Frequently Askes Questions

Mortgage Company

Yes! We’d never want to exclude anyone from saving big bucks just because they’re not using Homie Real Estate services.

 

We don’t like to brag, but we usually have a quick turnaround time for most loans. You’ll be made aware of your loan progress ASAP.

Will someone be available to help me if I have questions during the process?

MORTAGES FAQ

Some loans will allow you to secure just a 5% down payment plus closing costs.  Another similar loan option is called a piggy-back loan where you get approved for the first and second mortgage at the same time to avoid PMI. You could also apply for a FHA loan which only requires you to put down 3.5% down. Your interest rate will probably be higher, and you will be required to buy private mortgage insurance (PMI).

 

If the bank or mortgage company determines that your loan is a risk, they may require private mortgage insurance. This insurance serves to insulate the lender in the event that you default on your loan. It is possible that the fair market value of your house will not cover the full amount of money owed to the bank or mortgage company if you default. In such cases, private mortgage insurance reimburses the lender for the difference. Private mortgage insurance is usually required for borrowers that make a down payment of less than 20% or with poor credit scores.

The U.S. Department of Housing and Urban Development, also known as HUD, has a number of programs for qualified buyers. HUD oversees the FHA and has options that include 203(K) loans for fixer-uppers, financing for homes that are FHA insured and obtained via foreclosure, and more. Their goal is to increase ownership for minorities and low-income Americans.

FHA loans are the most popular option. The FHA requires only 3% for a down payment and guarantees the loan, which results in credit policies that are less strict for potential borrowers.

Veteran’s Administration, or VA, loans are intended for qualified veterans or their unmarried surviving spouses that are looking to buy or refinance a home.

The two primary federal government financing programs for mortgages are VA loans and FHA loans. VA loans are not actually loans, but a guarantee from the federal government that should you default, the U.S. Department of Veterans Affairs will pay the lender a certain amount of the defaulted loan. These loans are available to current members of the military and veterans with honorable discharges. FHA loans are available through the U.S. Department of Housing and Urban Development (HUD). These loans, like VA loans, guarantee that the Federal Housing Authority will pay the lender 100% of the insured amount of your mortgage should you default. You must meet certain criteria to qualify for an FHA loan.

The interest rate for a fixed-rate mortgage is set in place over the life of the loan. On the other hand, an adjustable-rate mortgage can have its interest rate rise or fall during specified adjustment periods.

Fixed-rate mortgages make sense for buyers when the current mortgage rate is low. This allows you to lock in the current rate and be protected from increases that are likely to take place over the next 30 years. If the current rate is high, an adjustable-rate mortgage may be better because rates can drop. It is good to remember that you will have the option to refinance in the future to take advantage of rate changes as well.

Fixed-rate mortgages make sense for buyers when the current mortgage rate is low. This allows you to lock in the current rate and be protected from increases that are likely to take place over the next 30 years. If the current rate is high, an adjustable-rate mortgage may be better because rates can drop. It is good to remember that you will have the option to refinance in the future to take advantage of rate changes as well.

Yes, it may be possible to speed up the process. Consider these tips below:

  • Become pre-qualified or pre-approved for a loan to help the process move faster. A pre-qualification is a better indication that you are a solid buyer, but only a loan commitment from the lender is a guarantee that you will be approved.
  • Obtain a loan commitment, which is guaranteed under pre-set conditions.
  • Prepare your paperwork ahead of time.
    • Check your credit history and resolve any issues. Be able to explain any other questions about your credit that arise.
    • Make sure you have all the documents you need before applying, including personal identification, income verification and tax returns, employment history, and insurance commitments.
  • Respond promptly to any requests from the loan officer to eliminate unnecessary delays.

Mortgage Broker – Helps buyers find mortgage lenders and assists with loan processing.

Mortgage Lender – The company or organization that actually makes the loan.

Loan Officer – An employee of the lender or broker that is directly involved in the loan process from start to finish.

Each lender requires slightly different financial records—this will depend on the type and amount of the loan you are applying for. However, there are some basic records all lenders will request. These include income records (i.e. pay stubs for the previous 30 days, the last two years of tax returns, 2 to 3 months of bank records for each of your bank accounts, and any other additional documents that prove your income). You will also need to furnish information about your current debts such as account numbers and monthly payment information.

Select Your Loan Officer

Mortgage Broker
Gema Miqueli
Adam
Adam Lohman
Alcides Gutierrez
Follow us