Could I Apply For A Loan Before I Find A Property To Buy?,
Yes! You can apply for a loan before you find a property, in fact, it is highly encouraged. The pre-approval process covers all aspects of the loan approval requirements (except for property information). For example, in your application, you’ll give information about your income, length of employment, personal assets and the county of the prospective property. Additionally, your application authorizes the bank to examine your credit history. If approved, you will receive a ‘pre-approval’ letter subject to finding a property. Your ‘pre-approval’ letter signals to the sellers that you qualify for a certain mortgage amount and may help in your purchase negotiations.
How Much Time Will It Take To Close My Loan?
Remarkably quick! In today’s new world of mortgage lending so many aspects have been streamlined, from loan approval to closing, the entire process has become faster and much smoother than in the past.
Speaking of ‘Closing’, explaining and signing the documents typically involves about 30 to 60 minutes. To speed that process up, we encourage you to read the disclosures provided to you at the receipt of your loan application. We recommend that you ask questions after you read them, in fact, feel free to ask questions throughout the entire loan process. We want to be assured that you feel satisfied and comfortable with your loan product and terms.
Can I Buy A Home With Less Than Perfect Credit?
Yes! At ENG Lending Northwest, we may be able to help you buy a home, even if your credit isn’t perfect! Keep in mind that lenders don’t just look at your past history, but also at a number of deciding factors including: your ability and willingness to pay in the future. We purposely take our time, careful to not leave one stone ‘un-turned’ to get your home loan approved.
Should I pay Discount Points?
Your Choice! Keep in mind that when you pay a ‘discount’ point you are essentially paying part of your interest up front. The benefit is that it will lower your interest rate — and will correspondingly affect your monthly payment – over the life of the loan. One ‘discount’ point is typically equal to 1% of the loan amount. For example, one point on a $100,000 loan would require payment of $1,000 at closing. Generally speaking, the longer you plan to remain in a property or retain your mortgage, the more advantageous it is to pay points. There is no requirement to pay discount points! Whether or not you decide to pay points is completely up to you.
What Documents Will I Need To Apply For A Mortgage?
Traditional loans usually require documents that verify your employment, income, assets, and may include:
• Your Social Security number
• Pay stubs for the last two months
• W-2 forms for the past two years
• Bank statements for the past two or three months
• One to two years of federal tax returns
• A signed contract of sale (if you’ve already chosen your new home)
• Information on current debt, including car loans, student loans and credit cards
How Much Will I Need As A Down Payment?
Good News! There is no set amount. In fact, you might be surprised to learn that many first-time homebuyer programs require as little as 3.5% down. Today, there are many loan programs that can be tailored to fit your needs and financial resources. However, it is important to know that down payments of less that 20% may require private mortgage insurance.
When Does It Make Sense to Refinance?
After constant vigilance! It is a good practice to keep your eye on the housing market from time to time. Generally speaking, one or more of the following conditions needs to be present before you should consider refinancing your mortgage –
• Mortgage interest rates are falling.
• Your home has significantly appreciated in market value.
• You’ve been making payments on your original 30-year mortgage for less than ten years.
Still More Questions?
If you have lingering questions please fill out the form below and one of our experienced Mortgage Advisors will contact you to and hopefully answer all your questions.