How
will
I
know
how
much
loan
I
can
qualify
for?
We
will
discuss
your
financial
situation
to
determine
how
much
loan
amount
you
qualify
for.
The
loan
amount
is
typically
based
on
your
income,
credit
history
and
the
amount
of
funds
available
for
closing.
We
have
numerous
products
customized
to
fit
your
individual
needs.
------------------------------------
What
is
the
difference
between
a
pre-qualification
and
a
pre-approval?
A
pre-qualification
is
when
an
applicant
has
talked
with
a
lender
and
discussed
their
situation.
The
applicant
has
informed
the
lender
of
their
income,
outstanding
debts
and
assets.
The
information
provided
by
the
applicant
is
not
verified.
The
lender
merely
gives
an
opinion
of
what
the
applicant
can
qualify
for
based
on
the
information
provided.
A
pre-approval
is
when
an
applicant
has
provided
written
evidence
of
their
income,
outstanding
debts,
assets
and
credit
history
and
all
information
has
been
verified
by
the
lender.
Much
of
the
application
process
has
been
completed
for
the
applicant.
The
lender
will
provide
the
applicant
with
a
letter
of
pre-approval
and
the
applicant
can
use
this
when
shopping
for
a
home.
------------------------------------
How
can
I
apply
for
a
loan?
You
have
a
few
options.
You
can
contact
one
of
our
loan
officers
to
discuss
your
individual
situation
over
the
phone
or
set
up
an
appointment
to
meet
in
person.
You
can
print
a
loan
application
form
from
this
website,
complete
it
and
send
it
to
our
office.
------------------------------------
What
is a
credit
score
and
how
will
it
affect
my
application?
A
credit
score
is a
statistical
method
that
lenders
use
to
quickly
and
objectively
evaluate
the
credit
risk
of
an
applicant.
Credit
scores
are
based
on
information
provided
by
credit
reporting
agencies
and
information
reported
each
month
by
your
creditors.
Factors
that
affect
your
credit
score
include
your
payment
history,
your
outstanding
obligations,
the
types
of
credit
you
have,
the
length
of
time
credit
has
been
established
and
the
number
of
inquiries
that
have
been
made
about
your
credit
history
recently.
Other
things
to
consider
in
order
to
maintain
a
good
credit
score
are
keeping
balances
low
on
credit
cards
and
other
revolving
credit,
apply
for
and
open
new
credit
accounts
only
as
needed
and
pay
off
debt
rather
than
move
it
around.
Credit
scores
range
from
300
(very
high
risk)
to
850
(very
low
risk).
Credit
scores
have
proven
to
be a
very
effective
way
of
determining
credit
worthiness
and
give
lenders
the
confidence
to
offer
credit
to
more
people,
because
they
have
a
better
understanding
of
the
risk
involved.
In
order
for
a
credit
score
to
be
calculated
on
your
credit
report,
the
report
must
contain
enough
information
–
and
enough
recent
information
– on
which
to
base
a
score.
Generally,
that
means
you
must
have
at
least
one
account
that
has
been
reported
to
the
credit
reporting
agency
within
the
last
six
months.
------------------------------------
What
if I
have
had
credit
problems
in
the
past?
Your
credit
history
is
very
important
to
the
loan
approval
process.
If
you
have
had
poor
credit
performance
in
the
past
but
good
payment
history
in
recent
years,
your
credit
score
will
reflect
that.
The
impact
of
past
credit
problems
on
your
credit
score
fades
as
time
passes
and
as
recent
good
payment
patterns
show
up
on
your
credit
file.
Credit
scores
weigh
any
credit
problems
against
the
positive
information
that
says
you’re
managing
your
credit
well.
The
most
important
factor
for
a
good
credit
score
is
making
your
payments
on
time.
If
you
determine
there
are
mistakes
on
your
credit
file,
you
can
work
with
the
various
agencies
and
creditors
to
correct
mistakes.
You
can
pay
off
outstanding
judgments,
liens
and
collections.
If
you
have
a
history
of
consistent
late
payments,
you
may
have
to
wait
a
while
until
you
can
build
up a
record
of
timely
payments.
It
is
very
important
to
obtain
a
credit
report
at
least
once
a
year
to
make
sure
it’s
accurate.
With
recent
legislation
a
consumer
is
eligible
for
one
free
credit
each
year.
The
reports
can
be
requested
from
each
of
the
three
major
credit
reporting
agencies.
------------------------------------
Can
high
levels
of
outstanding
debt
affect
my
loan
approval?
Yes.
All
outstanding
obligations
are
considered
when
reviewing
your
application
data.
If
you
have
substantial
outstanding
debt
it
will
reduce
the
amount
of
funds
you
can
borrow
or
in
some
cases
prevent
you
from
obtaining
a
mortgage
loan
at
all.
Your
lender
will
perform
calculations
for
you
and
determine
the
amount
of
mortgage
you
qualify
for.
------------------------------------
What
are
qualifying
ratios
and
how
are
they
calculated?
Qualifying
ratios
are
another
way
of
determining
credit
worthiness
of
the
applicant.
There
are
two
qualifying
ratios
that
lenders
look
at
when
determining
credit
risk
of
applicants.
The
housing
expense
ratio
is
the
proposed
total
monthly
housing
expense
divided
by
your
gross
monthly
income.
The
housing
expense
includes
the
principal
and
interest
payment,
monthly
tax
amount,
monthly
hazard
insurance
amount
and
monthly
mortgage
insurance,
if
applicable.
The
other
qualifying
ratio
is
called
the
total
debt
ratio.
This
ratio
consists
of
the
proposed
total
monthly
housing
expense
plus
monthly
debt
obligations
divided
by
your
gross
monthly
income.
Monthly
debt
obligations
include,
but
are
not
limited
to,
auto
payments,
installment
loan
payments,
credit
card
payments
and
child
support.
The
guidelines
for
qualifying
ratios
will
vary
depending
on
the
loan
program,
your
credit
history
and
your
financial
situation.
------------------------------------
How
much
money
will
I
need
for
a
down
payment
and
closing
costs?
The
amount
of
funds
needed
for
closing
varies
depending
on
the
loan
program.
There
are
programs
available
that
require
a
minimal
down
payment
or
no
down
payment
at
all.
In
all
cases,
you
will
be
required
to
have
funds
available
for
closing
costs
and
prepaids.
Some
programs
allow
the
down
payment
and/or
closing
costs
and
prepaids
to
come
from
other
sources,
such
as a
gift
from
a
relative.
Your
lender
can
advise
you
of
the
best
program
based
on
the
amount
of
funds
you
have
available.
------------------------------------
What
is
mortgage
insurance?
Mortgage
insurance
is
required
on
most
loans
where
the
down
payment
is
less
than
20%.
The
insurance
is
to
protect
the
lender
against
loss
on a
higher
risk
loan.
Mortgage
insurance
makes
it
possible
for
an
individual
to
purchase
a
home
with
less
than
a
20%
down
payment,
thus
providing
you
with
the
ability
to
buy
a
more
expensive
home
than
might
be
possible
if a
larger
down
payment
was
required.
The
mortgage
insurance
premium
is
paid
monthly
as
part
of
your
total
housing
expense
payment
and
is
based
on
your
loan-to-value
ratio
and
the
type
of
loan
you
obtain.
It
may
be
possible
to
cancel
the
mortgage
insurance
when
your
loan
balance
is
reduced
to a
certain
amount.
Your
lender
can
provide
additional
information
about
canceling
your
mortgage
insurance.
Mortgage
insurance
should
not
be
confused
with
mortgage
life
insurance,
which
is
designed
to
pay
off
a
mortgage
balance
in
the
event
of a
borrower’s
death.
------------------------------------
What
does
loan-to-value
ratio
mean?
Loan-to-value
ratio
(LTV
Ratio)
is
calculated
by
dividing
your
loan
amount
by
the
lesser
of
the
sales
price
or
appraised
value
of
your
property.
For
example,
if
you
are
purchasing
a
home
with
a
sales
price
and
appraised
value
of
$100,000
and
you
wish
to
borrow
$80,000,
your
loan-to-value
ratio
(LTV)
would
be
80%.
------------------------------------
What
is
an
appraisal
and
how
does
it
affect
my
loan
approval?
An
appraisal
is a
written
report
describing
the
property
you
are
purchasing
or
refinancing
and
providing
an
estimate
of
the
value
of
the
property.
The
appraisal
will
be
completed
by a
state
licensed
appraiser.
National
standards
administer
the
appraisal
process
and
specify
the
appraiser’s
qualifications.
The
appraiser
will
inspect
the
property,
usually
the
interior
and
exterior,
and
compare
the
qualities
of
your
property
to
other
properties
that
have
sold
recently
in
the
area.
These
other
properties
are
called
comparables
and
have
a
significant
impact
on
the
appraisal
report.
Using
industry
standards,
the
appraiser
will
use
this
data
to
arrive
at
an
estimated
value
of
your
property.
The
appraisal
report
is
reviewed
by
an
underwriter
to
determine
if
the
home’s
value
supports
your
loan
request
and
to
verify
that
the
home
is
marketable
in
its
area.
The
property
must
be
deemed
acceptable
in
order
to
obtain
loan
approval.
You
can
request
a
copy
of
the
appraisal
report
at
the
time
of
loan
closing.
------------------------------------
Why
should
I
consider
a
15-year
mortgage
rather
than
a
30-year?
There
are
a
few
advantages
to a
15-year
mortgage.
The
interest
rate
is
usually
lower
on a
15-year
mortgage.
You
save
more
than
half
the
amount
of
interest
paid
for
a
30-year
term.
The
reduced
interest
rate,
along
with
the
shorter
loan
life,
create
substantial
savings
for
borrowers
that
have
a
15-year
mortgage.
A
15-year
fixed
rate
mortgage
gives
you
the
ability
to
own
your
home
free
and
clear
in
15
years.
Although
there
are
advantages
to
the
15-year
mortgage,
many
borrowers
find
the
higher
payments
difficult
and
choose
a
30-year
mortgage.
The
lender
will
advise
you
if
you
qualify
for
a
15-year
mortgage
but
you
should
consider
a
15-year
mortgage
only
if
the
payments
are
comfortable
to
you
and
your
individual
financial
situation.
------------------------------------
Will
I
incur
a
pre-payment
penalty
if I
pay
my
mortgage
off
early?
Most
of
the
loan
programs
we
offer
do
not
have
any
type
of
pre-payment
penalty.
