How much am I qualified for?
Every situation is unique. How much a person qualifies for when obtaining a mortgage will vary based on several factors including credit score, debt-to-income ratios, amount of cash available for down payment, and loan program.
What will my monthly payment be?
Monthly payments can vary greatly depending on price of the house, down payment, loan program, and interest rate. If you want a rough ballpark estimate of your total monthly payment just to get a general idea of what to expect, you can use the following calculation:
$7-$8 per month for every $1,000 of purchase price OR
Multiply the purchase price by .007 or .008.
Ex. $100,000 purchase price x .007 = $700 per month, $100,000 purchase price x .008 = $800 per month. Therefore, you can reasonably expect a payment of around $700 - $800 per month on a $100,000 house.
What will my interest rate be?
Interest rate will vary depending on multiple factors, including credit, score, loan program, down payment, term of loan, fees, and points. Lincoln Lending has very competitive interest rates; we look at all possible loan programs and options to ensure our customers get a great interest rate.
What credit score do I need to be able to buy a house?
Credit score requirements vary depending on loan programs, but a good general rule is at least 580 for government programs (FHA, VA, USDA) and 620 for Conventional.
What if I don’t have the funds available to put down 20%?
If you don’t have 20% down, then you will most likely have some type of mortgage insurance payment as a part of your total monthly payment. This covers the lender in case a borrower defaults on the loan. Having 20% down is fantastic; however, there are still many options for buying a home if you need a smaller down payment.
What is Mortgage Insurance (PMI)?
Mortgage insurance, sometimes referred to as Private Mortgage Insurance, is a monthly payment (included in the mortgage payment) that insures the lender’s investment in case the borrower defaults on the loan. For most loan programs, if the borrower does not have at least 20% down, mortgage insurance will be required. Paying mortgage insurance allows for the purchase of a home even if you haven’t quite been able to save up 20% down.
Can I include closing costs or repairs in my loan?
Only under special circumstances are you allowed to include closing costs or repairs into the loan. These rules vary across loan programs and your individual situation, so it is a good idea to speak with a lender first.
How long is my pre-approval good for?
Pre-approvals are typically good for 90 days as long as there are no material changes in the borrower’s employment status, credit score, debt-to-income ratios, etc. Once a pre-qualified borrower has an accepted contract on a home, then we may pull a new credit report if it has been longer than 90 days since original pre-qualification date.
How long is my quoted interest rate valid?
We quote the best possible interest rates at the time, but rates can change daily. Once a borrower is under contract and has started the loan process, they can decide on a time to “lock” their rate with the lender. Once a rate is locked, it cannot be changed for a specified period of time (typically 30, 45, or 60 days), ensuring that the rate does not rise unexpectedly for the borrower.
What is PITI?
PITI is an acronym for Principal, Interest, Taxes, & Insurance (including mortgage insurance). It is the total monthly payment a borrower will pay for a home.
Does Lincoln Lending have a first-time homebuyer’s program?
Yes, we have several great options available for first time homebuyers that range from 0% to 3.5% down payment.
How soon can I buy after a bankruptcy/foreclosure?
Each loan program has different rules regarding purchasing after bankruptcy and/or foreclosure. For most loan programs, you must be 2 years removed from a bankruptcy and 3 years removed from a foreclosure. Under certain circumstances, you may be able to qualify sooner, but you should speak with a lender about your specific situation.
Does Lincoln Lending have a down payment assistance program?
Yes, we can do a few different down payment assistance programs. The main program we offer is REI Down Payment Assistance. With this program, along with seller-paid closing costs, we can help borrowers greatly reduce the amount of money needed for closing.