Frequently Asked Questions and Answers

Will I qualify for a home loan?

The two main factors that will decide this will be your credit score and your income. Often people assume that your credit has to be much better than it actually does. Don’t assume anything, get a solid answer for yourself so you know where you are at!

What is VA Home Loan?

In 1944, congress pass a VA Loan program aimed at helping veterans who served the United States Military in purchasing a home. The Department of Veterans Affairs assists family’s in making this dream come true!

Do I need to show proof of income?

In most cases, yes. If you are however doing a streamline VA refinance or streamline FHA refinance then you won’t need proof of income in most cases.

How fast can I get approved and close the loan?

If you are a w-2 employee with decent credit then you can be one of the people that close quickly (within 30 days). If you are a business owner and you file your taxes under LLC’s and Corporations then your cases are usually a little more complicated. However, as a business owner if you are very organized and have quick access to all the required documentation, then you can also close the loan within 30 days. Most loans close between 30-45 days on average.

What is Loan To Value (LTV)?

If you are looking to buy a property that is worth 250k, then the lender will want to make sure that they limit your loan to 250k or less. They don’t want to be upside down on their loan portfolio so they make sure the loan to value is of good proportion.

Is a 15 year mortgage better or should I get a 30 year mortgage?

This depends on your financial situation. At the moment, mortgage rates are relatively the same for both. If you have financial discipline then take the 30 year mortgage and pay extra every month so you are not obligated to make a higher payment as you would be on the 15 year mortgage.

Why do I need an appraisal?

Because the lender needs certainty on the value of the property from a non interested 3rd party.

Will rates go up and down? If so, when?

Rate have historically fluctuated and there is no one who can tell when these things happen. If you lock your interest rate down in a 15 or 30 year mortgage, your rate will remain unaffected regardless of federal rate changes.

Why does everyone get a different rate?

Because the rate you receive is dependent on your credit along with loan to value.