Address: 2266 First Street, Suite 187
Fort Myers, FL 33901
FAQ
Frequently Asked Questions
In-House Mortgage
How do I know if I qualify for a mortgage?
Qualification for a mortgage depends on several factors, including your credit score, income, debt-to-income ratio, employment history, and the amount of your down payment. Our team at In-House Mortgage can help guide you through the application process and let you know what documents you’ll need to provide.
How much of a down payment do I need?
Typically, the required down payment depends on the type of loan you’re applying for. For conventional loans, a down payment can be as low as 3% to 5% but in many instances, especially with 1st time Home Buyers and clients with lower income that qualify, we do offer down payment assistance that would require ZERO OUT-OF-POCKET for the Down Payment. For FHA loans, it’s typically 3.5%. VA loans and USDA loans often require no down payment. However, the more you can put down, the better your loan terms may be.
What is PMI (Private Mortgage Insurance)?
PMI is typically required for conventional loans when the down payment is less than 20%. It protects the lender in case the borrower defaults on the loan. If you make a larger down payment or have a higher equity stake in the property, you may not need PMI.
What is the difference between a fixed-rate mortgage and an adjustable-rate mortgage (ARM)?
A fixed-rate mortgage has an interest rate that stays the same for the entire term of the loan, offering predictable monthly payments. An adjustable-rate mortgage (ARM), on the other hand, has an interest rate that may change after an initial fixed period, which can cause monthly payments to fluctuate based on market conditions.
What is a pre-approval, and why is it important?
A pre-approval is a preliminary assessment by a lender to determine how much money you may be able to borrow. It involves a review of your financial situation, such as your income, assets, and credit history. A pre-approval letter can strengthen your offer on a home, showing sellers that you are a serious and qualified buyer.
How long does the mortgage approval process take?
The mortgage approval process typically takes between 30 to 45 days, though it can vary depending on the complexity of your application and the type of loan you’re applying for. Our team at In-House Mortgage works efficiently to ensure a smooth process from start to finish.
What is an escrow account?
An escrow account is a separate account set up by the lender to pay for property taxes, homeowner’s insurance, and other expenses on your behalf. A portion of your monthly mortgage payment is deposited into this account to cover these costs when they come due.
What are closing costs?
Closing costs are fees associated with finalizing your mortgage, which can include loan origination fees, appraisal fees, title insurance, and attorney fees. These costs typically range from 2% to 5% of the loan amount and should be factored into your overall home-buying budget.
Contact Info
Address: 2266 First Street, Suite 187
Fort Myers, FL 33901
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