frequently asked questions

There are a variety of fixed or variable-rate mortgages available for prospective homeowners. Mortgages include conventional loans best for first-time buyers, government-backed loans (FHA, VA, or USDA), are options for unconventional borrowers, or Jumbo loans for more expensive properties. I evaluate which loan is best suited for homeownership goals by working alongside you and reviewing your financial profile.

Down payments can vary depending on the mortgage. For instance, first-time homebuyers considering a government-backed FHA loan require a 3.5% down payment, although this depends on the individual's credit score. Other government-backed loans (VA or USDA) don't typically require a down payment. Whereas a conventional loan could be a better choice for a homebuyer with a higher credit score and substantial savings.

A mortgage with a competitive interest rate requires a good or excellent credit score; this demonstrates to mortgage lenders that you can responsibly manage debt. First-time homebuyers considering an FHA loan require a minimum credit score of 500. However, the higher the credit score, the better the interest rates. Whereas conventional loans require a minimum score of 620. To get a preapproved mortgage, lenders evaluate the FICO® score, expenditures, and income-to-debt ratio to determine eligibility.

My services offer both prequalification and preapproval to determine affordability. However, a mortgage preapproval is different from prequalification. Prequalification is an affordability estimate, but it doesn't guarantee specific loan terms. A mortgage preapproval is essentially a mortgage application requiring documentation, including income, employment, and residence history, to determine eligibility for the loan offer.

Good communication is essential for the mortgage process, and you'll want to be updated throughout the mortgage application. Whether you prefer emails or calls, I'll remain flexible and work with a communication style and frequency that works best for you.

I consult with homebuyers who have low salaries or limited savings. Using my extensive knowledge about the programs available in your local area, I help navigate all the available options. Programs include USDA mortgages and special homebuying programs to help qualify for homeownership.

Before applying for a mortgage, I recommend strengthening your credit score by making credit payments on time, reducing credit card balances, and bringing outstanding accounts up to date. The steps will also help secure a lower interest rate on a mortgage loan.

Mortgages can have a fixed rate where the interest rate remains the same for the duration of the loan term or a variable rate, where interest rates may vary over the loan term. To help prequalify for a home loan, you will receive a loan estimate document that will list the interest rate.

The loan estimate document will also include an annual percentage rate (APR), which is the amount of interest you pay annually on the mortgage loan to compare the APR fairly. The typical APR considers the interest rate, points, fees, and specific other credit charges and accounts for the total loan cost.

Discount points lower your mortgage interest rate, and lenders allow borrowers to pay points in exchange for a lower rate. Discount points will increase closing costs but benefit the interest paid over the loan duration. My service reviews interest rates and fees to determine if discount points will improve your financial health.

Monthly repayments are calculated by the principal loan amount, loan length, interest rate and other fees. Monthly repayment schedules are approximate predictions. However, setting a budget help to determine monthly payments. My service will match your budget and financial situation with a suitable loan program.

Transparency and honesty are always provided regarding fees with no hidden costs. The origination and lender fees are upfront costs that vary depending on the amount borrowed. The fees may be flat or expressed as a percentage of the loan, and the rates are subject to the lender.