Answers to Freguently Asked Questions about property purchase and refinance
HOW CAN I GET PRE-APPROVED?adminIn order for us to issue a pre-approval for you, we would need to review your taxes, income and assets. Contact our office to get started.
WHAT IS AN APPRAISAL? WHY DO I NEED IT?adminAn appraisal is an evaluation of property obtained from an independent certified professional. It is needed to help the lender to determine market value of the property you are purchasing, since the property will be used as collateral against the mortgage.
WHAT ARE MORTGAGE POINTS?adminOne point equals one percent of your loan amount. Discount points are onetime fee that you may choose to pay to lower your interest.
WHAT ARE CLOSING COSTS?adminClosing costs include fees for title insurance, escrow services and pre-paid interests, just to name a few. Once you open escrow, you will be presented with a list of estimated fees.
WHAT IF MY CREDIT IS LESS-THAN-PERFECT?adminThere are still options for lower credit score or damaged credit history. Contact our office to discuss available portfolio programs.
WHAT IS INCLUDED IN MY MONTHLY MORTGAGE BILL?adminDepending on the program and term of your mortgage, each month your payment will pay down the principal and interests. Typically, a bigger portion of your payment will go towards you interest, especially in early years of your term. Additionally, depending on details of your loan, portion of you payment may be applied to mortgage insurance, homeowner’s insurance, property tax and flood insurance if applicable.
WHY DO I NEED TO REFINANCE?adminThere are a few reasons to consider refinancing:
- Lower your monthly payment
- Switch from adjustable to fixed rate
- Lower your interest rate
- Cash out to pay off other debt
- Change term of your loan.