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Common Questions

Why should I use a Mortgage Broker?
Your Mortgage Broker works much like a travel agent. Travel agents work for their clients and not the many carriers on which they book passage. When utilizing the services of a professional Mortgage Broker, you have a representative who has your interests in mind, and not tied to selling you a specific lender's loan package.

Will I pay more?
Whether financing a home through a Mortgage Broker or directly with a lender, there is a loan fee to be paid. When working with a Broker, that fee is shared between the Lender and Broker. Ordinarily, the borrower will pay the same fees or less than if they dealt directly with the lender. The borrower, however, benefits from the great flexibility of the Broker by having the capability of changing lenders or loan programs without further cost.

Will it take more time?
Your Mortgage Broker will actually save you precious time by shopping the lending market for you. With a Mortgage Broker you make only one loan application. The loan request is then processed in the shortest time possible by a highly trained and motivated, professional staff. A Mortgage Broker does not earn a fee until the loan is closed.

What can you do for me?
A Mortgage Broker acts as your representative in opening the doors to a multitude of lenders. By assessing current loan programs, interest rates, loan fees, underwriting guidelines, and credit requirements, the Mortgage Broker will recommend which lender and specific program best suits your needs. You make the final decision!

Why should I use Sky Mortgage?
Sky Mortgage is located on the Eastside with dozens of investors to assure you will be getting the very best financing available whether Conventional, construction, sub prime or VA.  Sky Mortgage has a tremendous reputation with the lending community. The loan processing is second to none with one processor for two loan officers, you can be assured a timely closing.

How much do I have to put down?
The amount you have to put down varies with the program. Here are some programs with their respective down payments:
  • Fannie Mae and Freddie Mac will allow as little as 5% down.
  • The "community homebuyer" and similar programs will allow 3% down.
  • Some lenders will do an 80% loan with the seller carrying the other 20%, so effectively you can purchase with nothing down.
  • VA is a true 0 down loan and the seller can pay all the closing costs which means you can purchase a home with nothing out of your pocket.
  • If you put 20% you can avoid mortgage insurance or you could do some type of "piggy back"
  • See Products for more information.

How long does it take?
The length of time it takes from start to finish can vary with the complexity and details of your transaction.

  • The absolute fastest would be a 5 day closing from start to finish. These are very rare and can only happen if you have a perfect loan and a willing seller and in a slow market.
  • The typical time frame is usually 2-4 weeks to obtain loan approval and then another week to close.
  • Some loans can literally take months to close, for example construction loans with all the permits needed can take a long time, likewise a foreclosure loan can sometimes take a long time just to do the extra title work needed.
  • If you make an application before you buy your home, and have your loan pre-approved you can save yourself 2-3 weeks.
How do I pick a program?
The best way to know what type of loan program to take is to estimate how long you plan to keep it.
  • If you think you may be in the loan for 3 years or less you might want to consider a 3 year or a 5 year fixed.
  • If you are not sure how long you will own the home you might want a 30 year fixed.
  • I will be happy to council you on the Pro's and Con's of the various programs.

When should I start my loan?
As soon as possible. The best way to be prepared to make a good solid offer when purchasing a home is to have already applied for your loan and be pre-approved.

How does the process work?
The Mortgage process works basically as follows:
  • You contact me and get pre-qualified.
  • I fill out the loan application and put together documentation on all your finances (W2's, tax returns, bank statements. . .).
  • Additional documentation is requested by the mortgage company such as verifications of employment and deposit, appraisal, title, credit reports, and anything else required depending on the details of your transaction.
  • When all of the information is collected it is put together in a submission package and sent to underwriting for the official approval.
  • The underwriter reviews the loan and depending on the strength of the loan and the packaging either approves or denies it.
  • If it is approved any conditions from the underwriter are cleared and the closing documents are ordered. If it is denied it gets packaged again and submitted to a different lender/underwriter.
  • The documents are then forwarded to escrow which is where you will bring the money for your down payment and sign the papers.
  • The signed documents go back to the lender to make sure everything was signed correctly.
  • After everything checks out, the money is wired from the lender to the escrow company.
  • The loan funds and the transaction is recorded and closed.
  • If this is a purchase depending on what your purchase and sale agreement says you get the keys usually the day it records or within a few days.

Do I have to get pre-qualified before I buy a house?
There is no law requiring you to be pre-qualified. However, most Sellers and Listing Agents will not even consider your offer until you have consulted with a Loan Officer.

Do I have to get pre-approved before I buy a house?
Like pre-qualification . . . there is no law requiring you to get pre-approved prior to making an offer on a home. However, you will most likely secure your best price and terms with the Seller if you have been pre-approved. At a minimum, if you made an offer at the same time as another Buyer, your offer will be accepted more times than not if the other Buyer is not pre-approved.

How much do pre-approvals cost?
Usually $25. If there are some credit difficulties, it may cost as much as $90.

How long are pre-approvals good?
Provided that your income, debts, assets, credit rating and interest rates stay stable . . . almost indefinitely.

Do I need to order the Appraisal, Title and set up Escrow?
This is a very common question. The answer is no. I will take care of everything and will be in contact with you throughout the process keeping you informed about any relevant issues with your file.

How long will this process take?
It really depends on your situation and the type of loan you are interested in. As a rule of thumb, most mortgages take thirty days to process from beginning to end but can actually be done in a week if necessary. Below are some realistic time frames for the three major types of financing.
  • Conventional: Two to four weeks.
  • VA: Four to six weeks.

When can I lock the interest rate?
Anytime after you purchase the home, until five business days before you are scheduled to close. (During business hours, of course.)

Does it cost me to lock the interest rate?
Most of the time no. In certain instances you will be required to provide the lender with a deposit. This is mostly done for extremely long locks (i.e., 120, 180, 240 and even 360 day locks) which can be used on construction loans. (i.e., You lock the loan, but the house takes 4-12 months to be completed).

My credit is perfect! Do I need to get a credit report?
Yes, most Buyers have very good credit but the lenders like to see it for themselves.

What is Mortgage Insurance and do I need it?
Mortgage Insurance is a type of insurance that protects the Lender against the default of a loan. It is required on all conventional loans with a down payment less than 20%. Unless you structure your loan on a 75-15-10, 80-10-10 or a self insurance type program. (See loan programs.)

What is Title Insurance?
Title insurance is also required on all loans. In short, it insures you against any encumbrances on your property that may cloud your title. In English . . . they search to see who has owned your Property in the past and make sure that title has been properly transferred each time the property has been sold.

What is Escrow?
Escrow assists with the final step of the mortgage process. They will prepare your final documents for you and the Seller to sign. Once both you and the Seller have signed in Escrow, they will have the Note and Deed of Trust recorded and "fund" your loan. Funding basically is when the lender gives Escrow a lump sum of cash and Escrow pays all the bills.

Can I use my Insurance Agent?
Certainly! Prior to having the loan documents drawn you will be asked to provide us with the name and phone number of the Insurance Agent you wish to use for your hazard/fire insurance. We will then contact your Agent and forward any and all information they might need in order for them to provide you with insurance on your new property. (This is not needed on condos; they have a master policy to cover all of the buildings.)

When will I know exactly how much to write the check for?
You will receive a call from Escrow prior to your appointment to signing the final paperwork. It is at this time you will be told the exact (to the penny) amount to bring in. However, you can always refer to the good faith estimate, which was provided to you at application to get an idea of what to expect.

Can the Seller pay some of my closing costs?
Yes! But you must negotiate any seller contributions in advance. You must also keep in mind that if you ask the Seller to contribute towards your closing costs you will not be getting the best price on the house. There are some restrictions on the amount a Seller can contribute depending on your loan type and down payment. Consult your Loan Officer for more information if you are considering Seller contributions.

Can I get a gift for the down payment & closing costs?
Yes and no. On FHA, 100% of the down payment and closing costs can be a gift or even a loan from your family. However, on conventional loans you must show that 3-5% of the down payment has come from your assets unless the down payment is 20% or greater. Call for the specific guidelines.

Can I borrow the down payment & closing costs?
Yes and no. You can borrow the money on a FHA loan from a family member. You can borrow the money if it is secured by property you currently own. You can not borrow money on a unsecured line of credit, credit card or personal loan.

When do I need to have the money available?
You should be in the position to bring a cashier check or wire funds to Escrow 5-10 days prior to the date we are scheduled to close.

When do I get the keys?
The keys to the house are usually available either the day of funding or three days after funding. You can usually get the keys from your Agent unless other arrangements have been made. Check your purchase and sale agreement or consult your Agent for the exact day you can access the property.