Frequently Asked Questions

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

Yes and No! It depends on how bad your credit is. There are special loan programs available for borrowers with less than perfect credit. Each case is different and needs to be reviewed by a knowledgeable mortgage loan officer. Every lender and loan type has different perimeters and guidelines.

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 team of mortgage expert’s 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 and help you determine which loan program best fits your needs. Call our office today at (888) 838-4768 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 copies of the following:
  • Last two years W-2's
  • Last two years Federal Tax Returns
  • Last two pay-stubs
  • Last two months bank statements for each bank account
  • 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
  • Copy of your Drivers License

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. FHA streamlines and HARP2 may not require a formal appraisal. It is up to the lender if they will require one.

Loan Programs
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  • Fixed Rate Loans
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  • Cash-Out Refinance
  • Consolidation Loans
  • Adjustable Rate Loans (ARM)
  • Reverse Mortgage Loans
  • VA Loans

Deborah McNaughton

Your Mortgage Advisor for Life

President of Legacy Financial Services
Author - Radio Host - Columnist
Nationally recognized "mortgage and financial" expert
Seen on CNN, Bloomberg, Good Day NY and others

Host of the Money Manager show on KKLA 99.5FM

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