Six Simple questions to turn your home ownership dream into a reality.

Six Simple questions to turn your home ownership dream into a reality. We sat down with Shelby Paddock of eastcap mortgage to help get a sense of the current mortgage marketplace.

Q: Is there a good time to apply for a mortgage?

A: Considering where interest rates are at today, it is a great time to buy a home and refinance you’re your existing mortgage.  Rates will not stay this low forever, the difference 1% in an interest rates equates to tens of thousands of dollars over the life of a loan.

Q:  What can a person do to better prepare for the pre-qualification process.

A: There is no doubt that banks today are much stricter when it comes to lending money.  To ensure that you qualify for a mortgage, you should make sure that credit history shows that you have been responsible with credit in your past.  A few derogatory remarks on your credit report can limit your capability to borrow from a bank, with that being said, a derogatory remark on your credit report does not automatically disqualify you from obtaining financing.  In fact, there are a multitude of lenders that still will overlook some derogatory information with a reasonable letter of explanation.

Q: What does my debt to income ratio need to be to qualify?

A:  Your debt to income ratio is going to determine exactly what you qualify for, max DTI ratio’s are set forth by Fannie Mae, Freddie Mac, FHA, VA and USDA.

Q: Are adjustable rate mortgages a good move given the state of the low fixed rates available today?

A:  Adjustable rate mortgages can be a good move based on a buyers situation.  If you know for certain that you will only be in your house for a few years then an adjustable rate may be perfect for you.  Because of the extremely low rates that adjustable mortgages are currently at, buyers will opt for this type of low rate loan to qualify for more of a house if they know that there income is going to continue to rise.  Fixed rates on the other hand are so low, if your staying place a fixed rate may make more sense.

Q: What is happening with the 2nd home and investment property marketplace today?

A: the good news is that credit is getting easier to obtain for investments and 2nd home homes.  You will still need a 20% down payment for a 2nd home and there are banks that are lending with 20% down on investment properties, use to be a minimum of 25% down.

Q: How much do I need to put down to get a mortgage?

A: Some programs allow for 100% financing.  The most popular program today is by far the FHA program which requires a 3.5% down payment.

The first thing you should do if you are considering buying a house is get pre approved by a licensed mortgage professional such as myself.  A pre-approval is easily done on a 10 minute phone call, there is essentially no need to go into a bank to obtain a mortgage anymore considering the technology available today.

Shelby Paddock is a licensed mortgage originator and expert on the mortgage industry. spaddock@eastcapmortgage.com (585)200-1214

eastcap mortgage is proud to be a New York based mortgage broker known for integrity and a sincere dedication to quality customer service. The timely, quality results we deliver to our customers is a direct result of the commitment to excellence which is the core value of our organization.