Mortgage FAQs

Frequently Asked Questions
What credit score do I need to have for a mortgage?
Answer

Your credit score is a rating system letting lenders know the risk they may take by lending money to you.  Most lenders have a minimum score required to qualify for a mortgage loan.  Lenders typically have multiple mortgage loan options.  Speaking with an Extraco Mortgage Consultant will help you determine what type of loan best meets your needs and if your credit score qualifies for this loan. 

Will I need a down payment to buy a home?
Answer

There are many products designed for different buyers.  Typically, a borrower will put down approximately 20%.  There are programs that offer down payments as low as 3%.  Your Mortgage Consultant will be able to advise on the best down payment strategy.

What documentation do I need to provide for a mortgage?
Answer

The required documentation will vary depending on the product.  Be prepared to provide the last 30 days of pay stubs, two years of tax returns, two years of W-2s, bank statements for the past two months, proof of down payment funds, proof of identity and social security number.

Do I need to get pre-qualified for a mortgage?
Answer

It is important to obtain a pre-qualification to understand how much you can afford.  A pre-qualification is a great first step in the process.  This differs from a pre-approval which is determined by one of our Mortgage Consultants reviewing financial documentation and credit of the borrower.  To know best what you may need, please seek a Mortgage Consultant for guidance.

Why does it take a long time to get a mortgage?
Answer

On average, it takes approximately 30-45 days to close a typical residential mortgage loan.  If the borrower is prepared with proper documentation, it makes the process smoother.  Work with your Mortgage Consultant to ensure that both parties are aware of the best communication channels.  This will speed up the process significantly.

What is an escrow account?
Answer

An escrow account is an account that’s set up with your servicer to collect funds for paying your annual property taxes and/or homeowner’s insurance premiums.  The funds collected for your escrow account are included in your monthly mortgage payment. 

What happens once I’ve found a property?
Answer

Once you’ve found a property, the loan process can proceed from the pre-qualification stage to loan approval.  This process is when your property appraisal will be ordered by your mortgage team here at Extraco, as well as some behind the scenes work getting your file ready for the “Clear to Close”.

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