Frequently Asked Questions
Below are Frequently Asked Questions that often are encountered through the course of the home buying process. You also can use our Mortgage Dictionary to address additional terms or questions that arise.
- Fixed Rate and Adjustable Rate
- FHA, VA, and USDA Loans
- Jumbo and Conforming Loans
- Conventional Financing
- Renovation Loans
- Float Down Option
Absolutely. If your credit score and finances are already in order prior to your house hunt, the process goes much smoother. The prequalification process is simple:
1. Gather your personal financial information such as bank statements, W-2 forms and paycheck stubs, and meet with your PrimeLending loan officer.
2. Your PrimeLending loan officer will pull your credit report and evaluate your financial documents. With this information, you and the loan officer are able to discuss the best home financing options that will help you achieve your financial and homeownership goals.
3. Once you are prequalified, PrimeLending will give you a prequalification letter to inform your real estate professional and the seller of the property that you’re a preferred and serious potential buyer. This will give more weight to any offer you extend on a property as well as allow you to relax and enjoy the process of looking for your new home.
- How long will you live in this home? Several years, or just a few?
- Do you anticipate your income or finances to significantly change over the next few years?
- Are you either comfortable or uncomfortable with an adjusting monthly mortgage payment?
- Do you plan to be out of mortgage debt by, for example, when your children start college or when you retire?
Based on your answers, your PrimeLending loan officer can discuss different home loan programs that will suit you financially and help you reach life’s milestones.
An FHA loan, on the other hand, is guaranteed by the Federal Housing Administration. FHA is a government agency that works with approved lenders such as PrimeLending.
Typically, origination points are applied and disclosed at the time of locking in an interest rate. On the other hand, discount points can be added at the time of lock or later in the process if you choose to pay to reduce your interest rate.
Origination fees are the fees required to originate the loan. They can include processing fees, underwriting fees, administrative fees, and several others. Your loan officer can give you a complete breakdown of these fees as they vary from state to state.
Eiric’s goal is to exceed your expectations and make clients for LIFE!
You can reach Eric at his office at (877) 586-1865 or by directly at (512) 381-4896.