Common Home Loan Questions

by Michael Shotnik, The Colorado Mortgage Team at Milestone Home Mortgage.

 

1. Which type of loan is right for me?

The perfect loan type would depend on your situation. We’d ask questions such as down payment amount, estimated credit score, time period you expect to be in the home, and if you have any special qualifications or circumstances. These are initial questions that will frame our presentation of loan products, and is a means to point us in the right direction. We have tools, and the wherewithal to change gears if needed, to ensure you obtain the perfect loan program for your situation.

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2. Would I need a fixed or adjustable rate?
In most situations we suggest a fixed rate mortgage. Life is stressful enough; you shouldn’t have to worry about your mortgage. However, for individuals who expect to be in their homes less than 5 years, an adjustable rate mortgage may offer significant benefit. As in all other aspects, our suggestions will be situational.

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3. How do I know if I should refinance?
After closing we’ll keep an eye on your loan. Each year after you purchase, we’ll do a loan review and send you the results. If we think there’s an opportunity to improve your loan, we’ll know, and work with you to minimize the cost of the financing.

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4. What are closing costs?
Closing costs are costs you incur to obtain the loan and your new home. Along the way many different services are provided, which are charged to you at the time of closing. The entire process is highly regulated, which results in very controlled and straight forward costs. In our presentation of loan programs we’ll make the total costs very clear, and offer you 5-15 different options. These options will generally include the best rate available, as well as low to no closing cost options.

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5. What are PMI and MIP?
PMI and MIP are different types of mortgage insurance. If you’re putting less than 20% down on the purchase, and/or obtaining an FHA loan of some sort, mortgage insurance will be required. Depending on your goals (down payment, amount, credit score, etc.) we will present multiple mortgage insurance options. Not only do you have flexibility with the loan type, you also have options when it comes to mortgage insurance. Along the way we’ll discuss all the options we consider to be advisable.

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6. How do I determine my purchasing power?
We can provide you with a maximum purchase in a few different ways; a simple phone conversation, an in person meeting, or by completing our online loan app. We pride ourselves on communication and responsiveness. As soon as you’re ready to get the process started, we’ll be here to help.

For more info, call 303-800-4595 ext. 1 or email michael@mhmtg.com.

 

 Michael Shotnik (NMLS #218281) is the Broker and Owner of the Colorado Mortgage Team at Milestone Home Mortgage, located at 2590 Welton St, Ste 200, Denver, CO 80205. Milestone Home Mortgage LLC, NMLS #2588937. Equal Housing Opportunity.