Mortgage is known to be one of the most complex financial transactions among finance. Here are some answers to frequently asked questions. If you don't see an answer to your question here, please call us and we will make sure you have your questions answered.
Question: Why should I have a pre-approval letter before searching for a home?
Answer: A pre-approval letter is a piece of leverage that homebuyers use to make an offer on a home. Pre-Approval letters are important to determine how much you qualify for, so that when making an offer on a home, you know you can afford to make such an offer.
Additionally, most real estate agents may not provide their services until getting you pre-approved first.
Question: I have bad credit. Can I still purchase a home?
Answer: Bad Credit can sometimes feel like it's a mark that will last a lifetime, which is why we've partnered with lenders that allow for not-so-perfect credit backgrounds. We believe everyone falls upon tough times at some point or another. We don't believe it should keep you from achieving your dreams. Let us help guide you through the process of purchasing with not-so-perfect credit.
Question: I don't have a down payment. Can I still purchase a home?
Answer: In most cases, the answer is YES! There are programs that offer down payment assistance and others that offer up to 100% financing, like USDA. These options are there for those in your current situation. Ask us what types of programs allow for 0% down by calling today!
Question: I am a first-time homebuyer. Where do I start?
Answer: Buying a home can seem like a very difficult task, but it doesn't have to be that way. We have secured state of the art mortgage technology, allowing your transaction to move smoothly through the steps of pre-approval, underwriting and closing. However, it all starts with a pre-approval letter. Call us today to get yours!
Question: What is a debt-to-income ratio and how is it calculated?
Answer: Debt-to-income ratios help lenders determine how much you can afford. There are two types of debt to income ratios. The first is the front end debt-to-income ratio, which is calculated by dividing your total monthly payment for your home, against your total monthly income.
The second is the back end debt-to-income ratio, which is calculated by dividing the total monthly payment PLUS all monthly debts on your credit report, against all your monthly income.