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We hope the answers below answer your questions. If
not, one of our mortgage professionals would be happy to speak
with you one-on-one.
Q. How can I ensure that I can afford a
A. As part of the process, we set an approximate maximum
home purchase price and mortgage amount in line with your financial
picture. Those amounts are based on your credit, income,
assets and debts, and take into consideration how much you have for
a down payment, as well as the affordability of monthly mortgage
There are many different types of mortgages, providing a great
deal of flexibility in terms of rates, terms, down payment amounts,
and income and debt guidelines. We can advise you of the right loan
for your needs and means. If you want to "test the waters," ask to
get pre-qualified. This will give you a clear picture of what's
best for you in terms of appropriate loan programs, home price
range, mortgage amount and monthly mortgage payments. Also, check
out our mortgage calculator so that you can quickly
determine how much home you can afford.
Q. What costs are involved in a home
A. You do need to consider all costs to determine how much money
you will need. There are many variables in available loan programs
and closing costs. Some examples include:
With so many variables, it makes sense to consult with one of
our mortgage specialists to understand potential costs for your
Q. Why is a home inspection recommended?
A. After signing a purchase agreement, we strongly recommend
hiring a professional home inspector. But it is not required. It is
your decision and responsibility. An inspector can spot any
problems with the home (including structural, maintenance and
operational issues) that could save you headaches down the line,
and even reopen price negotiations with the seller.
Q. What documents do I need?
A. To apply for a mortgage, we require proof of income and
assets, as well as debt obligations and expenses. Some examples of
what you need:
Q. I have the purchase agreement, now how long until
A. Your purchase agreement includes a mutually agreed-upon
escrow period, which is typically 30, 45 or 60 days. The escrow
period is when your loan is processed. It typically defines when
your mortgage closes and you take ownership. However, there is no
rule that says you cannot close sooner! At New Penn, our constant
aim is an expeditious closing.
Q. What exactly is a "mortgage closing?"
A. It is the time when you sign your mortgage papers and pay any
remaining costs, and when we pay the seller. Highlights of the
Q: What is LTV or Loan-to-Value?
A: The LTV, or Loan-to-Value ratio, is the amount of your loan
compared to the appraised value of your property. This ratio
impacts the loan programs and rates for which you will be eligible.
Lenders will generally offer better loan programs and rates to
borrowers with lower LTV ratios.
Q: What is a FICO score and how important is
A: A FICO score is a credit score which predicts the probability
that borrowers will pay their bills. A higher FICO score enables
you to obtain a loan with good terms, a lower interest
rate and a lower monthly payment. This score is an important
part of the loan qualification process. Ask your New Penn
mortgage professional about our free credit repair service. We can
help you improve your credit score as part of the application
Disclaimer: All loans are subject to credit and property approval. Programs, rates, terms and conditions are subject to change without notice. Other restrictions apply. New Penn Financial, LLC. 4000 Chemical Road, Suite 200, Plymouth Meeting, PA 19462. Corp NMLS#: 3013. Licensed by the Department of Corporations under the California Residential Mortgage Lending Act. CO - To check the license status of your mortgage loan originator, visithttp://www.dora.state.co.us/real-estate/index.htm. GA - Georgia Residential Mortgage Licensee. MS- Licensed by the Mississippi Department of Banking and Consumer Finance. NH- Licensed by the New Hampshire Banking Department. NJ- Licensed by the N.J. Department of Banking and Insurance. NY- Licensed Mortgage Banker -- NYS Banking Department. OR- Oregon license number: ML-4667. PA- Licensed by the PA Department of Banking. VA- Virginia State Corporation Commission (license number: MC -5119).NMLS Consumer Access