FAQs

Do you have questions? We can help! You will find the answers to several frequently asked mortgage questions below.

Why do I need to be Pre-Qualified for a Home Loan?
What documents do I need to provide my lender for a Home Loan?
What is on a credit report?
What are the financial benefits of Homeownership?
Is there a way to upgrade the house I want to purchase or refinance?
The house I want to buy has high utility bills is there a way to upgrade the property?
I want to build a home where do I start?
When does it make sense to refinance?
I don’t know anything about buying a home who should I consult with first, a Realtor or a Mortgage Banker?

Why do I need to be Pre-Qualified for a Home Loan?

Pre-qualification is processed prior to the borrower looking or making an offer on a property. A mortgage prequalification is based on the homebuyers’ verbal representation pertaining to their income, expenses, available cash, and liquid assets. A prequalification is not a mortgage commitment because no mortgage processing and underwriting have not been done at this stage.

Your Pre-Qualification letter allows your Realtor to provide to the seller evidence that you have been to a lender and you credit has verified. The prequalification allows the borrower the knowledge to make the right decision on the type of home loan that best suits their financial situation. Applications can be done online, over the phone, by mail or in person.

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What documents do I need to provide my lender for a Home Loan?

Most commonly required documents are your past two years’ tax returns, you past two years’ w-2’s, your most recent pay stubs covering the past 30 days, bank statements covering the last two months and a valid picture ID. Other commonly asked documents could include divorce decree, bankruptcy papers, retirement statements, school transcripts.

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What is on a credit report?

Credit reports have information primarily in three areas:

History on payments on all accounts for the past 7 years
Balance on credit accounts versus credit limits
How long you have been using credit.

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What are the financial benefits of Homeownership?

The largest measurable financial benefit to homeownership is value appreciation. Home value appreciation helps build equity which is the difference between the market price of the house and the remaining balance on the home loan.

The second largest financial benefit of owning a home is tax savings. For most Americans, there are tax savings associated with owning a home. The biggest of these is the ability to deduct the annual interest paid on a mortgage from income.

Some first time homebuyers will be eligible for a Mortgage Credit Certificate ( MCC) which is an additional credit over and above you mortgage interest deduction toward your IRS taxes.

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Is there a way to upgrade the house I want to purchase or refinance?

Yes, Advana offers a product called a repair and improvement loan. This allows you to finance the cost of home improvements into your long term Home Loan. This is an FHA section 203K loan and can be used to purchase or refinance a home.

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The house I want to buy has high utility bills is there a way to upgrade the property?

Yes, Advana Mortgage offers an EEM mortgage, which is a loan that allows the borrower to obtain additional funds for energy related improvements such as a new furnace, windows and other cost effective items.

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I want to build a home where do I start?

Whether you are building a home or purchasing an existing property you still want to start with the pre-qualification process. Your first consultation with a Mortgage Banker they will cover all the processes and options for financing a new construction transaction.

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When does it make sense to refinance?

Usually people refinance to save money, either by obtaining a lower interest rate or by reducing the term of the loan. Refinancing is also a way to convert an adjustable loan to a fixed loan or to consolidate debts. The decision to refinance can be difficult, since there are several reasons to refinance. However, if you are looking to save money it is best to visit with one of our Mortgage Bankers before you make a decision either way.

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I don’t know anything about buying a home who should I consult with first, a Realtor or a Mortgage Banker?

You should always start with a Mortgage Banker to determine you capacity before you start looking at properties.

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