FAQ

Frequently Asked Questions

What’s a mortgage?

A mortgage is a loan that helps you buy a home. It’s actually a contract between you (the borrower) and a lender (like a bank, mortgage company, or credit union) to lend you money to buy a home. You repay the money based on the agreement you sign.

Can I negotiate some of the terms of the mortgage?

Yes. Ask lenders or brokers if they can give you better terms than the original ones they quoted, or whether they can beat another lender’s offer.

I’ve had some credit problems. Will I have to pay more for my mortgage loan

You might, but not necessarily. Prepare to compare and negotiate, whether or not you’ve had credit problems. Things like illness or temporary loss of income don’t necessarily limit your choices to only high-cost lenders. If your credit reporthas negative information that’s accurate, but there are good reasons for a lender to trust you’ll be able to repay a loan, explain your situation to the lender or broker. Ask AllSave about their FREE credit help

What can I do if I only have a small down payment or none at all?

Some loans will allow you to secure just a 5% down payment plus closing costs. Another similar loan option is called a piggy-back loan where you get approved for the first and second mortgage at the same time to avoid PMI. You could also apply for a FHA loan which only requires you to put down 3.5% down. Yourinterest rate will probably be higher, and you will be required to buy private mortgage insurance (PMI).

What is private mortgage insurance (PMI) and do I need it?

If the bank or mortgage company determines that your loan is a risk, they may require private mortgage insurance. This insurance serves to insulate the lender in the event that you default on your loan. It is possible that the fair market value of your house will not cover the full amount of money owed to the bank or mortgage company if you default. In such cases, private mortgage insurance reimburses the lender for the difference. Private mortgage insurance is usually required for borrowers that make a down payment of less than 20% or with poor credit scores.

What are the three main factors for a mortgage approval:

Credit score.

Each loan program has a minimum credit score requirement in order to qualify. Higher credit scores can allow you to qualify for lower interest rates, too.

Down payment.

Some loan programs require you to make a down payment of a certain amount.

Debt-to-income ratio (DTI).

Your debts should only make up a certain percentage of your income, because you’re about to incur a large and important debt by purchasing a home

Pre-qualification vs Pre-approval: What's the difference?

A mortgage pre-qualification from AllSave is an adviser's initial estimate of your buying power based on your credit score and self-reported finances. It suggests suitable loan programs and potential borrowing amounts.

Pre-approval, on the other hand, involves a thorough review of your income and assets to confirm your loan amount. With pre-approval, you can house hunt with confidence. If you face pre-approval challenges, AllSave provides advice on improving your credit, reducing debt, and overcoming financial hurdles. Both pre-qualification and pre-approval services at AllSave Mortgage are free..

THE THREE C'S OF MORTGAGES: KEY FACTORS FOR SUCCESSFUL HOME FINANCING

These three essential factors — Credit, Capacity, and Collateral — play a pivotal role in determining your eligibility and terms for a mortgage

What exactly does a mortgage broker do?

A mortgage broker is a go-between who
matches borrowers with mortgage lenders. If you're buying a home or refinancing, a broker will help you find the best mortgage for your needs.

Is it worth using a mortgage broker?

Unlock the universe of mortgage possibilities! Opt for a broker or adviser who offers 'whole of market' access, guarantees you the widest selection of lenders and mortgages at your fingertips.

Unlock the door to your dream home with our dedicated guidance. Experience tailor made financing solutions from our expert loan officers, committed to your goals every step of the way. Let us be the trusted mortgage advisors you rely on for life.

AllSave Mortgage LLC

NMLS ID# 241740

www.nmlsconsumeraccess.org