FAQ

Frequently Asked Questions

Q. How important is job stability when applying for a loan?
As a rule of thumb, the lender looks for a minimum two-year work history.

Q. Should I get pre-qualified or pre-approved before I begin house hunting?
Yes! It is important to know how much you can afford before you fall in love with a home.

Q. How much should I put down on a house?
This varies based on your personal situation and how comfortable you are with your payments. It usually varies between 3% and 20%.

Q. When does it make sense to refinance?
The rule of thumb is “if the new rate is one point lower than your current rate.” There are exceptions though. For example, one could go from a 30-year fixed to a 20-year fixed and reduce the term and finance charges dramatically. It is important to evaluate the closing costs associated with refinancing and how long you plan to remain in your home.

Q. What if I’m self-employed or don’t have a two-year job history?
Lenders like to see a two-year history. Many times a lender will use full time schooling as part of the two year history.

Q. What’s the difference between pre-approved and approved?
Pre-approved means that the buyer has been submitted to an automated underwriting system such as Freddie Mac or Fannie Mae and has received an accept rating. An approved mean that a deal has been submitted to a specific lender and all of the terms have been met. The loan is then ready for closing.

Q. What do I do if I have credit problems, or no credit history?
Sometimes bad things happen to good people. Credit problems do not always prohibit buyers from purchasing a home.

Q. Can I ever put zero down?
Yes! There are zero-down programs that lenders do provide.