Financing a Home... Answers to Common Questions!

1. I am not eligible for a VALoan.                           

    This may not be true; if you have ever served in the military as Active Duty, National Guard or Reserves you may qualify for a VA Loan. Contact me at brenda@imsiloans.com or call me at 931-206-1907 and together we can find out if you are eligible.  

My own father did not know he was eligible for a VA loan until I became a loan officer and asked why he had never use his VA eligible.

2. I can only use my VA eligibility once.                                                                                                                   

    Not so! You can use your VA benefit over & over. You may even be eligible to purchase a second home using the same eligibility with bonus entitlement if your first home was under $144,000.

                                                                                                                                                                                  3. The more money I put down on a home the better my interest rate will be for my home loan. 

Actually the reverse is true; the higher your loan amount is, the better your interest rate can be. Many  lenders provide a price break for loans above $100,000. There are advantages to making a larger down payment such as: reduced funding fee (if VA), a lower mortgage payment and no mortgage insurance. However there are some programs that do not require mortgage insurance.    

4. It is better to use a Bank or Credit Union rather than Mortgage Broker!                                                    

    Not true... All of the above do basically the same thing by providing your home financing. The important difference is that Banks and Credit Unions are stricter, corporate in nature and you are just a number. Whereas with a Mortgage Broker, you will receive personalized service because normally a mortgage broker is local, independently owned and operated business. What does this mean to you? Banks and Credit Unions usually have set fees and one lender to provide your financing; with bankers hours (9 to 4 central time). At Integrity Mortgage Services, we work with several lenders, which gives us more options to find you the best loan for your situation. Plus, I will be available when you need me, even nights & weekends. That is very important especially if you are in a different time zone or country! With our personal approach to service we can normally obtain loan approval when the bank says NO!  

5. I need thousands of dollars to purchase a home. 

    Not True. There are loan programs that allow you to purchase a home "No Money Down". Typically, the seller of a property can pay anywhere from 3 to 6% of the sale price toward closing cost and pre-paids. In many cases, the 6% is enough to cover all costs; furthermore, for a slightly higher interest rate, the lender can chip in up to 1% of the loan amount to help pay any closing cost you may have. (But remember it's important to know what loan you are obtaining & what the seller is allowed to pay prior to negotiation. It is the sales contract and the loan program together that determine how much you will pay at closing).That is the reason you must see a lender first to pre-qualify; so that you know how much closing costs the seller can pay before you sign a contract. 

6. I have to pay all the closing costs to buy a house!                                                                                                                               

Not True...That varies greatly! The contract between you and the seller plus the loan program is really what determines how much you will need out of pocket to finalize the transaction. Again, talking with a lender and being pre-qualified is the only way to know how much money (if any) you will need to purchase your new home; avoiding any surprises.      

7. I should start my loan Process after I find a home!                                                                                      

    Not True... Finding your home first could be setting yourself up for stress & disappointment. It is much better to be pre-approved: then you will know how much you qualify for (the price range you can afford) and how much of the closing costs the seller can pay. Your loan approval is good for 120 days. So if you plan to purchase a home any time in the next 4 months call 931-206-1907 or e-mail me at brenda@imsiloans.com to start the process. This will give us plenty of time; you will know if you need to save any money for closing and have time to correct any credit problems that may need to be addressed. Remember my goal is to make this as stress free as possible for you with no surprises!

8. What if I'm not sure about my credit status?                                                                                                     

    Then we need to start as soon as possible. I will offer my professional opinion and show you exactly where you stand with your credit status. I am also offering you a free pre-approval session. Just call Brenda Tressler at my office 931-905-6900 or if you prefer you can e-mail me at brenda@imsiloans.com and tell me when is the best time to contact you and I will call you at that time

(Please remember to tell me what time zone you are in). Ask for Brenda Tressler when you call... Thanks and have a great day!