Learn About Residential Mortgages - from Silex Financial Group, Inc.

Frequently Asked Questions About Mortgages

Most homebuyers or homeowners have questions about mortgages and how the whole loan process works. We have compiled the most frequently asked questions, and the answers to them, here. If you are looking for information that we have not covered, just give us a call. Our mortgage specialists are happy to provide you with the answers you are seeking.

We will help you determine the amount of loan you can qualify for based on the financial information you provide, your credit report, and verification of your income and assets.
The income ratio is your monthly housing expense divided by your gross monthly income. The debt ratio is your monthly housing expense plus any recurring debts, (i.e., monthly credit card payments, car payments, etc.) divided by your gross income. These ratios are considered when determining the loan amount for which you qualify.
Cash reserves are the funds a borrower has remaining after their loan has funded. Some programs require cash reserves equal to two months of mortgage payments.
With our vast lender network, we have access to all types of loan products, many of which require low, and even no, down payments and provide options to cover closing costs. Call to speak with one of our mortgage professionals to find out what options are available to you.
Loan to value (LTV) is the loan amount divided by the sales price or appraised value, whichever is less.
Private mortgage insurance is insurance that protects the lender in the event a borrower defaults on the loan. It is paid by the borrower. Whether you need to pay private mortgage insurance depends upon the amount of your down payment. Lenders typically require private mortgage insurance if you make a down payment of less than 20%.
A FICO score is a credit score based on your credit history. Lenders use FICO scores to determine a borrower’s likelihood of repaying the loan.
A FICO score is a credit score based on your credit history. Lenders use FICO scores to determine a borrower’s likelihood of repaying the loan.
Yes, we have a vast network of lenders with a large variety of loan products and pricing. We specialize in financial circumstances that don’t lend themselves to traditional banks.
While credit history is important in a loan decision, our lenders understand that borrowers may not have perfect credit. They take a common-sense approach to the approval process and look at all aspects of your application.
Most loan program guidelines look at a two-year job history; however, starting a new job with a better position could help your application.
A fixed loan has an interest rate that remains constant throughout the life of the loan.
An adjustable rate mortgage is a mortgage where the interest rate changes based on rising and falling interest rates. The rate is based on a specific index, usually U.S. Treasury Securities or LIBOR. Monthly payments change based on the index.
LIBOR is the London Interbank Offered Rate. It is similar to the fed funds rate.
Lender fees, also called processing, commitment, or underwriting fees, are fees charged to cover the cost of producing the loan. We may be able to waive these for you, so be sure to ask your loan officer at time of application.
An escrow account is an account held by the lender for future payments of real estate taxes and homeowner's insurance. If the property is located in a flood zone, the lender will also escrow for flood insurance.
Title insurance provides the lender with insurance coverage for losses it may incur for title defects related to the property, such as encroachment on property lines.
Lenders will typically want to see:

Looking to obtain a home loan? Our experienced mortgage brokers are here to assist you. We make the loan process simple – and close fast!