• How much home can I afford?
Affordability is determined by monthly payment, which includes the principal and interest repayment on the mortgage note, monthly property tax, hazard insurance and (if applicable) mortgage insurance escrows. Monthly payments can be lowered using an adjustable rate or buy-down mortgage program allowing you to qualify for more home now and keep up with the step increases in your mortgage payment as your income increases.
• How much is it going to cost me to get into a home?
With minimum down loan programs you can buy a home with as little as 0% to 3% down payment. Additional closing costs and pre-paid escrow will cost approximately 2.5% of the purchase price. Sometimes you can negotiate some or all of the closing costs to be paid by the seller. Your Realtor can discuss the possibility of negotiating the purchase price of your home and seller contribution toward your purchase.
• What is Mortgage Insurance? Do I need it, and can I avoid it?
Whenever your down payment is less than 20% of the purchase price, mortgage insurance is required. Also all government loan programs require mortgage insurance. There are two options to avoid mortgage insurance: With 10% down payment you can combine a first and second mortgage without mortgage insurance; or you can eliminate monthly mortgage insurance costs by blending the monthly cost into your interest rate (this will increase your tax benefit and effectively lower the cost.)
• What is a FICO Score?
FICO scores are credit bureau risk scores produced from standardized models developed by the Fair Issac Corporation. Your FICO scores are a measure of your financial responsibility based on your credit history. Lenders then use these FICO scores to assess the credit risk of a prospective borrower. For more detailed information on FICO Scores, visit myfico.com.
• When do I lock into an interest rate?
Locking in your interest rate should be determined between you and your lender. The choice ultimately lies with the customer, but the lender can be helpful in informing the customer of current market trends that may affect mortgage interest rates. As a general rule, if the interest rate the day you apply for mortgage is one that will allow you to qualify and the market trends are an indication improvement it is best to lock in your interest rate. Interest rates can fluctuate without notice and could adversely affect your ability to qualify for your chosen home.
• How far out from a bankruptcy can I borrow for a home?
Most lenders require a minimum of 3 years after you declare bankruptcy. Although, some companies will work with you right out of a bankruptcy but it will cost you more.
• How long does the mortgage process take?
With limited documentation provided by the borrower, the loan process can be relatively short. It can take anywhere from 24 hours to 15 days to obtain credit loan approval. The entire process including property appraisal, loan approval and settlement usually takes between 15 to 30 days.
• If I have mortgage insurance how do I get rid of it?
If you have an FHA or VA loan the only way to eliminate mortgage insurance is by refinancing your mortgage to a Conventional Loan. For Conventional Loans you cannot eliminate mortgage insurance until you can prove 20% to 25% equity in your home. If your home was recently purchased with less than a 20% down payment, then you must show 12 on-time mortgage payments and prove the equity by obtaining a new property appraisal
• Where is my business located?
Family Mortgage is located in Downtown Loveland Colorado at the corner of 4th Street and Washington Avenue.
• In what states does Family Mortgage provide mortgage loans?
Family Mortgage lends in Colorado and Florida.
