Frequently Asked Questions
Q: I have a "less than perfect" credit score, can you still help me?
A: The short answer is – YES, we can help.
If you've been rejected for any mortgage financing by a bank or another lending institution due to a "less than perfect" credit score (anything under 680), we can still find a way to realize your dreams.
We are specialists at niche "nonprime" lenders that cater to consumers with low credit scores.
All of our mortgage specialists are experts at finding a unique working formula to get you the mortgage financing you need even if you have a sub-600 or sub-500 credit score. Call us TODAY at (877) 310-FUND to see how we can help you.
Q: What are the different types of home mortgage loans available?
A: There are just too many mortgage loan alternatives available today to list them all here.
The classic 30-year fixed rate mortgage loan provides long-term security against sudden interest rate hikes and allows easy planning of your family budget. There are 10, 15 and 20 year fixed rate mortgages as well as the relatively new 40- and even 50-year varieties.
The Adjustable Rate Mortgage or ARM provides the convenience of lower monthly payments during the initial period of 1, 3, 5 or 7 years. But your monthly payments may go up, depending on the changes in interest rates.
Interest-only loans are another variety of loan that allow you to afford more home because you pay only the interest. As a result, your payments are lower than a traditional 30-year fixed loan.
Q: Am I ready for homeownership?
A: You may be ready for homeownership if you have a reliable source of income before applying for the loan. You should also have a credit history that shows you’re ready for homeownership. Your total debt must be manageable so you can afford to take on the costs associated with homeownership. These costs include property taxes, maintenance and insurance. Finally, you know you’re ready when you’ve saved money for a down payment and closing costs. We do have first time home buyers’ programs that do not require a down payment under many circumstances. Do not let lack of a down payment dissuade you from buying a home. Inquire about our no money down home loans.
Q: Do I need to put 20% down to buy a home?
A: No. There are many types of mortgage loans and programs that allow for low and no down payments. But remember to factor in other closing costs such as property taxes, escrow and title charges, repairs and insurance.
Q: What are the advantages of homeownership?
A: Purchasing your home is the most important financial decision you'll ever make in life.
Yes, there are ups and downs in the real estate market, like in anything else but, overall real estate is an excellent investment for accumulating long-term wealth.
As you keep paying your monthly installments and as the value of your property goes up, the difference between the market value of your house and what you owe becomes your positive "equity." That's the best collateral you can have to finance other projects, obtain a line of credit or finance your retirement. If you are renting, however, you are helping your landlord to accumulate that equity and wealth.
Did you know that you can also deduct all the interest you pay on your home mortgage from your annual taxes? That's another compelling reason to own your home. Please consult a tax professional to verify the tax deductibility of the interest you pay.
Q: Are you a direct lender or mortgage broker?
A: We do both direct lending and wholesale brokering depending on the particular situation. We are proud to be mortgage brokers and consider the phrase "broker" to be very honorable. Brokers, whether stock, real estate or mortgage, have built this country by helping consumers with their financial requirements. Most important, Brokers work for you, not the banks.
By brokering certain loans, we perform better than conventional banks. Most conventional banks are big institutions set up to deal with only "prime" customers, i.e., those with excellent credit scores (see the next question) and ample assets. Since they have huge overhead (think of all those shiny office towers and hundreds of employees) they also have fees and charges reflecting that overhead. What's more, home financing is only a part of what they do.
We, on the other hand, are mortgage specialists (as our name suggests). This is what we do day and night, by working with anywhere from 20 to 40 different wholesale lenders. Since we are in daily contact with the latest trends and rates, we can shop around and offer you the best available mortgage solution to fit your particular case. We have the flexibility and the creativeness to avoid any pitfalls. Due to our extensive outreach in the industry, we can also help those "difficult" cases that conventional banks turn down on a regular basis.
Call us TODAY at (877) 310-FUND and find out for yourself how good we are at finding answers to your specific mortgage questions.
Q: What is a "credit score"? Why is it important?
A: A good credit score has many advantages in finding a home mortgage loan with low interest rate and a low down payment. In general, the higher your "credit score" (also known as "FICO score") is, the lower will be your interest rate.
According to Federal Trade Commission (FTC), your credit score (ranging from 350 to 850) is calculated on the basis of "your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts."
The lenders believe that the higher your score is, the more likely you'll pay back your loan on time without defaulting on it.
Q: Do we need to order an appraisal?
A: In most cases, yes. The appraisal is one of the key elements to any real estate transaction. The appraisal is how we evaluate the security for the loan. One of the obvious features of an appraisal is that it determines the property’s present market value. One of the not so obvious features is that it tells us the condition of the property and how the general market is reacting.
Q: What are the forms of income proof or income documentation?
A: The forms of income proof vary depending on the particular loan transaction. The following is a general list of proof of income: bank statements; income tax returns, W-2s, and pay stubs.
Q: Do I always have to provide income documentation?
A: No, in some cases we can state your income to a reasonable level in light of your current job position. If you are self employed, it may be difficult to "prove" all of your income. This sort of loan is usually described as: "No Qualification," "Easy Doc," or "Stated Income". This type of loan comes with a slightly higher interest rate. In some instances even if you "state" your income, you may need to provide proof of your assets (such as savings account, a CD or a 401K plan). We will always explain which situation is best for you.
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