Frequently Asked Questions

Why should I use a mortgage broker and not a bank?

As a mortgage broker, Milestone Lending acts as your personal loan concierge and does all the work for you! Milestone Lending compares wholesale mortgage rates from a large number of banks and lenders all at once. As a consumer, you get access to more loan options and competitive interest rates due to the numerous banks and lenders we partner with. We give you accessibility and one-on-one attention you likely won’t find when working with a large, bureaucratic, bank.

Should I get prequalified before finding a home?

It is a good idea to get prequalified or preapproved before you find a home. Many sellers will take your offer more seriously if you've been preapproved. Also by going through this process, you'll have a better idea of the price range of homes that you might be able to afford.

How are pre-qualifying and pre-approval different?

Pre-qualification is an informal way to see how much you may be able to borrow. You can be pre-qualified over the phone with no paperwork by telling us about your income, your long-term debts and how large a down payment you can afford. Without any obligation, this will help you determine an approximate amount you may have available to spend on a house. 

Pre-approval is Milestone Lending's actual commitment to lend to you. Pre-approval involves assembling your financial and credit records and going through a preliminary approval process. Pre-approval gives you a definite idea of what you can afford and shows sellers that you are serious about buying.

How long will it take to get prequalified?

Prequalification can be a very quick process. It can take as little as a few minutes. We will ask for your income, assets, employment and property information and obtain a credit report.

What type of loan is right for me?

There are a wide variety of mortgage loans available on the market, and at Milestone Lending we’ll provide you several options. However, it’s up to the individual borrower to decide what works best for them. 

The two main mortgage loans are fixed loans and adjustable loans. Fixed-rate loans keep the same interest rate for the entire duration of the loan, and will not fluctuate from month to month or year to year, providing a secure and stable monthly payment. Adjustable rate mortgage loans are just that – they adjust at pre-determined intervals over time, usually with a lower beginning interest rate than that of fixed loans. Fixed rate mortgages tend to be the best option for first-time buyers and those planning to stay in a house for the long-term or duration of the mortgage, while adjustable rate mortgages may be best for buyers who plan to stay only a few years in the property.

Are there special mortgages for first-time homebuyers?

Yes. Milestone Lending offers several affordable mortgage options which can help first-time homebuyers overcome obstacles that made purchasing a home difficult in the past. We have access to programs that are often able to help borrowers who don't have a lot of money saved for the down payment and closing costs, have no credit or a poor credit history, have quite a bit of long-term debt or have experienced income irregularities.

Why Refinance?

Refinancing your mortgage can help lower your monthly payment and get a better handle on your finances, largely through securing a more manageable interest rate. A lower interest rate can bring down your monthly payments and also help you build up equity at a quicker pace.  Many borrowers also opt to refinance to pay off other loans, or credit card debt, which tend to have higher interest rates. Whatever your needs, we can help you determine whether to refinance and which loan is best for you.

What will my interest rate be?

Interest rates change daily, sometimes multiple times throughout the day. The mortgage interest rate you qualify for is based on a variety of factors such as your loan amount, whether you are purchasing or refinancing, your credit history, your ability to repay, and the value of the property. Contact Milestone Lending for your free, no obligation, pre-approval to see what rate you qualify for.

What is PMI and why do I need it?

PMI is private mortgage insurance, which you'll typically need to pay for if your down payment is less than 20% of the purchase price of your home, or if the loan has more than an 80% loan-to-value (LTV) ratio. PMI protects lenders against loss if a borrower defaults. Whether you are purchasing or refinancing, you'll need to pay PMI as long as your LTV remains above 80%. The cost of the mortgage insurance is typically added to the monthly mortgage payment.

What are the various costs required at closing?

Closing costs can be divided into two main categories: items controlled by the lender and items controlled by third-parties out of the lender's control. The sum of these items is what you will be required to pay for at closing. 

  • Lender fees include any costs associated with processing your loan such as discount points, origination charges and any rate lock fees.
  • Third-party fees include fees paid for services performed by parties other than the lender, established by the state or local government or set by the individual vendors that provide the service. They also include pre-payments for taxes and insurance that are placed in an impound or "escrow" account. Some examples of third-party fees are appraisal fees, title service fees and government recording fees. 

Milestone Lending will provide you a copy of your Loan Estimate that outlines all the closing costs associated with your loan soon after you apply.

How quickly can I close on my loan?

The loan approval and funding time frames vary depending on the type of loan and the complexity of your personal finances. On average, the process can take from 14 to 60 days. A mortgage loan for a home purchase can take as little as 30 days from application, but this will vary depending on the closing date listed on the sales contract.  

Once we start the application process, it’s vital to get your required information and documents to us at the requested time. We want to close your loan quickly, and we need your help to ensure we have a completed application and all supporting documentation to make a final loan decision. An incomplete application can delay the process.

How do we get started?

It is simple. Contact Milestone Lending and we’ll take it from there…

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