Q: What is mortgage
insurance and how does it differ from homeowner’s insurance?
Mortgage insurance is a nominal monthly fee that applies to buyers
who put down less than 20%. When you reach 20% equity in your home, you can apply to have it removed. When you reach 22% equity, it is automatically removed.
Mortgage insurance secures the financial investment, whereas homeowners insurance protects the physical investment.
Q: How much will I need to put down?
This varies depending on the loan that is best for you.
Conventional Loans:
Start as low as 3% of the purchase price. We offer you the option of lender credits that can reduce or eliminate closing costs. We’d be happy to talk to you about this option! In addition, 100% gift funds are allowed from family.
FHA loans:
Requires a 3.5% minimum down payment, although you can put more down if desired. Additionally, 100% gift funds are allowed from family.
VA loans for Veterans:
This loan requires no down payment! With DC Lending, you also have the option for reduced or zero closing costs, which we would be happy to discuss with you! In addition, 100% gift funds are allowed from family.
USDA loan for properties in USDA rural territory:
No down payment required! With DC Lending, you also have the option for reduced or zero closing costs, which we would be happy to discuss with you! In addition, 100% gift funds are allowed from family.
Down Payment Assistance:
Chat with your loan officer and receive guidance on the down payment assistance programs available to you.
Q: Fixed vs. Adjustable Rate Mortgages?
A fixed interest rate ensures that your monthly mortgage payments (excluding property taxes, home insurance, etc.) never change.
An adjustable-rate mortgage changes interest rates periodically based on a few different factors. Call or email if you’re interested in this loan option.
Q: What is a fixed rate mortgage?
A fixed rate mortgage is a mortgage in which the interest rate stays the same throughout the life of the loan. Fixed rate mortgages are by far the most common type of loan and generally come with 15 and 30-year terms.
Q: Does credit affect rates?
Absolutely. Loan rates are credit sensitive, and some loan types are more susceptible than others.
We discuss credit at your pre-approval appointment and how your personal credit score will determine your rate options. We have many resources and tools for you to improve your credit.
Q: How much are closing costs?
Our pricing model is different than most.
Mortgage closing costs are reduced by something called “lender credits”, these vary based on what you and your loan officer have selected for your loan.
You have several options to determine how much of your closing costs you wish to pay.
The amount that you are asked to bring to closing is called “cash to close” - it is comprised of three factors:
your down payment
plus your closing costs
less your lender credit, any seller credits, and your earnest money
Most of our competitors keep the lender credit. We pass it along to you to lower your cash to close!
