Q: Can I buy a home if even if I don’t have perfect credit?
A: Lenders look at many different factors when determining whether or not you can afford a home. In addition to looking at past credit history, they may also consider your ability and willingness to pay in the future. At Bridgeview Bank Mortgage, we may be able to help you buy a home, even if your credit isn’t perfect.
Q: Which is better — a fixed or adjustable rate mortgage?
A: This really depends on your present financial situation and your future goals. If you plan to be in your home for more than seven years, you may want to consider a fixed-rate mortgage which provides predictable payments and long-term protection against rising interest rates. If you plan to be in your home less than seven years, an adjustable rate mortgage (ARM) may be the right option for you. An ARM may offer a lower beginning interest rate, but your monthly payments have the potential to fluctuate every time your interest rate adjusts.
Q: What documents do I need to apply for a mortgage?
A: Traditional loans usually require documents that verify your employment, income and assets. Some documents you may need when applying for a mortgage include the following:
- Social Security number
- Pay stubs for at least two months
- W-2 forms for the past two years
- Bank statements for the past two or three months
- Federal income tax returns for the past one to two years
- Signed contract of sale (if you have already selected a home)
- Information on existing debt such as car loans, student loans or credit cards
Q: How much do I need for a down payment?
A: There is no set amount for what you need for a down payment, however, the more you have to put down on your new home, the more favorable rate and payment options you may have. First time homebuyer and other loan programs may be available to significantly decrease the amount you may be required to put down. Keep in mind that for down payments of less than 20%, private mortgage insurance (PMI) may be required. A Bridgeview Bank Mortgage specialist will be pleased to review down payment options with you.
Q: What are the benefits of refinancing?
A:Refinancing can be an attractive option if you are interested in paying off high interest rate debt, shortening the length of your repayment term for your mortgage or lowering you monthly mortgage payment.
Q: When does it make sense to refinance?
A: Generally speaking, one or more of the following conditions needs to be present before you consider refinancing as a mortgage option:
- Mortgage interest rates are lower than what you have on your existing mortgage
- Your home has appreciated in market value
- You have been making payments on your existing 30-year mortgage for less than ten years
Q: What are the benefits of Home Equity Loans?
A: If your home has increased in value since its original purchase, home equity loans and lines of credit allow you to tap the improved value to undertake home renovations, pay off debt, travel or send your kids to college. There really are no requirements on what you can do with the equity that you have earned in your home. Bridgeview Bank Mortgage home equity loans and lines of credit feature no application fees or closing costs. Interest rates are highly competitive and may be below prime.
