FAQs

You should consider refinancing when it can help you save money or better fit your financial goals. This could be due to lower interest rates, an improved credit score, the desire to shorten your loan term, switch between fixed or variable rates, or access equity through a cash-out refinance. Just keep in mind that refinancing comes with costs, so it's important to weigh the potential savings against the fees involved. To learn more about options for 30 year home mortgages in Houston, TX, call Ero Lending today!

According to our pros, a point is a percentage of the loan amount, or 1 point = 1% of the loan, so one point on a $100,000 loan is $1,000. Points are costs that need to be paid to a lender to get mortgage financing under specified terms. Discount points are fees used to lower the interest rate on a mortgage loan by paying some of this interest up-front. Lenders may refer to costs in terms of basic points in hundredths of a percent, 100 basis points = 1 point, or 1% of the loan amount. To learn more about 20 year mortgages in Houston, TX, contact us today!

You can choose to pay points to lower your interest rate, but it's not necessary. Paying points-also known as buying down the rate-means paying an upfront fee to get a lower interest rate over the life of the loan, which can save you money in the long run. However, it only makes sense if you plan to stay in the loan long enough to break even on the upfront cost. If not, or if you prefer lower upfront expenses, skipping the points may be the better option. To learn about a 15 year home mortgage rate in Houston, TX, reach out to us today!

APR, or annual percentage rate, is the total cost of borrowing money expressed as a yearly percentage. It includes not just the interest rate on the loan, but also other charges like lender fees or points. APR gives you a more complete picture of what you'll actually pay over the life of a loan, making it easier to compare offers from different lenders. When you're ready to learn about 30 year home mortgages in Houston, TX, contact our staff.

Mortgage rates can change from the day you apply for a loan to the day you close the transaction. If interest rates rise sharply during the application process, it can increase the borrower's mortgage payment unexpectedly. Therefore, a lender can allow the borrower to "lock-in" the loan's interest rate, guaranteeing that rate for a specified time period, often 30-60 days, sometimes for a fee (according to our team). We provide 20 year mortgages Houston, TX can rely on. Contact us today to learn more!

Below is a list of documents that are required when you apply for a mortgage. However, every situation is unique, and you may be required to provide additional documentation. So, if you are asked for more information, be cooperative and provide the information requested as soon as possible. It will help speed up the application process. According to our team, here's what you'll need:

Your income:

Copies of your pay stubs for the most recent 30-day period and year-to-date

Copies of your W-2 forms for the past two years

Names and addresses of all employers for the last two years

A letter explaining any gaps in employment in the past two years

Work visa or green card (copy front and back)

If self-employed or receive commission or bonus, interest/dividends, or rental income:

Provide full tax returns for the last two years, PLUS year-to-date profit and loss statement (please provide complete tax return, including attached schedules and statements. If you have filed an extension, please supply a copy of the extension.)

K-1s for all partnerships and S-Corporations for the last two years (please double-check your return. Most K-1s are not attached to the 1040.)

Completed and signed Federal Partnership (1065) and/or Corporate Income Tax Returns (1120), including all schedules, statements, and addenda for the last two years. (Required only if your ownership position is 25% or greater.)

If you will use alimony or child support to qualify:

Provide a divorce decree/court order stating the amount, as well as proof of receipt of funds for last year

If you receive Social Security income, disability, or VA benefits:

Provide an award letter from the agency or organization

Source of funds and down payment:

Sale of your existing home - provide a copy of the signed sales contract on your current residence and statement or listing agreement if unsold (at closing, you must also provide a settlement/Closing Statement)

Savings, checking, or money market funds - provide copies of bank statements for the last three months

Stocks and bonds - provide copies of your statement from your broker or copies of certificates

Gifts - If part of your cash to close, provide a Gift Affidavit and proof of receipt of funds

Based on information appearing on your application and/or your credit report, you may be required to submit additional documentation

When you're ready to apply for 30 year home mortgages in Houston, TX, call our team!

Credit scoring is a system that creditors use to help determine whether to give you credit. Information about you and your credit experiences, such as your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts, is collected from your credit application and your credit report. Using a statistical program, creditors compare this information to the credit performance of consumers with similar profiles. A credit scoring system awards points for each factor that helps predict who is most likely to repay a debt. You are entitled to receive one free credit report every 12 months from each of the nationwide consumer credit reporting companies - Equifax, Experian, and TransUnion. This free credit report may not contain your credit score and can be requested through the following website: https://www.annualcreditreport.com. To learn more about our options for a 15 year home mortgage rate Houston, TX residents can rely on, call us!

To improve your credit score, focus on paying all your bills on time, as payment history is a major factor. Keep your credit card balances low-ideally using less than 30% of your available credit-and avoid opening too many new accounts in a short period, which can lower your score, according to our team. Maintaining older credit accounts also helps, as a longer credit history is beneficial. Lastly, regularly check your credit reports for errors and dispute any inaccuracies you find. Building good credit takes time, but consistent, responsible habits make a big difference. Contact us to learn more about 30 year home mortgages in Houston, TX!

An appraisal is a professional estimate of a property's market value, typically conducted by a licensed appraiser. Lenders use appraisals during the loan process to ensure the home's value supports the amount of the loan. The appraiser evaluates the property by considering its condition, location, size, and recent sales of similar homes in the area. We can answer more questions about 20 year mortgages in Houston, TX, so call us if you need assistance!

The property is officially transferred from the seller to you at "closing" or "funding".

At closing, the ownership of the property is officially transferred from the seller to you. This may involve you, the seller, real estate agents, your attorney, the lender's attorney, title or escrow firm representatives, clerks, secretaries, and other staff. You can have an attorney represent you if you can't attend the closing meeting, i.e., if you're out of state. In our experience, closing can take anywhere from one hour to several, depending on contingency clauses in the purchase offer or any escrow accounts needing to be set up.

Most paperwork in closing or settlement is done by attorneys and real estate professionals. You may or may not be involved in some of the closing activities; it depends on who you are working with.

Before closing, you should have a final inspection, or "walk-through," to ensure requested repairs were performed, and items agreed to remain with the house are there, such as drapes, lighting fixtures, etc.

In most states, the settlement is completed by a title or escrow firm, in which you forward all materials and information, plus the appropriate cashier's checks, so the firm can make the necessary disbursement. Your representative will deliver the check to the seller, and then give the keys to you. For more information about the closing process or 30 year home mortgages in Houston, TX, contact our dependable staff!