FAQ
How can I raise my credit score?
Your LendingNest mortgage adviser will be able to provide you the best personalized advice, but here are some basic pointers: – Never, ever miss a payment – Keep your credit utilization below 30%, if possible – Don’t close old accounts – Don’t open new accounts
Can I still get a mortgage if I have bad credit or have filed bankruptcy?
Having good credit helps to get a more competitive mortgage interest rate, but perfect credit isn’t required.
If you have a low credit score or have filed bankruptcy in the past, LendingNest may have programs you will still qualify for, or we can work towards improving your credit.
Do I need to find a home before I apply?
No! Getting started before you find a home may be the best thing you could do!
If you get started before you have a property to purchase, we can issue a pre-approval subject to you finding the perfect home, which you can use to assure real estate brokers and sellers that you are a qualified buyer. Getting pre-approved for a mortgage will even give more weight to any purchase offer you make.
Do I have to make a 20% down payment to buy a home?
Homebuyers are not required to put 20% down to purchase a home. There are loan options available that allow for 3.5% or even zero down. A 20% down payment will reduce your monthly payments and the total amount of interest you pay over the life of the loan, but it’s definitely not required for all borrowers.
Will my fixed rate mortgage payment fluctuate throughout the life of the loan?
A fixed-rate mortgage is a home loan option with a particular interest cost for the entirety of the loan. Even if you have a fixed-rate mortgage the monthly payment amount may fluctuate during the life of the loan. A fixed-rate loan offers a fixed term (for example, 15 or 30 years) as well as a fixed interest rate, so the monthly amount for the payment of principal and interest will not change during the term of the mortgage. However, your monthly mortgage payment may also include interest, taxes, and insurance. While your principal and interest amounts will not change, the amount needed for taxes and insurance may.
What else should I know?
You should know that at LendingNest we’re here to answer all your questions. We understand the home buying process, and more importantly, we understand our clients. So don’t hesitate to call any one of us—we’re here for you.
How do I find a lender?
These days, there are a lot of options out there. You can finance a home with a loan from a bank, a savings and loan, a credit union, a private mortgage company, or various state government lenders. But shopping for a loan is like shopping for any other large purchase: it requires exploring your options and careful consideration. Different lenders/brokers can offer quite different interest rates and loan fees; and as you know, a lower interest rate can make a big difference in how much home you can afford. But most importantly, you need a lender/broker who looks out for your best interest, one who understands your goals and is willing to work with and for – you. Most of all, you need someone you can trust. And at LendingNest, that’s exactly what you’ll get. Because we realize that a loan starts with a relationship.
Should I start with a realtor or get pre-approved first?
We recommend getting pre-approved first. Once you’re pre-approved for a mortgage, you’ll be able to shop with confidence. You will also know exactly how much you’re able to purchase.
What Is the Difference Between A Pre-Qualification & A Pre-Approval?
A mortgage pre-qualification can easily be defined as an estimation of how much a buyer can borrow. In many cases a pre-qualification is only as good as the piece of paper that it’s written on. It’s fairly common practice that a mortgage lender/broker who pre-qualifies a buyer, asks them for information such as income, debts, and other assets without verifying the information.
A mortgage pre-approval is what every home buyer should obtain prior to looking at homes. A mortgage pre-approval can be easily defined as a written commitment for a buyer from a mortgage lender/broker. To obtain a mortgage pre-approval, a buyer will be required to provide the same documents that are required when formally applying for a mortgage, such as w-2’s, pay stubs, and bank statements. Contact your LendingNest originator for more information.
What will my mortgage cover?
Most loans have 4 parts:
- Principal – The repayment of the amount you actually borrowed
- Interest – Payment to the lender for the money you’ve borrowed
- Homeowners insurance – A monthly amount to insure the property against loss from
fire, smoke, theft, and other hazards required by most lenders - Property taxes – The annual city/county taxes assessed on your property, divided by the
number of mortgage payments you make in a year.
Can I Get advice from a Loan Originator even if I’m not ready to apply just yet?
Certainly! Put our years of experience to work for you! Our loan experts are here to answer any questions that you may have.
Call 248-835-5424 and enjoy the benefits of our free consultations.
How do I get started?
Getting started is simple. State your free pre-approval now. Let’s Find out exactly what your best mortgage options are.