Is it possible to have a mortgage in absence of a credit score?
Anyone who wishes to buy a home must first clear all their debts. Doing so will help them in having no credit score while meeting the lender. This can be quite worrying but it is still possible to get a mortgage.
Anyone who applies for a mortgage and does not have a credit score will have to undergo manual underwriting. It refers to a process of providing additional paperwork which is reviewed personally by the underwriter. The process of taking a loan can become quite long in this way but purchasing a home without the burden of paying any additional debt is simply worth it. Moore Lending Group can help you write the manual under-writing and provide consultations for your home mortgage questions.
Define Private Mortgage Insurance (PMI) and the need for it?
In a case where the mortgage company or bank considers a loan to be risky, they might ask for private mortgage insurance. The reason behind this insurance is to shield the lender in case the loan is under default. This is because sometimes the market value of the house might not be able to cover the entire amount that is taken as a loan from the Mortgage Company or bank in case of default. If this happens, private mortgage insurance plays an important role by reimbursing the difference amount to the lender.
An adjustable or fixed-rate mortgage, which is better?
The rate of interest for a mortgage at a fixed rate is based on the loan’s life. Whereas, a mortgage at an adjustable-rate has an interest rate that fluctuates as per given adjustment periods. Buyers prefer fixed-rate loans when the mortgage rate in the market is low. This helps them in locking the existing rate and be safeguarded from the unwanted increase that can take place with changing times. A higher rate indicates buyers to go for adjustable-rate loans as the rate cab also falls. This gives the option of refinancing in the later stage and makes the most of changing rates.
What is the dissimilarity between being preapproved and prequalified?
A buyer can become prequalified by having a good conversation about their down payment, assets, and income with the lender. Preapproval requires the lender to verify the buyer’s financial information and undertake preliminary underwriting. The process of preapproval is time taking but is also worthy enough.
How many homes are affordable?
Buying too many homes might make the home liability and not an asset. Thus, it is important to understand one’s level of affordability before checking out houses with real estate agents. Talk to our expert consultant at Moore Lending Group to clear all your doubts about home mortgage questions.
Is it mandatory to find a home before applying?
It is not mandatory but being active even before finding a home is good. This will help with a pre-qualification subject who guides in finding the right house that can be used to assure the sellers and brokers about an individual being a genuine buyer. Pre-qualification for any loan adds weight to any offer that is made.
Once an individual finds the perfect house, they need to inform the Loan Originator and sign a purchase agreement for completing their application. We can guide you in all the process of the application till the loan is fertilized.
