Here are a few common questions our clients have. If you have other questions, get in touch and we’ll be happy to get you the answers you need.
Q. Can I get a mortgage if I’m self-employed?
A. Absolutely. In fact, a large percentage of our customers are self-employed. We review the same financial information for self-employed customers as we do for traditional employees.
Q. Can I get a loan if I do not have a down payment?
A. Yes, there are programs (FHA, USDA, VA loans) that will allow you to purchase a home with little or no money down. We also have options where your down payment (in part or in full) can be a gift from family or friends.
Q. Can I get a loan if my credit score is only OK?
A. Yes. While your credit score is important, we look at a variety of factors to understand your overall financial picture. If your score is above 640, we can help you find the loan that works best for you. And we can even offer guidance on how you can improve your credit score for the future.
Q. What is a “DTI ratio,” and why is it important?
A. It’s a debt-to-income (DTI) comparison, and it’s one of the many factors we consider as we determine what programs, loan amount, and loan rates you qualify for.
Q. What is PMI? Do I need it?
A. PMI is private mortgage insurance, and it’s only applicable if you are borrowing 80% or more of the appraised value of a property.
Q. What are closing costs?
A. Closing costs are simply fees that cover the costs for the professional and legal services that have to happen to process your loan. This could include an origination fee, appraisal fee, credit report, attorney services, title insurance premium, underwriting, courier fees, government recording fees, and your initial homeowners insurance and real estate tax payments. We’ll review each fee in detail with you so that you’re clear on each and every one.
Q. What are points?
A. Simply put, points are a way to purchase a lower interest rate than the standard rate offered at the time. We can help you determine whether it makes sense for you to purchase points to lower your rate or not.