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Faqs

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Faqs

 

What is a mortgage?

A mortgage is a loan used to purchase real estate, where the property itself serves as collateral for the loan.

What is a fixed-rate mortgage?

A fixed-rate mortgage has an interest rate that remains the same for the life of the loan, providing predictable monthly payments

What is an adjustable-rate mortgage (ARM)?

An ARM starts with a lower interest rate that adjusts periodically based on market conditions, which can make payments increase or decrease over time.

What factors affect mortgage rates?

Interest rates are influenced by the Federal Reserve, inflation, the bond market, economic data, and the borrower’s credit profile.

What is PMI and when is it required?

Private Mortgage Insurance (PMI) is required on conventional loans when the down payment is less than 20%.

What is an escrow account?

An escrow account holds funds to pay property taxes and homeowners insurance on behalf of the borrower.

What does LTV stand for?

LTV (Loan-to-Value) is the ratio of the loan amount to the appraised value of the property, used to assess risk.

How does credit score affect mortgage qualification?

Higher credit scores generally lead to better loan terms, including lower interest rates and fewer conditions.

What are closing costs?

Closing costs are fees paid at the end of the mortgage transaction and can include appraisal fees, title insurance, and lender fees—typically 2%–5% of the loan amount.

What is a rate lock?

A rate lock freezes your interest rate for a specified period (typically 30–60 days) to protect against market fluctuations during the loan process.

What is the debt-to-income (DTI) ratio?

DTI compares a borrower's monthly debt payments to their gross monthly income and helps determine loan eligibility.

Can self-employed individuals qualify for a mortgage?

Yes, but they may need to provide more documentation, such as tax returns, profit & loss statements, and bank records.

What’s the difference between being pre-qualified and pre-approved?

Pre-qualification is an informal estimate based on self-reported information. Pre-approval involves verification of credit and financial documents.

What happens if you miss a mortgage payment?

Missing payments can result in late fees, damage to your credit score, and eventually foreclosure if the default persists.

What is refinancing?

Refinancing is replacing an existing mortgage with a new one, often to reduce the interest rate, change the loan term, or cash out equity.

What is equity?

Equity is the difference between the market value of a home and the remaining balance on the mortgage.

I am a foreigner and have no credit history in the US. Can you still do my mortgage?

Yes! We provide financing for foreigners in a straightforward and simple process at greatly competitive rates.