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Frequently Asked Questions

Should I get a home inspection?
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Inspections are important to understand the condition of the home. They can also be helpful when it comes time to negotiating with the seller.

Will a change in my employment affect my transaction?
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Talk to your mortgage banker if there is going to be a change in your employment. It’s best to have steady employment for at least 2 years and verifiable income when applying for a loan.

What is PMI or Private Mortgage Insurance?
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Private mortgage insurance (PMI) protects the lender from the costs of foreclosure. You may be obligated to purchase PMI if you can’t make a sufficient down payment of at least 20%.

What is a rate lock?
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A rate lock is a promise to you from the bank to hold all funds deemed necessary for the purchase or refinance of your home as the agreed upon. Locking in a rate protects you from unforeseen interest rate increases that can occur in the days or weeks leading up to closing.

Rate locks are dependent on the type of loan program, current interest rates, points, and the length of the lock. To hold a rate for longer periods of time, you usually have to agree to pay higher points or interest rates.

What Is the Difference Between Prequalification And Preapproval?
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A prequalification determines the maximum purchase price of a house that you are looking to buy based on the income and debt information that you provide verbally to one of our mortgage professionals. All the information provided by the buyer must still be verified.

A preapproval is actually a commitment to lend the amount of money specified, assuming the property chosen meets the bank’s criteria. The loan process is nearly complete when an application has been taken, including all required verifications, and typically without the property information being known. A “Preapproval Letter” is issued by the lender.

Preparing your finances and satisfying your down payment requirement:
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Although it may seem intuitive to move money around in accounts to show financial strength, this is actually not advisable. All facets of your income will be considered when applying for a loan. It’s best not to make any financial changes that could alter your eligibility, especially placing money from untraceable sources into your accounts. Additionally, don’t change your employment during the home loan process. Steady employment can be a factor in determining loan qualification. Lastly, large purchases such as cars, appliances or furniture can negatively impact the outcome of the loan.