than conventional. There are other differences. Please
contact a mortgage professional in your area to help you determine
which option is best for you.
No
down payment
Question:
How can I buy a home with no down payment?
Answer:
There are first time homebuyer programs with little or no down.
Also there are programs that you can get an 80% first and 20% 2nd
for a purchase. You must qualify and have great credit for these
types of programs.
What
term is best?
Question:
What are pros and cons of 15-year loan vs. 30-year loan?
Answer:
A 15-year loan will have a lower rate and higher payments then a
30-year loan. If you can afford it a 15 year loan it is great since
you will build up equity quicker and pay the loan off sooner and
save thousands in interest. However this is not an option for everyone
since the payments are higher, it can make it difficult to qualify.
Prepaid
interest
Question:
What is prepaid interest for and how does the closing date affect
the amount?
Answer:
The lender starts charging interest from the day the loan funds.
If your loan closes on the 15th of the month, they will collect
interest from the 15th till the end of the month, so you will have
to pay 15 days of prepaid interest. Keep in mind, when you make
your monthly payment you are paying interest for the previous month.
For example, when you pay your payment for the May 1 payment you
will be paying interest for the month of April.
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