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Frequently Asked

Mortgage Questions

Buying home is an exciting life event, but the home loan process can be long and complicated without an experienced mortgage broker on your side.

We pledge to help borrowers overcome roadblocks that can arise while securing a loan, so you experience less stress throughout the process.

What is mortgage insurance and how does it differ from home owner’s (hazard) insurance?

Mortgage insurance (MI) is insurance that a buyer is required to pay that protects the lender in the event they buyer defaults on their loan.

The type and amount of mortgage insurance varies depending on the loan type and the down payment amount.

Home Owner’s insurance or Hazard Insurance protects the lender in the event that the home is damaged by fire or other damage.

How much will I need to put down?

This varies depending on the loan that is best for you.

Conventional Loans:
Start as low as 1% of the purchase price. The higher the down payment the lower the mortgage insurance you will have to pay monthly. 20% down requires no mortgage insurance. We offer you the option of lender credits that can reduce or eliminate closing costs as well. 100% gift funds are allowed from family.

FHA loans:
3 ½% is the minimum down payment for FHA although you can put more down if desired. 100% gift funds are allowed from family.

VA loans for Veterans:
This loan requires no down payment! With us you also have the option for no closing costs! 100% gift funds are allowed from family.

USDA loan for properties in USDA rural territory:
This loan requires no down payment! With us you also have the option for no closing costs! 100% gift funds are allowed from family.

Down Payment Assistance:
Ask your loan officer about the down payment assistance programs available to you.

What is a fixed rate mortgage?

A fixed rate mortgage is a mortgage in which the interest rate stays the same throughout the life of the loan—as opposed to an adjustable-rate mortgage in which the interest rate changes periodically based on a few different variables.

Fixed rate mortgages are by far the most common type of loan, and generally come with 15 and 30 year terms. The interest rate you lock in will generally be lower if you opt for the shorter-term loan, though your payments will be higher to cover the principal faster. Fixed rate mortgages can come in the form of a conventional loan, or they can be provided through FHA or VA loan programs.

Fixed vs. Adjustable Rate Mortgages

When choosing a mortgage, it’s important to consider the financial implications down the line. While an adjustable rate mortgage may be lower initially, your lender can increase it at any time—so you’ll need to be prepared for that. A fixed interest rate ensures that your monthly mortgage payments (excluding property taxes, home insurance, etc.) never change.

If you have an adjustable rate mortgage but would prefer a fixed-rate mortgage, refinancing your home loan may be a good option. Refinancing allows you to alter the terms of your loan to take advantage of better interest rates or alter the length of your loan.

What is my interest rate?

Great Question. My canned answer is “You Can Have Any Rate You Want from the rates available for your loan amount and credit score.”

Every rate has its own price which will either be a cost (discount points) or a credit (lender credit) You choose what rate is best for you based on your financial goals and the amount of time you anticipate you will stay in your home.

Most lenders keep the lender credit that is associated with a particular rate for their own profit but we offer it to you as a direct reduction of your closing costs.

Your loan officer will offer you the entire rate chart and go through all of your options with you to guide you to make the best decision for you!

Does my credit affect my rate?

Absolutely. More accurately the price of the rate. Mortgage pricing is "Risk Based". The higher the risk, the higher the price. Similar to car insurance. Who will have a lower insurance premium, the person with a good driving record or the one with traffic tickets? The one with traffic tickets is a higher risk so that person's insurance premium will be higher.

How much are the closing costs?

Our pricing model is different than most. Your closing costs are reduced by the lender credit you choose so they will vary from person to person.

You have choices to determine how much of your closing costs you wish to pay. The amount that you are asked to bring to closing is made up of your down payment plus your closing costs less your lender credit and earnest money.

Most of our competitors keep the lender credit. We pass it along to you to lower your cash to close.

You may hear in the market place that we simply raise the rate in order to do this. The thing is we are at or very close, if not the same or below, to all of the others in rate.

What documentation do you need to see?

In most cases: Most Recent 2 Months Bank & Most Recent 401K Statements, Last 2 Years Tax Returns and W2's, Photo ID. 

Please see the complete list of documentation needed for pre-approval here.

Throughout the loan process the underwriter may ask for a few more items and your loan officer will ask you for them as the need arrises.

Does it lower my credit score if you access my credit?

Like inquiries into your credit in a short time frame will not lower your scores.

What is my payment?

Here again there are several answers to the same question. The variables are the Loan Amount, the Loan Program, the Loan to Value, your Credit Score, which type of Mortgage Insurance you choose to name a few.

Check out our mortgage calculators to crunch some numbers on your own and don't hesitate to reach out to us with any questions or to get the preapproval process started.

How soon can we close?

We have several different players in your loan transaction that we need to depend on. Title & Escrow Companies and Appraisers for example. But let me say this, YOU control the pace of the transaction more than anyone. Our ability to gather the required documentation will determine how soon we can close.

 

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Have a question we didn't cover?

Our door is open and one of our mortgage professionals is just a phone call away. Don't hesitate to call and we will do our best to guide you in the right direction. Or use our "Ask An Expert" page to submit your question.

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