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IS A FIXED OR ADJUSTABLE RATE BETTER?

It all depends on how long you plan to be in your home.  If you think you will be in your home for 7+ years, you may want to go with a fixed rate.  If you think you will be in your home for less than that, an adjustable rate mortgage might be worth considering. 

SHOULD I PAY DISCOUNT POINTS?

Lower your interest rate and monthly payment by paying discount points. 1 discount point equals 1% of the loan amount. What this essentially means is you are paying part of your interest to your lender up front. The answer is an individual one I can help you answer. Available cash, timeframe to own the home, desired payment, and more....play a role in the best answer for you.

WHAT DOCUMENTS WILL I NEED TO APPLY FOR A LOAN?

To verify your employment, income, and assets, documentation required for most situations includes:  recent pay stubs, 1-2 years of W-2 forms, 1-2 months of bank statements, 1-2 years of federal tax returns, and photo ID. Some situations require additional items.

HOW MUCH IS A TYPICAL DOWN PAYMENT?

We have a wide range of loan programs. Some do not require a down payment, others be as low as 3% or 3.5% of the purchase price. But don't forget closing costs, escrows, and prepaids typically range 2 - 3% of the purchase price in addition to down payment. There are a variety of programs that can be tailored to fit your needs and financial resources.

I HAVE LESS THAN PERFECT CREDIT. CAN I STILL BUY A HOME?

Yes! Credit score plays a big role but there are many other factors considered when qualifying for a loan and I can help navigate that with you.

ARE ANY OF THE MORTGAGE AND HOMEOWNERS COSTS TAX DEDUCTABLE?

Discount points, interest paid on a home loan and property taxes are often considered tax deductible. Make sure you consult your tax advisor. 

Do I need a realtor in this process? 

Although it's possible to do this on your own, navigating a real estate purchase can be tough.  The web has made it possible to do much of the legwork, but there's no substitute for an experienced, professionally-licensed Realtor. I work with many of the best in the business and am happy to provide a thoughtful recommendations.

Should I Apply For a mortgage if i don't have a realtor yet? 

Yes. One of the first questions a good Realtor will ask you is "Have you been pre-approved?" Their second question will be "With who?" Pre-approval from a reputable, experience, local lender can be make or break your deal in our competitive market. If you don't have a Realtor you trust yet, no problem.  I work daily with some of the best Realtors in the greater Nashville area and will be glad to connect you an agent that will work best with you and your situation.

WHAT ARE THE BENEFITS OF REFINANCING?

If you are interested in paying off high-interest-rate debt, shortening the length of your repayment term for your mortgage or lowering your monthly mortgage payment, then refinancing might be right for you.

CAN I REFINANCE TO TAKE CASH OUT OF MY HOUSE?

Yes. There are several cash-out refinancing options. You'll need at least 20% equity in your home to have room to pull any cash out.

I AM REFINANCING MY MORTGAGE. HOW CAN I CONSOLIDATE DEBT?

If you are looking to consolidate high-interest debt, cash-out refinancing can help. Your mortgage interest rate is likely to be lower than rates on credit cards or other types of bank loans.  Thus,  consolidating debt may reduce your overall monthly debt payments.

DO I NEED TO HAVE MY HOUSE APPRAISED IN ORDER TO REFINANCE?

In most cases, the answer is yes. I would advise you on that and appraisals must always be ordered in a compliant fashion by the lender. We wouldn't be able to use an appraisal you provide so check with me first.

HOW DO I KNOW WHICH TYPE OF LOAN IS RIGHT FOR ME?

As an F&M mortgage lender, my team and I will take the time- to personally lead you through the home loan application process either in person or via phone. You can also apply online and promptly receive a response. 

Through F&M Mortgage, you’ll find a variety of competitive mortgage loans and helpful services to suit your needs. My team and I will help you determine the right type of loan by explaining payment options and terms. You can also explore special loan programs such as VA, FHA, USDA and THDA home financing programs. We’ll work closely with you to select a mortgage that is a SMART CHOICE for you!

DO I HAVE TO QUALIFY FOR A LOAN BEFORE HOUSE SHOPPING?

An important step in purchasing a home is determining what you can afford to spend on the monthly mortgage payment. After evaluating your financial situation, you may be pre-qualified with an estimate of a purchase amount. Then you’ll be ready to shop for the homes that are in your price range….saving you time, effort and money. Please call me and let me pre-qualify you so that you can shop with confidence when making an offer on a new home. 

Once you have found a home, I may request additional financial, employment and personal information. Providing complete, accurate information will result in a faster process, approval, and closing of your loan.

WHAT CAN I EXPECT ON CLOSING DAY?

Before closing day, we’ll give estimates of your closing costs so you can plan your expenses. Closing costs vary depending on financing, but they generally include items such as state transfer taxes, recording fees, appraisal, property taxes, hazard insurance, tile insurance, attorney’s fees.

The final stage in the loan process is the Loan Closing. It’s the date on which the title for the property passes from the seller to the buyer… and the day you take legal ownership of your new home!

Is it okay to put all our mattress money in the bank a couple weeks before closing?

No. Federal lending guidelines require us to “source” all funds needed for a real estate transaction when a mortgage is involved. That means any deposits showing on your most recent 1 or 2 (figure 2 to be safe) monthly statements will need to be documented. Items such as automatically-deposited payroll, income tax refunds, social security or pension income, small retail store refunds…anything obviously identifiable…need no further explanation, but transfers coming in from other bank accounts or items that just say “Deposit” require documentation to identify the source of the funds. If the source is “cash” – literal green bills and/or coins deposited into your bank account, it will 1) need to be explained and 2) will be dis-allowed as available funds to close. In other words, we will have to pretend like the money doesn’t exist because cash, with extremely rare exceptions, cannot be successfully documented for mortgage qualifying purposes. It’s can be complex navigation but I’m here to help you through it sotalk with me well in advance to avoid issues during loan processing.
 

 
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