Pertaining To A Purchase
Q. I'm ready
to buy a house. How much money do I need for a down
payment?
A. There are many programs that
require as little as a 3% down payment, however a
few zero down options are available. No down payment
options can be offered to certain veterans and the
general public in certain circumstances requiring
seller assistance. If you have recent credit issues
or cannot document your income it is likely you will
need a larger down payment.
Back to top
Q. I want to
purchase a new home but I don't have a house selected
yet. What do I do?
A. Many customers choose to obtain
their mortgage approval first then shop for a home.
By doing this you will know; the price range of the
house you will qualify for, how much money you will
need to close, and approximately what the monthly
payment will be. It is also more comforting to the
seller knowing that they have a 'qualified buyer'
prior to accepting an offer to purchase. We can even
provide you with a 'Loan Approval Certificate' that
can be given to your Realtor and or seller.
Back to top
Q. How much
does it cost to apply?
A. At First Capital Lending Corp.,
we never charge an application fee.
Back to top
Q. How will you
determine the maximum payment I qualify for?
A. There are several factors we
will look at. Most important among them is your income-to-debt
ratios. Its simple, we compare your gross income
to your total debt (for expenses such as housing,
auto loans, credit cards etc, but not including utilities,
insurance and the like). While you may have heard
that your housing expenses can not exceed 28% of
your gross monthly income and total debt (including
housing) should not exceed 41%, the fact is we have
many programs that allow us to exceed those ratios.
If you've been turned down before due to excessive
debt ratios we may be able to help. Call for more
details.
Back to top
Q. What if I
am self employed and / or cannot document my income?
A. We offer 'No
Income Verification' programs. The down payment needed
is usually a minimum of 10% and good credit
is required, however the interest rates are very
competitive.
Back to top
Q. Do I have
to have perfect credit?
A. No. Depending on the program,
isolated late payments in your credit history would
not hinder your ability to obtain a low down payment
/ low interest rate loan. Even bankruptcies that
have been discharged for two years (with good credit
since) usually are not a problem. However, if you
currently have slow credit, financing options are
available that require a larger down payment.
Back to top
Q. How long
will it take to get approved?
A. Since most of our applications
are underwritten electronically, we usually can have
an answer within 24 hours.
Back to top
Pertaining To Refinances
Q. Should I refinance
now?
A. Despite the old rule that advised
refinancing only if you could reduce your interest
rate by 2% it could be a good idea even at a 1% reduction.
Depending on loan size, that translates into thousands
of saved dollars over the loan term. Homeowners refinance
for many other reasons such as converting unpredictable
adjustable rate mortgages into fixed rates, consolidating
debt to save money, and many more.
Back to top
Q. What if current
interest rates are at the same level as on my current
mortgage?
A. As a result of debt consolidation,
more and more people are finding it advantageous
to refinance even if their interest rate stays the
same or is even slightly higher. Why? Because combining
all of your debt (especially high interest credit
card balances) into one payment could reduce your
monthly outgo by hundreds.
Back to top
Q. What about
a Home Equity Loan?
A. If you have a very low interest
rate on your first mortgage or you do not want to
refinance, a Home Equity Loan might be right for
you. It is generally a second mortgage that will
make up to 100% of the equity in your home available
to you for almost any purpose such as debt consolidation,
home improvement or a new car.
Example: Home Value $100,000 First Mortgage Balance
- $75,000 New Home Equity Loan $25,000
*Interest rates on Home Equity Loans can be higher.
Loan limits are subject to income and credit requirements.
Many types of Home Equity Loans are available depending
on borrower circumstances. Please call with any questions.
Back to top
Q. My credit
is not the best, can I refinance?
A. Yes! We have many programs for
those who have experienced temporary setbacks that
have caused their credit to suffer. It could happen
to any one of us. First Capital Lending is here to
help.
Back to top
Q. Do you offer
'No Income Verification' programs to those of us
who want to refinance?
A. Yes
Back to top
Do you have a question that is not covered here? Contact
us. |
