frequently asked questions About mortgage & Mortgage Lending

On this page you will find some of the more frequent mortgage questions we are asked on a regular basis from some of our more curious mortgage borrowers.

If you are looking for frequently asked mortgage questions about PMI or debt consolidation please consult the What is PMI & the Debt Consolidation FAQ's pages.

Frequently Asked Mortgage Questions Index & In-page Links:

How Much House Can I Afford?

Before you start shopping for your next new home, it's a good idea to determine how much mortgage / house you can comfortably afford.

Most borrowers will want to consider these 4 basic financial indicators before making a new home purchase:

  1. Monthly Income
  2. Available Funds for Down Payment
  3. Monthly Expenses
  4. Credit Score

It's also important to consider getting pre-qualified by a licensed Residential Mortgage Loan Originator. This can help strengthen your offer to the seller by documenting that you are, in fact, a "Qualified Buyer."

An experienced mortgage expert from a top-rated mortgage company like Highlands Residential Mortgage will be able to offer you several loan options based on your needs and assist you in finding the best one available.

Contact us today to check your eligibility and get Pre-Qualified.

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Can I Use Gift Funds as a Down Payment?

If you don't have the money for a down payment don't worry, you may still be able to purchase a home! Your King Team at Highlands Residential Mortgage has 100% gift options available.

The gift must be from a down payment assistance program or a relative / significant other.

Contact us to go over all your mortgage options.

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What is My Credit Report & Where Do I Get A Copy?

A credit report is a current and historical record of your credit activities and employment. It also shows action taken against you because of unpaid accounts, bankruptcy, judgments, liens filed against you plus former addresses and employers.

Here are the 3 major credit score bureaus that lenders pay to obtain your credit information.

You too can obtain a copy of your credit report. Visit www.AnnualCreditReport.com for information on how to obtain a free copy.

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Why Do I Need A Real Estate Agent?

Your agent can negotiate the best deal on a home for you. With a Pre-Qualification from us, your Real Estate Agent will be able to demonstrate that you are a fully qualified and capable borrower.

This will strongly influence the Seller and will make the difference between the Seller accepting your offer or someone else's -- even if your offer is better!

If you are not sure who to pick here are some Realtors recommended by Your King Team at Highlands Residential Mortgage.

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What Does A Loan Officer Do?

  • Pre-Qualification: Your mortgage loan originator reviews your Credit, Income and Asset documents, should you choose to provide them, for a solid mortgage Pre-Qualification.
  • Your loan originator also assists you in selecting & locking-in the best loan program & interest rate for you. This single decision could potentially save you thousands of dollars throughout the term of your loan.
  • Your originator will provide you with a clear & concise Loan Estimate of settlement charges to be expected at closing.
  • They will keep you informed of your loan status throughout the entire process.
  • A good loan officer will also keep your Real Estate Agent & the Listing Agent informed of your loan progress. NOTE: your personal information is always kept confidential between you, The King Team, Highlands Residential Mortgage and our investors; only the progress of your loan is shared.
  • And most importantly, your loan originator makes sure your loan closes on time!
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What Do Homebuyers Need To Do?

If you are thinking of purchasing a home soon but are unsure of what you need to do here are 5 basic but important homebuying tasks for all types of mortgage borrowers.

  1. Make sure you are Pre-Qualified as early as possible. This will put the power of financing behind you so you can concentrate on selecting your home. Listing realtors will not accept an offer without being Pre-Qualified. See our Loan Document Checklist for documents to send to your loan officer for a Pre-Qualification.
  2. Provide documentation requested by your Loan Officer / Loan Processor as soon as possible. By doing so, many of the details are taken care of early in the process so you can comfortably concentrate on any last-minute details that require your attention regarding your new home purchase.
  3. Select your Homeowners Insurance Agent and relay their contact information to your loan processor as soon as possible.
  4. Wire funds for closing to the title company 24 hours prior to closing. Your loan processor will send you the wire instructions through a secure site. CAUTION: do not forward unsecured wire information via email.
  5. Bring your driver’s license to closing.

Please contact us if you have any questions or apply now if you are ready to get started.

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What is PMI on a Mortgage?

PMI means Private Mortgage Insurance and primarily it protects the lender should the borrower stop making payments on a conventional loan.

But what many forget is that it also gives homebuyers the ability to purchase a home without saving 20 percent down for a down payment.

For more details please visit our What is PMI page.

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