Frequently Asked Questions
Below are some of our frequently asked questions. Feel free to send us any questions you may have about Homepad Lending.
What is the best loan product for down payment assistance?
There are multiple down payment programs available, giving us more ways to get you approved. The best loan product for you, might not be the best loan product for someone else. A lot of factors play into choosing the right product, which is something we’re committed to for our clients.
What's the cost to get approved?
There’s no cost to get approved for any of our programs. We’re here to save you money, not charge you.
What kind of credit score do I need?
We can get you qualified with less than perfect credit. Some programs only require a minimum credit score of 580.
What kind of income do I need?
We have tons of different programs to qualify applicants of all different income ranges. Many with no income cap.
Can I get a house anywhere?
All down payment assistance programs must be used to purchase a primary residence in Arizona.
How long does it take?
A typical mortgage loan will close in about 30 days, although it can vary.
Is down payment assistance a loan?
Down payment assistance is not a hard money or private loan. For grants you don’t have to pay the money back that you recieve.
How does buying a home compare with renting?
Purchasing a home enables you to receive tax benefits while building equity. Owning a home also gives you the freedom to personalize and decorate as you wish and gives you the personal satisfaction of owning your own home
Should I prequalify before I find a property?
Yes, prequalification can help determine how much money you will be eligible to borrow before the loan application process occurs. You will know upfront how much home you can realistically afford. It also lets Realtors and sellers know that you’re a serious buyer, which can be an advantage when making an offer.
How does a lender determine how much I can afford?
Your lender will consider a number of factors when determining your maximum loan amount. Some of these include: your debt-to-income ratio, cash available for down payment and closing costs and credit history.
What is an appraisal?
An appraisal compares the current market value of the home you’d like to buy to other homes in the area that have recently been sold. A recent appraisal is necessary to confirm the property’s current value.
What is an interest rate lock?
An interest rate lock represents rate you selected and will be the interest rate used to factor your monthly payment. The lock-in secures the interest rate during the process of your loan approval as long as your loan is processed and closed prior to the rate expiration date.
Down Payment Assistance
Down payment assistance programs can be administered by a local or state housing authority, a nonprofit organization or directly through your lender. They provide a set amount of money to qualified homebuyers. Homebuyers can use the money to cover their down payment or closing costs.
Sum of money given by a government or other organization for a particular purpose.
A legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtor’s property, with the condition that the conveyance of title becomes void upon the payment of the debt.
Annual Percentage Rate (APR)
The APR represents the true cost of your credit: interest plus fees and any other one-time costs associated with the loan. Since different lenders have different interest rates and costs, the APR helps you compare apples to apples, mortgage-wise.
Also known as settlement costs, this is the amount of money you need to close the mortgage deal. Closing costs could include title insurance, escrow fees, lender charges, real estate commissions, transfer taxes and recording fees.
These terms are sometimes used interchangeably, so what they actually mean depends on your lender.
“Pre-qualification” might mean you have given some basic information (income, debts, anticipated down payment) and signaled your desire for a mortgage, without submitting any actual documentation. “Pre-Approval” might mean that the lender has checked you out more thoroughly, from your credit score to your job history.
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