Frequently Asked Questions
Get answers about mortgages from Wall Street Lending. Discover the difference between pre-qualification and pre-approval, factors affecting interest rates, down payment requirements, refinancing with bad credit, fixed-rate vs. adjustable-rate mortgages (ARMs), expected closing costs, and the typical timeline for the mortgage process. Speak with our experts today.
Pre-qualification is an initial assessment based on the information provided by the borrower, giving an estimate of the loan amount they may qualify for. Pre-approval involves a more thorough evaluation, including documentation verification, and provides a conditional commitment from the lender.
Several factors influence your mortgage interest rate, including your credit score, loan term, loan amount, down payment, and the current market conditions. It’s important to discuss these factors with our mortgage experts to understand how they may impact your specific situation.
The down payment requirement can vary depending on the loan program and your financial qualifications. While some loan programs offer options with lower down payment requirements, a common guideline is to aim for a down payment of at least 20% to avoid private mortgage insurance (PMI).
While having good credit can make the refinancing process smoother, there are options available for borrowers with less-than-perfect credit. Our mortgage professionals can evaluate your situation and help you explore refinancing options that may be suitable for your circumstances.
A fixed-rate mortgage maintains the same interest rate throughout the entire loan term, providing stability and predictable monthly payments. In contrast, an ARM offers an initial fixed-rate period, after which the interest rate adjusts periodically based on market conditions.
Closing costs typically include fees for loan origination, appraisal, title search, title insurance, attorney fees, and prepaid expenses such as property taxes and homeowner’s insurance. Our team will provide you with a detailed breakdown of the estimated closing costs specific to your transaction.
The timeline for the mortgage process can vary depending on various factors, including the complexity of the transaction and responsiveness in providing necessary documentation. On average, the process takes around 30 to 45 days from application to closing. Our team will work diligently to ensure a smooth and timely process.