Home Loans Questions and Answers

Valuable Information for Potential Home Buyers...

  • Can a mortgage broker find the best possible interest rate for my home loan?
    Most of the time, "Yes". Since mortgage brokers work with so many different lenders, they will generally have access to out of state lenders which may provide the lowest rates.

  • Will I save money by utilizing the services of a mortgage broker?
    When a mortgage broker processes the paperwork for a home loan, it costs the lender less to make the loan. Therefore, lenders often discount loans to mortgage brokers.

  • Should I focus on the lenders advertising the lowest rates?
    Not necessarily... there is no guarantee that you will be able to lock in those advertised rates. You may also have to pay additional costs or charges to secure that lower rate.

  • Is it easier to get a home loan if you have good credit?
    Absolutely... the better your credit, the better your interest rate.

  • Does good credit have any bearing on the interest rate of my home loan?
    Good credit will help you to take advantage of lower interest rates and will help to reduce your monthly mortgage payments.

  • What do lenders look for when they evaluate your credit?
    Lenders typically look at your income, assets, liabilities, payment history, and your credit report. Other miscellaneous financial information may also be reviewed.

  • What documents will I need to provide when I apply for a home loan?
    A copy of last year's W-2(s) and your most recent pay stubs plus any recent statements for bank and money market accounts, securities and etc.

  • Will I always have to provide my tax returns to secure a home loan?
    No... if you have good personal credit and sufficient assets, tax returns will not be required. The majority of loans that we process are approved without tax returns.

  • Are there programs available that don't require any additional documentation?
    Yes... these programs primarily look at credit scores. The higher your score, the higher the probability that additional supporting documentation will not be needed.

  • Will I have a problem securing a home loan if I have a good income and have paid my bills promptly?
    If too much current debt, a good income and payment history may not warrant the approval of a low-rate home loan. You would probably qualify for a no income-no asset program.

  • Why do some people choose to submit a stated income application?
    Because their incomes are "not" verified. The rate will be a little higher, but approvals do not require income verification. This is very popular for self-employed individuals.

  • What is considered to be a low credit risk?
    Borrowers with good credit histories, high credit scores, steady income and few debts present a low risk of loss for lenders. These borrowers often qualify easily for home loans.

  • What is considered to be a high credit risk?
    A borrower who has had credit problems, whose income varies from month to month, or who already owes a lot of money in relation to income poses a higher risk for the lender.

  • Can a borrower who is considered to be a high credit risk secure a home loan?
    Yes... in order for the lender to offset the increased risk of loss, the lender must charge a higher rate of interest on their home loan.

  • If I have previously declared bankruptcy, can I qualify for a home loan now?
    If the bankruptcy has been discharged and you have maintained good standing credit since, you could possibly qualify under a special mortgage program for a home loan.

  • What would be the first step in securing a home loan?
    Call one of our friendly representatives today. They are ready to help you with all of your mortgage needs. Please call 337-310-HOME (4663) today, or if out of town, 888-475-3273 toll-free.