Answers to Freguently Asked Questions about property purchase and refinance
1HOW CAN I GET PRE-APPROVED?
In 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.
2WHAT IS AN APPRAISAL? WHY DO I NEED IT?
An 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.
3WHAT ARE MORTGAGE POINTS?
One point equals one percent of your loan amount. Discount points are onetime fee that you may choose to pay to lower your interest.
4WHAT ARE CLOSING COSTS?
Closing 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.
5WHAT IF MY CREDIT IS LESS-THAN-PERFECT?
There are still options for lower credit score or damaged credit history. Contact our office to discuss available portfolio programs.
6WHAT IS INCLUDED IN MY MONTHLY MORTGAGE BILL?
Depending 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.
1WHY DO I NEED TO REFINANCE?
There 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.
2DO I NEED A PERFECT CREDIT SCORE TO REFINANCE?
No. High credit score will definitely give you an advantage in interest rate, however, having a lower credit score will not necessary disqualify you.
3WHEN SHOULD I REFINANCE?
Generally speaking, a good time to refinance would be when the mortgage interest rates are falling or once value of your home went up. Also, if you see that you can afford to pay off your mortgage in a shorter term.
4CAN I CONSOLIDATE MY OTHER DEBTS WHEN REFINANCING?
Yes, you can take cash out of your house and payoff some or all of your other debts. Generally, mortgage interest rates are lower than other types of loans, hence, refinancing into a higher amount to pay off you other debts will be beneficial.