Frequently asked questions
A "Series of FAQs" from the Desk of Russell Smith: Day 19
Thursday, 28 October 2010 13:46
Q: Do you require a home inspection? A: No we don’t require one but highly recommend it. A qualified home inspector can thoroughly inspect what is probably your biggest purchase of your life to ensure that there are not serious issues in your investment. You will receive a thorough report of ...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 18
Wednesday, 27 October 2010 12:23
Q: Can you lend outside of Southeastern NC? A: Yes, we have the ability to lend in 49 of the 50 states. If you have properties or friends in other states besides NC, we can still help. Call the numbers in blue above to get started....
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 17
Tuesday, 26 October 2010 13:17
Q: I own more than 4 financed residential properties, can I get a new mortgage? A: We have special guidelines for a borrower wanting to refinance or purchase up to the 10th financed residential second home or investment property. Note that there are some additional restrictions such as additional...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 16
Monday, 25 October 2010 14:32
Q: How do I find out if my mortgage qualifies for a Home Affordable Refinance Program (HARP) with Fannie Mae or Freddie Mac? A: The HARP program allows a homeowner to refinance their mortgage when the property has experienced a decrease in value yet the borrower must qualify still on credit, income...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 15
Friday, 22 October 2010 15:27
Q: What is a loan to value (LTV) and how does it determine the size of my loan? A: The loan to value ratio is the amount of money you borrow compared with the price or appraised value of the home you are purchasing. Each loan has a specific LTV limit. For example: With a 95% LTV loan on a home pric...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 14
Thursday, 21 October 2010 14:02
Q: Can I pay my own taxes and insurance rather than include them in my mortgage payment? A: The answer is sometimes. Lenders prefer borrowers to include the taxes and insurance in their payment (called escrowing) because the lender can make sure that these items are paid. They care about this s...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 13
Wednesday, 20 October 2010 13:03
Q: If I purchase a home without a realtor, can the seller or I prepare the offer to purchase and contract? A: Yes you can, but I would not advise it. When you work with a realtor, walking you through the formal and specific language of a contract is one of the duties they perform. If a realtor ...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 12
Tuesday, 19 October 2010 14:01
Q: Why do you need all pages of my bank and other asset statements? A: Much more than just the ending balance of a statement is used in the underwriting and approval of a mortgage loan. A list of items being looked for are the following: Are there any large non-payroll deposits that could be from ...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 11
Monday, 18 October 2010 13:12
Q: Why are you asking for tax returns when I am not a self-employed borrower? A: There are many things that affect a borrower's income such as rental income, unreimbursed employee income, self-employment income, dividends/interest, ownership of another property, etc. A person may make enough money...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 10
Friday, 15 October 2010 12:48
Q: Why do I need a title search when I just had one done at my last closing a year ago? A: This is a very popular question. The purpose of a title search is to assure the lender that it will have a valid lien position that it is expecting while offering a mortgage. A new title search is looking...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 9
Thursday, 14 October 2010 12:32
Q: The property I am purchasing has a septic tank. Will it need to be inspected? A: Several government programs, such as USDA and VA, require a septic inspection when purchasing. Additionally our company now requires a septic inspection if the property has been vacant for an extended amount of ...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 8
Wednesday, 13 October 2010 13:09
Q: What should I expect at closing? A: First of all , for your protection and the lender, bring 2 forms of ID for each borrower. A picture ID such as a current driver’s license or passport is needed and the 2nd ID can be a credit card, social security card, and other similar items. If you are...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 7
Tuesday, 12 October 2010 13:32
Q: Can or should I obtain a new credit card or loan during the mortgage process? A: Definitely NO! Once you have made application for a mortgage, do not have others pull your credit for a new loan or credit card. There are many reasons for this: The inquiry could lower the credit score which ...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 6
Monday, 11 October 2010 12:26
Q: If I go from a salaried or hourly position to being self-employed or commissioned, is this a problem? A: Yes, at least for 1 – 2 years or more. As a salaried borrower, the income is counted in most cases immediately because it is consistent. But in the case of a commissioned employee, the ...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 5
Friday, 08 October 2010 12:31
Q: Can I rent my current home and use the income to qualify for a new home using FHA? A: Due to FHA's concern that some homebuyers in these transactions may attempt to provide misleading information regarding the rental income of the property being vacated to qualify for the new mortgage, FHA is in...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 4
Thursday, 07 October 2010 14:57
Q: Can I use my appraisal from 2 years ago? A: No way. The biggest reason an old appraisal cannot be used is because the market is so different from 5, 4, 3, 2, or even 1 year ago. As about everyone has heard, values are down and an older appraisal will not convey an accurate value. There hav...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 3
Wednesday, 06 October 2010 13:29
Q: I want to refinance my first mortgage but I have a 2nd mortgage. Is that a problem? A: It could be. First of all, you must understand what a 1st or 2nd mortgage means. It is not which is the biggest loan but rather it is who is first in line for their money in case of foreclosure. Genera...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 2
Monday, 04 October 2010 13:10
Q: I want to purchase a condo and I have excellent credit, income, and assets, so "What’s the problem?" A: This is a very popular question. Condos are a different animal and the borrower could have an 800 credit score, enough assets to pay cash for the property, and still have a problem purchas...
READ MOREA "Series of FAQs" from the Desk of Russell Smith: Day 1
Sunday, 03 October 2010 12:09
Q: Why is my payoff more than my current balance? A:This is a very popular question in the mortgage process. To begin to understand how the mortgage payoff is calculated it helps to remember this comparison. When you pay rent on a home, you pay ahead (pay October 1 rent payment and you are payi...
READ MOREPage 2 of 2
