888-360-0030
sellington@tcmtge.com
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Sandra Ellington

NMLS ID 917291

888-360-0030 sellington@tcmtge.com

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No, you do not necessarily need a good credit score however it helps with your interest rate. The lower your FICO score, the higher is your interest rate. It is possible to get a conventional mortgage with a FICO credit score as low as 620, and you can obtain a higher-cost FHA mortgage with a FICO score 580.

One can obtain a conventional mortgage with as little as 3% down, an FHA loan with 3.5% down. VA or USDA loan requires zero down payment. However, with a conventional or FHA loan, you'll have to pay private mortgage insurance, aka PMI, if your down payment is less than 20% of the home's sale price.

It varies but expect to pay 2% to 3% of the home price in closing costs.

It is extremely important to choose the type of loan that will best suit your current circumstances. 30-year Fixed rate makes good financial sense for long-term goal. But if you plan to sell the home in 5 to 7 years, an ARM could end up saving you thousands of dollars.

Interest rates are unpredictable, so it is always good idea to lock in the rate

There are several different types of mortgages to choose from and it is best to consider there Pros and Cons. A conventional mortgage is tougher to qualify for credit-wise, but an FHA loan can be pricier. If you're a veteran, a VA loan could be the best option for you, and if you plan to buy a home in a rural area, a USDA mortgage could give you a no-money-down option.

Money that you pay up front on your mortgage in exchange for a lower interest rate.It can be a good financial saving idea.

This depends on how much monthly payment you can afford. 15-year comes with a lower interest rate.

Your lender may ask for many different items, but in general, be prepared to show all the following:



  • Income verification (Last two years' tax returns, W-2s, 1099s, and your last few pay stubs)

  • Drivers' license and Social Security card/passport

  • Bank statements

  • Proof of funds to close

If some or all of your down payment is coming from a gift, you will need gift letter from the source of the funds that confirm they are a gift, not a loan.

A pre-qualification is a basic review of your finances to determine if you would qualify for a mortgage.

Lender will check your credit, verify your income and employment, and commit to lending a certain amount of money

Mortgages tend to take at least 20-30 days to originate, and many first-timers don't expect this much of a waiting period. At Top Class Mortgage, Inc we can close your mortgage in 20 days.

There are four parts of your mortgage payment – Principal, Interest, Taxes and Insurance commonly refer to as PITI.

Probably. Even with a fixed-rate loan, your payment is likely to change over time because your escrow account tends to fluctuate. Meaning, property taxes, and insurance expenses can increase or decrease.

The pre-approval process is much more complete than pre-qualification. For pre-qualification, the loan officer asks you a few questions and provides you with a pre-qual letter. Pre-approval includes all the steps of a full approval, except for the appraisal and title search. Pre-approval can put you in a better negotiating position, much like a cash buyer.

Usually people refinance to save money, either by obtaining a lower interest rate or by reducing the term of the loan. Refinancing is also a way to convert an adjustable loan to a fixed loan or to consolidate debts. The decision to refinance can be difficult, since there are several reasons to refinance. However, if you are looking to save money, try this calculation:

Calculate the total cost of the refinance
Calculate the monthly savings
Divide the total cost of the refinance (#1) by the monthly savings (#2). This is the "break even" time. If you own the house longer than this, you will save money by refinancing.
Since refinancing is a complex topic, consult a mortgage professional.

A rate lock is a contractual agreement between the lender and buyer. There are four components to a rate lock: loan program, interest rate, points, and the length of the lock.

A mortgage broker counsels you on the loans available from different wholesalers, takes your application, and usually processes the loan which involves putting together the complete file of information about your transaction including the credit report, appraisal, verification of your employment and assets, and so on. When the file is complete, but sometimes sooner, the lender "underwrites" the loan, which means deciding whether or not you are an acceptable risk.

Not necessarily. In fact, if you are a reasonably astute shopper, you will probably do better dealing with a mortgage broker. Mortgage brokers do not add any net cost to the lending process, because they perform functions that would otherwise have to be done by employees of the lender. Furthermore, because mortgage brokers deal with multiple lenders -- in a typical case, 25 to 30, sometimes more -- they can shop for the best terms available on any given day. In addition, they can find the lenders who specialize in various market niches that many other lenders avoid, such as loans to applicants with poor credit ratings, loans to borrowers who do not intend to occupy the property, loans with minimal or no down payment, and so on.

Both income and assets are disclosed and verified, and income is used in determining the applicant's ability to repay the mortgage. Formal verification requires the borrower's employer to verify employment and the borrower's bank to verify deposits. Alternative documentation, designed to save time, accepts copies of the borrower's original bank statements, W-2s and paycheck stubs.

Stated income/verified assets: Income is disclosed and the source of the income is verified, but the amount is not verified. Assets are verified, and must meet an adequacy standard such as, for example, 6 months of stated income and 2 months of expected monthly housing expense.

Stated income/stated assets: Both income and assets are disclosed but not verified. However, the source of the borrower's income is verified.

No ratio: Income is disclosed and verified but not used in qualifying the borrower. The standard rule that the borrower's housing expense cannot exceed some specified percent of income, is ignored. Assets are disclosed and verified.

No income: Income is not disclosed, but assets are disclosed and verified, and must meet an adequacy standard.

Stated Assets or No asset verification: Assets are disclosed but not verified, income is disclosed, verified and used to qualify the applicant.

No asset: Assets are not disclosed, but income is disclosed, verified and used to qualify the applicant.
No income/no assets: Neither income nor assets are disclosed.

A loan eligible for purchase by the two major Federal agencies that buy mortgages, Fannie Mae and Freddie Mac.

A mortgage larger than the maximum eligible for conforming purchase by the two Federal agencies, Fannie Mae and Freddie Mac.

It is an upfront cash payment required by the lender as part of the charge for the loan, expressed as a percent of the loan amount; e.g., "2 points" means a charge equal to 2% of the loan balance.

This is the process of determining whether a customer has enough cash and sufficient income to meet the qualification requirements set by the lender on a requested loan. A pre-qualification is subject to verification of the information provided by the applicant. A pre-qualification is short of approval because it does not take account of the credit history of the borrower.