Frequently Asked Questions

Can I get a home loan if I have bad credit?

Can I qualify for a home loan if I have a past bankruptcy?

Should I refinance to pay off credit card debt?

How do I determine which loan is best for me?

What is an ARM?

What is the difference between a fixed rate and an adjustable rate?

Are there documents I need to provide when I apply for a loan?

What is PMI?

Is an appraisal required when refinancing?

Can I get a home loan if I have bad credit?

Yes.  There are special loan programs available for borrowers with less than perfect credit.  These types of loans are commonly referred to as sub-prime loans. The interest rate is usually higher and the cost of the loan may also be higher.

Can I qualify for a home loan if I have a past bankruptcy?

Yes, depending on when the bankruptcy was discharged.

Should I refinance to pay off credit card debt?

Refinancing can be a great way to pay off debt.  Let our experts help you evaluate the amount of money you will save monthly on your debt to determine if refinancing is the best option for you. 

How do I determine which loan is best for me?

Our loan experts are able to evaluate your situation to help you determine which loan program best fits your needs.  Call our office today at (877) 740-3328 for a free evaluation.

What is an ARM?

An adjustable rate mortgage (ARM) begins at a lower rate of interest, which will adjust every six months or once a year.  The rate of adjustment is based on the index plus margin.

The index is a rate that is recognized by financial markets such as: Treasury Bills, Libor rate, Federal Reserve Cost of Funds index, Certificate of Deposit, the Prime Rate and so on.  The margin is established by the lender or investor. 

What is the difference between a fixed rate and an adjustable rate?

A fixed loan is where the interest rate remains the same during the duration of the loan.  It will not change.  A fixed interest rate loan is good to secure if interest rates are low.  An adjustable rate can change throughout the loan term and usually fluctuates every six months to a year.

Are there documents I need to provide when I apply for a loan?

Yes. There are items you will need to provide when applying for a loan.  These items may include:

·                    Past two years Federal Tax Returns with W-2’s.

·                    Copies of the last two pay stubs.

·                    Last three months bank statements for each bank account listed on the loan application.

·                    A complete copy of your final divorce decree, child support and alimony, if applicable.

·                    If you have filed a past bankruptcy, a copy of the discharge papers must be given to the lender.

What is PMI?

PMI stands for Private Mortgage Insurance.  Generally, when a borrower puts less than 20% down on a property, the lender will charge PMI.  A loan for less than 80% loan to value will have PMI which also applies to a refinance. PMI is charged monthly.  It protects the lender in case the borrower defaults on the loan.

Is an appraisal required when refinancing?

Whether you are qualifying for a refinance or purchase of a home, an appraisal is always required.  The appraisal must be at least the amount of the sales price if you are purchasing, or if refinancing, high enough to pay off your current balance plus closing costs.