Mortgage Facts and Questions
How can I determine what mortgage amount I might be eligible for?
Based on your income, your current debts and estimated down-payment, we can usually help you determine the maximum mortgage amount for which you could qualify for the same day, you may also reference our mortgage calculator when calculating your mortgage requirements.
What is the difference between a pre-qualification analysis and a pre-approval application?
A pre-qualification analysis is typically the result of information shared between a mortgage lender and a potential mortgage borrower and usually does not incorporate information obtained from a credit report. The end product for a pre-qualification analysis will be a “ballpark” estimate of the maximum mortgage amount for which you may qualify. Typically there is no cost or commitment on behalf of either party for a pre-qualification analysis.
A mortgage loan pre-approval application typically results in a written loan decision following a complete mortgage application. Many lenders will require an application fee. You can typically apply for a pre-approved mortgage prior to signing a purchase agreement for a home. Many lenders will also allow you to lock your pricing at the time you apply for a pre-approved mortgage. A pre-approval can also add to your negotiating strength when you are ready to make an offer on a home.
What is the minimum down payment for conventional, FHA, and VA loans?
While conventional loans (those not backed by a government agency) usually require a minimum down payment of 5%, some mortgage companies have low- and no-down payment programs available.
FHA Mortgages, insured by the Federal Housing Administration, are available for as little as 3.5% down.
VA Mortgages, guaranteed by the Department of Veterans Affairs, have a no-down payment option for eligible veterans buying a home.
Please contact us for specific programs and down-payment requirements.
How do I apply for a mortgage?
Typically we will take your application by phone or in person. The application interview typically takes only 30-60 minutes. To start the process simply complete the pre-qualification form at the bottom of this page or call us at 914-248-1800.
How do I determine which mortgage product will meet my needs?
Everyone’s situation is different. Most people will benefit from either consulting by phone or in person with our mortgage professional who is committed to discovering your needs, and helping you match those needs with a suitable mortgage product.
Do most mortgage lenders provide construction loans?
Many mortgage lenders have construction-to-permanent financing loan programs. Programs will vary with each individual lender. Typically, a construction loan is an interim loan secured by the property on which a dwelling is being constructed. The funds are usually disbursed throughout the construction period and replaced with permanent financing once the construction is completed. You may also choose to utilize separate lenders for the construction financing and the permanent financing.
Will there be a fee charged at the time of application?
Application fees vary according to each lender. This fee is generally used to cover the cost of the appraisal and credit report and other items required to process the loan.
Do I need to fill out an application?
Yes, but some lenders will allow you to complete the application verbally right over the phone. A copy of your application will be provided at the closing, which you will need to review and sign at that time.
What documents will typically be requested when I make application for a first mortgage loan?
Frequently lenders will request: W2′s, pay stubs, bank statements, and the purchase contract on the home you are buying. Documentation requests vary by loan type and lender.
Do most lenders require a homeowner’s inspection?
No, a homeowner’s inspection is generally requested by the buyer as a condition to the purchase of the home. However, we recommend that our homebuyers make the purchase of their home contingent upon a homeowner’s inspection. A homeowner’s inspection should not be confused with an appraisal, which is required by most mortgage lenders in order to support the amount of the mortgage loan.
To find out more about mortgages and the pre-qualification process, please call the Lawrence Walsh Group at 914-248-1800 or complete the confidential form below and a member of our team will contact you promptly.
