Frequently Asked Questions

The mortgage loan process can be confusing. Some mortgage company’s throw all sorts of mortgage terminology at you and others use industry jargon that won’t mean anything to you. We’re here to help guide you through the process and answer some of the questions you may have.

How much do I need for a down payment?

You’ve probably heard the myth that you need 20% for your down payment at some point in your life. The truth is, though, there are loan programs that let you finance 100% of the sales price of a new home. However, if you don’t make a down payment at all, you’ll need to pay for Private Mortgage Insurance (PMI). Other loan programs only require 3% or 5% for your down payment, if you meet certain criteria.

It’s important to keep in mind that the money you put towards your down payment will reduce your monthly mortgage payments.

Get Answer

How much of a house can I afford?

This is a tricky question to answer without a clear picture of your current financial situation. When you apply for a mortgage loan, a lender will evaluate your income and long-term debts to determine a “safe” amount for your mortgage payments. What that means is, we’ll look at your verified income against your current debts and other monthly payments to help you determine how much you can afford fora monthly mortgage payment. There are variable factors like interest rates and down payments that also factor into this.

Get Answer

What loan program is right for me?

At GVC, we offer multiple loan programs because there isn’t a one-size-fits-all loan. That means, we need a little more information before we can recommend a loan program for you. Each type of loan has its benefits and limitations, so after getting a snapshot of your goals and financial situations, we’re able to make a recommendation and move forward with your application.

Some of the things we’ll need to know include your income, debts, credit score, location of the home you’re looking at, and how much you have for a down payment.

Get Answer

How long will it take to close on my house?

Several factors play into this one. Some of it depends on how quickly your offer is accepted to purchase a home, how quickly you respond to your mortgage consultant, and the time it takes to track down all the required documents needed.

Having said that, though, our goal at GVC is to always close as fast as possible. Because we want to help you move into your dream home, we can close in as little as 14 days.

Get Answer

I’ve already found a house, what’s my next step?

If you’ve already found your dream home and want to make an offer, you need to contact a mortgage consultant right away. Typically, we recommend pre-qualifying or getting pre-approved for a loan before shopping for your new home, but we understand that it doesn’t always work out this way. If you’ve found the home of your dreams, your mortgage consultant will walk you through the application steps and help you down the right path.

Get Answer

I want to buy a home, what should I do first?

If you are just now thinking about buying a home, then we highly recommend you apply to become pre-qualified. When you’re pre-qualified, you not only know approximately how much home you can afford, but when you go to shop for a home, you show Realtors and sellers that you’re serious. Some realtors will only work with buyers when they’ve become pre-qualified with a lender.

Get Answer

What are points?

In the special vocabulary of mortgage lending, “points” are a type of fee that lenders charge (the full term to describe this fee is “discount points”). Simply put, a point is a unit of measure that means 1% of the loan payment. So, if you take out a $100,000 loan, one point equals $1,000.

Get Answer

What is APR (Annual Percentage Rate)?

Annual Percentage Rate (APR) factors interest plus certain closing costs, any points and other finance charges over the term of a loan. The APR must be disclosed to you according to federal Truth-in-Lending laws within three business days of when you apply for a loan, or prior to or at closing for a refinance.

Get Answer

What are closing costs?

On the day you actually buy your new home, in addition to your down payment, the prepaid property tax and homeowners insurance premiums, you’ll need monies for various fees associated with the purchase. These expenses are known as closing costs and are paid by both buyers and sellers.

Keep in mind that even if you don’t eventually receive the loan, that money is not refundable. Other closing costs are possible and should be considered when evaluating your financial situation. These may include, but are not limited to: title insurance fee, survey charge, loan origination fee, attorney fees or escrow fees, document preparation fee, origination or discount point(s)/fee(s)


• Title insurance fee
• Survey charge
• Loan origination fee
• Attorney fees or escrow fees
• Document preparation fee
• Origination or discount point(s)/fee(s)

Get Answer

top