What mortgage loan terms are available for me as a borrower?
You can choose almost any loan term that you desire. The most common loan terms are 15, 20, 25, and 30 year terms (even 40 now). Some lenders will still let you do the years in between these ones also, although it is not very common. Generally the lower the term you select, the lower the rate can be. The 30 year mortgage term is the most common loan term used for home mortgage financing.
How do I know which type of mortgage is best for me?
There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. We can help you evaluate your choices and help you make the most appropriate decision. Contact 713-621-LOAN for a loan request.
If my credit is poor can I still qualify for a mortgage?
Yes, a mortgage can be obtained by people with all kinds of credit (Excellent, Great, Average, Below Average, and Poor Credit). Obviously, the rates will increase slightly as credit score get a little lower but a mortgage can still be obtained. Also, with a lower credit score you may be limited to a few less mortgage loan programs than you would with excellent credit. Sometimes compensating factors such as a lot of money put away in checking or savings accounts, 401k’s, investments, etc…, good job time, low LTV (loan to value), low DTI’s (debt to income ratios), and lower terms (15 year instead of a 30 year) may help to compensate somewhat for a lower credit score and qualify you for a little better rate. If not, we can try to boost you credit score. Call 713-621-LOAN for additional informational on a loan and credit.
What is the minimum down payment?
Since we have various programs and products, we vary our minimum down payment. For example, for an FHA Homestead Purchase Mid 600+ credit score, the down payment would be 3.5% of the total loan value. However, for our Hard Money Asset Based (Investor) Loans, the down payment would be 30%.
-96.5% Max LTV for Refinance and/Home equity loan (FHA)
-65% Max LTV for Refinance and/or cash out for Hard Money (Private)
How much does Gold Quest Charge
We pride ourselves in integrity and knowledge to get you the best financial product available in the market. Therefore, the product sells itself. We do not charge upfront and/or application fees! To see the real numbers in a GFE (Good Faith Estimate), call 713-621-LOAN
What is the best mortgage for me?
There are many mortgage options for a borrower today. We will assess your situation and provide the best options for you at that time. We have any program from a simple fixed rate mortgage, interest only, pay option arms, lot loans, construction, rehab, manufactured, commercial and many other options to fulfil your lending needs.
What is PMI?
PMI, or Private Mortgage Insurance, is insurance from a private company that is required on conforming loans where the borrower does not have a minimum of 20% equity in the home. PMI is an insurance that you, the borrower, pay for to protect the bank in case you default on your loan. Any time that you do not put down 20% for a purchase transaction or have at least 20% equity in a refinance transaction this is considered a higher risk to the bank and this is why they require this type of insurance.
Can I get a mortgage after a bankruptcy?
You may still qualify for a home loan even if you have a prior bankruptcy. The best way to find out if you can qualify for a home loan after a bankruptcy is to meet with a loan officer and discuss your options. Be sure to bring all paperwork regarding your past bankruptcy so that your loan officer can match you with the best lenders to meet your needs.
What does my mortgage payment include?
For most homeowners, the monthly mortgage payments include three separate parts:
Principal: Repayment on the amount borrowed
Interest: Payment to the lender for the amount borrowed
Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
What is APR?
APR, or Annual Percentage Rate, is the effective rate that takes the lender bank’s charges into consideration and express the total of all bank charges in the form of an interest rate. Because there are always other finance charges in addition to the note rate (the interest rate base on which payments are calculated), the APR is almost always higher than the note rate. The APR is one of the items required by the Truth-in-Lending to disclose to every potential borrower.
What is PITI?
PITI, or Principal, Interest, Taxes (property taxes), and Insurance, is basically the cost of living in your particular home. PITI can also be expanded to include any private mortgage insurance and homeowners association fees or condo association fees.
What is Lender Paid Mortgage Insurance (LPMI)
Lender paid mortgage insurance is a program in which the lender will pay the mortgage insurance in exchange for a slightly higher rate.
I am self-employed or I have steady income that is difficult to prove. Is there a mortgage for me?
Yes. Depending on your credit history, down payment, and several other factors your Mortgage Professional may suggest a ‘Stated Income’ program
What is Loan To Value (LTV)?
LTV is the size of your loan in proportion to the value of your home. For example, if you are buying a home for $100,000, and you make a down payment of $10,000, then your loan amount would be $90,000. Your LTV would be 90% (the loan is 90% of the value). It is important to know that lenders will always use the lesser of the appraised value or the purchase price for the value. If you refinance, then the appraised value is used.
What is DTI?
DTI stands for Debt to Income Ratio. This pretty much will decide how much of a loan you can afford. Your DTI is calculated by dividing your total monthly debts and your total monthly income.
How does my credit affect my ability to buy a home?
While credit is an important part of the loan process, don’t be discouraged if yours is less then perfect. Judgments, late payments, and bankruptcy can all affect your credit score, but they won’t necessarily prevent you from getting a loan.
Can I get a loan if I am self-employed?
Yes! There are loan programs available for self-employed borrowers to borrow up to 100% of the home value. Options are also available for borrowers with no income verification.
Why should I buy instead of rent?
A home is an investment. When you rent that money is gone forever and you are essentially paying your landlord’s mortgage. When you own your home, you can deduct the cost of your mortgage loan interest from your taxes. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years.
What is the amount financed?
The amount financed is the loan amount applied for, minus the prepaid finance charges. Prepaid finance charges include items paid at or before settlement, such as loan origination, commitment or discount fees (points): adjusted interest, and initial mortgage insurance premium . The amount financed is lower than the amount you applied for because it represents a net figure. If you applied for $60,000 and the prepaid finance charge total $2,000, the amount financed would be $58,000.
What is the total of payments?
The figure represents the total amount you will have paid if you make the minimum required payments for the entire term of the loan. This includes principal,. Interest and mortgage insurance premiums, but does not include payments for real estate taxes or property insurance premiums.