It depends on the loan program. Some loan programs that are currently offered do not require an appraisal. However, most loan programs will require an appraisal. We can inform you whether one will be required on your specific loan program early on in the application process.
Generally when you can save yourself .75% to 1% in interest rate it is worth it to consider refinancing. You may also find yourself in need of some extra money to finish a basement, build an addition, or consolidate debt. Refinancing is a good way to get the extra money you may need.
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.
The rate can be locked at application if you would like. However, the shorter the lock period the better the interest rate. Generally we get the loan submitted to underwriting and have a loan number assigned before we lock to hopefully insure the lowest rate.
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.
Your home is probably going to be your largest investment, but also one of your safest investments. As with anything, home values will fluctuate up and down. However, as long as you don’t buy more house than you can afford your home will be your biggest and safest investment.
Generally the process takes 3-4 weeks to go from application to closing. Some loans can be done a little quicker and depending on the loan program some loans take slightly longer.
You need to have a minimum 620 middle credit score plus qualifying income. We will handle all of the calculations for you, but generally we are looking for the proposed house payment plus all existing debt to be 45% or less of your total gross monthly income.
One of the ways you can improve your credit is to pay down your credit card balances to one half or less of your approved maximum limit. Anytime you carry balances more than half of your approved credit limit it is considered a derogatory on your credit rating.
Another way to improve your credit rating is to payoff collection accounts and make sure there are no errors in your credit report. If you do find errors on your credit report, resolve them as soon as possible.
Yes. Determining the cost of the buy-down depends upon the market each day. Therefore the cost of buying down the rate will change from day to day.