Some Frequently Asked Questions
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A: Home Loan pre-qualification is used by a mortgage broker or lender to help you determine how much of a loan you can afford. This is beneficial to you when house hunting so that you don’t fall in love with a house that you can’t afford. Pre-approval is saying that you are conditionally qualified by a financial institution for a loan.
This is, of course, subject to the review of your completed application, verification of your income, assets, employment history, credit check, etc. Having pre-approval makes the home-buying process go much smoother when you’re ready to submit an offer on a home.
If you're curious about what loan amount you might qualify for before you fill out an online application, you can download my Mortgage Calculator app.
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A: No, submitting your loan or refinance application to a loan officer or mortgage broker is free. You’re under no obligation to purchase or refinance once you submit your application.
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A: This varies based on the loan program (such as conventional loans, First Time Home Buyers loans - FHA, or VA loans, etc.) and whether you're looking to purchase a home as first-time homebuyers or refinance a current mortgage.
While there are several mortgage solution programs that require income statements and past tax filings, others don’t require any documentation at all. Once we determine what type of loan is best for you, I’ll be able to give you a complete list of the documents needed to proceed.
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A: Once I receive your application, I’ll review it to see if any additional information is needed for your credit approval. Either way, I will be in touch with you within 24 - 48 hours.
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A: There are several loan programs that don’t require down payments depending on your credit score, employment history, location, etc. Once you fill out an application, we can determine whether or not this is an option for you.
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A: Mortgage insurance is financial protection for the bank or lender against taking a financial loss in the event that the clients (lendee) default on the loan (stops making payments). It is required on mortgage programs with little or no down payments, such as an FHA or First Time Home Buyers loan.
There are several ways in which mortgage insurance can be avoided on loans, and we can explore those once we have your application.
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A: Yes, it's possible. Depending on several factors, including whether you filed Chapter 7 or Chapter 13, there may be a brief waiting period of 2-4 years before you can get approval for another mortgage loan.
The best mortgage lenders will work with you to help you prepare for when you are able to apply for home loans. I’m happy to speak with you about your options based on your current situation.
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A: Government-backed loans have become a great option for clients. They are easy to qualify for and have low rates, which are incredibly attractive to buyers. Many of these programs have incentives such as little to no down payments, no pre-payment penalties, and fewer fees and charges for establishing the loan.
I will be happy to go over them all with you in detail to determine which of the Nebraska home loans is the right loan for you.
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A: Your Adjusted Rate Mortgages have variable interest rates. These rates can change on a monthly basis depending on the current market conditions. They are determined by adding a margin to an index on a specific date.
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A: This is a short-term loan that includes payments that gradually reduce the total initial cost over a longer period of time. These payments won’t pay off the loan within the term, so the remaining balance (aka the balloon payment) is due in full at the maturity of the note.
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A: The interest rate is the rate you agree to pay for your mortgage loan. It is used to determine the interest portion of your monthly mortgage payment. The annual percentage rate (APR) includes your interest rate and prepaid finance charges to give you an average yearly rate.
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A: This is set up by lenders on your behalf to collect money for property tax payments and homeowners insurance in equal amounts over the course of the year. Your escrow account will stay up to date and pay your homeowners insurance and property taxes automatically, so you don’t have to worry about it when the time comes.