How long will it take before I am contacted by one of your representatives?
Typically you can expect a phone call within one business day, however, times may vary. It is our objective to put you in contact with a qualified loan professional as quickly as possible.

Is my information kept private?
We are 100% committed to maintaining complete confidentiality and privacy. Feel free to read the comprehensive privacy policy found on this site.

Why should I consider a mortgage broker?
Mortgage brokers will search the market to find the most suitable mortgage loan for you. They should take the time to learn about your individual situation to find a loan that best fits your needs. Most traditional primary lenders can only offer their own packages or loan programs. A broker has a much wider array of loan offerings from multiple lenders.

When does it make sense to refinance?
Most industry people will tell you that if your new interest rate is at least one point lower than your current rate then it makes sense to refinance. There are plenty of rules and exceptions, however. For example, if you go from a 30-year fixed loan to a 20-year fixed loan you may be able to reduce the term and finance charges even if the interest rate is not a full one point lower. You also should evaluate the closing costs and have an understanding of how long you plan to own your home. The longer you plan to own the home, the more it makes sense to refinance to a lower rate, particularly when factoring in all the closing costs and other upfront expenses.

What are the advantages of owning a home?
Buying a home is generally a strong investment because as you make your monthly mortgage payments you are building equity. The longer you live in the home the more likely you will build equity. Furthermore, as time goes on, your home will probably appreciate, and this appreciation means more equity and a potential source of cash to the homeowner. Another primary benefit is that the interest and the real estate taxes you pay on your mortgage are usually tax deductible. If you rent, you have nothing to deduct and build no equity. Home ownership is a lot more affordable that most people think.

What factors determine whether you get approved for a mortgage loan?
There are many factors that will help determine your approval for a mortgage. Your gross income is used to help determine if you can afford a monthly mortgage payment. The income may include overtime pay, guaranteed bonus pay, and commissions. Lenders generally estimate that a mortgage payment will be 25% of your gross monthly income. If you cannot afford at least 25% you will probably not qualify. Lenders also look carefully at how much outstanding total debt you have. This includes your future house payment as well as your car payment, credit card or unsecured debt, child support, alimony or any other loan where you make a monthly payment. They will calculate your debt to income ratio, or DTI. If your ratio is too high (too much debt and too little income), your chances of obtaining a loan are slim. Lenders would prefer to lend money to those who have a consistent work history in the same or a related field in addition to a steady employment history. Of course this will need to be verified via pay stubs or through written verification from an employer. If you are self-employed the lender will probably require proof of income and work history through tax returns. Most lenders will request a detailed credit report to verify your debt information and examine your repayment history. Either a lack of credit history of poor credit can hinder your ability to qualify. If you have no credit you can establish credit worthiness through rent or utility payments. If you do have bad credit but can explain the negatives with solid reasons (illness, divorce, etc.), the lender may still approve your loan.

Is there a minimum income you must earn in order to qualify for a mortgage?
Usually there is no set minimum income requirement to qualify for a mortgage. However, average home costs differ by area and so does the average income level needed to support the monthly mortgage payment. Essentially, the size of the prospective loan in relation to your income and debt levels will determine.

Can one late credit card payment disqualify you from getting a mortgage?
In general, one late payment, especially if it is under 30 days, will not automatically prevent you from obtaining a mortgage loan. It is very common for people to simply forget to pay a bill on time. Nearly everyone has been late once or twice for some reason. Lenders acknowledge this and realize it. As long as you can demonstrate that the problem is in the past, and you have been able to reestablish timely payments for a sufficient length of time, you should be okay. It's important to remember that lenders don't simply look at your past credit history, but they also review your ability and willingness to pay in the future. If you don't qualify for the loan you want now, try to address the issues that kept you from being approved. Then, in 3-6 months, you can reapply again.

How long will the mortgage loan process take?
Typically the process will take approximately 30 days. However, it can vary greatly based on your situation. If you have a credit score over 620 and have all the documents, your process could be very quick. Remember it will take time to order an appraisal as well. In a worst case scenario, a difficult to place loan could take 45 days to close. To expedite the process, make sure to have copies of your most recent tax returns, your last 6 pay stubs, and your last 6 bank statements.

What is loan-to-value or LTV and how is it calculated?
LTV is the ratio determined by dividing the loan amount by the value of the property or the sales price, whichever is less. The loan-to-value ratio (LTV) is one of the tools a lender uses to determine if you qualify. For example, if you are purchasing a property that is selling and appraising you would like to borrow $200,000, the LTV is 50%. With fair credit, most lenders will go to 80% LTV. You’ll need very good credit to go higher than that. In some cases, lenders will go up to 100% LTV.

What is private mortgage insurance or PMI?
Private mortgage insurance (PMI) is a type of insurance that protects the lender in case the borrower defaults on their loan, which could ultimately lead to foreclosure. PMI is required on most loan programs where the LTV is greater than 80%. Make sure to confirm with your mortgage professional whether PMI is required for your situation.

What is negative amortization?
Negative amortization occurs when your monthly mortgage payments are not enough to cover the interest that is being charged on your loan. The unpaid interest is then added back to the principal balance, making it more difficult to build equity. Adjustable rate mortgages (ARMs) sometimes allow negative amortization, although they usually have a limit on the amount of negative amortization allowed. If your loan balance should ever go above this amount, you will be required to pay down the excess. You may also have negative amortization if you have a graduated payment mortgage, which features low initial mortgage rates that gradually rise and become a long-term fixed rate.

How many mortgage payments could be missed before you lose your house to foreclosure?
In most cases, you can miss three payments before a lender begins the foreclosure process. It is required by law that the lender notifies you in writing that you are in default and that they are requesting a trustee sale or a judicial foreclosure, so the home can be sold through a public auction. You will still have the opportunity to pay the overdue balance and the pending payments after the lender records the notice of default. However, these must be paid prior to the property’s sale. Actual times may vary by state and by situation.

What repayment methods are there for mortgages?
Generally you will have two choices to repay your mortgage: a standard repayment or an interest only mortgage. If you choose a standard repayment mortgage your monthly payments will include both interest and a portion of the capital or principal. In the early years of the loan, you will be paying more interest. As time goes on, you will begin to pay more in principle. With an interest only mortgage you will just pay the interest while the principal balance will go untouched. In most cases, after 10-15 years, you will then be required to begin repaying the principal.

Are interest rates higher for a cash-out refinance?
No. The interest rate you will pay for a cash out refinance loan should be the same as what you would pay for a non-cash out refinance. However, there may be some incremental fees associated with a cash out refinance loan depending on the specific loan program you choose and your LTV.

Should I pay points to get a lower rate?
If you are refinancing your mortgage, paying points is an option you should consider but it is not always your best option. It may be a better option with a purchase. You can only use the points paid for a refinance on your taxes in small portions (1/30th a year for 30 years). In other words, it may be several years before your reduced interest rate makes up for the points paid upfront. However, if you are purchasing a home, any points used to buy down your interest rate are fully decuctable on your taxes for that year. Consult your tax advisor to be sure. In essence, if you plan to be in your home for a long time, paying points will probably be financially beneficial in the long run. If you are only in the property for a few years, it may not make sense to pay funds upfront.

Are there really “No Closing Costs” loans?
There are very few loans that truly offer no closing costs. What happens is sometimes a lender will not charge application fees and they agree to pay the appraisal and title fees. How can they do this? Simply. They will in turn raise the interest rate. Lenders also have the ability to include the closing costs in the amount of your loan. So even though you may not be paying the costs upfront, you are still paying the costs. Lenders will still call this a “no closing costs loan”. You would have to have excellent credit with a lot of equity or a long standing relationship with the lender to potentially get a true “No Closing Costs” loan.

What is an escrow account and will you need it?
When you close your mortgage, an account is established from which your mortgage company will pay your taxes, insurance and monthly mortgage insurance. This account is called your escrow account. Usually, you will be required to deposit a certain amount of money in your escrow account at closing to start a reserve. Most mortgages require an escrow account.

How much should I put down on a house?
This amount will vary depending on your personal situation and what payments are affordable for you. In most cases a down payment ranges between 0% and 20%. Obviously the more you put down, the lower your monthly payments and the more immediate equity you have in your home.

What can I expect at “closing”?
Closing can mean a few things. With a purchase, it is the NAME of the formal process where the property’s title is transferred from seller to buyer. The lender will provide you an estimate of closing costs when you apply for your loan. Some of these include: origination fees, property appraisal costs, title insurance charges, attorney fees, escrow accounts, mortgage, hazard, or flood insurance, and recording and transferring fees. The total costs may range between 2% and 6% of the mortgage loan amount. “Closing” can also refer to the time or day when a refinance loan closes. Lenders will typically refer to a loan being “closed” it has funded.