Answers To Common Home Buyer Questions.
What programs does Poli Mortgage offer first time home buyers?
What is the difference between pre-qualification and pre-approval?
A pre-qualification can typically be done in about an hour. Getting pre-qualified is a good first step which will let you know if you should proceed to the pre-approval process. For pre-qualification, you will need to complete a mortgage application and allow us to request your credit from the credit bureaus. Your loan officer will review the mortgage application and credit and determine if you are pre-qualified.
A valid pre-approval is the best tool you can have in hand when shopping for a new home. The pre-approval, unlike the pre-qualification, has been examined by an underwriter. Poli Mortgage Group has underwriters on staff; therefore, this process can be done relatively quickly. A pre-approval typically identifies you as a qualified buyer to the real estate agent and seller.
How long will it take to receive pre-approval from Poli Mortgage?
If information and documentation is readily available, your Poli Mortgage pre-approval letter could be issued in as little as 24 hours.
What paperwork should I prepare for pre-approval?
Although the required paperwork may differ based on the type of employment history, the following list is a great start:
- W2's for each applicant for the previous two years and/or if self-employed, two years of federal tax returns, as well as the last 30 days of consecutive pay stubs with year to date earnings on them
- All pages of the two most recent and consecutive checking and savings account statements
- All borrower full names, social security numbers and full addresses for the past two years
- A copy of each borrower’s driver’s license
Will a pre-approval letter from Poli Mortgage Group cost me a fee?
No. Poli Mortgage supplies a firm pre-approval letter at no charge.
Do I need to know which property I’d like to buy prior to applying for pre-approval?
No. The address on your pre-approval letter can be noted as “to be determined” (TBD). This letter will be valid for 30 days, so you will have time to shop for a home after receiving your Poli Mortgage pre-approval status. Be sure to let your realtor know you’ve received a Poli Mortgage PRE-APPROVAL letter versus a PRE-QUALIFICATION letter, as this distinction carries more status with realtors and home sellers.
What types of properties can I buy if I’m a first time home buyer?
Poli Mortgage guidelines allow first time home buyers to purchase single family residences, 2-4 family primary residences, condominiums, townhomes, row homes, and co-ops if they are common to the area.
Can I buy a home with a rent-to-own contract?
Yes. Poli Mortgage guidelines do allow for mortgages on properly documented rent-to-own contracts.
What size down payment will be expected if I participate in one of Poli Mortgage Group’s first time home buyer programs?
Our down payment requirements vary by program and credit score. We’ve listed the average down payment requirements below for each program:
- FHA: The FHA down payment required is 3.5% of the purchase price
- VA: Qualifying Veterans can qualify for up to 100% financing
- USDA: Properties that fall into the USDA Rural Housing Program qualify for 100% financing Conventional: Conventional mortgage loan programs require a minimum 5% down payment of the purchase price
What credit score should I have in order to qualify for a Poli Mortgage first time home buyer program?
For FHA financing, you will be expected to have a credit score of 640. If you are participating in a conventional mortgage loan program, you will be expected to have a minimum credit score of 660.
Can any portion of my down payment be a gift from a relative?
Yes. Poli Mortgage Group’s FHA mortgage loan program allows for gifts to apply toward all or some of your down payment. Conventional financing also allows for gifted funds to be applied toward your down payment. However, your portion of the down payment must be at least 5% of the purchase price unless 20% or more is gifted
Are mortgage rates higher for first time home buyers?
No. In most cases first time home buyers receive the same rates as those that are not first time home buyers. However, there are some programs which are advantageous for first time home buyers in different ways.
Will I be required to secure Private Mortgage Insurance (PMI) if I don't have a 20% down payment?
Yes. Private Mortgage Insurance is always required if the mortgage loan is above 80% of the purchase price.
Are there ways to avoid the Private Mortgage Insurance requirement?
Yes. Private Mortgage Insurance is not necessary in some circumstances. For instance, Private Mortgage Insurance would not be needed if you were to initiate two mortgage loans for the purchase of the home. The first mortgage would fund 80% of the purchase price, the second mortgage would fund 10% of the purchase price and the borrower would fund the remaining 10% of the purchase price with their down payment. Speak to a Poli Mortgage Loan Officer for more details.
Can I buy a two-family or a three-family home, then use estimated rental income to qualify for my mortgage loan?
Yes. The FHA allows the purchase of a 1-4 family property, and as long as the home is also your primary residence, the FHA will recognize a portion of your rental income in your qualification process.
Will I need to be at my job for two years to qualify for a first time home buyer loan with Poli Mortgage?
Generally, a two-year employment history is required to qualify for a first time home buyer loan program through Poli Mortgage. However, if you have changed jobs, we can often use income and tenure information from your previous employer. We will also recognize college as work history if you are currently working in the same field you were studying.
Am I able to qualify for a home mortgage loan with Poli Mortgage if I am self employed?
Yes. Your Poli Loan Officer will need you to supply two full years of tax returns to verify your self-income. For more information about mortgages for self-employed borrowers, visit our page on self-employment mortgage guidelines or call your Poli Loan Officer to discuss these guidelines further.
How much should I expect to pay for closing costs if I am a first time home buyer?
The closing costs for each Poli Mortgage loan are tied to many factors. These include property, state, loan amount, and optional coverage’s like home owners title insurance. Rest assured, Poli Mortgage Group is a known mortgage leader and offers some of the most competitive rates and closing costs for first time home buyers in the industry.
If I’d like to buy a home that needs fixing up, can I do this through one of Poli Mortgage Group’s first time home buyer programs?
Yes. Poli’s FHA 203k Renovation loan affords a borrower up to $35,000 for specific home improvements to be made after you move in!