When should I talk to a mortgage lender?
The short answer: when you start thinking about buying or refinancing a home. It's true you can't actually apply for a mortgage until you've chosen your home and signed a contract to buy it. But you shouldn't wait until then to start talking with a mortgage lender.
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A Greenlight Financial Services loan consultant can work with you closely to determine how much house you can afford, help steer you to special mortgages for first time home buyers, and perhaps make suggestions that could make it easier to get the best mortgage for you.
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Another advantage of starting early is that you'll already have a good relationship with a lender when it is time to apply for your mortgage.
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Where do I begin?
First, think about what you want (or don't want) and what you like (or don't like). Plan ahead and make decisions about what type of loan fits your needs. Use our Loan Advisor
to find out what's right for you. Questions you may want to ask yourself include.

• Where do I want to live?
• How much can I afford?
• What type of home do I want to buy?
• What will my ongoing responsibilities be once I buy my home?

I really want to own a home but I'm not sure I can afford it? Where do I start?
Lots of people don't even consider buying a home because they're afraid they can't afford it. But for most people, home ownership is within reach - especially with some of the special programs for first-time home buyers. In fact, for many, home ownership is as affordable as renting - in some cases even more affordable. The best place to start is with a direct mortgage lender like Greenlight Financial Services who can provide you with a multitude of loan products and where you can avoid paying any brokerage fees; a lender can help you explore all the options of home ownership.
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How much house can I afford?
Before you start looking at homes, you need to have some idea of what you can afford. As a general guide, you can purchase a home with a value of two or three times your annual household income, depending on your savings and debts. However, you may be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value.
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If you'd like to know exactly how much you can afford, talk to one of our loan consultants by calling 1-866-66 FASTER
.
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How much money should I put down?
The main thing to remember here is that your down payment has to be "sourced" and "seasoned". What that means is the lender will verify that it is indeed your funds and they want to see it in an institution for at least three months. You will have to show three months bank statements. If you have $20,000 under your mattress you cannot use it for a down payment.
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Exceptions to every rule right? Well, there are a few non-prime loans that do not source or season the funds. AND, of course there are programs that allow Gifts for down payments but those funds usually have to be sourced too.
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FHA: Requires 3% down payment unless you are using one of the Gift programs. (Still 3% if it is a gift) Closing cost may be paid by the seller and/or part of them may be financed in the loan. The LTV can actually go as high as 97.75%.
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Conventional: Fannie Mae and Freddie Mac Require 5% down and sometimes they carry first time homebuyer programs that only require 3% down.
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Non-Prime: It is quite common to get 100% financing in this market. Some loan programs allow more than 100% financing. Of course rates are higher because the risk is higher, and these programs are credit score driven. A score lower than 580-600 will usually require a down payment and the lower the score the larger the down payment.
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How do I know which type of mortgage is best for me?
There isn't a single, simple answer to this question. The right type of mortgage for you depends on many different factors:

• Your current financial picture;
• How you expect your finances to change;
• How long you intend to keep your house;
• And how comfortable you are with your mortgage payment changing from time to time.

For example, a 15-year fixed-rate mortgage can save you many thousands of dollars in interest payments over the life of the loan, but your monthly payments will be higher. And an adjustable rate mortgage may get you started with a lower monthly payment than a fixed-rate mortgage -- but your payments could get higher when the interest rate changes. The best way to find the "right" answer is to discuss your finances, your plans and financial prospects, and your preferences frankly with a Greenlight Financial Services loan consultant.
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How will my credit history impact my ability to get a mortgage?
Many home buyers are very worried about this issue. We've even heard one story that an applicant was denied a mortgage because he had returned a rented videotape late! Of course, that could never happen. And most people don't need to worry about the effects of their credit history. However, you can be better prepared if you get a copy of your credit report to review before you apply for your mortgage. That way, if there are any errors you can take steps to correct them before you make your application.
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If you have had credit problems, be prepared to discuss them honestly with your loan consultant. As a responsible mortgage lender Greenlight Financial Services knows that there can be legitimate reasons for credit problems, such as unemployment, illness or other financial difficulties. If you had a problem that's been corrected, and your payments have been on time for a year or more, your credit will probably be considered satisfactory.
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