Insights into Homeownership: Frequently Asked Questions

Q: How much can I afford to borrow for a home loan? 

A: This depends on several factors, including income, credit score, current debts, and down payment amount. Our team can help you understand your borrowing potential.

Q: What is pre-approval, and why is it important? 

A: Pre-approval is a lender's conditional commitment to lend you a certain amount. It shows sellers that you're a serious buyer with financing in place.

Q: What's the difference between a fixed-rate and an adjustable-rate mortgage? 

A: A fixed-rate mortgage has a set interest rate for the life of the loan. An adjustable-rate mortgage has a rate that can change over time, usually in relation to an index.

Q: How can I get the best mortgage rate? 

A: A strong credit score, a large down payment, and a low debt-to-income ratio can help you secure the best mortgage rate.

Q: When should I consider refinancing my mortgage? 

A: It's a good idea to consider refinancing when interest rates are low, switching from an adjustable-rate to a fixed-rate loan, or tapping into your home's equity.

Q: Does refinancing come with costs? 

A: Yes, refinancing isn't free. Costs can include appraisal fees, origination fees, and closing costs. It's important to calculate these costs against the potential savings.

Q: What is a reverse mortgage? 

A: A reverse mortgage allows homeowners aged 62 and older to convert part of their home equity into cash. The loan only needs repayment once the last surviving homeowner permanently moves out or passes away.

Q: Are there any fees associated with a reverse mortgage? 

A: Yes, reverse mortgages come with various fees, including origination fees, servicing fees, and interest.

Q: What is a rehab loan? 

A: A rehab loan combines the property's purchase price and the cost of improvements into a single mortgage. It's a good option if you want to buy a home that needs significant work.

Q: How can debt consolidation help me? 

A: If you have multiple debts with varying interest rates, consolidating them into one loan can simplify your payments and reduce your interest rate.