Should I Buy Or Should I Rent?
This can be a difficult question for many first Time Home Buyers. To begin determining what is the right course of action for you; ask yourself the following:
All these questions should have helped understand that it is a choice that only you can make. But if you want the pride of ownership that comes with buying you already have made your choice. |
Am I going to be in the same area for a long period of time? Can I afford the same type of lifestyle if I am going to buy? Do I want the responsibility of home-ownership? Is the house that I want to buy going to be a good investment? Am I going to regret not buying and paying off my home? |
When Should I "Lock In" an Interest Rate?
Have a mortgage broker help you make this decision. Many locks can expire after 30 or 45 days and depending on where you are in the buying process you might want to lock in right away. The rates could get higher if you wait and you might be disappointed to find that out. Also consider the fact that the market is unpredictable you never know what the rates will be tomorrow so your best bet is to lock in while you know the numbers.
What Happens If I lie to Get a Loan?
You would be committing mortgage fraud. Mortgage Fraud is a crime in which the intent is to materially misrepresent or omit information on a mortgage loan application to obtain a loan or to obtain a larger loan than would have been obtained had the lender or borrower known the truth. The Fraud Enforcement and Recovery Act was signed into law by President Barack Obama in May 2009. It increased the penalties for a federal conviction for mortgage fraud to a maximum of 30 years in prison and a fine of up to $1 million. FERA also increased the statute of limitations for mortgage fraud from five years to 10 years.
How Does B2 Funding Offer The Best Home Loan Rates?
We shop multiple lenders and receive wholesale rates from our lenders. This helps maximize the quality of the rates that we can offer our clients. This is a very competitive market but we do our best every day to save you the most amount of money based on the current rates.
Should I get Pre-Approved Before I Pick a New House?
This decision is up to you but getting pre-approved is normally how people choose to purchase homes. This way your realtor knows exactly with how much funds you are able to spend.
How Quickly Can B2 Funding Close on a Home Loan?
A loan closing is usually 20 - 30 days, however, sometimes depending on disclosures or appraisals closing can take longer. If you are locked in to a rate make sure you are giving yourself sufficient time to get all the steps completed.
What Information Do I need To Provide On An Mortgage Application?
You should have:
Depending on your lender, you may be asked for other information.
- Social security numbers for both your and your spouse, if both of you are applying for the loan.
- Copies of your checking and savings account statements for the past 6 months.
- Evidence of any other assets like bonds or stocks.
- A recent paycheck stub detailing your earnings.
- A list of all credit card accounts and the approximate monthly amounts owed on each.
- A list of account numbers and balances due on outstanding loans, such as car loans.
- Copies of your last 2 years' income tax statements.
- The name and address of someone who can verify your employment.
Depending on your lender, you may be asked for other information.
What Are LENDER fEES?
Lender fees are items payable in connection with the loan and contribute to the total amount of the loan's closing costs. These are the fees that lenders charge to process, approve and make the mortgage loan. Don’t forget that lender fees are just a part of a loan’s closing costs. You will also probably be expected to pay origination fees, charges for pulling your credit report, title search and insurance. You can usually expect closing costs to be around 2 to 6 percent of your total mortgage.
Also remember that your lender is required to give you a Good Faith Estimate, or GFE, of what you can expect to pay at closing. Your Good Faith Estimate will give you ballpark figures of what you will charged, including lender and attorney fees, title search, origination fees and all of the other components of your mortgage.
Also remember that your lender is required to give you a Good Faith Estimate, or GFE, of what you can expect to pay at closing. Your Good Faith Estimate will give you ballpark figures of what you will charged, including lender and attorney fees, title search, origination fees and all of the other components of your mortgage.
dOES fILLING oUT a hOME lOAN aPPLICATION oBLIGATE mE TO pURCHASE?
Nothing at all. Filling out an application for a home loan does not obligate you to anything
wHY iS tHE apr dIFFERENT ON mY tRUTH in lENDING dOCUMENT?
The Annual Percentage Rate (APR) is the cost of your credit expressed as an annual interest rate. Points and other prepaid finance charges are factored into the APR to show the true yield on the loan, which is why the APR is often higher than your note rate. The APR can be compared to the APR on other loan programs to give you a consistent means of comparing rates and programs.
wHAT IS aN 80/10/10 OR A 80/15/5?
An 80/10/10 is an 80% first lien, a 10% second lien and a 10% down payment. The 80/10/10 structure allows for 90% financing without mortgage insurance. When a borrower chooses to put less than 20% down for a down payment, he may either split the loan amount into two liens (80/10/10 for example), or he may opt to have one 90% lien and pay mortgage insurance. In the same manner, an 80/15/5 is an 80% first lien, a 15% second lien and a 5% down payment.
hOW cAN i gET bETTER fINANCING?
The best thing that you can do is make sure your credit is as good as possible and also make sure that your Debt to Income Ratio is not too high. The better numbers you walk in with the more flexibility you will have with structuring your loan, as well as being qualified for a better interest rate.
How Much Will I qualify For?
That all really depends on all the factors of your credit - best thing to do is call us and we can help you see how much you could qualify for.
What Are Income and Debt Ratios?
his is the difference of how much money you make and how much your monthly spending is.
What Is Mortgage Insurance?
Mortgage Insurance insures lenders in the event of a borrower's foreclosure. It is paid for by the borrower, and allows lenders to grant loans that they otherwise would not consider. Depending on credit scores and loan structure, mortgage insurance may be required when the down payment is less than 20%