Frequently Asked Questions (FAQs)
What To Ask A Mortgage Lender:
This is an important subject and we have given it the exhaustive treatment it deserves in our detailed article on how to select a lender, reviewing the various factors that affect the decision and what questions to ask. Here are a few FAQs we’ve collected over the years, answered!
What will a mortgage lender need from me?
In most cases, we, like any lender, will require the following items from you before they can give you a firm quote on interest rates and loan terms:
- Your credit score
- Your employment history
- Your current income
- Your debts and other financial obligations
- The value of the home you are looking to purchase or refinance
We are your lender of choice. Contact us today and we will guide you through the process. Or visit our blog article, What Kind of Questions do Mortgage Lenders Ask for a more in depth scope.
Which types of mortgage lenders have the lowest rates?
Choosing a lender by considering the rate offered is important since the interest rate will affect your monthly payments and the total amount of interest you pay over the life of the loan.
While a bank in Maine will offer a wide variety of mortgage products, they typically have higher rates than other lenders. If you are looking for the lowest possible mortgage rate in Maine, it is important to compare offers from multiple lenders. At Acadia Lending Group, we are committed to offer you loan terms that are in your best interest.
What is the best mortgage for veterans?
We are pleased to offer veterans the VA loan guaranteed by the U.S. Department of Veterans Affairs (VA). View our VA Loans page to take our VA Loan Qualifier check. We are a committed lender. Contact us today and we will guide you through the process.
Can I get approved for a mortgage with bad credit?
It’s possible to get approved for a mortgage with bad credit, but it may be difficult. We will often require a higher credit score and may offer less favorable terms if your credit is poor. You can improve your chances of getting approved by working on your credit score and building up your savings. Your credit score is an important factor that lenders consider when evaluating your loan application. A low credit score indicates a higher risk to lenders, as it suggests a history of late payments, defaults, or other financial difficulties. However, before you determine you truly have a bad credit, contact Acadia Lending Group to discuss your options.
What is the difference between a mortgage lender and a bank?
Banks are financial institutions that offer a wide range of financial services and various types of loans. Mortgage Lender’s specialize in and primarily focus on providing mortgage loans. Mortgage lenders or brokers offer a wider range of mortgage products tailored to individual borrower needs, where as a bank has limited cookie-cutter options. Mortgage lenders have a more specialized focus on the mortgage market. This specialization can lead to more expertise and flexibility in catering to the unique needs of homebuyers.
What should I do before talking to a lender?
- Understand Your Financial Situation:
Asses your current financial situation. Understand your income, expenses, debts and savings. This will give you a clear picture of your financial health and help you determine how much you can afford.
- Check Your Credit Report:
Obtain a copy of your credit report from one of the major credit bureaus. Review the report for any discrepancies. A higher credit score can improve your chances of getting favorable loan terms.
- Improve Your Credit Score:
If your credit score is less than stellar, take steps to improve it. Pay off any outstanding debts, make timely payments, and avoid opening any new lines of credit before applying for a mortgage.
- Establish a Budget:
Create a budget that includes all of your monthly expenses, including potential mortgage payments, property taxes, insurance and maintenance costs. This will help you determine a realistic budget for your home search. If you want a loan officer at Acadia Lending Group to run the numbers for you, we are more than happy to do so!
- Save For a Down Payment and Closing Costs:
A loan officer can help you determine how much you can afford for a down payment and closing costs after assessing your situation. Having a substantial down payment can positively impact your mortgage terns and may even be a requirement for certain loan programs.
- Research Loan Options:
Familiarize yourself with different types of mortgage loans, such as fixed-rate mortgages, adjustable-rate mortgages, FHA loans, VA loans, etc. A loan advisor can help you understand the pros and cons of each and determine which type of loan aligns with your financial goals.
- Get Pre-Qualified or Pre-Approved:
Pre-qualification gives you an estimate of how much you might be able to borrow, while pre-approval is a more formal process that involves a comprehensive financial review. Pre-approval can make your offer more attractive to sellers. Acadia Lending Group offers completely free pre-qualifications, which do not affect your credit score! For a deeper understanding of the differences, check out our article, Pre-Qualification vs. Pre-Approval: How Are They Different?
We also have a few of really informative articles available to you with more in depth tips and advice to educate you so that you’re best prepared.
- Avoid These 5 Mistakes To Land Your Dream Home
- Signs You’re Ready to Buy Your First Home
- How to Buy a House in Maine
- Home Buying Tips: Where Do You Start?
- Apply For a Mortgage & Get Approved: 5 Easy Steps
What’s the cost to buy a house?
It’s not just the listing price of a home; you’ve also got to factor in closing costs. Closing cost can include (but are not limited to) loan origination fees, the cost of a home inspection, title fees, and an escrow account for property taxes and homeowner’s insurance.) Typically closing costs come out to about two to five percent of the home’s purchase price.