- (858) 526-3037
- Carl.Spiteri@Benchmark.us
- Mon - Fri: 9:00 - 6:30
Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth.
Here’s Why You Should Work With Us.
This is an interesting question because there are actually some loan programs out there that require 0% down! There are a number of first-time buyer programs that require between 3-5% as well. That being said, in Colorado, many homes end up with multiple offers and financing is a big consideration as to the strength of an offer, so oftentimes if a buyer has the ability to do so, a 10-30% down payment will help strengthen an offer. In addition, putting more than 20% down is often advantageous as it helps borrowers avoid private mortgage insurance which can be quite costly.
When formally applying for a mortgage, there will be some initial documentation that will be required by the mortgage lender. Documents such as an identification card, one months pay stubs, the past two years w-2’s and tax returns are all pretty commonly asked for by a mortgage lender. These tend to vary from buyer to buyer.
Escrow can help make the home buying process easier by involving a third party service that doesn’t have an interest in either the buyer or the seller coming out ahead. An escrow service simply ensures that parties on both sides of the deal hold up their end of the bargain. When the process of escrow begins, the officer is making sure that all inspections and disclosures are completed. Escrow closes when everything has been completed the closing has finished.
A mortgage pre-qualification can easily be defined as an estimation of how much a buyer can borrow. This tends to sometimes be inaccurate and many lenders ask the buyer in a casual setting about their income, debts, and other assets without actually verifying. If someone is untruthful or doesn’t remember part of that information and it ends up being inaccurate it can delay or skew the process.
A pre approval is what every home buyer should obtain before they begin looking at buying a home. A mortgage pre-approval can be easily defined as a written commitment for a buyer from a mortgage lender. Keep in mind to obtain a pre-approval buyers will need to provide the documentation mentioned in #2.
Interest only loans are when the buyer only pays the interest on the mortgage for some of the loan, also known as an “interest period”. The term is usually between 5 and 7 years. After the term is over, many refinance their homes, make a lump sum payment, or they begin paying off the principal of the loan.
The difference between a fixed rate and an adjustable rate mortgage is just that, for fixed rates the interest rate is set when you take out the loan and will not change. With an adjustable rate mortgage, the interest rate may go up or down.
The answer here largely depends on the type of loan that you need and the amount of money that you are willing to put down. Can we remove this line? Usually, if you have a credit score below 580, you’ll be able to get a mortgage with a higher down-payment.
We can help you get pre-qualified and on your way to homeownership!
11622 El Camino Real, Suite 100 San Diego, CA 92130
Carl Spiteri | NMLS ID 286890
Phone: 619.544.6444
Office: 858.526.3037
eFax: 800.670.0929
Ark-La-Tex Financial Services, LLC NMLS ID 2143
Carl Spiteri | NMLS ID 286890
Ark-La-Tex Financial Services, LLC d/b/a Benchmark Mortgage 5160 Tennyson Pkwy STE 1000, Plano, TX 75024. NMLS ID #2143 (www.nmlsconsumeraccess.org) 972-398-7676. Some products may not be available in all licensed locations. Information, rates, and pricing are subject to change without prior notice at the sole discretion of Ark-La-Tex Financial Services, LLC. All loan programs subject to borrowers meeting appropriate underwriting conditions. This is not a commitment to lend. Other restrictions may apply. (https://benchmark.us)