The Potempa Team is a professional mortgage lending advisement team with decades of combined experience closing over $1 billion of mortgages in just the last year. We work with clients in several different states, from first-time homebuyers to people achieving their dream homes. With our experience and depth of knowledge of the options available for people in all types of financial conditions, we can help almost any buyer find mortgage options. You may be considering a mortgage lender, and you have questions. We have answers.
How can a mortgage company like Potempa Team help me?
Mortgage advisers have in-depth knowledge about the market in your area, specialists who can help you find the right mortgage. Not every lender will offer the same terms, and often, they may not advertise special rates or availability of loans for people with complicated financial circumstances, such as those who are self-employed or have less-than-ideal credit. Mortgage advisors also handle the entire loan application process for you and give you valuable advice on how to protect your financial interests.
What kind of documents will I need to apply for a loan?
Every situation is unique, and if your financial situation is non-traditional, or if you are self-employed or run your own business, you may need different documents. Your mortgage advisor may tell you that you need additional documents to help speed up the mortgage application and approval process.
However, there are certain things that you may need when buying or selling a house:
- A copy of the signed sales contract, including any and all riders
- Verification of a deposit you placed on the house
- The contact information (name, address, email, and phone numbers of all the realtors, insurance agents, attorneys, and builders, if applicable) involved
- A copy of the listing sheet and the legal description of the property
- For condominiums, you’ll need the declaration, by-laws, and the most recent budget
- Copies of your pay stubs, usually 30 days and year-to-date
- W2- forms for the last two years
- Employer contact information
- Documentation explaining any employment gaps
- If you’re self-employed, then tax returns for the last two years
- Partnership information including K-1’s and S-Corp documents
- If you’re using alimony or child support to apply fr your loan, then you’ll need copies of the divorce decree and the court order stating the support
- Any documents regarding income derived from Social Security, VA Benefits, or Disability benefits
- The source of your down payment, including a sale of your existing home, bank accounts, including savings, stocks and bonds, gifts, or other monies
- Any outstanding debts, including child support or alimony
- Contact information of the landlord or mortgage holder for the past two years
- Check for the application fees
What are good questions to ask my mortgage advisor?
Not all mortgage advisors are created equal, so asking a few questions to gauge their level of expertise and ability to help you is important.
- What type of loan is best for my needs?
- How much of a down payment will I need?
- What is my loan estimate?
- What will my interest rate and APR rate be?
- Will I have a rate lock?
- Will there be a penalty for paying off my loan early?
- What will I be expected to pay for at closing?
I've been denied a loan before. Can you help?
We work with many different lenders, and even if you’ve had bad credit before, you may still be eligible for a home loan. We may be able to help you find a lender even if you have poor credit, or if you’ve been denied in the past.
Can a mortgage adviser help me with my existing loan?
Yes! We can help you determine when or if you should refinance, including advising you when interest rates drop, such as APR mortgage rates that are at least 2% lower than the one that your current rate has. They may be able to advise you if the loan is even 1% or less, plus help you with the refinance paperwork.
What is an APR?
APR refers to Annual Percentage Rates, and it’s an interest rate that reflects the cost of your mortgage as a yearly rate. It takes into account points, plus other credit costs, so this rate may be a higher stated cost than the standard note rate. Your APR is intended to reflect the true cost of the loan, and prevent lenders from hiding fees or advertising a low rate, thus creating a more equitable situation for buyers or their mortgage advisors to compare.
How is my credit judged by mortgage lenders?
Your credit score comes from a system that evaluates your ability to repay debts on time. Major credit companies will take into account how much you owe, versus how much you make, and whether you pay your creditors on time. They also look at your credit usage, including both loans and credit cards. There’s a lot of satistical data that goes into figuring out your credit score, which is rated from 350 (high risk) and 850 (low risk).
Your credit score determines the interest rate you’ll get, and possibly how much the bank will lend you. You may also be able to avoid paying PMI if you have a good credit score. However, if you have a lower credit score, you may not be able to get a home loan on your own. A mortgage advisor can find lending opportunities you may not be aware of and help you be a more viable candidate for a home loan.
What is PMI?
PMI is Private Mortgage Insurance, and often required by lenders if you have less than 20% of the home’s value for a down payment, and protects lenders against a possible default. This may be required to be paid a year in advance, which can be several hundred extra dollars at closing. However, with a good mortgage advisor, you may be able to reduce the amount of PMI needed or avoid it entirely.
What can I expect at closing?
“Closing” is the term that refers to the transfer of property from seller to buyer. It can involve you, the seller, real estate agents, your attorney, the lender’s attorney, and title or escrow firm representatives. It’s a lot of paperwork, including possibly setting up escrow accounts. Before closing, you may request a walk-through to ensure that any requested repairs are completed and that any items that are to remain in the home stay in the home.
The Potempa Team – Your Professional Mortgage Advisement Team
Every home buying experience is different, and if you’re applying for a mortgage, you probably have more questions than we’ve listed above. Give your local Potempa Team a call today for a consultation and discover how we can help you achieve the home of your dreams. We can work with your financial circumstances to find the best available loan and rate for you. Give us a call today or visit us online for more information and to set up a personalized consultation!