Frequently Asked Questions
The first step is to sit down with our Mortgage Advisor and discuss your options as they pertain to your financial future. Mortgages are not one size fits all and we pride ourselves on matching you with the best loan product to meet your needs. After selecting your loan we will begin the underwriting process. This entails collecting documents to verify different facets of your financial picture such as paystubs, asset statements, past mortgage statements, and employment verifications to allow our lenders to verify your credentials for your initial loan approval. The underwriting process is unique to your financial situation and can require just a few or many documents depending on many factors such as your debt to income ratio, or number of properties owned. When the lender is satisfied that they have a full understanding of your borrowing capability they will issue a “clear to close”. At that time you will attend a closing with the closing attorney of your choice.
Mortgage Brokers facilitate the relationship between clients and Wholesale Lenders in order to finance your home purchase or refinance. We find the best loan products for your individual borrowing needs. The most important part of your appointment with our Mortgage Broker is outlining your financial picture as well as your goals and considerations. This allows us to assess which loan product meets your needs while saving the most money.
No it is not. Mortgage brokers have access to wholesale pricing allowing them to offer clients better rates and terms. Mortgage brokers are able to generate income based on the difference between the wholesale price of a loan and the retail price of the loan.
A prequalification letter is something that a mortgage broker provides you based on a general understanding of your financial picture; specifically your debt to income ratio. A preapproval gives you more buying power when you are viewing houses as this approval comes after your credit has been verified and all of the information regarding your debt to income has been verified. I recommend that all buyers get a prequalification letter prior to viewing listings due to the fast nature of Greenville’s housing market.
Credit is a measurement that looks at your past behavior on money lent. Every time that you take out credit with a company it is recorded with the credit bureaus. They also record payments made, late payments, applications for lines of credit, tax liens and other personal information. This information is used to tabulate a score that rates both your ability and willingness to pay back credit that you take out based on your past behavior.
06. I have applied for a mortgage at more than one mortgage company. Will that negatively affect my credit score?
No. When we (or another mortgage company) run your credit to qualify you for a loan, you have the ability to shop around and apply with other mortgage entities within thirty days of the first credit pull without negatively impacting your credit score. If you were to do applications with us and three other lenders it would only count as one inquiry into your credit as far as the credit bureaus are concerned.
The best way to determine your buying power is to determine your debt to income ratio. This tells you how much of your income is currently being utilized by debt like, mortgages, car loans, student loans, and revolving credit card debt. It is expressed as a percentage of your gross monthly income. On average borrowers borrow a house whose monthly payment(including taxes and insurance) is equivalent to 28% of gross monthly income. Most mortgage companies can go up to 50% debt to income but that is not recommended.
Add up your monthly debt (the debt reported on your credit report) and divide that number by your gross (before taxes) monthly income. This will tell you the percentage of your income that is utilized by your debt.
Shortly after locking your loan we will submit initial documentation to our lender to start the process. The documents we will need up front include copies of your driver’s license, w-2’s, paystubs, bank statements, and a purchase contract for home purchases. After these things are reviewed by an underwriter they will send us a list of “conditions” that need to be satisfied in order to bring your loan to closing. For instance a condition can be verifying assets for a down payment. The best way to do this would be to provide a bank statement showing the money intended for the down payment in your bank account. Once we receive the initial loan approval, we will reach out and request the additional documentation needed to get your loan to the closing table.