As mortgage brokers, our job is to help streamline the entire mortgage process. When we first meet with clients, we understand that they have a lot of questions about the journey. When you’re investing so much time and money into finding the perfect home, you want to be armed with correct information that allows you to effectively shop mortgage rates and lenders. When you decide to work with mortgage brokers in Philadelphia, it’s crucial that we help answer all the questions you have. Today, we’ll take a look at some of the most common questions we receive to help get you off on the right foot.
1. What Type of Loan is Best for Your Situation?
One of the most important questions on many borrowers’ minds is what type of loan is best for them. This question is key because the answer differs by your specific situation. For instance, new homebuyers typically benefit from long-term fixed-rate loans. However, those who are purchasing for the purpose of investment, or refinancing their homes, may benefit more from options like adjustable-rate loans. By working hands-on with your broker, they can help you determine what option works best for your personal situation so you can choose the loan that will deliver the best results for your future.
2. What Type of Documents Are Needed to Apply?
The application process is multi-faceted, and requires different types of information depending on the brokerage firm you’re working with and loan you’re applying for. Typically, your application will require:
- Social Security Number
- Annual Gross Income
- W-2s or other proof of income
- Proof of outstanding debts, and the payment ratio vs. your monthly income
- Back taxes or other tax information
These are just a handful of items that your broker may request, so it’s important to speak with them to get an exhaustive list so the application process can proceed as smoothly as possible.
3. Does the Firm Offer In-House Lending Services?
While some firms work strictly as brokers, connecting you with loans from other institutions, some firms can serve as both. At Federal Hill Mortgage, we work as both mortgage brokers and lenders, offering clients in-house rates while allowing them to compare and shop rates from other institutions. It’s important to draw this distinction so all of the available options are transparently laid out for you to understand.
4. Do I Qualify for Specialized Loans?
Not all loans are created equally. In the world of mortgages, there are certain options that are only available to some. These specialized mortgage options are generally administered or backed by the federal government. One of the most common is a Federal Housing Administration Loan, which can significantly lessen your downpayment. However, there are income restrictions on who can access FHA loans. Another common loan is a Veterans Affair Loan, which can benefit active duty or retired military personnel and their families. These are just some of the available specialized loan options available to borrowers. Be sure to ask mortgage brokers in Philadelphia if you qualify for any of these options.
5. What Are All the Costs?
Mortgages can come with fees attached that borrowers may not first be aware of. Lender fees, escrow, appraisals, titiling, and more can all be additional fees that crop up throughout the process. Make sure that your broker can help generate an itemized list estimating the costs of these additional fees so there are no surprises that sneak up on you along the way.
Ready to Get Started With Mortgage Brokers in Philadelphia?
Look no further than Federal Hill Mortgage. As the top-ranked mortgage brokers and lenders on the East Coast, our expert team is ready to help guide you through the mortgage process from start to finish. To get started, apply today.
