When should I get approved when looking to buy a home?
You will have a much stronger offer walking in with a full approval. This will make you, as a candidate, and your offer more desirable for seller consideration.
What is the difference between a fixed-rate loan and an adjustable-rate loan?
A fixed rate loan is a loan in which the interest rate is set at a certain percent that does not change over the life of the loan. An adjustable rate mortgage (ARM) has a rate that is fixed for a set period of time, usually years, then after the set period ends the rate will go up or down based on a market index.
Which type of loan should I get?
When deciding to choose which route to go, consider factors such as how long you plan to stay in the home or if you plan on selling the home relatively soon. ARM loans generally are lower than fixed-rate loans, which could benefit you if you plan on selling. However, if you plan on staying in the home for the life of the loan, a fixed-rate mortgage might be best. We can help you determine which loan type best fits your situation.
What determines my interest rate?
There are several factors that go into what interest rate you will be offered. Rates are determined by a combination of the current market and your personal qualifications. The value of the home, your credit history, loan amount, and other factors influence your interest rate.
What factors determine if I qualify for approval?
There are three factors to consider when trying to qualify for a home loan. First, your credit history and your FICO score will be factored. Second, the value of the property will be assessed. Finally, your debt-income ratio will be evaluated. These are the three main factors considered when getting approved for a home loan.
How quickly do I get the money from the loan?
For a home purchase, the funds will be available on the day of your closing. For a refinance, due to federal regulations, it takes a few days for the funds to be available.