Getting a mortgage - Part II
Q: How much down payment do I usually need?
A: You have several choices- VA loan would be a zero down mortgage, FHA would be 3 ½% and conventional loans require at least 5% down. Of course each loan has its own guidelines so you’ll need to consult with a lender.
Q: Do they do many VA loans?
A: Different lenders have different loans. If you are interested in a VA loan, or have served in the armed forces and know you have one available to you, I am happy to guide you towards a veteran friendly lending institution. By the way, thank you very much for your service to our country.
Q: Who would you recommend if I want a loan approval?
A: Our team has a few lenders that we’ve worked with before that each offer unique incentives for choosing them. Feel free to email or call me for their names and contact info.
Q: How long does it take to get pre-approved? Does it cost anything?
A: The pre-approval process is quite simple, many lenders even offer a secure site where you can upload all of your information for them to review. Other lenders may require a phone call or to sit down with you in person. No matter what the circumstance it only takes about 3-5 days to get a pre-approval. Not to be confused with a pre-qualification, which may only take a day and doesn’t really reflect a solid agreement from your lending institution. As always, you should never have to pay for a pre-approval either.
Q: Can I use my lender if I’m buying a home from a builder?
A: Yes and no. If your lender offers a construction-to-perm loan AND if your builder gets approved by your lender, then yes. If your lender does not offer a construction-to-perm loan OR your builder does not get approved by your lender, then you may need to seek out a lender the builder has worked with before OR a different lender altogether.
There is also a chance that the builder (depending on how big an operation they are) will have their own lender that offers better incentives than yours may. It’s best to research 3 or 4 and get a clear idea across the board about how they each compare to one another.
Contact one of our agents for more info!