Applying for a mortgage – whether to purchase a new home or refinance your current home – can seem a bit daunting. You’ve got questions… probably a lot of them. That’s okay – ask away! We’ve got the answers. To help you, the StrongBox Home Loans team has compiled a list of some of the most common questions we receive on a regular basis complete with our answers.
Yes absolutely! You need to not only know if you qualify but this is our opportunity to manage your expectations and answer key questions, such as “How much home can I afford?,” “What will my monthly payment be?,” “How much cash will I need to close?” and more. Knowing these facts in advance means you can enter the homebuying process with your eyes wide open.
Yes. To protect your earnest money and prevent you from paying inspection and appraisal fees unnecessarily, we need to know where your credit stands. Your credit score will help us determine pricing and your ability to qualify for certain loans.
Unfortunately, Fannie Mae and Freddie Mac provide certain criteria to the credit reporting agencies regarding how to score. That criteria are more stringent than those used to determine consumer-based scores.
The higher the down payment you provide, the greater the likelihood that you’ll receive a better interest rate and lower mortgage payments. However, 20% is out of reach for many homebuyers. Down payments at StrongBox Home Loans start as low as 3% down.
Absolutely! It’s not uncommon for parents or grandparents to give the gift of a partial or full down payment – particularly to first-time homebuyers. However, gifts are not permitted in the purchase of investment properties.
Once pre-approved for a loan, you must close within 90 days from a credit inquiry without having to have your credit pulled again – potentially lowering your credit score.
For W2 employees, be prepared to provide 2 years of W2s and 30 days of pay stubs. For self-employed applicants or those who earn 25% or greater in incentive-based pay such as commission or bonus, be prepared to provide 2 years of personal and business tax returns. All borrowers need 2 months of checking, savings, investment, 401k and IRA statements. Statements must be complete, most recent and consecutive with no missing pages.
For most types of loans, you need to provide a two-year history of income. That income must be inclining and stable, and the business must be open and active. However, we do have programs for those applicants who cannot or do not want to document income.
We do not have minimum credit score but the loan still has to be automatically approved by the lenders underwriting engine or fit their underwriting guidelines.
Yes we can qualify you based on revenue or 1099 income.
Yes we can qualify you based on market rent. If the market rent covers the mortgage you are qualified.