It is a common misconception that 20% is always required to put down on a house, but this is not the case! The amount you need for your down payment depends on the loan program you select. Some of our loan programs require zero to low down payments. There are some benefits to putting more than the minimum down for your house, including a better interest rate and a lower monthly mortgage payment. For a better idea of how much you need, talk to one of our loan officers.
Your monthly mortgage payment is made up of what is commonly called PITI, or principal, interest, taxes, and insurance. Principal is the original balance of your loan. Interest is what accrues on your loan at the rate determined when you took out your home loan. Taxes are property taxes based on your local county tax rate and your home’s value. Insurance can include mortgage insurance (if applicable on your loan) and/or homeowner’s insurance.
The first step is to talk to a Summit Funding loan officer! You can find your nearest Summit Funding branch HERE. Once you meet with one of our professionals, they will review your situation and create a plan to get you started on your homeownership journey.
How much home you can afford is determined by your income and any debt you currently owe. To start, you can use our calculators HERE. To get a more accurate picture, schedule a meeting with a Summit Funding loan officer.
Your credit score is an important factor when getting your mortgage. Typically, the higher your credit score, the better the interest rate you can qualify for. However, each loan program has different credit score requirements and ranges, so you don’t need perfect credit to purchase a home. To get a better idea of what your credit score is and how it will affect your home buying process, meet with a loan officer.
A pre-qualification is the first stage of your mortgage process. When you meet with a loan team, they will review your financial profile including credit, debit, income, and assets. Using these factors, they provide you with an estimate of how much you would be able to borrow for your home loan. You can use this pre-qualification to begin home shopping with your real estate agent. A pre-approval is a deeper dive into your financial profile with supporting documentation and verification. A pre-approval is issued with the amount the lender can offer along with mortgage type and terms. The pre-approval is not a guarantee, but more serious and concrete than a pre-qualification.
Each loan program has different requirements and different conditions, but there is a perfect fit out there for every borrower. You can review the loan programs we offer HERE. Or meet with a Summit loan officer to learn more about each program and determine which loan program is your ideal fit.
Your interest rate is a key factor to determine how much your monthly mortgage payment will be. This rate impacts how much interest accrues on your mortgage each month.
Consider refinancing your current mortgage if you have been paying on it for 6 months or more, mortgage rates have gone down, your credit has improved, your home’s value has increased, or you have built up substantial equity. If you want to start the refinance process, reach out to us. We can assist with your refinance whether you originally used Summit Funding to get your home loan or another lender or bank.
There are several loan programs and down payment assistance programs geared toward empowering first-time homebuyers and their home purchase. These programs vary by state and county, so it is best to meet with a loan professional to review all options available to you.
Since mortgage rates change daily and a pre-approval is only a conditional agreement, a pre-approval letter is typically valid from about 60 days to 90 days from the date of issue. If your pre-approval letter expires and you haven’t found your dream home yet, you will need to connect with your loan officer to get an updated pre-approval letter to continue your home shopping.
When you purchase a home, you can expect to pay 2% to 5% of your home’s purchase price in closing costs. When your loan officer provides you with your loan estimate, you will get a clearer estimate of how much you will owe in closing costs. If this number changes since the original loan estimate was provided, your loan officer will give you an updated estimate.
A lower debt-to-income (DTI) ratio is preferred when applying for a home loan because it indicates if the borrower can successfully manage monthly payments and if they can take on more debt. However, each loan program has different requirements when it comes to DTI. To determine your DTI ratio, total all your monthly debts, then divide your debt total by your gross monthly income. Multiply this number by 100 to get your debt-to-income percentage. If your percentage is 35% or less: This is an ideal DTI range 36% to 49%: There is room for improvement 50% and above: It is time to take action because borrowing options may be limited
No, Summit Funding does not have any prepayment penalties.
A home appraisal will occur with the purchase or refinance of a home. During the purchasing process, the home appraisal will be ordered by Summit Funding after the offer has been accepted. An appraiser will assess the home’s estimated value to ensure the purchase price is fair market value by comparing your home to recent sales of similar properties. During the refinance process, an appraiser will assess your home’s value to ensure the refinance is beneficial to you. Summit Funding has our own panel of approved appraisers who are leading in the industry, so you can have peace of mind during your purchase or refinance.
There are several factors that can prevent you from getting pre-qualified when you first meet with us. These factors can include a low credit score, length of employment, insufficient funds for a down payment, high debt-to-income ratio, too many missed repayments on debts, etc. If we can’t get you pre-qualified at our first meeting, don’t worry! Our loan officers will work with you on any areas that need improvement and put a solid plan together so you can get pre-qualified in the future and into your dream home.
There are several options available to you to adjust your rate, but there is always a cost or a credit back for their rate depending on the option you select. You can pay a fee for the rate by paying for points. Points are the fee you pay to your mortgage lender for the cost of your interest rate. 1 point equals 1% of the loan amount. For more information on a rate buy-down and to review your options, please connect with a loan officer.
The best time to buy a home is determined by YOU, as there isn’t a ‘bad’ time to purchase a home. It all depends on you and your situation. Is it time to make a change for the future and your family? Are you nearing the end of your rental lease and want to jump into homeownership? Do you have a major life change coming up, such as a new baby, a child going to college, a parent moving in with you, you need to relocate for a job, etc.? Whatever your reason to buy is, Summit Funding is here to get you home.
Our general office hours are Monday through Friday from 8:00 am to 5:00 pm. We know not everyone works the same schedule so some of our loan officers accept evening and weekend appointments upon request. To talk to a loan officer and to schedule your appointment, locate the Summit branch nearest you.