Frequently asked questions of those interested in getting pre-approval or applying for a mortgage. The Joey Milam Mortgage Team offers answers and advice to anyone who has questions such as the ones below. If you still don’t have the answers you need after reviewing our frequently asked questions, please don’t hesitate to contact us and we will be happy to help!
The first step to getting a mortgage is to partner with a knowledgeable and LOCAL mortgage lender. Alpha Mortgage has been in business since 1983 in North Carolina with offices across the state. Working with Joey you will determine the very best mortgage program that suits your specific needs and how much home you can afford. Getting started can be as easy as a 10 minutes phone call to 910-250-8888.
To start the mortgage process you want to start collecting and sending to joey@joeymilam.com the following documents:
- Your Last 2 Years Tax Returns
- Your Last 2 Years W2s or 1099s
- Your Last 2 Paystubs or Leave & Earnings Statements (VA Borrowers)
- Your Last 2 Months Bank Statements (Checking/Savings/Retirement)
- Copy of a Government Issued ID
One mistake that home buyers commonly make is not getting a pre-approval. Many home buyers believe that a pre-qualification is the same as a pre-approval. This is actually the furthest from the truth.
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 who pre-qualifies a buyer asks them for information such as income, debts, and other assets without verifying the information. If a buyer is not truthful or makes a mistake when giving the information this can lead to problems in the future when the mortgage is verified by an underwriter.
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. 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.
There are many reasons why a mortgage pre-approval is better than a mortgage pre-qualification. Two of the most important reasons why a pre-approval is better than a pre-qualification are;
- Helps buyers beat out competition in multiple offer scenario or strong sellers market
- Gives “peace of mind” to a seller when submitting offer that the mortgage will be approved
One of the most frequently asked questions regarding mortgages relates to deciding what type of mortgage is best. Since there are many different types of mortgages that are available for prospective home buyers, it’s important to understand which type of mortgage is best prior to signing on the dotted line. The easiest way to discern which loan program is best for your specific circumstances is by having a quick conversation with Joey at 910-250-8888.
Some buyers hear the term mortgage points and wonder what exactly they are. Paying for mortgage points is a fairly common practice. Mortgage points generally come in two variations, discount points and origination points. One point will generally cost 1% of the total amount that is mortgaged. Paying for mortgage points can be a great idea for some buyers and not such a great idea for others. Ultimately, it’s important you understand what mortgage points are and also whether it would be beneficial to purchase points.
A very common home buying misconception that exists is that a buyer needs a boatload of money to purchase a home. This is not always the case. When a buyer asks about the amount of money needed to buy a home, the best answer is that it depends.
Like mentioned above, the amount needed for a down payment will vary from one mortgage product to another. There are other costs though involved in purchasing a home that many buyers don’t realize. In addition to the down payment, buyers also need to consider costs such as an appraisal cost, home inspection cost, and other various costs.
It should be noted though that there are loan programs available for qualifying borrowers that require no-down payment and combined with negotiated seller paid closing costs means NO MONEY needed at closing.
While many large banks and mortgage lenders require 30-45 days or more to close a loan, Joey Milam & Alpha Mortgage can close a loan in 15 business days with most loan programs.