Mortgage FAQs

Mortgage lingo and everything that comes with purchasing a home can be a lot to take in and understand.
We have put together a list of frequently asked questions when it comes to buying your home. 

One of the most popular questions asked of me by borrowers and one that cannot be answered with a quick response is what are rates today?  Interest rates have several variables: 
 
  • Loan product, term of the loan, credit scores, downpayment or loan size,
  • If you are a first time homebuyer or step up  homebuyer,
  • or for that matter the rates could be different from lender to lender.  Lenders can move rates up or down depending on if you are wanting to buy down the rate and pay fees or if you would rather have a little higher rate to offset paying some loan fees.
Your first step is to apply for the loan to determine the best financing options, determine which rate would make the most sense for your specific situation and then make sure that you qualify for that monthly payment based on that rate.  The next question that you should ask once you are preapproved should always be “WHAT IS THE APR” (annual percentage rate)?  The APR incorporates all of the fees tied to the loan.    
 
Profinium Inc. NMLS# 402979 
Jannell Tufte NMLS# 402028 
Member FDIC || Equal Housing Lender 
Loans are subject to credit and underwriting approval. 
Once you are preapproved and ready to start shopping for a home, it might be time to find out what the APR is.

Now that you have an idea of what interest rates would be for your particular circumstance, you should start looking at fees tied to your loan. A high APR isn’t always a bad thing so just make sure you are having the in-depth discussion with your lender to determine if it is better for your situation to pay discount points for a lower rate or if locking in on a little higher rate to offset some fees makes more sense.

Profinium Inc. NMLS# 402979
Jannell Tufte NMLS# 402028
Member FDIC || Equal Housing Lender
Loans are subject to credit and underwriting approval.
This is going to vary for everyone and your own individual situations. I will always listen to your story and tell you the pros and cons of each loan product and allow you to make that decision. Going through loan terms, downpayment options, and fees tied to the loan will help you determine which loan product best fits your situation.

Profinium Inc. NMLS# 402979
Jannell Tufte NMLS# 402028
Member FDIC || Equal Housing Lender
Loans are subject to credit and underwriting approval.
A “hard” credit check is oftentimes called a “hard inquiry” meaning this inquiry will show up on your credit report. For me to give you a decision on the loan approval or interest rate I do need to do the hard credit check.

If you are shopping around on Mortgage options with other lenders there is minimal impact on your credit score if these credit checks are done within a short period of time. There could, however, be other reasons your credit score could drop (or increase) for instance, using your credit cards, paying off a loan or taking out a new loan.

Profinium Inc. NMLS# 402979
Jannell Tufte NMLS# 402028
Member FDIC || Equal Housing Lender
Loans are subject to credit and underwriting approval.
Most lenders do not charge to lock in an interest rate so once you have a property address or are ready to move forward on a refinance and have decided on a lender you will want to lock your interest rate. Locking in a rate ensures you that the rate won’t go up.

Profinium Inc. NMLS# 402979
Jannell Tufte NMLS# 402028
Member FDIC || Equal Housing Lender
Loans are subject to credit and underwriting approval.
An origination fee provides additional profit to the lender so you will want to ask your lender what fees are being charged by them that are either built in to the rate or are detailed on the Loan Estimate. There are other third party charges such as title searches, an appraisal, collection of property taxes and State and Local tax and recording fees.

Profinium Inc. NMLS# 402979
Jannell Tufte NMLS# 402028
Member FDIC || Equal Housing Lender
Loans are subject to credit and underwriting approval.
This of course will depend on the date decided amongst the buyer and seller of the property as well as how quickly you, the buyer, provides documentation to your lender which is needed to fully approve the loan. Other variables are timeframes for an Appraisal and Title Insurance. Signing disclosures timely also helps speed up the process and a faster process would be to ask your lender about electronically signing documents as opposed to paper signing.

Profinium Inc. NMLS# 402979
Jannell Tufte NMLS# 402028
Member FDIC || Equal Housing Lender
Loans are subject to credit and underwriting approval.