Our best clients are our most informed clients. We’ve provided these examples of questions that people often ask us when we sit down to help them, This list, however, should not be considered comprehensive and is not meant to take the place of legal or financial advice. 

Answer:
It is always best to contact your tax preparer. Generally speaking, only discount points and pre-paid interest are tax deductions. In some circumstances there may be more deductions available (such as is involved with investment property financing).

Question:  Why are there so many different interest rates?

Answer: 
The interest rate a lender will offer on a mortgage varies in accordance to several factors. These factors include, credit scores, term of the mortgage, income to debt ratio, type of property, (primary residence vs. rental income-property, vs. vacation home).

Question:  Why did my neighbor get a different interest rate then I was offered?

Answer: 
Of the variety of factors taken into consideration when applying for a mortgage, each individual’s personal circumstances can vary effecting the conditions of the mortgage offered.

Question:  Why do some banks offer “No Closing Cost” mortgages?

Answer:
Most often when a lender promotes a “no closing cost” mortgage product that lender is saying they are prepared to incorporate the fees and up-front costs to close into the principle being borrowed. Thus, minimal to no money out-of-pocket would be required at closing but, would in fact be financed as part of the mortgage principle.

NOTE: Increasing the amount borrowed may also effect one’s qualifying factors.

Question:  How do I know how much I can borrow?

Answer:
Like any loan, a lender requires that the borrower has the ability to repay the mortgage under the conditions offered. Some basic factors are; the borrowers’ provable income, the amount of existing debt the borrower carries, borrower’s credit score and credit paying history, and the amount of down payment and/or closing costs at the ready.

NOTE: Only a qualified mortgage originator should be trusted to answer this question for any particular individual.

Question:  What documentation will we need when we apply for a mortgage?

Answer:
Mortgage Applicants will want to have their past 2 years of Federal Income Tax forms, a current Pay Stub from their place of employment, 3 Months of personal bank Checking Account Statements, Photo Identification (Drivers License with picture or passport), Savings and Investment records.  As each property purchase and individual employment and life style conditions can vary (self employed individuals as opposed to a salary earner which is different from a straight commission earner or 1099 subcontractor as opposed to commission earnings as is different for retirees) so can the request for additional documentation.