What is an Adjustable Rate Mortgage?

An Adjustable-Rate Mortgage (ARM) interest rates are tied directly to the economy so your monthly payment could rise or fall. Because you're essentially sharing the market risks with the lender, you are compensated with an introductory rate that is lower than the going fixed rate.

What is a VA Loan?

Administered by the Department of Veterans Affairs, these special loans make housing affordable for U.S. veterans. To qualify you must be a veteran, reservist, on active duty, or a surviving spouse of a veteran with 100% entitlement.

What is a FHA Loan?

FHA loans are designed to make housing more affordable for first-time homebuyers and those with low to moderate income.

How long will I be guaranteed the quoted interest rate?

This is called "locking in" a rate and most lenders provide this service. When you apply for your loan, the lender will lock in the agreed interest rate for an agreed period of time.

What Costs Will I Pay at Closing?

Closing costs vary according to lender, location and even from sale to sale. Some costs can be negotiated, reduced or even waived and some may be paid by the seller.

What is a Fixed Rate Mortgage?

In a fixed-rate mortgage, the loan's principal and interest are amortized, or spread out evenly, over the life of the loan, giving you a predictable monthly payment.

How Much House Can I Afford?

Your monthly payments (principal and interest) should be 1/4 of your gross pay, or 1/3 of your take-home pay.

What is private mortgage insurance?

If you are financing over 80% of your homes value, most lenders require you to carry private mortgage insurance (PMI). Private mortgage insurance provides assurance that if you default on your payments, the lender will be able to recoup at least 80% of the money lent to the borrower. The buyer typically bears the cost of the PMI insurance for the lender.

What are No Doc Loans?

No Doc, or No Documentation Loans are beneficial for self-employed individuals, contractors, and wait service staff. No Doc Loans require that no employment, income, or assets be stated on an application. These loans are usually offered at higher rates than many other loan options.

What is No Income Verification, or NIV?

NIV stands for No Income Verification. It can be a part of the No Doc Loan process, or it can be a part of a Stated Income Loan.

What are Conforming and Non-Conforming Loans?

Conforming and Non-Conforming. Conforming Loans are typically given to borrowers with higher credit scores than are Non-Conforming Loans. Conforming Loans also are generally “Fannie Mae” or “Freddie Mac” loans.

How important is your credit report?

You don’t have to have perfect credit to obtain a mortgage loan, but if you have a number of late payments you will need to provide a letter explaining why those payments were late.

What does pre-approval mean?

A pre-approval means your loan has been looked at and your credit examined and you have been matched to a loan program. All pre-approvals will be subject to the conditions provided to you on the pre-approval being met and accepted by an underwriter.