Ready to buy a home but have some questions first? Check out below for the most common mortgage questions we get.
1. How can I get a good rate?
Our originators will try our hardest to make sure you get a fair and reasonable rate for your mortgage. You may be able to ask your originator if you qualify for programs with lower rates. You should also make sure you lock your rate as soon as possible so there are no surprises later if rates go up.
2. What’s the difference between a fixed-rate and an adjustable-rate mortgage?
Your minimum down payment will depend on which type of program you’re applying for. There are many programs available with low to no down payment. Ask your originator if you qualify for one of these or for down payment assistance programs- like Semper HALO.
4. Will I need private mortgage insurance?
Some loan programs require private mortgage insurance in addition to a monthly mortgage payment. If you put down less than 20% toward your home purchase, you’ll likely have to pay private mortgage insurance – or PMI. Ask your originator what your options are and if you might qualify for a program that does not require it. The good news is even if your loan does require PMI, once your principal balance reaches a certain amount you are entitled to remove it.
5. Can I prepay my mortgage?
You can certainly prepay your mortgage but some programs come with prepayment penalties. Check with your originator and see if there’s a program you can apply for where you may eliminate prepayment penalties.
6. What are the closing costs?
Closing costs are fees that a borrower pays at closing. These fees cover services provided by the lender and other entities, like title companies. Your originator will provide you with a written estimate of closing costs within three days of filling out your loan application. That way you know what to expect each step of the way.
7. What documents will I need to apply for a loan?
8. How long will it take to process my loan application?
At Semper Home Loans, we close almost every loan in 28 days or less, even government programs like VA and FHA loans. We do everything in-house and have a streamlined process. This allows us to get you into your new home faster and easier.
9. Are there things that could affect my loan approval time-frame?
Things like a job change or a change in income (increase or decrease) can delay the approval of your loan. Also, making large purchases, like buying a new car or financing furniture before you’re approved for a loan can hold you up. It’s important to let your originator know as soon as something related to your income or employment changes. It’s also important to put on hold anything that might affect your credit until you sign your closing documents.
10. How often will I be updated on the loan’s progress?
At Semper, we know buying a home can be a time of both excitement and anxiety. We are dedicated to removing a lot of homebuying stress by notifying you every step of the way. Your originator will let you know as soon your loan moves from one stage to the next, each and every time. We’ll also let your realtor know when your loan moves along the process so that everyone stays on the same page.
Have more questions? Set up a free consultation today and go over anything you’d like with one of our experienced loan originators!