1. Q: Why should I use a mortgage broker instead
of a bank?
- A: A broker will give you one on one service
that most big banks will not provide. When you work with
a broker you are not just a number, at Neufville Mortgage
you can speak with your loan officer 24/7.
2. Q: Do you pay higher rate and more points when you use
a broker as opposed to when you use a bank?
- A: No, some banks actually charge you
more than brokers because you are getting retail rates and
your points are already incorporated into your rate. Also,
most banks and brokers use the same sources to get your
loan approved.
3. Q: If I sign a loan application does that mean I have
to use that particular lending institution?
- A: No, a loan application is just an initial
application taken by the loan officer to obtain information
to see if you qualify for a mortgage.
4. Q: When shopping around for a mortgage should I have all
my potential lending institutions run my credit?
- A: No, having a copy of your credit report
handy is always good. This avoids your credit being run
numerous times and also makes it easier for you to get pre-
qualified. You can obtain a copy of you’re credit
report for free from any of the three credit reporting agencies
5. Q: If I choose a lending institution do
I still have to follow through with the loan process with
that particular lender?
- A: No, if you’re
not happy you can always change lending institutions at
any time as long as the time on your contract has not expired.
Also by law, you’re entitled to a copy of all documentation,
this includes your appraisal.
6. Q: How long does it take to receive a loan
approval?
- A: It can vary depending
on loan the program you have applied for and documentation
needed prior to loan submission, but in most cases it should
not be more than 5 business days.
7. Q: How do I know if I am getting a good
interest rate?
- A: It is good to shop around,
you can check rates in the paper, on-line and it is also
good to speak with friends and family that have recently
applied for a mortgage.
8. Q: Do I need to have money saved up to
apply for a mortgage?
- A: Most of the time but
not all of the time there are some programs that allow a
100 percent financing as long as the seller is willing to
pay your closing costs. Money reserves may be required which
can be funds in your 401K, IRA or market account.
9. Q: Do I have to show income to apply for
a mortgage?
- A: No, there are hundreds
of programs available for borrowers who cannot or do not
show income to qualify for a mortgage.
10. Q: How many properties can I own at one
time?
- A: A borrower is usually
allowed to own up to six properties at one time, however,
only one property will be considered an owner occupied residence.
11. Q: Are there usually any initials out
of pocket expenses or application fees associated with obtaining
a mortgage?
- A: No, all lending institutions
usually have a free pre-approval process, if you run into
one that charges for a pre approval you should probably
shop around for another lending institution.
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