It’s less intimidating than you think! Let’s get to know each other so we can tailor a mortgage solution that’s right for you. We’ll need to collect a 2-year work and residence history, along with gross monthly or annual income. We’ll also discuss assets, down payment preference, and unique financing structures that best suit your needs. Plan for a 10-minute phone call or face-to-face meeting. You can also visit our mobile or web-friendly applications, if preferred. But above all, let’s work together to ensure you’re comfortable.

We will never retrieve a credit report or credit score without your permission. A mortgage credit inquiry is different than a credit inquiry for other consumer debt, such as a credit card or auto loan. While it makes sense that your credit scores drop when you go applying for new credit cards or charge cards, fortunately, credit bureaus have learned that mortgage shopping behavior does not carry the same risks. As such, the bureaus no longer treat a slew of mortgage inquiries the same as credit card inquiries. If you allow multiple mortgage companies to check your credit report within a limited period of time, all those inquiries will be treated as a single inquiry. That time period depends on the FICO system the lender uses. It can range from 14 to 45 days.

This is simply the difference between a conversation and hard copy documentation. A verbal or online disclosure of income, assets and down payment is all it takes to get prequalified. A preapproval, however, requires verification your financial information. Ultimately, a preapproval takes a little more time and documentation, but it also carries more value with a prospective seller. Additionally, with a preapproval, you can be sure your lender and you view your income in the same way.

Dependent upon credit and other criteria, most homebuyers can qualify with as little as 3% to 3.5% down payment. Other loan programs, such as VA or USDA, offer as much as 100% total financing so, no, you do not necessarily need 20% down payment to qualify for a home purchase.

“Closing costs” refer to all of the charges you’ll need to pay at closing once your loan is completed. These include lender, attorney and any state fees. Closing costs vary depending upon credit, down payment, loan program, interest rate and more. Generally they are 1.5 to 3% of the loan amount.

Pre-approvals with Valor expire with your credit report. Credit reports are valid for 120 days from the date of the initial credit inquiry. If your credit report expires prior to closing on your new home, we'll need to retrieve an updated report, along with updated income and asset documentation.

We will never lock your interest rate without your expressed instruction. Typically, individuals purchasing a new home lock their interest rate once they've gone under contract and have determined a closing date. Differing rate lock durations carry different pricing. For instance, as a general rule, the shorter the lock term, the better the price.

APR or annual percentage rate is used to evaluate the true cost of borrowing money. It includes the interest rate, points, mortgage origination fees and other costs associated with obtaining a loan. The APR is usually higher than the interest rate because it encompasses all these loan costs. APR is not your mortgage interest rate, but rather an expression of the overall cost of the loan.

Industry turn times can eclipse 30 and sometimes 45 days. At Valor, our standard is 16 business days from loan application to closing date. Because we process, underwrite, close and fund our own mortgages in-house, we can move more quickly if the terms of your contract necessitate a rapid closing.

The short answer is yes, but only for your own purposes. Lenders cannot use an appraisal ordered by the client or the seller. Appraisal Independence Requirements mandate that mortgage companies must order their own appraisals through a defined process that eliminates potential for errors and value inconsistencies. Many lenders now use third party appraisal management companies to handle all aspects of appraisal ordering. This can lead to a loss of control and unclear accountability. At Valor, we maintain our appraisal assignments in-house through a dedicated, seasoned team to ensure the highest level of compliance without sacrificing our commitment to expediency and quality.

Trigger leads were created by the national credit bureaus. When you apply for a mortgage pre-approval, a credit report is drawn and this action triggers an inquiry. The credit bureaus are made aware that you are potentially searching for a loan and have the ability to sell your information to various other lenders. These leads can be created and sold within 24 hours of a loan application. Rest assured, Valor does not sell your credit information. Unfortunately, trigger leads are legal, though Highland Mortgage has been lobbying with the Mortgage Bankers Association to reverse this practice.. Trigger leads allow consumers to be contacted by additional loan officers under the guise of “providing opportunity to ensure you are receiving the best rates possible.”

We encourage our customers to be on high alert when contacted with unsolicited offers. Trigger leads could open consumers up to identity theft, expose them to deceitful lenders, and can certainly be annoying.

Rebecca Steele, President and chief executive officer at the National Foundation for Credit Counseling, says, “With trigger leads, you have to be very careful. It’s important to know who you’re dealing with, especially with so much out in the digital world related to fraud and unscrupulous lenders.” For more on trigger leads, please click here.