Information Center
The typical amount of time it takes for a mortgage to be processed, approved, and settled is 2-3 weeks. Faster turnaround can be achieved if there is an urgent situation. We have processed some loans from start to finish in as little as one day.
2. What is an Interest Only Loans?
The traditional fixed rate loans that historically have been popular in the U.S. are structured so that the interest is due at the time of the monthly payment, and is collected along with enough additional money to pay off the principal over some fixed period - 360 months on a 30-year loan. Interest Only loans allow you to only pay the interest every month if you choose for some fixed period of time. Unlike 30-year fixed loans, if you pay down the principal balance, your payment goes down.
3. What is an Option ARM?
An Option ARM is a mortgage product that offers a very low introductory rate and then adjusts to the variable market rate. The ‘Option’ aspect allows you to choose from different payment options each month: 30-year structure, 15-year structure, Interest Only structure, or keeping the low introductory payment rate and putting the difference towards your principal balance. Option ARM’s are helpful for managing monthly cash flow but all Option ARM’s are not the same. Consult a mortgage professional if you are considering an Option ARM.
4. What is a credit score?
A credit score is a mathematical calculation that rates the probability of your payments being made on time each month. Many different factors affect credit scoring: loan types, balances, late fees, new accounts, inquiries, re-running the credit report, etc. Individuals with 700+scores are considered an excellent credit risk, 620+ are fair, 580+ is poor credit, and below 580 is considered risky.
5. How can I raise my credit score?
There are many strategies to raise your score. The easiest and most logical way is to pay all bills on time as agreed and keep your balances low. Dell Franklin uses a computer program that can predict the probable improvement in your score if you pay certain bills off or reduce the balances. If you have poor credit or risky credit an down a home, you should consult one of our mortgage professionals for assistance.
6. What is a “No Doc” loan?
“No Doc” is a misnomer. All loans require a certain amount of documentation and paperwork. “No Doc” refers to possibly not being required to prove income or asset information. You can get a No Income No Asset No Job loan but there are still some documents involved.
7. How much cash do I need to buy a home?
You can buy a home with zero cash down.
8. What does the home appraiser do?
The home appraiser compares the recent sales of similar local property to the particular piece of property that is presented for evaluation. The purpose of the appraisal is to assure the lender that the property being purchased is sufficient as collateral for the loan. They do not establish the value of the property or its condition.
