Mortgage eligibility depends on various factors, including credit score, income, employment history, debt-to-income ratio, down payment amount, and the property's appraised value. Reach out to see how if you are eligible for any of our loan programs or get on a plan to become pre-approved.
What is Private mortgage insurance (PMI), and when is it required?
PMI is insurance that protects the lender if the borrower defaults on the loan. It is typically required when the down payment is less than 20% of the home's purchase price.
Are there any fees associated with getting a mortgage?
Yes, there are various fees involved in the mortgage process, including origination fees, appraisal fees, title fees, closing costs, and prepaid expenses like property taxes and homeowners insurance. It's essential to review and understand all fees before closing. Closing costs typically range from 2% to 5% of the loan amount.
What documents do I need to apply for a mortgage?
Common documents include proof of income (such as pay stubs or tax returns), employment verification, bank statements, identification (driver's license, passport), and information about assets and debts.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is an informal estimate of how much you might be able to borrow based on basic financial information provided to the lender. Pre-approval involves a more thorough review of your financial documents, resulting in a conditional commitment from the lender for a specific loan amount.
How does my credit score affect my ability to get a mortgage?
Credit score plays a significant role in mortgage approval and interest rate determination. Higher credit scores generally result in lower interest rates and better loan terms, while lower scores may lead to higher rates or loan denial.
Can I get a mortgage if I have a low credit score or past credit issues?
While having a low credit score or past credit issues may make it more challenging to qualify for a mortgage, there are loan programs available for borrowers with less-than-perfect credit. These may include FHA loans or specialized programs offered by certain lenders.
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