Here are a few common mortgage questions and terms to help you along your home buying journey. To speak with an expert about securing a mortgage to purchase a home, contact Rooted&Co today.
What is pre-qualification?
Basic info is gathered, like income + debts. An opinion is made on how much you qualify to purchase.
What is pre-approval?
This occurs after a lender verifies all information submitted during pre-qualification. Lets you know price and term for your mortgage. A pre-approval empowers you during negotiations by giving the seller confidence that your finances are in order.
We suggest you complete pre-approval prior to searching for a home!
Is there a cost to apply for a mortgage?
Occasionally the cost of a credit report will be charged during the application process. All other upfront fees, (like an appraisal) will be disclosed to you as part of the process.
How long will the loan process take?
Final Approval and funding time vary depending on the type of transaction and complexity of your finances. The process can take as little as 10 days, and sometimes up to 45 days.
Final approval may include: credit, length of employment, type of income, debt, liens or judgments, property type or condition, and more.
What is a lock-in rate?
The interest rate used to calculate your monthly payment. This secures the interest rate during the process of your loan approval, as long as you close prior to the rate expiration date.
When can I lock in my rate?
You can lock-in your interest rate once you have an accepted offer on a property.
How long is my rate lock valid?
Lock periods can be valid anywhere from 15 days to 180 days.
What documents will I receive at closing?
All of the legal documents for the property you’re purchasing will be reviewed, and you’ll sign each one. You will receive copies, then it’s filed and recorded. Also included will be your mortgage payment schedule and servicing information for your new loan.
Can I still get a home mortgage if I’ve experienced credit challenges?
Obtaining a home loan is possible even with poor credit. The worse your credit is, the more you can expect to pay for an interest rate and a down payment. If you have had credit problems in the past, a lender will consider you a risky borrower. To compensate for this added risk, the lender will charge you a higher interest rate and usually expect you to pay a higher down payment (typically 20-50% down).
Source Reference: https://snmc.com/homebuyer-education/frequently-asked-questions/