Skip to main content
Routing # 211885946

Frequently Asked Questions

We do not have prepayment penalties.

Yes, give us a call today to find out more at (413) 730-4152.

Yes, give us a call today to get prequalified at (413) 730-4152.

FHA loans have very accommodative credit score requirements. We’re talking scores as low as 580 that require just a 3.5% down payment. That’s pretty flexible. Of course, conventional mortgages can be had with just a 3% down payment, though a 620 credit score is needed.

FHA stands for Federal Housing Administration, a government agency that insures the mortgage loans to help low- and moderate-income borrowers achieve the dream of homeownership.

They are commonly utilized by first-time home buyers, but available to just about anyone, unlike VA loans, which are reserved for veterans and active duty military only.

Here you’ll need to consider home values, how much you make, what your monthly liabilities are, what you’ve got in your savings account, and what your down payment will be in order to come up with your loan amount.

From there, you can calculate your debt-to-income ratio, which is very important in terms of qualifying for a mortgage.

This is a fairly involved process, so it’s tough to just estimate what you can afford, or provide some quick calculation. There’s also your comfort level to consider. How much home are you comfortable financing?

30 to 45 days for a typical residential mortgage transaction.  Of course, stuff happens, a lot, so it’s not out of the ordinary for the process to take up to 60 days or even longer.

A pre-qualification is a basic review of your finances to determine if you would qualify for a mortgage. In general, a pre-qualification is based on unverified information you provide and does not include a credit check or any documentation, and is therefore not a firm guarantee of a loan.

When you obtain a mortgage, you'll probably be asked to put money into an escrow account to guarantee the lender that the ongoing expenses of owning the property will be handled -- specifically taxes and insurance. You'll pay a lump sum into the escrow account at closing (also known as your "prepaids"), and add to it further with each of your monthly mortgage payments.

Even with a fixed-rate loan, your payment is likely to change over time. The reason? Your property taxes and insurance expenses, upon which the escrow portion of your payment is based, tend to fluctuate. If they rise, it may be necessary for your lender to ask for a higher escrow payment.

All the costs of a loan include not only fees that go into the lender's pocket but also related third-party vendor fees such as:

  • Appraisal
  • Credit Report
  • Lender’s Title Policy
  • Escrow
  • Owner’s Title Insurance
  • Recording Fees

An estimate of these fees constitutes what is now called the Loan Estimate, which federal law requires the lender to give to the homebuyer.