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Leahy Lending Resources

FAQ’s

What does Leahy Lending provide?

Leahy Lending provides Mortage Loans and other lending solutions for clients in the Texas area. 

How can I start a loan application?

Start a loan by filling out our application form here or finding a loan officer.

I need to speak with someone.

We’re happy to help. Please email us at leads@leahylending.com or call us directly at (512) 320 – 1922. You can also visit our Contact Page for more ways to get in touch with us.

Loan Process

What is pre-qualification?

Pre-Qualification begins your loan process. During pre-qualification, you will gather information on your income and debts and give it to your loan officer. Once the loan officer has this information, they can begin to assess how much the borrower should qualify for when purchasing a home. If the borrower is considering multiple different loan programs, they should get pre-qualified for each program, since down payment, credit and debt requirements differ between programs.

Being pre-qualified is not a full analysis on how much the borrower can actually qualify for, other factor may increase or decrease that amount when a more in-depth analysis is done later in the loan process. Some of these factors include: credit, length of employment, type of income, debt, liens or judgments, property type or condition, and other issues that come up during the approval process.

What is pre-approval?

Being pre-approved lets the borrower know the price and terms of their loan. Pre-approval happens after the borrower has submitted many documents about their financial and credit history.

Sellers are much more confident in prospective buyers that have been pre-approved rather than only pre-qualified because the pre-approved buyers have an actual price with which they can negotiate.

How long is the loan process?

Depending on the type of loan the borrower is applying for, number of documents necessary, and state of the borrower’s personal finances, the time frame will vary. Typically, the loan process will take anywhere between 10-45 days.

What is a lock-in rate?

The borrower’s lock-in rate is the rate which the loan officer uses to calculate their monthly mortgage payment. This rate is secured during the process of your loan being approved. You will keep this rate for the lifetime of your loan as long as the borrower closes their loan before the lock expiration date.

When does my lock-in rate expire?

The lock-in rate will expire after the number of allotted days discussed with your loan officer. The typical time frame for lock-in rates is 15 to 180 days.

When can I lock in my rate?

Borrowers have the opportunity to lock in their rate once they have an accepted offer on a property. Your loan officer will advise you about when they believe it is best to lock, but the choice is up to the borrower.

Mortgage & Closing Costs

Should I refinance my mortgage?

There are many things for borrowers to consider when making the decision to refinance.

Reducing your interest rate can result in a decrease in your monthly payment. However, the amount of savings will also be dependent on your change in interest rate, income, loan amount, loan to value ratio, and closing costs. Your loan officer will help you consider all these factors when making the decision to refinance.

What should I expect at closing?

At closing, your attorney or title company representative will guide you through all the legal documents and information about your property. You will receive your mortgage payment schedule and receive copies of all the documents reviewed. And signatures, lots of signatures!

Can I still get a home if I’ve had credit challenges?

Yes. Borrowers with credit challenges can still get home loans. However, lenders will consider giving you a loan to be riskier. To compensate for the risk that the loan officers take on, you will be charged a higher interest rate, and typically a higher down payment will be required. The worse your credit is, the higher you can expect the interest rate and down payment to be.

Not all lenders will give loans to riskier borrowers, so you may have to look for a couple before finding the right one. Contact us and we will let you know what we can do for you.

Do I need to find a home before I apply?

No! In fact, it may help you find your home!

If you would like to apply before finding a home, we can get you pre-approved or pre-qualified. This will give you a price range to use while searching for the perfect home. It will also give the sellers confidence because they will know you are a more serious buyer, especially if you’ve already been preapproved.  This shows you have the means to complete a purchase.

How will my taxes be paid?

Your taxes will be paid through your escrow account. Every month 1/12th of your homeowner’s insurance and your property taxes come out of monthly mortgage payment, and that money goes into an escrow account. At the end of the year that money will be taken out of your escrow account to pay for your property taxes and homeowner’s insurance on your behalf.  Your lender takes care of those logistics for you to simplify the process.

What does my monthly payment include?

A mortgage loan is more complex than a car loan or credit card. A car credit card payment simply consists of a principal and interest payment. There are a few more variables that a mortgage payment has to include.

Your mortgage payment will include:

  • Principal
  • Interest
  • Property Taxes
  • Homeowner’s Insurance
  • Private Mortgage Insurance (if the borrower puts down less than 20%)
What is Private Mortgage Insurance (aka PMI)?

Private Mortgage Insurance is also often referred to as PMI or MIP, depending on your loan program.  This is required by lenders in a purchase transaction when your total down payment amount is less than 20% of the home value.  On a home refinance, if the loan to value ratio is less than 80%, the same PMI will apply.  Lenders require PMI to help reduce their risks.  For example, if you put only 3% down (instead of 20%), and you default on your mortgage loan, it is far less likely that the lender will recoup their full investment.  Due to that risk, they require PMI as an offset.  

What are mortgage points?

Mortgage points, also referred to as “points” or “discount points” are a way of prepaying some of your interest as a way to get a lower interest rate. A point is equal to 1% of the value of your home. Typically, a point will shave 1/8th to 1/4th a percent off your interest rate.

How large of a down payment do I need to make?

Well, it depends on the type of loan you get. With a conventional loan, you can put as little as 3% down. FHA loans will require you to put 3.5% down. Some loans, such as, VA and USDA, require no down payment at all. However, if you get a conventional or FHA loan and put less than 20% down, you will be required to pay private mortgage insurance.

What are closing costs?

Closing costs refer to the last charges you must pay for to finalize your mortgage. Closing costs apply to purchasing a home or refinancing. Closing costs will typically cost you around 2-3% of your home’s value.

Closing costs pay for:

  • Appraisal fees
  • Title insurance
  • Title searches
  • Origination fees
  • Discount points
  • Deed-recording fees
  • Credit report charges

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