Why should I use a mortgage broker instead of my bank?
A mortgage broker’s expertise and sole focus is mortgage lending, whereas your bank tries to offer a multitude of different services. We have several investors to choose from when it is time to shop for the best interest rates rather than just offering you the bank rate of the day.
When is the best time to start the mortgage process?
If you are considering purchasing a home in the next 12 months it is time to get pre-qualified! You want to have your finances in order when the perfect house becomes available. Once you are under contract to purchase a specific home, the complete process usually takes between 30 and 45 days to get you to closing.
What is pre-qualification and why is this important?
A pre-qualification is a basic review of your finances to determine what kind of mortgage you may qualify for. We do not charge for a pre-qualification consultation except for the actual cost of pulling your credit. This is usually the first step in buying a home and in doing this you are under no obligation to secure a mortgage loan. A pre-qualification letter from a reputable lender will give you and your REALTOR® confidence in knowing you will be able to get a loan when you find the house that is right for you. Be sure to bring in any documentation we have requested as soon as possible to make sure there are no surprises in the loan approval process.
What factors affect mortgage interest rates?
Several different factors influence the mortgage rates such as the Federal Reserve Rate, the economy, world politics and foreign markets. Rates are subject to change daily depending on market conditions.
Should I “lock” my interest rate?
A rate lock means that you have secured today’s mortgage interest rate and guaranteed it for some period of time, typically 30-45 days. This is especially valuable when interest rates are trending upward. When you sign a loan application with Love & Love Mortgage Inc., a rate can be locked at no charge to you, possibly even with a credit toward closing costs.
What documentation will be required from me?
Generally, you can expect your mortgage broker to request the following during the qualification process:
- Income verification – 2 years’ tax returns, W-2s, 1099s, and recent pay stubs
- Identification – valid drivers’ license and social security card (or similar)
- Bank statements / proof of funds
Do I need to plan for a 20% down payment?
The amount you will need to put down when securing a mortgage varies by loan program and personal financial factors. You can secure a Conventional mortgage with as little as 3% down payment, an FHA loan with 3.5% down, and a VA or USDA loan with no money down at all. Give us a call at (325) 795-1000 to learn which loan program may be right for you!