Make no mistake, there’s a lot involved in getting a mortgage loan. You wouldn’t be here on our website if you could fill out a one-page application and get the best loan for you funded the same day. Don’t worry, we do most of the heavy lifting for you, so you can concentrate on what’s important — preparing to move into your new home and save money!

There are five main steps involved in getting a loan. You’ll see that we’ve made your part in them as easy as possible, and we do all the work! That’s what we’re here for.

You’ve answered a few questions, given us some detailed information, applied online, and next thing you know, you’re moving in! We’re in the business of mortgage loans — so we do most of the work. Doesn’t that make sense?

Before you begin to shop for a new home, you should set up a time to meet with me so we can figure out how much you can afford. This will put you in a better position as a buyer. That’s when it is important to understand the distinction between being pre-qualified for a loan and pre-approved for a loan. The difference between the two terms will be crucial when you decide to make an offer on a house. 

To get pre-qualified for a loan, I will collect information about your debt, income, and assets. We’ll look at your credit profile and assess goals for a down payment and get an idea of different loan programs that would work for you. I will issue you a pre-qualification letter indicating the amount you are pre-qualified to borrow.
It is important to understand that a pre-qualification letter is just an estimate of what you are eligible to borrow, not a commitment to lend. Getting pre-approved for a loan gives you competitive advantage when the time comes to bid on a home because you have been approved for a loan for a specified amount.
To get pre-approved, you will complete a mortgage application and provide me with various information verifying your employment, assets and financial status such as W-2 forms, bank records and credit card statements. We’ll review your mortgage options and submit your application to the lender that best meets your needs. Once the application process is complete you will receive a pre-approval letter indicating the amount your lender is willing to lend you for your home.
A pre-approval letter is not binding on the lender; it is subject to an appraisal of the home you wish to purchase and certain other conditions. If your financial situation changes (e.g. you lose your job), interest rates rise or a specified expiration date passes, your lender must review your situation and recalculate your mortgage amount accordingly.

 That’s a good question and will depend on a few things.  But for the sake of your time we are going to list a few common scenarios that should give you a good idea.  Please call or email us with any questions. 

1.  Anyone looking to purchase that meets first time buyer requirements and needs down payment or closing costs assistance.  

(You cannot have owned a “primary” or main home in the past 3 years) 

 - No down payment required! If you purchase before Dec. 1, 2009 using the FHA and are single making less than $75K/yr or married making combined $150k/yr or less.  Minimum “middle” credit scores for anyone contributing income must be 620 or higher.  Full income documentation and disclosure required. 

**The USDA and VA both also offer no down payment programs as well.  Click here to learn about USDA.**

2.  Anyone looking to purchase that has their own down-payment money already saved or can save it before executing a sales contract.

- Minimum down payment 3.5% of the purchase price.  The funds for down payment must be in an account in your name for not less than 60 days (2 bank statement cycles) before the “official” loan application is taken and submitted for underwriting.  Minimum “middle” credit scores for anyone contributing income must be 580 or higher.  Full income documentation and disclosure required.

 **Buyers fitting this criteria may still be eligible for the first time home buyer tax credit but will not be able to use it for down-payment or closing costs because of the lower minimum credit score**

3.  Anyone needing to refinance an existing mortgage.

- No cash back allowed.  No more than 2 payments can have been made more than 30 days late in the past 12 months.  Minimum “middle” credit scores for anyone contributing income must be 560 or higher.  Full income documentation and disclosure required.

4.  Anyone wanting a cash-out refinance, home equity, pool or debit consolidation loan.

- You cannot have made more than 1 mortgage payment more than 30 days late in the past 12 months.  Minimum “middle” credit scores for anyone contributing income must be 660 or higher.  Full income documentation and disclosure required.

** We do offer additional cash-out loan options but they are on a case-by-case basis – please call us.**

5.  Anyone needing to refinance an existing FHA  mortgage. (No Cash Out Refinance)

- You must have a current FHA Mortgage and cannot have made more than 1 mortgage payment more than 30 days late in the past 12 months.  Minimum “middle” credit scores for anyone occupying the home must be 500 or higher.  Income and disclosure of liabilities may not be required.  A property appraisal may not be required for this type of loan either.

Please note that in today’s rapidly changing market these minimums are subject to change and are the minimum score requirements on 7/1/2009.  Each program is subject to its own income, appraisal and title requirements.