FAQs Archive - Metro Mortgage

Q: What does my credit score need to be to get a loan?

We look at more than just your credit score for a loan but typically the minimum score is 620-640.

Q: Do I need to get pre-approved before I can look at houses?

We recommend it and most sellers won’t consider your offer without one. Our preapproval process does more than just preapprove you to buy a house. As part of our preapproval process we will make sure you know your price range, estimated payments, and estimated cash to close before you make an offer.

Q: Do I need to use a realtor?

No it is not required but it is highly recommended. A quality realtor has access to all listed properties and can help you negotiate the best price and terms. Also as a home buyer it doesn’t cost you anything.

Q: Where can I find listings of foreclosed properties?

The best way to locate foreclosed homes is to use a realtor.

Q: What type of documentation is required for a loan?

Typically loans require paystubs, 2 years W2’s and tax returns, and recent bank statements. Some customer profiles may require additional things such as bankruptcy papers, divorce decree, or child support documentation.

Q: How long does it take to close on a loan?

Most loans can be closed in 3 – 4 weeks. Sometimes bank owned properties or complicated borrower profiles can take longer but some loans can also close quicker.

Q: Can I borrow more that just the purchase price?

Typically no. In certain circumstances with RD you can borrower more than the purchase price to cover appliances or minor repairs. Also an FHA 203k loan is a specialized program that you can use to make various repairs to the home.

Q: How much down payment is required to purchase?

Different programs have different down payment requirements. There are many programs to choose from and some are as little as zero down. It is also important that you understand the difference between down payment and cash to close. The program may require zero down payment but the loan closing costs still have to be paid for which means you may have to bring money to the table to close. However, sometimes the closing costs can be paid for by the seller. We can work with your offer to buy and build in costs to make there be little or no money out of pocket for your loan.

Q: How much does it cost to get a loan?

Loan costs vary per loan. We will work up a detailed itemized list of all the estimated loan fees and costs and present them to you. Some examples of customary charges include an appraisal, credit report, underwriting, title closing fee, title insurance, and recording charges.

Q: How do I estimate what my interest rate will be?

Interest rates vary by credit score, loan amount, program, etc and change daily with market conditions. We will estimate your rate for your individual profile and keep you informed of where rates are and where they are going during your loan process.