Frequently Asked Questions

• I want to buy a house! What do I do first?

Assuming that you will be taking out a mortgage to buy your home, your first step should be to get pre-qualified.

I've provided a helpful list of the information to bring to a loan application (see the Loan Application Checklist). Once you’ve worked with me or another loan consultant to determine your price range, you should start thinking about what geographical areas you’re interested in, as well as what qualities are necessities for you in a house (number of bedrooms, garage, school district, etc.) and what other qualities you’d like to find but you see more as “icing on the cake”. When you’re clear about these things and you’re pre-approved for a loan, you’re ready to start looking! Give me a call, and I’ll run a search for available homes on the market that meet your criteria.

• I’m thinking of selling my home – what should I do first?

I can prepare a complimentary CMA, or “comparative market analysis” for you, to help you determine the appropriate asking price for your home based on the recent sales prices of comparable homes in your neighborhood. Additionally, I can help you with how best to prepare your home to maximize the sales amount in the shortest time possible.

• I bought my home five years ago. Should I refinance?

It is true that interest rates recently have been the lowest in a generation. Many homeowners are realizing great savings through refinancing now. In general, if refinancing will save you at least one point on your interest rate, refinancing would most likely be a smart thing to do. However, if you are considering moving within the next couple of years, you may be better off without incurring the closing costs of a refinance. I am happy to talk with you about your specific circumstances and to run the numbers to evaluate the pros and cons of a refinance in your specific situation.

• Does it make sense to use the same person as both my loan consultant and my real estate agent?

When that person has earned your trust through his or her integrity and candor, as I would hope to do – absolutely. I have a thorough understanding of every aspect of your transaction. I know how to handle the delicate, yet often critical, balance between the various deadlines we will face – from signing off on the inspection of your new home to getting your insurance information to the lender. I have developed excellent working relationships with appraisers, representatives from a number of different lenders, escrow officers, etc. If I’m in a situation where timing is tight, I know that I have an excellent team of people working toward a successful closing.

• I don’t have any money to put down. Can I buy a house?

The better a borrower’s credit, the more opportunities that there are for home ownership. Even if you don’t have any money for a downpayment or even for the closing costs of the loan, there are programs available to you. Because the lender is taking a greater risk by loaning 100% of the funds for the home, you will see a higher interest rate than if you were to put even 3% or 5% down. But if your credit scores are good, the lender will take the risk! And a number of programs will allow the seller to pay the closing costs for the loan.

• I’m self-employed, and take many deductions on my income tax. Yet I have steady, reliable income. Can I buy a house?

There are loan programs designed just for you. “Stated” income loans do not require that you submit income tax returns. You will submit all of the other required documentation but not the tax returns which are normally required of a self-employed borrower. You then state your gross monthly income on the loan application. While the interest rates on this type of program are slightly higher than for a “fully-documented” loan, “stated” programs have enabled countless self-employed borrowers to purchase homes. And I can shop my various lenders to find the most competitive program.

• I have good income, but poor credit. Can I buy a house?

Perhaps! First, I can pull your credit report for you, and talk with you about your options based on the results. Interest rates on “sub-prime” loans (those made to borrowers with credit ratings below a certain threshold) are higher than those for “prime” loans – but these loan programs do exist, and one may be right for you, with very careful and objective evaluation of the loan product and your circumstances. Or, you may find that it would be best in some cases to develop a plan to work on your credit, with a goal towards buying a home in a few years’ time.