What is the minimum credit score needed to get a loan with the minimum required down payment?
580. This is the minimum required credit score needed for an FHA loan.
What is the minimum down payment needed to buy a home?
3%. This is the minimum required down payment when you are a first-time home buyer using a Conventional loan.
What is the breakdown of my mortgage payment:
(PITI) = Principal, Interest, Taxes and Insurance
What is a mortgage lender vs. a mortgage broker?
A mortgage lender works for a bank or financial institution to determine your qualification and provide you with their programs and funds.
A mortgage broker works with many lenders, which helps you shop around and find more options than a single lender might be able to offer, saving you time and money.
How long does a mortgage pre-approval last?
It will usually be valid for up to 90 days.
What are my estimated closing costs?
Closing costs are broken into four main categories. (1) Minimum required down payment. (2) Taxes and Insurance. (3) Loan fees. (4) Title transfer and government fees. It is always recommended that you obtain these costs in writing prior to making a decision to start working with your mortgage team.
What is the difference between the Interest Rate and APR?
The loan’s interest rate is what the lender charges you each year (broken down into monthly payments) for borrowing the money, expressed as a percentage rate. Interest rates vary depending on your loan criteria ex: credit score, loan type, down payment and/or property type.
The annual percentage rate (APR) is a representation of the overall cost of the loan, and includes the interest rate, discount points, loan related fees, and other charges attached to the transaction. The APR on a loan will always be a higher number than the interest rate, since it includes these additional costs.
What is Discount Points?
Mortgage points, also called discount points, are upfront and one-time fees you can pay to reduce the interest rate on your loan. Generally, 1 point costs 1% of the loan amount. So, with a $300,000 mortgage, 1 point would cost $3,000. How much each point reduces your interest rate varies by lender.
In most cases, it is always recommended to explore these options so you can compare the savings amount vs. cost/time over the life of the loan.
What is an escrow account?
An escrow account, sometimes called an impound account, is where your lender (servicer) will hold the funds it collects from your monthly payment for property taxes and homeowners’ insurance. In some states, an escrow account is required.
Can I add a co-signer to my loan if they already have a property?
Yes. Up-to 4 borrowers are allowed in a mortgage application.
