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We know you may have many questions regarding your new home
purchase or mortgage refinancing.
We've briefly answered the questions we've heard most often.
Please contact us if you have other questions, or need
additional information.
Questions:
Why should I choose First Stop Mortgage?
What interest rate can I expect?
What documents do I need to apply?
How much do I need for a down payment?
What will my monthly payment be?
How much can I borrow?
I
have excellent credit - shouldn't I go directly to a lender?
What if my credit is less than
perfect?
How long until my loan closes?
Should I refinance?
Answers:
Why should I choose First Stop Mortgage?
First Stop Mortgage works with several lenders to provide
you with the financing that best suits your needs and
circumstances. We have a knowledgeable and friendly staff
who will help you through every step of the loan process.
What interest rate can I expect?
We can provide you with an estimated interest rate for your
loan when we begin the actual loan application process. The
rate you receive depends on your financial situation and the
loan product we match you with. Call 1-866-881-0548 to ask
about today's low rates.
What documents do I need to apply? We can tell you exactly what's needed when we discuss your
loan application. Generally, you can expect to provide us
with W-2s for the last 2 years, 3 months of bank statements,
etc.
How much do I need for a down payment? Your necessary down payment will depend on the specific
financing product. Many people assume they need 20% of the
sale price for a down payment, and this can seem
overwhelming and unattainable. First Stop Mortgage can find
a loan type that is suited for the down payment option you
need, including little or no money down.
What will my monthly payment be? First Stop Mortgage cannot guarantee a specific monthly
payment until we know what type of loan you need. We are
able to help you estimate your monthly payment with our
online loan calculator.
How much can I borrow? The amount of money that you can qualify to borrow depends
on many factors. You can use our online loan calculator to
estimate your monthly mortgage payment and assist you with
your financial planning.
You may be familiar with the term "debt-to-income" ratios.
This is the percentage of your monthly gross income that
pays your monthly debts. (Gross income is what you make
before taxes or any other payroll deductions)
Debt-to-Income Ratios are typically written as: 33/38, or
28/36, etc.
The number on the left side of the / represents the
percentage of your income that is spent on housing. This is
calculated by taking the total spent on principal, interest,
taxes and insurance (it does not include your gas, electric,
phone, cable, etc.) and dividing by your gross monthly
income.
The number on the right side of the / represents the
percentage of your income that is spent on total loan debt.
This includes your housing expense as well as your monthly
payments on credit cards, auto loans, student loans, etc. To
determine this percentage, simply divide the total of your
monthly loan payments by your gross monthly income.
The guidelines for debt-to-income ratios differ between loan
types, so please do not feel overwhelmed or discouraged.
Call us to determine what loan we have to meet your
particular needs.
I have excellent credit - shouldn't I go directly to a
lender? First Stop Mortgage has helped many people with excellent
credit, as they realize that rates and terms offered to
anyone can vary between lenders. We deal with various
lenders, and are therefore able to find you the best
available terms and rates on any given day. Also, there are
particular loan products available that many other lenders
may avoid, such as loans with low or no down payment, 100%
stated income programs, and financing for investment
properties.
What if my credit is less than perfect? Don't let fear about your credit score deter you from
contacting First Stop Mortgage. We are able to find loan
products for applicants with poor credit ratings, as well as
loans with minimal or no down payment.
How long until my loan closes? Once First Stop Mortgage begins the lending process for you,
we will work to close the loan as expediently as possible.
We have to work and coordinate with several people in
various offices, and we can estimate the time for your
specific loan when we speak to you about your specific
needs. Many people believe a loan should close within 30
days - this may be reasonable in many situations, but other
loans require more (or less!) time.
Should I refinance? The decision to refinance should be made after considering
several factors. These include the specific terms of your
current mortgage and how long you plan to live in (and/or
own) your home.
First Stop Mortgage can help you reduce your current monthly
mortgage payments by refinancing with a lower interest rate,
and we can often refinance a 30-year mortgage to 15-years,
with little change to your monthly payment.
Contact one of our mortgage professionals to determine if
refinancing can help you.
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