MORTGAGES TAILORED TO YOU
No matter your needs, we offer a variety of mortgage products designed to fit your lifestyle and financial situation:
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First-Time Homebuyers: We specialize in helping first-time homebuyers navigate the process with ease, so you feel confident and informed every step of the way.
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Refinancing: Looking to lower your interest rate or tap into your home’s equity? Our refinancing options can help you save money or access funds for your next big project.
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Construction Loans: Build your dream home with a loan that covers the cost of construction or renovations.
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Conventional: Various standard mortgage options are available for qualifying homebuyers and homeowners. A conventional loan is a privately funded mortgage not backed by the government.
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FHA: Mortgages backed by the Federal Housing Administration, which feature lower minimum credit scores and down payments, are especially popular among first-time homebuyers.
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USDA: A USDA home loan assists low- to moderate-income families in purchasing affordable homes in rural areas.
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VA: VA loans are mortgages backed by the Department of Veterans Affairs, offering favorable terms like no down payment and competitive interest rates for eligible veterans, active-duty service members, and their families.
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Jumbo: A jumbo loan is a type of mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency.
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Specialized Products: Down Payment Assistance, Bank Statement Loans, DSCR, HELOC’s, Bridge Loans
What does it mean to lock in your rate?
"Locking in an interest rate" for a mortgage means that the lender guarantees a specific interest rate for a set period of time, typically ranging from 30 to 90 days, while your mortgage application is processed. This protects you from interest rate fluctuations during that period, which can be especially important if rates are expected to rise.
What documents do I need to apply?
When applying for a mortgage loan, you’ll need to provide several documents that help the lender verify your financial situation, employment, and creditworthiness. Here's a list of the most commonly required documents:
Proof of Income
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Pay stubs for the last 30 days.
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W-2 forms from the past two years.
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Tax returns (especially for self-employed borrowers or those with other income sources).
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Proof of additional income, such as bonuses, commissions, alimony, child support, rental income, or Social Security payments (if applicable).
Proof of Assets
Lenders want to verify that you have sufficient assets to cover your down payment and closing costs. Common documents include:
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Bank statements for the last two to three months (checking, savings, and investment accounts).
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Proof of any large deposits: If there are large, unusual deposits in your bank account, you may need to explain where the money came from.
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Retirement account statements (such as 401(k) or IRA), if applicable.
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Social Security number (usually on your mortgage application).
Other Supporting Documents
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Divorce decree: If you're divorced and receiving or paying alimony/child support.
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Bankruptcy discharge papers: If you’ve declared bankruptcy in the past.
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Gift letter: If someone is giving you money to help with the down payment, you’ll need a letter explaining that the funds are a gift and not a loan.
Having these documents ready will make the mortgage application process smoother and quicker.
How Do Mortgage Lenders Evaluate My Credit?
When applying for a mortgage, your credit is one of the most important factors lenders evaluate to determine your ability to repay the loan. Here's how mortgage lenders judge your credit:
Credit Score (FICO Score)
Your credit score is a numerical representation of your creditworthiness. Most lenders use the FICO score, which ranges from 300 to 850. A higher credit score can lead to better loan terms, including lower interest rates and more loan options. Conversely, a lower score might result in higher interest rates or even loan denial.
Credit History
Lenders will review your credit report, which provides a detailed record of your credit activity. Key factors they assess include:
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Payment history: This is the most important factor, accounting for 35% of your FICO score. Lenders want to see consistent, on-time payments on credit cards, loans, and other debts. Missed or late payments, defaults, and bankruptcies can negatively affect your score.
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Length of credit history: A longer history of responsible credit use works in your favor. Lenders like to see that you’ve managed credit for several years.
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Types of credit: A mix of credit types (credit cards, auto loans, student loans, etc.) shows lenders you can handle different kinds of debt responsibly.
Recent Credit Inquiries
Lenders will check how many recent "hard inquiries" (applications for new credit) are on your report. Too many inquiries in a short period can lower your score slightly and make lenders worry that you're taking on too much new debt. However, multiple mortgage inquiries made within a short window (typically 14–45 days) are usually treated as a single inquiry, so shopping around for rates won’t hurt you.
Outstanding Debt
Lenders will also evaluate your existing debt levels compared to your income. This is where your debt-to-income ratio (DTI) comes into play. A high amount of outstanding debt (credit cards, car loans, etc.) can reduce your chances of approval or result in a higher interest rate.
Derogatory Marks
Any major negative items on your credit report, such as:
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Late payments (30+ days past due)
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Collections: Unpaid debts that have been sent to collection agencies.
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Charge-offs: Accounts that the lender has written off as a loss.
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Bankruptcies or foreclosures: These have a significant negative impact and stay on your credit report for 7–10 years.
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Judgments and liens: If you've had legal judgments or tax liens against you, these will be red flags to lenders.
What is an Appraisal?
An appraisal is an evaluation of a property’s market value conducted by a professional appraiser. This assessment is typically required by lenders before approving a mortgage loan to ensure that the property's value aligns with the loan amount. Here are the key points about appraisals:
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Purpose: To determine the fair market value of a property based on its condition, location, and comparable sales in the area.
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Process: The appraiser inspects the property, considers various factors (such as size, amenities, condition, and neighborhood), and compares it to similar properties (comps) that have recently sold.
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Outcome: The appraiser provides a written report detailing their findings and the determined value. This helps protect the lender from lending more than the property is worth.
What is an Appraisal Waiver?
An appraisal waiver allows borrowers to bypass the appraisal process when obtaining a mortgage. Here’s what you need to know:
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Eligibility: Appraisal waivers are typically available for certain loan types and under specific circumstances, such as when the borrower has a strong credit profile, the loan amount is low relative to the property value, or there are sufficient data points for the lender to confidently assess the property's value.
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Benefits:
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Faster Process: Eliminates the time and costs associated with obtaining an appraisal.
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Cost Savings: Borrowers save on appraisal fees, which can range from a few hundred dollars to over a thousand.
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Reduced Delays: Allows for a quicker closing since the appraisal can be a lengthy process.
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In summary, an appraisal is a critical step in determining a property's market value for mortgage approval, while an appraisal waiver allows qualified borrowers to skip this step under certain conditions.
What is Private Mortgage Insurance (PMI)?
Private Mortgage Insurance (PMI) is a type of insurance that lenders require from borrowers who take out conventional loans and make a down payment of less than 20% of the home's purchase price. PMI protects the lender in case the borrower defaults on the loan, as a lower down payment represents a higher risk for the lender. PMI can vary based on factors like the loan type, size of the loan, the down payment percentage, and the borrower’s credit score.