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Frequently Asked Mortgage Questions

Refinancing Questions

  • What are the benefits of refinancing?
    You may want to consider refinancing if you are interested in paying off high-interest-rate debt, shortening the length of your mortgage term, or lowering your monthly mortgage payment.
  • I have never refinanced. What is the process?
    Our experienced Loan Originators will work with you one-on-one and walk you through the process.
  • How do I know which bills to consolidate to save the most money?
    Your Loan Originator will look at your individual situation and guide you through the process to determine the best plan to meet your needs.
  • Can I refinance to take cash out of my house?
    Yes. We offer a variety of options that allow you to tap into your home's equity and take cash out. Consult your Loan Originator for the best cash-out refinancing option for you.
  • How do I know what my loan rate will be?
    Rates vary primarily based on the type and purpose of the loan, your credit history and income, loan amount, and the value of your property.
  • I recently filed bankruptcy. Can I qualify for a loan?
    The average waiting period to obtain a home loan post bankruptcy is two years. If you've filed for bankruptcy due to no fault of your own and have since kept your finances in good standing, you may be granted the 12-month exception. We have a variety of programs that can help those who have filed bankruptcy to build up their credit to qualify. You can apply for a home loan, even with a credit score as low as 580.

Credit Questions

  • What type of credit score do I need?
    Typically, you can qualify with a credit score as low as 580. The type of loan you are eligible for will change based on your credit score. A higher score opens up more types of loans and then other factors will determine what is best for you: down payment, closing costs, rate, term, and payments. We work with all types of borrowers with a variety of credit scores.
  • If I have had credit problems, can you still help me?
    Yes, we have a variety of loan programs available.
  • Will you pay my creditors directly?
    We will send payment to your current mortgage company and any other lien holders. However, we will give you the checks for your other creditors, such as your auto finance or credit card company, to send in with your statements.

Home Mortgage Questions

  • I just bought my home 2 years ago. Can I refinance?
    Yes, we can help you refinance in almost any situation.
  • Can we borrow funds to make home improvements?
    Yes, you can use the equity in your home to make improvements.
  • How much do I need for a down payment?
    There is no set amount. In fact, you might be surprised to learn that many first-time home buyer programs require as little as 3% down. For a conventional 30-year mortgage, you'll want to have 5 - 20% of the home's sale price saved. The more you have upfront, the more your monthly payment will decrease. Remember, this amount is in addition to any closing costs or fees. There are many loan programs that can be tailored to fit your needs and financial resources.
  • Can I apply for a purchase loan before I find a property?
    Yes. A real estate agent commonly only requires a mortgage pre-qualification, a review of your financial situation to determine the loan amount you would qualify for. A pre-qualification letter gives you greater flexibility and leverage with real estate agents while you search for a home. In some cases, your agent may require a pre-approval letter prior to your offer, and not just a pre-qualification letter. A pre-approval requires that we pull your credit report, and you will need to provide copies of:
    • Pay Stubs
    • Previous 2 years' W-2s
    • Last 2 federal tax returns
    • Two months of bank statements of all types of accounts

Application Questions

  • How long does the mortgage process take?
    You can get pre-approved within 24 hours, and often close in under 30 days.
  • Do I have to pay an application fee?
    No, we never charge an application fee. Unlike some in the mortgage industry who require anywhere from $75 - $400, we do not believe in making our clients pay for the opportunity to do business with us. Your home loan with American Equity Mortgage is part of the groundwork on which your financial future is built, a foundation that we want to help strengthen.