Frequently Asked Questions ...

Q: What are my obligations if I fill out a loan application?

A: There are absolutely no obligations when you fill out an application with FindaTexasMortgage.com. Many companies charge between $300 and $500 just to apply. At FindaTexasMortgage.com we feel this is unnecessary.

Q: What kind of costs can I expect before my loan closing?

A: Some companies will require you to put up a “commitment” fee or “good faith deposit”, most companies that do this require it up front. In most cases lenders will require you to pay for an appraisal to determine the “True Value” of you home. If you are purchasing a home, you will need an inspection and may also be asked to provide a survey out of pocket.

Q: What will I need to provide to qualify for a mortgage?

Lenders look at all sorts of things in order to qualify you for a loan.
These are the most common:

Credit – Your credit is based up your payment history, how many open trade lines and how much debt you have.
Income – Your income is based upon your gross wages per month, which means how much you make before taxes. Usually calculated by gathering your, W-2 for the past couple of years, your past few paycheck stubs with a year to date or even your bank statements for at least 12 months.
Debt – How much you owe to creditors on a monthly basis. Including your car payment, your credit cards, etc… If it reports on your credit report, the mortgage company counts it!
Debt-To-Income Ratio – Your Debt-To-Ratio (DTI) is calculated by finding out how much you make, versus how much your monthly bills are.

Example:
Gross Monthly Income: $1000.00
Total Monthly Debts on Credit Report: $500.00
DTI: 50%

Collateral – Your collateral is the home either being purchased or that you already own. If you are buying a home, your lender will require your home to meet or exceed the purchase price or loan amount. If you already own your home and are refinancing and/or taking cash-out, your lender will want you to provide an appraisal to know the “True Value” of the property.
There are several more factors included in the process, but these are the most widely used. In order for your process to go smooth, try having all of the information you already know your mortgage consultant is going to ask for, ready and able to turn over

Q: What do I qualify for if I have perfect credit?

A: Rates and terms are usually subject to many factors. Having perfect credit would obviously help. Most likely you would qualify for a no-to-low down payment for a purchase. Beyond that, you would pretty much be able to pick from your list of programs

Q: What will my rate be if I have bad credit?

A: Rates depend on many factors. Credit is one of those factors. Some other factors include the amount of equity in the property, the level of income documentation provided and the debt level you have as compared to income.
Until we understand the structure of your specific loan and the loan is approved, the interest rate can only be estimated. Our goal is to find you a lender with the lowest interest rate possible so we can earn the business of you and your friends in the future.

Q: What down payment is required if I cannot document my income?

A: This depends on what else you are able to prove. Typically you would not qualify for 100% financing with out documentation or a very high credit score. However, credit and income are not the only factor lenders go on.

Q: How can I avoid paying Private Mortgage Insurance (PMI) on my mortgage?

A: There are many loan programs with up to 100% financing on one payment with no PMI requirement. For some loan programs PMI is unavoidable. This is something you would really need to talk with a loan professional about.

Q: What is an interest only loan and how can it help me?

A: An interest only loan should really be described as an interest only OPTION loan. Each month when you make your mortgage payment you have the option of paying principal plus interest or simply the interest. This can help greatly if you have significant financial obligations in addition to your home payment or if you are looking to afford more home with a lower payment. There are interest only option loans available for purchase or refinance. They come in the form of fixed rates or adjustable rates.

Q: What is the lowest down payment necessary when buying rental property?

A: FindaTexasMortgage.com works with many investment property lenders with 100% financing. Even if you are unable to verify your income you may qualify for 100% financing.

Q: What are my options if I had or currently am in Chapter 13 Bankruptcy?

A: This question depends on whether you are purchasing or refinancing. With some lenders if you are purchasing a home and have completed or been in a Chapter 13 for over one year and have made all payments on-time you may qualify for 97% financing with single digit rates on FHA loans or 100% financing on VA loans. If you are refinancing you may be able to pay off your Bankruptcy with a home equity loan. If the home is not in the Bankruptcy we may be able to refinance the home while leaving the bankruptcy open and lower your payment with up to 97% refinancing on FHA loans or 100% refinancing on VA loans.

Q: What are my options if I have a Chapter 7 bankruptcy?

A: If you have been in a Chapter 7 bankruptcy you may qualify for a 100% financing as soon as one day after the Bankruptcy has been discharged with two of three credit scores as low as 620. Two years after discharge of a Chapter 7 Bankruptcy you may qualify for a 97% financing on FHA loans and 100% financing on VA loans. All of the preceding scenarios assume good post-Bankruptcy credit history.

Q: What if I have a Foreclosure?

A: FindaTexasMortgage.com works with some lenders that will allow you to qualify as early as two years after a foreclosure for 100% financing with two of three credit scores as low as 620. Three years after a foreclosure you may qualify for 97% financing on FHA loans and 100% financing on VA loans at single digit interest rates.

Q: What if I have Judgments or tax liens?

A: Depending on the specifics of your situation you may qualify for 100% financing with open judgments on your credit with two of three credit scores as low as 620. For complicated issues such as these we recommend a personal consultation with one of our loan officers, please call the number above or apply on our convenient loan application.

Q: What if I am in CCCS?

A: Most mortgage lenders consider CCCS the same as a Chapter 13 bankruptcy.
If in CCCS for at least 12 months you may qualify for 100% financing at single digit interest rates on FHA loans. If in CCCS for only one day, you may qualify for 100% down purchase loans on conventional loans and 80% cash out loans on your primary residence. Although we have many programs for those currently in CCCS there may be some circumstances requiring you to be out of CCCS to qualify.

Q: Can I refinance a Contract for Deed?

A: FindaTexasMortgage.com works with many refinance companies that will allow you to refinance a Contract for Deed. We require cancelled checks showing the last twelve months of mortgage payments.

Q: How do I qualify for a low down payment if I have bad credit?

A: FindaTexasMortgage.com works with so many lenders that allows two of three credit scores as low as 620 to qualify for 100% financing on a conventional mortgage. If your scores are lower than 620 then you may qualify for 97% financing on FHA loans or 100% financing on VA loans. Other restrictions apply. Please complete our convenient online loan application to qualify. Also, if you have less than $5,000 in collections on your credit and can document your income it may be possible to qualify for 100% financing with credit scores below 600. Apply online today to find out what is available.

Q: What are my options if I am behind on my mortgage?

A: If you are less than three months behind on your payment we have many programs to help you refinance your home. If you are over three months behind on your home the most lenders are capable of refinancing is 65% of the value of your home. For complicated issues such as these we recommend a personal consultation with a loan officers, please call the number above.

The bottom line is this, the only true way to know what you can qualify for is by talking with a loan consultant and finding out your real options! Fill out the easy application to see what lender best suites your needs!