3 Frequently Asked Mortgage Questions

posted on Monday, August 31, 2020

1. When does it make the most sense to refinance my mortgage?
When thinking about refinancing your mortgage, there are multiple things you should take into consideration. Number 1, what is the expense going to be? And number 2, how will refinancing benefit you?

Look at the overall total of your loan, what your current interest rate is, and then consider your future plans. Rule of thumb is that if you will be saving at least 1% and will be staying in your home for a minimum of 24 months, refinancing would typically make sense for you.

At Midwest Heritage, we have the tools and resources available to run those numbers and in a matter of minutes, calculate whether refinancing would benefit you and/or your family. 

2. What is used to determine if I will qualify for a mortgage?
Midwest Heritage looks at three components when determining if you will qualify for a mortgage. First, we assess your credit score. Second, we evaluate how long you’ve been with your current employer. We would like to see a two-year history with them at a minimum. If you have not been with your current employer for at least two years, we will verify if you have been in the same industry throughout your tenure. The third thing we look at is the amount of income you bring in, in relation to your expenses. 

3. What documentation would I need to apply for a mortgage?
Having the proper documentation readily available will expedite the mortgage approval process. A few things we will need are: a copy of your photo ID, two of your most recent pay stubs, and two of your most recent bank statements from the account of wherever the funds you’ll use for your down payment are being held.

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