High Quality Mortgage

On average, the appraisal inspection takes about 10 minutes per 1,000 square feet. For example, if a home is 1,000 square feet, the inspection would take approximately 10 minutes. The completed report takes a bit longer but on average it should be fully completed in under 7 days from the inspection date.

The buyer is not allowed to select an appraiser; The LENDER is responsible for selecting the appraiser. If, by coincidence, the buyer happens to personally know the appraiser, the nature of their relationship should be disclosed in writing.

The amount of money you can borrow is partially determined by the value of your home. An appraisal is needed to determine the value of your home.

All appraisal reports must include: Map showing the inspected property and similar sales based on size and property type An outside building description Description of how the size of the property was calculated Photos of the exterior home, including street views Photos of the comparable front homes used in the report. Market sales data, City land records City tax records There are generally 3 different kinds of home appraisal reports: Single-family homes: Uniform Residential Appraisal Report Condominiums: Individual Condominium Unit Appraisal Report Multi-family homes: Small Residential Income Property Appraisal Report A copy will be provided to you (the buyer/homeowner) once the report is completed.

Physical inspection reports used for appraisals can take 15 minutes to an hour for the interior of the home depending on the property type and size. For an average Single Family Home it shouldn't take more than 30 minutes. How long does the actual physical appraisal inspection take? Physical inspection reports used for appraisals can take 15 minutes to an hour for the interior of the home depending on the property type and size. For an average Single Family Home it shouldn't take more than 30 minutes.

Lenders typically don’t accept appraisal transfers from other mortgage transactions.

An appraiser is sent to the home to formulate an opinion of what the home’s value is based on market data from your neighborhood.

Nope! HQM Loans doesn’t originate loans with any prepayment penalties.

Here are some of the steps taken during the refinancing process: 1. Compare, compare! You’re the customer- right? So take your time and shop through our different loan and interest rate options. It’s important to compare rates based on your specific goals. For example, if you're only going to stay in the home for a short period of time, taking a zero-point mortgage might not save you as much as a lender credit zero closing cost loan could. Our home loan experts will outline all of the options for you to compare on black and white which option is right for you. 2. Appraisal Before the mortgage company solidifies the mortgage amount, they may want to send an appraiser to your property to make sure the “home’s value” correlates with the lending amount before they issue out a mortgage. 3. Lock-in that rate! Remember, Mortgage Interest Rates change DAILY (depending on how the market is doing). With that being said, once you’ve shopped around and located that perfect Mortgage Interest Rate, lock it in! And don’t worry, just because you’re “Locked-in” doesn’t mean that you literally are; If down the road you wish for a change in your Mortgage Terms, certain adjustments may be possible. 4. Have your paperwork ready! In order to take out any loan, you’ll need to have those financial documents ready to go! You’ll typically need at least 1 to 2 years of the following: Tax returns (personal & business) W-2’s and/or 1099s 5. Processing Once all the documents are obtained from you, the processing team will get crackin’. Within a few business days, you should receive a follow-up to make sure everyone is on the same page and that nothing is MIA. 6. The Final Approval This is the double-checking process where the underwriting team goes in with a fine-tooth comb to approve the paperwork and the terms of the loan. 7. Get the Funds and the Closing! After the Mortgage process is agreed upon, you’ll attend a closing where you’ll review the closing documents and sign-off on the terms. Then, voilà! You’re a homeowner! (Well, technically you already are one, but in better conditions!)

There are a couple of options: pay no points, pay points upfront to buy down your rate, or take a “credit” and a higher rate. Once you receive a rate quote, these choices will be available to you (You can change your decision 48 hours before your closing date.). *Be advised that borrowers are responsible for all third-party settlement fees including (but not limited to) independent property appraisal, title services, and recording charges, depending on your circumstances. *Origination fees are not charged by HQM Loans. A breakdown of all fees will be included in your loan estimate, which will be sent to you within 3 days of submitting your application.

Closing costs for refinancing a mortgage are typically between 1%-3% of the total loan amount. Costs & expenses can include (but are not limited to) title fees, appraisal fees, recording fees, etc. Don't forget to ask your designated loan officers about our zero closing costs options where you can use lender credit to offset closing fees.

The following four reasons are some of the most common reasons people refinance… Pay off your loan faster Perhaps your finances have changed—maybe you got a promotion, a new job, or you’ve combined incomes. Now you’re in a better place to pay your loan off faster. Shortening the life of your loan means paying less interest. It also means better long-term financial security and moving forward to other financial goals. Lower your monthly payment Are you reassessing your monthly spending? Maybe you’d like a little more cash flow. Lowering your monthly payment could be the answer, and it’s simple. Interest rates are constantly changing, and sometimes they’re changing in your favor. If rates have decreased since you took out your mortgage, then refinancing could be the right option for you. Consolidate your debt Wouldn’t it be nice if all of your loans were the same rate with the same terms? Better yet, wouldn’t it be great if one monthly payment could take care of all of them? A comprehensive home loan refinance can consolidate your debt, lower your payments, change your mortgage term, improve your credit score, and even potentially lock in a lower mortgage rate. Life gets hard to manage, let us help make it simple. Get cash out from your home Are you thinking about taking cash out of your home? It’s simple—as a homeowner who’s built home equity through paying off your primary mortgage, refinancing your home with that built home equity can provide you with the cash you need. Chat with one of our Home Loan Experts about a refinance plan that works best for you.

It’s FREE!!!

A credit check is required in order to get a Pre-Approval Letter. The good news is credit bureaus understand when credit checks are performed by mortgage companies that a buyer is currently shopping around for mortgages. With that being said, if you perform only one or two credit checks you should be fine. If you plan to have your credit pulled multiple times you should be okay as long as you stay consistent and within a 2-week window of having your credit pulled; Your credit score should remain in-tact (In some cases your score may drop slightly, but only temporarily.).

Some lenders use outdated systems where it can take days/weeks to get back to potential buyers who are on the edge of their seats wondering how much they’ve been Pre-Approved for. The good news is HQM Loans offers a digitized streamlined process that allows prospective home buyers the opportunity to find out how much they’ve been pre-approved for in about 10 minutes! At HQM Loans, our digital mortgage app consists of Artificial Intelligence and data-driven algorithms that have brought life to a new generation of cutting-edge technology offering homebuyers and owners digital transparent mortgage services while increasing productivity by getting your clients pre-approved faster! So, you’re probably wondering, how does it all work? Good question! It uses 5 Steps to determine a Mortgage Pre-Approval for your client: Part 1. The Perfect Loan Application Part 2. Online Credit Review Part 3. Digital Asset/Income Verification Part 4. Automated Underwriting Approval Part 5. Approved Loans & Rates

A “Pre-Approval Letter” is a letter from a certified lender that tells you (the borrow), the real estate agent representing you, the real estate agent representing the seller, the seller that you’ve been approved to borrow a loan amount needed to purchase a home (based on information provided by you).

There are many factors that can cause your verified income to be different than the income you stated. For example, if you have a base salary but earn extra money in overtime, commissions, or work bonuses (and if these additional amounts are inconsistent over a period of two years) it can be hard for lenders to verify these funds. Alimony or child support payments can also come into play; If you receive these payments, lenders typically have to assume you’ll be receiving these payments for the next 3 years. Also, if you’re self-employed and you’re receiving less and less income overtime, lenders will typically go with the lower amount. And finally, if you’re a renter, lenders will generally use the net amount (minusing and additional write-offs/expenses). Why would my verified assets be lower than expected? Certain nuances may come-up during your financial screening that may cause your verified assets to be lower than expected. The following situations may cause such a change… Business accounts vary depending on the situation. Assets from retirement accounts and investment accounts must be liquidated before closing the loan. Large deposits made into your bank accounts from unverified sources can cause this dip. If there’s a pending sale on a property, only a percentage of the sale can be used as an asset.

Any real estate professional should be able to tell you that a “Pre-Approval” is NOT the same as a “Pre-Qualification”. Prior to receiving a Pre-Approval Letter, the process consists of careful screening (performed by a certified lender) of all documents and information provided by the homebuyer before you are (or aren’t) approved. Once you receive the actual letter, it serves as a legitimate form of verification from a bank. However, a “Pre-Qualification” does not serve as proof of anything. There is little to no screening process and it’s not recognized as legitimate documentation from a bank.

There are many aspects that make up your monthly mortgage payments: The total loan amount, the term of the loan (how long you take to pay the loan back), your interest rates, your monthly PMI(Private Mortgage Insurance) payments (if applicable), and your property tax and homeowners insurance payments (if these are being bundled into your mortgage). Some homebuyers may choose a longer-term loan in the hopes of achieving a lower monthly mortgage payment, others may choose a shorter-term loan to reach their goal of paying off their mortgage sooner. (It’s important to note, if you get a great interest rate, you can still have inexpensive monthly payments even with a shorter-term loan.)

There are different variables that determine your issued rate quote; However, it’s important to note that the quote is not a “guarantee”. The details you give determines much of the quote plus interest rates fluctuate daily depending on outside influences within our current economic structure.

There are situations where it makes sense to go with a “fixed rate” and times when an “adjustable rate” is the more sensible option. So what are the pros & cons? Let’s take a look… Fixed-Rate Mortgages Fixed-Rate Mortgages are great for when mortgage interest rates are very low. It makes more sense financially to lock in one rate for the life of your loan when you know that the rate is going to be quite low. (More about “Rate Locks” in a little bit) Locking in a fixed-rate mortgage is a great option for those looking to stay in a home for a longer period of time. Adjustable-Rate Mortgages The adjustable-rate mortgage is better suited for borrowers who don’t plan on living in the home for a long time. An adjustable-rate can also work in the borrower’s favor if rates are predicted to drop even further in the future.

There are many variables that determine mortgage rates: Current market trends, economic performance, the job market, and much more helps to determine what interest rates are available. However, what interest rates you qualify for are different. Certain factors should be taken into consideration when applying for interest rates: Your credit score, debt-to-income ratio, and income/employment status all help to determine what interest rates may or may not be granted to you (the homebuyer).

Your Loan Processor will provide you with choices and guide you through the process. Currently, we’re collaborating with federal agencies and our partners to provide our clients with alternatives to verbal verifications of employment where necessary.

HQM Loans is working with federal agencies and our partners & investors on figuring out when (and if) we can close remotely in your county. (Our loan experts will let you know if or when exceptions can be made.) HQM Loans require notaries to observe social distancing standards according to CDC guidelines (e.g., stay home if sick, keep distance, don’t touch things unnecessarily).

Thankfully, due to our digital solutions, we’re still able to accept new applications and lock in rates. Due to the government’s efforts to contain the spread of COVID-19 at the local level, there may be some delays to appraisals and closings. The good news is we’re still able to offer loans to customers in all states where we are licensed. If any delays to your loan pop-up, we’ll be sure to update you immediately and collaborate to find the most effective solution.

Currently, we are requiring appraisers to adhere to CDC guidelines and to observe social distancing standards (e.g., stay home if sick, keep distance, don’t touch things unnecessarily). Please be advised that HQM Loans is working hard to come-up with progressive solutions for our clients regarding the new & prevailing virus that is altering our work and social standards for our current practices.

If there’s a co-borrower, it’s typical for lenders to use the score of the borrower with the lower credit. It’s recommended that the person with the higher credit score apply to get the best terms possible. (You can still have both names on the title.) However both people may need to apply if more funds are needed for your down payment, or to improve your debt to income ratio.

Should you decide to move forward with your loan application, HQM Loans will pull your credit scores from all three major credit bureaus (Transunion, Experian, and Equifax) and use the average of the three scores received.

If you notice anything fishy on your credit report (an unrecognized credit line, an “outstanding balance” that was in-fact paid off, etc.) it’s important to report these things immediately. The FTC recommends appealing using the following 2-step process: Step One Tell the credit reporting company, in writing, what information you think is inaccurate. Use this sample dispute letter. Include copies (NOT originals) of documents that support your position. In addition to providing your complete name and address, your letter should clearly identify each item in your report you dispute, state the facts and explain why you dispute the information and request that it be removed or corrected. You may want to enclose a copy of your report with the items in question circled. Send your letter by certified mail, “return receipt requested,” so you can document what the credit reporting company received. Keep copies of your dispute letter and enclosures. Credit reporting companies must investigate the items in question — usually within 30 days — unless they consider your dispute frivolous. They also must forward all the relevant data you provide about the inaccuracy to the organization that provided the information. After the information provider receives notice of a dispute from the credit reporting company, it must investigate, review the relevant information, and report the results back to the credit reporting company. If the information provider finds the disputed information is inaccurate, it must notify all three nationwide credit reporting companies so they can correct the information in your file. When the investigation is complete, the credit reporting company must give you the results in writing and a free copy of your report if the dispute results in a change. This free report does not count as your annual free report. If an item is changed or deleted, the credit reporting company cannot put the disputed information back in your file unless the information provider verifies that it is accurate and complete. The credit reporting company also must send you written notice that includes the name, address, and phone number of the information provider. If you ask, the credit reporting company must send notices of any corrections to anyone who received your report in the past six months. You can have a corrected copy of your report sent to anyone who received a copy during the past two years for employment purposes. If an investigation doesn’t resolve your dispute with the credit reporting company, you can ask that a statement of the dispute be included in your file and in future reports. You also can ask the credit reporting company to provide your statement to anyone who received a copy of your report in the recent past. You can expect to pay a fee for this service. Step Two Tell the information provider (that is, the person, company, or organization that provides information about you to a credit reporting company), in writing, that you dispute an item in your credit report. Use this sample dispute letter. Include copies (NOT originals) of documents that support your position. If the provider listed an address on your credit report, send your letter to that address. If no address is listed, contact the provider and ask for the correct address to send your letter. If the information provider does not give you an address, you can send your letter to any business address for that provider. If the provider continues to report the item you disputed to a credit reporting company, it must let the credit reporting company know about your dispute. And if you are correct — that is, if the information you dispute is found to be inaccurate or incomplete — the information provider must tell the credit reporting company to update or delete the item.

Legally, you’re entitled to one free credit report every 12 months. You can order one at annualcreditreport.com or by calling 1-877-322-8228. If you already received a copy of your credit report in the past 12 months, and you need another one, or you need one quickly you can also get a copy by ordering through any one of the three main credit bureaus: Experian, Transunion, and Equifax.

Just because your credit is low, doesn’t necessarily mean you’re out of the refinancing or home buying game. There are many loan options available to those who have less than perfect scores and, even if we can’t approve you right now, there are steps you can take to improve your credit (So hopefully, in the future, we can help you obtain your dream home.).

Typically, credit bureaus recognize when a person has multiple credit pulls from a mortgage company that it’s because they’re in the midst of mortgage shopping. Usually, they allow a two-week window where they’ll allow for the potential buyer’s credit to be pulled multiple times without it hurting their credit (although this isn’t guaranteed by every lender). However, if you’re only having your credit pulled once or twice it shouldn’t affect it. (Even if it goes down slightly, it’s usually temporary.)

A soft credit check is a light probe into your credit history that should not affect your credit score. This is often used when you check your credit score with services that guarantee that your score will not be affected by the check. A hard credit check can sometimes ding your credit a little (it’s usually only temporary and it depends on how many checks are performed and within a certain timeframe) and is often used when opening a new account (credit cards, car loans, bank accounts, loans, etc.).

Your credit history can be very important when determining what you qualify for in a mortgage. Your loan amount and interest rate are partially determined by your credit scores; the higher your score, the lower your interest rate. If you’re concerned and are looking for ways to boost your score, feel free to try the following: Pay down as much of your debt as possible. Pay your bills on-time. Refrain from opening too many accounts (loans, credit cards, etc.) Avoid going negative on your bank accounts. Try to steer clear of frivolous spending. Try not to close any revolving credit card accounts.

Costs covered by the seller generally include concessions, commissions and miscellaneous costs. Seller’s concession consists of closing costs that are normally covered by the buyer, but these costs can be negotiated to see if the seller is willing to cover some of them. For example, after a home inspection is completed, if there are some expensive repairs that need to be made a buyer can request that, in-lieu of paying for the repairs, that the seller cover some of their expenses at closing. Or, the seller’s concession can be worked into the original contract if the buyer is willing to pay a higher price for the seller’s home. (Although this may increase the buyer’s monthly mortgage payments, they can save hundreds and thousands in upfront fees at the closing.) They will also be paying percentages of the sale to both the buyer’s and seller’s agent. (The percentage of the sale of the home is split between the two agents.) They may also cover miscellaneous costs that come-up during the process. These costs can include the owner’s title insurance policy, termite reports and/or repairs, etc.

This is when a borrower is able to use enough Lender Credits to cover all of the closing costs. A way to obtain a No-Cost Mortgage is through Lender Credits The argument of Points vs. Lender Credits are made time & time again in regards to obtaining any mortgage. (As a friendly reminder, a Point is 1% of the total mortgage amount and, for each point you’re willing to pay upfront at the closing, it’ll lower your monthly interest payment. Lender Credits operate in the opposite manner, meaning (for each credit) you can lower your out-of-pocket closing costs in exchange for a higher monthly interest payment.) No-Cash Refinance Loans It’s possible to refinance having fees already bundled into the mortgage. The upside to wrapping closing costs into the new loan is that you get a lower interest rate than if you were to raise your rate to pay for costs. The downside is that you lose home equity when you include closing costs in your refinance loan. In addition, because the costs are being financed, you’ll pay interest on them.

As a borrower, you may be expected to cover out-of-pocket expenses at the closing. These fees & costs can include: title insurance, a title search, appraisal, credit check, and other charges; And sometimes, the amount of these costs can add up to be between 2-5% of the mortgage amount. However, it is possible to negotiate these expenses as the Lender may be willing to cover some of these additional mortgage costs as well.

Closing costs, which are also called “Settlement Costs”, are not that easy to calculate because they are a collection of various types of expenses. These expenses often include (but are not LIMITED to): Lenders fees, attorney fees, recording fees, title fees, etc. Some expenses can depend on the state and county, the lender and type of program. The rest of the expenses are contingent on other real estate professionals like appraisals or surveyors.

Additional fees include Title Fees, Attorney Fees (if needed), Appraisal, Flood Certification, Homeowners Insurance, Property Taxes, Gov Recording Fees, and Per Diem Interest. Buyer fees can also include a sub-escrow fee from the title company for receiving the loan proceeds from the buyer or borrower’s lender and making the required payoffs, a recording fee, notary and courier fees, as well as document preparation and home inspection fees.

A dedicated mortgage professional will be able to issue you a cost estimate once you outlined the specific loan scenario you seek- upon your request for one. A cost estimate breaks down most (if not all) the costs associated with your mortgage (closing costs, appraisals, etc.).

This is a great question! Many mortgage companies will try to tell you how much you can afford based on your current income and debt-to-income ratio. This is an okay start, but to REALLY understand what you can afford, it’s important to factor-in all the details of your spending habits (fitness costs, dining out expenses, gas, insurances, shopping, travel, pets, etc.) to gauge what you can afford and still achieve the lifestyle you’re comfortable with. HQM Loans offers FREE tools to help you figure out your affordability. With that being said, a great tool to start with is our Affordability Calculator. This takes into consideration all your spending habits, bills, current debt plus your income. Once you get a pretty accurate estimate, you can then get the LEGITIMATE estimate from us in the form of a Pre-Approval Letter. This letter will tell you how much you qualify to borrow based on what you can afford. NOTE: Once receiving a Pre-Approval from us, it’s important to stay consistent with spending habits and payment habits; Please refrain from taking out additional loans/credit cards, spending large amounts of money, missing payments on current debts, or going negative on your bank accounts.

HQM Loans is a mortgage company dedicated to providing custom mortgage solutions for our clients based on their specific goals & needs. Whether you’re looking to refinance (searching for a better mortgage than the one you’re currently paying back) or you’re looking to purchase a new home, HQM Loans will be there with you every step of the way. We want to ensure the smoothest mortgage process possible by providing an impeccable customer service experience complemented by our expert mortgage professionals. HQM Loans offers clients: Purchase Home Loans Rate and Term Refinance Mortgage Cash-Out Refinance Mortgage Debt Consolidation Mortgage Renovation Refinance Loans Renovation Purchase Loans Reverse Mortgage Second Mortgage Loans FHA, VA, USDA, Conventional and more.

Step 1: Getting an idea… First, we kindly recommend (although it’s not necessary; just helpful) that anyone interested in home buying (even before you reach out to HQM Loans) check out our calculation tools which are FREE and easy to use; You can choose from our “Mortgage Calculator” (This will give a pretty accurate estimate on what your monthly mortgage payments will be.). Step 2: Getting A Pre-Approval If you’re interested in working with HQM Loans, the next step would be obtaining a Pre-Approval Letter. You can get a pre-approval with us in about 10 minutes by filling out the form here, or you can call us at 973.339.7401 to speak with one of our mortgage professionals. *It should be noted: A Mortgage Pre-Approval is not a commitment to lend and additional documentation may be required.* Step 3: Upfront Underwriting/Pre-Approval Then, once you find your dream home, your advisor will help prepare your mortgage application. As soon as you decide on an offer price, your real estate agent can best represent your offer to the seller. Step 4: Order Appraisal Following this, you’ll draw up a contract based on the agreed-upon purchase price, closing date, and contingencies. Then, contact your mortgage lender to submit your application. Your mortgage lender will prepare disclosures for your review based on property address, purchase price, selected term and program, rates, and more. Step 5: The Home Inspection A home inspection will then need to be ordered. A home inspection is a small (but worth it) investment in making sure that you’re not purchasing a home that’ll cost you a lot in repairs down the road. The home inspector will determine if there’s anything that’s structurally or mechanically faulty with your dream home. Step 6: Final Underwriting The underwriting process will be next. Thankfully, with HQM Loans, it’s quick, simple and painless. You’re working with experienced Home Loan Advisors. We’re here to help empower you to make the right decision when buying a home, selecting a loan amount, program and much more. Your advisor will work with you from here to provide you, your real estate agent, and your attorney any updates. Step 7: Closing And finally, the final mortgage approval. You’re almost done. Once your loan conditions, appraisal, and inspection reports are complete, the lender will issue the mortgage commitment. Basically, it’s the lender’s promise to lend you the money for your new home. Once the mortgage commitment is issued, you’re fully approved for the mortgage and ready to close on the home.

HQM serves New Jersey, and is licensed by the New Jersey Department of Banking and Insurance.

HQM Loans is a new kind of mortgage company taking a fresh family oriented approach to lending and client relationships. From digital solutions to transparent services, we're all about helping our clients achieve the highest level of success when it comes to home ownership. Whether they’re looking to buy a home or refinance a loan, HQM Loans works to empower and educate our clients. We've been able to eliminate obsolete systems and unnecessary fees so we can operate at a fraction of the cost and pass those savings on to our clients. Empowering clients to make the right decision because we believe that pride of homeownership should never be at the cost of sacrificing one's happiness.

When you close, that new house and mortgage are officially yours. At the closing, you’ll sit down with the professionals involved in your real estate transaction and sign all the legal documents needed to give you ownership of your new place. It is quite an exciting part of the whole process! You’ll also be responsible for paying closing costs as part of the closing process. Closing costs are typically 3–4% of your home’s purchase price. You’ll receive a Closing Disclosure three days before closing so you know exactly what you can expect.

You should definitely think about refinancing if: 1) You can lower your interest rate enough to justify the closing costs. 2) You can refinance from an adjustable-rate mortgage to a fixed-rate mortgage. At HQM Loans, we have many different refinancing options so if you are looking to refinance or have other questions don't hesitate to contact us.

Have you ever wondered what happens when you send in that mortgage payment every month? It’s nice to think the whole amount just reduces your principal, but your monthly payment actually goes toward a lot more. Here’s what the typical monthly mortgage payment includes: -Principal -Interest -Homeowners insurance -Property taxes -Private mortgage insurance (PMI), if you put down less than 20% on your home

Mortgage points, or discount points, are a way to prepay interest to get a lower interest rate on your mortgage. Each mortgage point equals 1% of your home’s value. That means if you’re getting a $250,000 loan and have two discount points, you’ll pay $5,000. In most cases, a point can reduce your interest rate by one-eighth to one-quarter of a percent. If you have more questions about mortgage points, or anything else, give us a call at HQM Loans, and we will be more than happy to help you and guide you along the way of purchasing your home.

High interest rates bring higher monthly payments and increase the overall interest you’ll pay over the life of your loan. A low interest rate saves you money in both the short and long term. Of course, just like you can’t time the stock market, it’s nearly impossible to time your home purchase with the best interest rates. It may be hard to time your home purchase with the best interest rates, but there are things you can do to get a lower rate. For example, a benefit of the 15-year, fixed mortgage is that it has a lower interest rate than a 30-year, fixed mortgage. Sometimes a bigger down payment can also help you get a better interest rate. The money you pay in interest doesn’t ever go toward paying off the principal balance of your home. That’s why it’s a smart move to get a low interest rate on your mortgage and then pay off your house as quickly as you can.

With so many mortgage options out there, it can be hard to know how each would impact you in the long run. Here are the most common mortgage loan types: Adjustable-Rate Mortgage (ARM) Federal Housing Administration (FHA) Loan Department of Veterans Affairs (VA) Loan Fixed-Rate Conventional Loan If you have any questions, do not hesitate to call us at HQM Loans to discuss what options may be best for you.

A quick conversation with your lender about your income, assets and down payment is all it takes to get prequalified. But if you want to get preapproved, your lender will need to verify your financial information and submit your loan for preliminary underwriting. A preapproval takes a little more time and documentation, but it also carries a lot more weight. Which is better? Think of prequalification as an initial step and preapproval as the green light signaling that you’re ready to start your home search. When sellers review your offer, a preapproval means you’re a serious buyer whose lender has already started the loan process.

PMI or Private Mortgage Insurance is provided by a private company to protect the mortgage lender against losses that might be incurred if a loan defaults. It can make a big difference in how quickly your mortgage loan is approved and how much money you spend on a down payment. It is required if the loan amount is more than 80% of the home’s value. This insurance benefits lenders and investors, but it also helps homebuyers too. Without mortgage insurance, 20% of the loan amount is required to be put as a down payment. We understand that even if you have enough money for a large down payment, you may prefer to use it for other purposes. And if you don’t have a 20% down payment, it can take a long time to save it. While you’re saving, the price of your dream home is likely to rise – perhaps faster than you can save! Private Mortgage Insurance can be a big help if you’re like most borrowers in this type of situation.

You wouldn’t go shopping for a new car without knowing how much you can afford. Why would buying a home be any different? Pre-Qualification Today = Less Stress House Shopping Tomorrow One of the most stressful things about buying a home is adjusting to your new mortgage payment. Knowing your family’s financial boundaries before shopping for your new home can make the process go much more smoothly. Your pre-qualification is an essential tool when house shopping, because it: -Determines what homes are in your price range -Assures real estate brokers and sellers that you are a qualified buyer -Can be used to your advantage in future negotiations