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Q. What are a mortgage banker, lender and broker?
A. A mortgage banker is a lender that is large enough to originate loans and create pools of loans, which they sell directly to others like Fannie Mae or jumbo loan investors. Mortgage lenders wholesale loans to mortgage brokers at a lower cost than their retail branches offer them to the general public. Mortgage brokers establish relationships with several lending institutions to be able to originate the best possible mortgage loans from a large pool of choices.
Q. What is the difference between pre-approval and pre-qualification?
A. The pre-approval process is much more complete than pre-qualification. For pre-qualification, one of our mortgage consultants asks you a few questions and provides you with a “pre-qual” letter, which only takes a couple of minutes. Pre-approval includes all the steps of a full approval, except for the appraisal and title search. Pre-approval also only takes a few minutes if you've gathered the information you need to provide in advance.
Q. What information do I need to provide to qualify for a loan?
A. The following is a compiled list detailing the documentation you will need if you apply for a loan with Allsales Mortgage.
- Complete, signed Purchase and Sales Agreement with all addendums
- Property Information Listing Sheet from your real estate broker
- Verification of total deposit held by your real estate broker (copies of checks)
- Copies of your bank statements for all asset accounts (checking, savings, CD's, IRA's, etc.) from the past two months
- Copies of your most recent pay stub from your employer
- Copies of your last years W2 form. Also, complete tax returns if you are self-employed, commissioned, or if you have overtime income
- Copies of your last twelve months of canceled rent checks, if you currently rent (optional)
For refinances please add the following:
- Property Deed
- Recent Real Estate Tax Bill
- Homeowners Insurance Policy
- Current Mortgage Statement
If you are unable to provide some of this information, contact a Allsales Mortgage consultant to discuss possible alternatives to qualify.
Q. How do I get started?
A. Gather together all of the documentation you need to fill out the loan application and either call our offices to speak with a mortgage consultant or complete and submit your mortgage application online. A Allsales Mortgage consultant will contact you within 24 hours of submission. Our mortgage consultants are available to guide you through the loan process, answering any questions you may have along the way.
Q. How long does it take to close a loan?
A. Not too long ago closing a loan was a long and difficult process. Due to improved communication processes and the efficiency of the internet you can be pre-approved in minutes and have your loan close in 3-4 weeks. Some loans take a little longer while others can be closed within a week. Talk with a Allsales Mortgage consultant to discuss the options for your situation.
Q. When should I refinance my home?
A. Usually people refinance to save money, either by obtaining a lower interest rate or by reducing the term of the loan. Refinancing is also a way to convert an adjustable rate loan to a fixed loan or to consolidate debt. The decision to refinance can be difficult, since there are several reasons to refinance, and refinancing may not be right for everybody. If you are looking to save money, try this simple calculation:
- Calculate the total cost of the refinance.
- Calculate the monthly savings.
- Divide #1 (cost of refinancing) by #2 (monthly savings) to determine the “break even” time.
- If you plan to own your home longer than the break even time, you will save money by refinancing.
Another tool to determine whether refinancing is right for you is our mortgage calculator. Or contact a Allsales Mortgage consultant to discuss the possible benefits of refinancing.
Q. Can I qualify for a loan if I have bad credit?
A. At Allsales Mortgage we evaluate each customer's credit report on an individual, case-by-case basis. Therefore past credit problems won't necessarily disqualify you. After considering a range of factors from credit to employment history, our mortgage consultants can access a full menu of loan programs to find a mortgage that's right for your situation. We can also provide you with tools to improve your credit. Fill out an online application or call and talk to one of our mortgage consultants.
Click here for answers to questions you may have about what makes up your credit score and how to interpret your credit report. Or contact a Allsales Mortgage consultant.
Q. What are points?
A. When you pay “points,” you pay interest in a lump sum upfront to get a lower rate on your mortgage for the life of the loan. Each point costs 1% of the mortgage loan amount. The more points you pay, the lower your interest rate.
Q. Should I pay points for a lower rate, or pay no points for a higher rate?
A. The longer you plan to have your mortgage, the more it makes sense to pay for points now because you'll have a long time to benefit from the lower rate. By paying points you will always get the lowest rate.
Q. How is buying points beneficial?
A. When you buy points you are guaranteeing yourself the lowest possible rate in the marketplace that day. Contact a Allsales Mortgage consultant to see your specific cost benefit. |
