Frequently Asked Questions

Below are our most frequently asked questions. Although we hope this page is helpful to you, nothing is better than hopping on the phone with your trusted mortgage advisor. Give us a call today or schedule a free loan consultation to learn more!

What types of loans are available, and which one would best suit my needs?

There are several types of loans available, including fixed-rate mortgages, adjustable-rate mortgages (ARMs), FHA loans, VA loans, USDA loans, and more. The best loan for you depends on factors such as your credit score, down payment amount, financial goals, and personal preferences. For example, a fixed-rate mortgage offers stable monthly payments, while an ARM may have a lower initial interest rate but could adjust over time. Contact us if you want to have a discussion about what best fits your specific needs.

What are the current interest rates, and how do they affect my monthly payments?

Interest rates fluctuate based on various economic factors such as inflation expectations and geopolitical events. Lower interest rates typically result in lower monthly mortgage payments, while higher rates lead to higher payments. However, the finance fees (the cost of creating your mortgage) can have a big impact on your monthly payment or closing costs. It's essential to lock in a favorable rate when you're ready to proceed with your home purchase, providing stability and potentially saving you money over the life of your loan. Click here to see today's rates: Today's Rates. Give us a call to see what rate you qualify for.

What is the required down payment, and are there any assistance programs available?

The required down payment varies depending on the type of loan and your lender's requirements. For example, conventional loans typically require a down payment of 3% to 20% of the home's purchase price, while FHA loans may require as little as 3.5% down. Additionally, there are down payment assistance programs available for eligible buyers, which can help reduce the upfront cost of purchasing a home. We can provide more information on specific programs based on your circumstances.

What are the closing costs, and can they be negotiated?

Closing costs typically range from 2% to 5% of the home's purchase price and include fees for services such as appraisal, title insurance, and loan origination. While some closing costs are non-negotiable, others may be negotiated with the seller or lender. It's essential to review the Loan Estimate provided by your lender to understand the breakdown of closing costs.

What is the difference between pre-qualification and pre-approval?

Pre-qualification is an initial assessment based on self-reported financial information, while pre-approval involves a more thorough evaluation of your financial documents by a lender. Pre-approval provides a more accurate estimate of the loan amount you can qualify for and demonstrates to sellers that you're a serious buyer. It's advisable to obtain pre-approval before house hunting to strengthen your bargaining power. Contact us to get pre-approved.

What documents do I need to provide for the mortgage application?

To complete the mortgage application process, you'll typically need to provide documents such as pay stubs, W-2 forms, tax returns, bank statements, and proof of assets. Additionally, you may need to provide documentation for any other sources of income or debts. We can provide you with a detailed checklist tailored to your specific situation to ensure a smooth application process.

What is the timeline for the mortgage approval process?

The mortgage approval process typically takes 30 to 45 days from application to closing (14-30 days for our company), although this timeframe can vary depending on factors such as the complexity of your financial situation, appraisal and inspection results, and the efficiency of communication between parties involved. It's essential to promptly provide any requested documentation and communicate openly with your lender to expedite the process.

What factors can affect my mortgage eligibility or interest rate?

Several factors can influence your mortgage eligibility and interest rate, including your credit score, debt-to-income ratio, employment history, down payment amount, and the property's appraised value. Maintaining a good credit score, stable income, and low debt-to-income ratio can increase your chances of approval and qualify you for lower interest rates. Additionally, factors such as the loan term, loan amount, and property location may also affect your loan terms.

Hi, my name is John Crivea II. I'm a Certified Mortgage Advisor® with Top Gun Mortgage Advisors™, offering personalized mortgage solutions, fast customized quotes, great rates & service with integrity.