Do you have questions on mortgage loans? You aren’t the only one.
Oftentimes, mortgages are confusing and complicated, especially for first time home buyers. At A&D Lending, we provide you with the knowledge you need and guide you through the entire process starting from pre-qualification all the way to the closing table.
Do I need a good credit to get a mortgage? What if I have a bankruptcy?
Having good credit helps to get a better interest rate but it isn’t always required. Our FHA programs allow credit scores as low as 580 and also allow for bankruptcies that were discharged 2 years prior to your application date.
How long does the process take to obtain a mortgage loan?
On average, the typical mortgage loan process can take 30 to 45 days.
What’s the difference between a home equity loan and a cash out refinance?
A cash out refinance pays off your existing mortgage loan and gives you a new one with new terms. A home equity loan gives you a second loan with a separate payment without touching your first mortgage loan.
What documentation do I need?
Typically, for full documentation files, we need 2 years of income documentation including tax returns, paystubs, and W2s. At A&D Lending, we understand that it may be challenging to qualify for a conventional loan and that is why we offer programs with little to no income documentation. Speak with a loan officer today and get prequalified.
What is an Escrow / Impound Account?
An escrow account or impound account is set up by the lender to pay expenses such as property taxes and homeowners insurance. The money that goes into this account is sent from your monthly payment.
How much should I save for a down payment?
We have programs with 100% financing so a down-payment is not always required. With conventional loans, anything less than 20% down means you will have mortgage insurance.
How do I know which program is best for me and how do I know if I qualify?
We have many different programs and options including full documentation, no documentation, FHA loans, and more. Contact A&D Lending and speak with a loan officer to see which program is right for you!
What are closing costs?
Closing costs are the fees and expenses you pay for securing your home or finalizing your transaction. It includes fees such as escrow/title fees, origination fees, prepaid escrow account fees, and more. These typically can range from 3-6% of the loan amount.
What is mortgage insurance?
Mortgage insurance is required on all FHA loans and conventional loans if you put less than 20% as a down payment.
Is buying better than renting?
In most cases, yes! Owning a home comes with many great benefits. You’ll build wealth over time and you can tap into the equity you build to do many things such as home improvement, paying off debt, or buying another property. Another bonus is that mortgage interest payments are tax deductible.
Is buying better than renting?
In most cases, yes! Owning a home comes with many great benefits. You’ll build wealth over time and you can tap into the equity you build to do many things such as home improvement, paying off debt, or buying another property. Another bonus is that mortgage interest payments are tax deductible.