Frequently Asked Questions

1. How can I determine what mortgage amount I might be eligible for?
2. What is the difference between a prequalification analysis and a preapproval application?
3. What is the minimum down payment for conventional, FHA, and VA loans?
4. How do I apply for a mortgage?
5. How do I determine which mortgage product will meet my needs?
6. Do most mortgage lenders provide construction loans?
7. Do mobile homes need to be permanently affixed to receive financing?
8. Do I need to fill out an application?
9. What documents will typically be requested when I make application for a first mortgage loan?
10. Do most lenders require a homeowner's inspection?

1. How can I determine what mortgage amount I might be eligible for?
Based on your income, your current debts and estimated down-payment, your lender can usually help you determine the maximum mortgage amount for which you could qualify. This process is frequently referred to as a "prequalification analysis".
 
2. What is the difference between a prequalification analysis and a preapproval application?
A prequalification analysis is typically the result of information shared between a mortgage lender and a potential mortgage borrower and usually does not incorporate information obtained from a credit report. The end product for a prequalification analysis will be an estimate of the maximum. Typically there is no cost or commitment on behalf of either party for a prequalification analysis.

A mortgage loan preapproval application typically results in a written loan decision following a complete mortgage application. You can typically apply for a preapproved mortgage prior to signing a purchase agreement for a home. Many lenders will also allow you to lock at the time you apply for a preapproved mortgage. A preapproval can also add to your negotiating strength when you are ready to make an offer on a home.

3. What is the minimum down payment for conventional, FHA, and VA loans?
While conventional loans (those not backed by a government agency) usually require a minimum down payment of 5%, Lawhorn & Associates has NO Down payment programs (USDA Rural Development) and low down payment programs available.

FHA mortgages from Lawhorn & Associates, insured by the Federal Housing Administration, are available for as little as 3.5% down.

VA mortgages from Lawhorn & Associates, guaranteed by the Department of Veterans Affairs, have a no-down payment option for eligible veterans buying a home.

Please contact a Lawhorn & Associates consultant for specific down-payment requirements and programs

4. How do I apply for a mortgage?
Most lenders will take your application by phone or in person. The application interview typically takes 30-60 minutes.

5. How do I determine which mortgage product will meet my needs?
Everyone's situation is different. Most people will benefit from either consulting by phone or in person with a mortgage professional who is committed to discovering your needs, and helping you match those needs with a mortgage product that's right for you.

6. Do most mortgage lenders provide construction loans?
Many mortgage lenders have construction-to-permanent financing loan programs. Programs will vary with each individual lender. Typically, a construction loan is an interim loan secured by the property on which a dwelling is being constructed. The funds are usually disbursed throughout the construction period and replaced with permanent financing once the construction is completed. You may also choose to utilize separate lenders for the construction financing and the permanent financing.

7. Do mobile homes need to be permanently affixed to receive financing
Some lenders specialize in financing mobile homes which are not permanently affixed to a foundation. Most lenders will finance double-wide homes that have been permanently affixed to a foundation.

8. Do I need to fill out an application?
Yes, but some lenders will allow you to complete the application verbally right over the phone. A copy of your application will be provided at the closing, which you will need to review and sign at that time.

9. What documents will typically be requested when I make application for a first mortgage loan?
Frequently lenders will request: W2's, paystubs, bank statements, and the purchase contract on the home you are buying. Documentation requests vary by loan type and lender.

10. Do most lenders require a homeowner's inspection?
No, a homeowner's inspection is generally requested by the buyer as a condition to the purchase of the home. Many homebuyers, however, will make the purchase of their home contingent upon a homeowner's inspection. A homeowner's inspection should not be confused with an appraisal, which is required by most mortgage lenders in order to support the valuation of the mortgage security.