Q: What should I avoid after getting approved?

Change your employment status, pay structure or job Make big ticket purchases, such as a new car Close current credit accounts Apply for new credit or consolidate debts Deposit cash into your accounts Avoid NSF’s or overdrafts on your account Co-sign for loans Transfer money between accounts Make large deposits (other than payroll deposits) If you need to change anything, call us with any questions before making any changes

Question 1

What should I do after getting approved?

Accepted Answer

- - Keep updated paystubs, bank statements, and other financial documents handy
  - Make timely payments on all accounts, including current, rent/mortgage
  - Use your credit cards responsibly, maintaining a credit balance of 30% or less
  - Notify your loan officer if any financial, employment, or sales contract changes
  - Let your loan officer know if you plan to receive gift funds for closing
  - Continue using the same bank and insurance company
  - Be available to your loan officer to minimize delays
  - If you need to change anything, call us with any questions before making any changes

Question 2

What should I avoid after getting approved?

Accepted Answer

- - Change your employment status, pay structure or job
  - Make big ticket purchases, such as a new car
  - Close current credit accounts
  - Apply for new credit or consolidate debts
  - Deposit cash into your accounts
  - Avoid NSF’s or overdrafts on your account
  - Co-sign for loans
  - Transfer money between accounts
  - Make large deposits (other than payroll deposits)
  - If you need to change anything, call us with any questions before making any changes

Question 3

Why should I get Pre-Approved?

Accepted Answer

In a competitive market, this can be a critical differentiator in showing the seller that you are a serious buyer and have taken the necessary steps to show that you can afford to buy the home which can give you an edge over other potential buyers.

Question 4

How do I get Pre-Approved?

Accepted Answer

Once you have identified a lender, the next step is to supply documentation that typically involves personal information, recent bank statements, 2 years W2 / tax earnings, recent paystubs and other asset statements for down payment and closing costs. Once your pre-approval is processed and approved, you will be provided with a letter that shows your Conditional Pre-Approval status and amount.

Question 5

What is the difference between a Pre-Approval and a Pre-Qualification?

Accepted Answer

A pre-qualification is an estimate that gives you an estimate of how much you can borrow without taking into consideration verification of important factors such as credit details, income and assets. Pre-Approvals demonstrate that you have taken the important steps of verifying your credit, income and financial documentation.

Question 6

When should I get Pre-Approved?

Accepted Answer

When you are 6-12 months from potentially purchasing a home, it is a good idea to meet with a home loan professional to get a baseline of where you are today and identify your goals. Once you are within a few months of shopping for a home, the best time is to get pre-approved as early as possible. Typically conditional pre-approvals can be good for up to 90 days with the ability to update it as you require more time.

Question 7

Do I have to refinance with my current lender?

Accepted Answer

You can refinance with a new lender in most cases where you are refinancing a traditional mortgage program such as FHA, VA, Conventional, or Jumbo. It doesn't hurt to check with another bank to compare rates or fees to what your current lender may be offering.

Question 8

What documents are required to be approved for a refinance?

Accepted Answer

The documents required for a refinance depend on the type of loan program you are refinancing. Certain Streamlined FHA or VA loan programs have limited document refinance programs. If you are increasing the loan size or pulling cash out on a refinance for debt consolidation or home improvement, you should be prepared to provide more documentation.

Question 9

How much money can I get from a cash-out refinance?

Accepted Answer

Every cash-out refinance loan scenario is unique. The amount of cash to borrower for a cash-out refinance depends on a number of factors, including but not limited to: Loan-to-Value, Credit Scores, Income / Assets, Loan Type, Loan Size, Property Type, Use, Seasoning (time in property), Residence Status, etc.

Question 10

Can I consolidate credit card debt with a refinance?

Accepted Answer

Yes, there are debt consolidation refinance loan programs available. Equity will be a major contributing factor in determining the amount of cash that can be used to pay off credit card liabilities.

Question 11

Can I refinance to eliminate Mortgage Insurance?

Accepted Answer

Depends on the type of loan. FHA has made recent changes to their mortgage insurance policy, so you'll need to check with your lender about the type of loan and mortgage insurance premium you are trying to refinance out of. If your refinance is a conventional - Fannie Mae or Freddie Mac - loan, it will be based on loan-to-value.

Question 12

What is the credit score range?

Accepted Answer

Many factors go into the makeup of your individual credit score. Credit Scores range from 300 to 850. The average FICO score according to Fair Isaac in the U.S. is 711. While 680-719 is considered a good credit score, 720 and above is considered excellent credit.

Question 13

What is the makeup of my credit score?

Accepted Answer

The largest impact is payment history (35%) and Amounts Owed (30%). Other factors include Length of credit (15%), Credit Mix (10%), and New Credit (10%).

Question 14

Why choose LeaderOne?

Accepted Answer

People choose to work with LeaderOne because we provide expert advice, responsive communication and world class service. We enjoy helping home buyers and are committed to educating them throughout the mortgage process. Our team was built with highly qualified mortgage professionals from across the country in order to create an amazing mortgage experience, that includes finding the best loan for your unique needs and goals. Whether you are a first-time home buyer or a seasoned real estate investor, our staff knows what it is like to be in your shoes and we strive hard to never forget that feeling. Let LeaderOne guide you through the trustworthy, exceptional mortgage experience that you deserve.

Question 15

What are the advantages of RENTING a home?

Accepted Answer

No maintenance costs or repair bills
Time to find the right neighborhood for you
Freedom to move

Question 16

What are the advantages of BUYING a home?

Accepted Answer

You can lock in the cost of your monthly Principal and Interest payment with a fixed rate mortgage
Decorate your home the way you like it
Pet flexibility
Building equity through long-term appreciation
Add stability in Housing Costs

Question 17

Are First-Time Homebuyer Programs available?

Accepted Answer

Yes, there are several homebuyer programs that are ideal for a first-time homebuyers. Low Down payment options are available through FHA, HomeReady. Learn more about what your best options are based on your goals by attending a class today.

Question 18

What is down-payment assistance?

Accepted Answer

Certain state and non-profit programs have down-payment assistance available based on income limits, location, program, and need. Down Payment Assistance may potentially cover 3-5% of your down payment through a low or no-interest 2^nd Contact us to get the particular details of the programs that will work best for your goals.

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