Frequently Asked Questions
How high does my FICO have to be to qualify for a home mortgage?
While there are many factors that influence the qualification of a home mortgage, when it comes to your credit score, we generally say that a 600 FICO will qualify. Depending on debt-to-income and payment history, we can sometimes qualify as low as a 580 FICO.
Why use a mortgage broker instead of applying directly with a lender.
As a mortgage broker, we have contracts with several lenders. Some of the lenders that we have contracts with only fund loans from brokers and do not have a retail department. So by choosing a broker, you have access to more lenders and we are able to shop the rate through multiple sources to ensure that you get a loan to best fit your goals and situation.
What's the difference between a cash-out refinance and a home equity loan?
Home equity loans or home equity lines of credit (HELOCs) are usually second mortgages. In other words, they are mortgages that you take out on top of the main mortgage you have on your home. This makes them second liens against your property and therefore more risky. A cash-out refinance is not a second loan; it is a new first mortgage.
What is equity? How can it help me get cash out of my refinance?
Home equity refers to the appraised value of your home minus the amount you still owe on your loan.
The more equity you have, the more money you may be able to get from a cash-out refinance. Many homeowners take cash out to pay off high-interest debt or make home improvements. Try our mortgage calculator to see if you have enough equity to reach your financial goal.
What determines how much cash I get after refinancing?
In general, the cash-out amount is calculated by subtracting the balance of your old loan from the amount of the new mortgage loan, although many other factors, such as applicable fees, the type of loan you get and your equity, can affect your final cash-out amount.
How much does it cost to refinance?
It’s possible to add the costs associated with getting a new mortgage into the total refinance amount to avoid paying anything out of pocket at closing. However, refinancing to get cash out may result in a longer loan term or a higher rate, and that might mean paying more in interest overall in the long run.
What is the difference between pre-approval and prequalification?
To determine loan eligibility, the first step is to obtain a prequalification or pre-approval. During a prequalification, the loan officer takes the information that you give them and uses it to assess whether you qualify. A pre-approval works in the same manner except instead of taking the value of assets (funds for closing and down payment), income, and liabilities from the application, the loan officer will obtain bank statements, paystubs and/or W2, credit report, and any other documentation to prove what is on the application. Although it seems like a lot to get started, pre-approvals save time on the back-end as these documents would need to be submitted prior to obtaining a final approval. Loan officers that obtain pre-approvals instead of prequalification typically will have quicker close times.
If you have questions about our company or the process, we want to hear from you. We will communicate with you however you are most comfortable. Simply hit the link to the right, book an appointment, or give us a call. We will be glad to answer any questions that you have.
P.O. Box 24593
Jacksonville, FL 32241