What is a mortgage?
A mortgage is a loan that you take out from a mortgage lender to pay for property. If the loan is not paid back, the lender can take possession of your property and sell it to repay the loan.
How long are mortgages for?
Usually, the mortgage will be for 30 years. However, you can get mortgages for a shorter length like 15 or 20 years.
How long does the process take?
Typically the number of days from application to closing is 30-50 days, depending on several factors. Sometimes there are delays that occur beyond our control and sometimes certain loan types take longer than others.
What is a discount point?
This fee is normally paid at closing and is calculated by multiplying the loan amount by 1% ($100,000 x .01=$1,000) Discount points are paid to reduce the interest rate on a loan.
What is a typical down payment required for the purchase of a home?
Typically you will receive the best terms on a loan if you have a down payment of 20% of the purchase price or more. However, there are loan programs available that allow for a minimum down payment of 3.5% if you are purchasing a primary residence.
What is the minimum credit score required to obtain a mortgage?
Most conventional lenders require a minimum credit score of 620. However, there are some lenders that will accept a lower credit score if compensating factors can be shown.