Home Purchase

Common Home Purchase Questions

1. How will Apply to Refinance help me in getting a home loan?

After you fill out a request for information on a home purchase loan, you will be matched with up to 4 Lenders and/or Brokers. A representative from each of the Lenders and/or Brokers will normally contact you within 48 hours to help design a home loan to fit your needs.

You will save a significant amount of time in researching the perfect loan, once you have been matched with the companies that meet your specific circumstances.

When up to 4 Lenders and/or Brokers compete for your business, you will explore all of your options and find it easy to choose the best loan to purchase your new dream home.

2. When will the Lenders and/or Brokers contact me?

You can expect the Lenders and/or Brokers in the Apply2Refi Lender network to contact you within 48 hours. Most of the time however, you will be contacted within the first 24 hours after you fill out our online form.

3. Can I get a home purchase loan if I have bad credit?

Many of the Lenders and Brokers in our network offer home purchase loan products for borrowers with all types of credit, some even specialize in bad credit. After you fill out the Home Purchase Loan request form and customize your preferences, you will be matched with the companies that will be able to help you find the perfect Home Purchase Loan.

4. Will I get accurate rate information?

The Lenders and/or Brokers that can meet your needs will contact you and share details about the loan products that you may actually qualify for. With interest rates at historic lows, you may enjoy seeing what low monthly payment is available to you.

To determine the exact interest rate for your new home purchase loan, fill out our Home Purchase request form and up to 4 Lenders and/or Brokers will contact you with additional loan details. The Lenders and/or Brokers may ask you for additional information in order to generate an accurate rate quote that is based on your specific qualifications.

5. Which loan programs are available?

Not all Lenders and Brokers will specialize in the same loan programs; that’s where we come in. Our national network of Lenders and Brokers offer all types of loans. Commonly, the two major categories of loan programs are as follows

Fixed Rate loans. The most common are 10-year, 15-year, 20-year or 30-year Fixed Rate loan programs.

Fixed Rate loans enable you to lock in an interest rate for a predetermined time period. Shorter loan terms result in higher monthly payments, but you will save thousands of dollars in interest over the life of the loan, and your home will be paid off faster.

Adjustable Rate loans. The interest rate on Adjustable Rate loans will adjust periodically and reflect market changes. Since these loans normally offer lower initial interest rates, they are the ideal choice if you plan on living in your house for only a short period of time.

There are some companies that offer government-insured loans which will allow borrowers to purchase a home with very little to no credit, and even with a very low or no down payment. To manage the risk on these types of loans, the interest rate will be higher.

It is very common to purchase your home with this type of loan and then refinance out of it when your qualifications improve, interest rates drop, or your home’s value increases to the point where you can put your home equity to work for you.

The Lenders and/or Brokers that contact you will need to get your application qualified. Typically, loan offers are structured by analyzing your credit rating, debt-to-income ratio, and your loan-to-value ratio (your down payment will help determine this).

6. Will I get the best interest rate?

While your credit score is a major factor in determining your interest rate, there are four other conditions that will affect your rate. Your Credit History, Mortgage Rating, Loan-to-Value Ratio and Debt-to-Income ratio are considered in establishing your interest rate.

If your credit is good and your monthly income is much higher than your monthly debts, you will probably qualify for lower interest rates. However, if you are overwhelmed with debts, even if you have great credit, you may not be able to qualify for the lowest interest rates available. Please keep in mind that if you plan on financing 100% of the value of your new home, you will normally get a higher rate.

7. What are the costs of a home loan ?

Every company charges different amounts of fees to process and fund your loan, some examples include:

Home Appraisal Fees
Points to Buy-Down your Interest Rate
First loan payment
Loan underwriting fees
Insurance premium(s)
Escrow reserves
Legal fees
Escrow fees
Notary fees
Fees for title related services
Fees for recording services

If your Lender will allow you to roll these fees into the loan, you will have to put up less money to purchase your new home. Some lenders require an up-front lump sum payment to cover the costs of your loan.

You may also be charged Points to Buy-Down your rate or to cover some of the expenses of your loan. If you are being charged 2 Points on a $200,000 loan, you will be expected to pay 2% of the Total Loan amount, or $4,000. If you are offered a low interest rate but the Points are excessive, your total costs may be higher than you anticipated. By requesting written quotes, it will be easier for you to choose which loan program is best suited for your specific needs.

Sometimes it makes sense to voluntarily pay Points in order to obtain a lower interest rate. This decision will depend on how long you will keep your loan. The longer you plan to keep your loan, the more Points you should pay to "buy down" the interest rate. This will result in saving more money each month since you have a lower interest rate and lower monthly payment.

However, if you were going to refinance or sell your home in a shorter time period, you wouldn’t use the rate long enough to have a beneficial return on your investment of paying Points in the first place.

8. What documents should I submit to get qualified for a Home Purchase Loan ?

Once you choose a Lender or Broker from the Apply2Refi Lender Network, you may need to submit the following documents so that you can get approved; some loan programs may not require some of these items:

Employment Information (Pay Stubs, Employee verification documents)
Federal Income Tax Returns (W2’s, and or 1099 forms)
Supplemental Income verification documents
Savings, Checking, and Investment Account Statements
Current Debt Payment documents (Credit card statements, car loan statements)
A signed Borrower’s Authorization Letter