Do I need a 20% down payment?
No, today you can obtain a loan without having the full 20% down payment. This may require you to pay PMI (Personal Mortgage Insurance) on your loan however PMI costs can be very low making it possible to buy a home with a lower down payment.
How do I lock in an interest rate?
When you apply for a loan with Legacy Mortgage there will come a point in the process where we lock in your interest rate. You can lock in a rate for 30 or 45 days. Locking in protects you in the event that rates should increase during the loan process.
Why would I get a 10 or 15 year mortgage vs a 30 year mortgage?
These are the most common loan periods for a mortgage in the Upper Valley. If you opt for a 10 or 15 year term your interest rate will be lower but because the term is shorter your monthly payment will be higher. It is common to refinance a mortgage to a shorter term so save money in interest over time.
Do I need a buyer's real estate agent?
In the Upper Valley we are fortunate to have a number of skilled local real estate agents that specialize in navigating a home buyer through the process as a buyers agent. This is a unique service as the agent works with the buyer’s best interest in mind but it is done so without any cost to the buyer. The real estate agent’s fee is covered by the seller at closing.
How is a mortgage broker different than a bank?
Mortgage brokers work with numerous lenders to help find you the best loan product and interest rate for their clients.
What are the benefits of working with a local mortgage broker?
We have been processing loans in the Upper Valley for years. We understand the unique real estate market in the area and we have relationships with the local real estate agents and real estate attorneys. This means you are getting a cohesive team that knows the local area and has worked together to help the process go as smoothly as possible.
Do I need a real estate attorney?
Yes! A real estate attorney will protect you through the legal aspects of buying a home. They will ensure the paperwork is complete and that there are no liens or claims on the title of the home to prevent any future legal issues with the property. If you don’t have a real estate attorney there are several fantastic options in our local area.
How will I know which loan program is right for me?
Our team is here to help you figure out exactly that. You provide us with your loan application, supporting documents and the goals you have and we will work to find the best possible loan product for you!
Should I find a home before I apply for a mortgage?
We highly recommend you meet with us to obtain a pre-qualification letter when you are ready to begin house hunting. This sets you up for the best possible success and will be ready to make an offer that will be considered valuable to a seller.
Can I use my 401k for my home purchase?
If you are short on your down payment you may have the option to withdraw from your 401k plan to help cover that cost. Discuss this option with your loan officer because paying PMI for a period of time might be more beneficial in the long term.
What is private mortgage insurance?
Private Mortgage Insurance (PMI), is a monthly fee that is added to a mortgage payment when the buyer doesn’t have the 20% down payment to apply to their purchase.
What documents do I need to provide?
- Pay Stubs from the last 30 days
- Name and address for any employers for the past 2 years
- W2’s from the past 2 years
- Tax returns from the past 2 years (and business returns if you’re self-employed)
- Year to date Profit & Loss Statements from the current year (if you are self-employed)
- Bank Statements (all pages even blank) from the past 2 months
- Proof of any additional income
- Divorce and separation agreements if applicable
- Details on any real estate that you own (most recent mortgage, tax bill, homeowners insurance declaration page)
What are mortgage points?
Mortgage points typically refer to the option of buying points at closing to lower the interest rate of a loan. This can be done to lower the monthly mortgage payment to make it more affordable for the home buyer. Your loan officer can advise if this is an option that may be in your best interest.
What is an escrow account?
When you enter into a mortgage application there is the option to have your property taxes and insurance paid by your mortgagee. In order to do this you need to fund the escrow account through your monthly mortgage payment. When you close on your loan some of the funds to close will be used for the escrow account held by your lender.
What is an Earnest Money Deposit?
When you enter into a mortgage application there will be deposits made along the way that are held by a 3rd party until closing. These deposits will be credited towards the amount the buyer needs to bring to closing.
Should I pay off debt before applying for a loan?
We recommend speaking with your loan officer before paying off any debt or applying for any new credit lines. This includes store credit cards. During the time that you are applying for the loan it is important to avoid major purchases and new debts however it can be beneficial to pay off a debt.
Can I obtain a loan without perfect credit?
We have loan programs available for those that have less than perfect credit. Particularly FHA loans can be a match for those with lower credit scores. Definitely don’t hesitate to contact us about your loan options even if your credit score isn’t perfect.
How do I know how much house I can afford?
Check out our online mortgage calculator to help you view numbers and see how much your monthly payments would be on a specific home.
How do I know if it’s a good time to refinance?
There is an unwritten rule that if you can lower your interest rate by 1% then it makes sense to refinance. However there are a number of reasons why people opt to refinance. You may choose to reduce the term of your loan such as going from a 30 year term to a 15 year term to reduce the life of your loan and the amount of interest you pay overtime. Another reason to refinance is to pull equity from your home to use for another goal in your life. If you’re considering refinancing reach out and we can help determine if the time is right for you.