Question 1

Cash-Out Refinance vs. Home Equity Loans: Which Should You Choose?

Accepted Answer

Both options let you access home equity, but a cash-out refinance replaces your existing mortgage with a larger one, while a home equity loan adds a second loan. The best choice depends on your current rate, loan term, and financial goals.

Question 2

Use Savings for Down Payment or Pay Off Debt?

Accepted Answer

It depends on your debt interest rates and long-term goals. Paying off high-interest debt may free up cash flow, but using savings for a down payment can help you secure better mortgage terms.

Question 3

Is Now a Good Time for an Investment Property or Second Home?

Accepted Answer

Market trends, mortgage rates, and your financial readiness are key factors. Speak with a mortgage professional to understand if current conditions align with your investment goals.

Question 4

Choosing a 15, 20, or 30-Year Mortgage – What’s the Difference?

Accepted Answer

A shorter term, like 15 years, offers lower interest costs but higher monthly payments. A 30-year mortgage provides smaller payments but more total interest. The right choice depends on your budget and timeline.

Question 5

What Are the Pros and Cons of Renting vs. Buying?

Accepted Answer

Buying builds equity and stability, while renting offers flexibility and less responsibility for maintenance. Evaluate your finances, location, and long-term plans before deciding.

Question 6

What Are the Tax Benefits of Being a Homeowner?

Accepted Answer

Homeowners may deduct mortgage interest, property taxes, and certain home improvements. Always consult a tax advisor for specific guidance.

Question 7

Why Fairway? Core Values of a Top Mortgage Lender

Accepted Answer

Fairway focuses on honesty, communication, and community commitment, helping borrowers with efficient service and personal attention throughout the mortgage process.

Question 8

What Are Some Down Payment Assistance Programs for Mortgages?

Accepted Answer

Down payment assistance programs may include government grants, local housing programs, or lender credits. Eligibility depends on income, location, and loan type.

Question 9

What Is Your Mortgage Escrow?

Accepted Answer

A mortgage escrow account holds funds for property taxes and insurance, ensuring timely payments made by your lender on your behalf.

Question 10

What Do Mortgage Underwriters Look For and What’s Their Process?

Accepted Answer

Underwriters review income, credit history, employment, and assets to confirm your ability to repay the loan before final approval.

Question 11

What Minimum Credit Score Do You Need for a Home Loan?

Accepted Answer

Credit score requirements vary by loan type, typically starting around 580 for FHA loans and 620 for conventional loans. Higher scores may qualify for better rates.

Question 12

What’s Your FICO Score and Why Does It Matter?

Accepted Answer

Your FICO score reflects your creditworthiness and affects loan approval and interest rates. Higher scores often result in lower borrowing costs.

Question 13

Fannie Mae vs. Freddie Mac: Key Similarities and Differences

Accepted Answer

Both are government-sponsored enterprises that buy and guarantee mortgages. Their requirements are similar, though some details vary in underwriting and loan limits.

Question 14

The Fairway Advantage Pre-Approval: How Can It Help You?

Accepted Answer

Fairway’s pre-approval gives homebuyers a verified approval status that strengthens offers and speeds up the closing process.

Question 15

What Goes Into Home Closing Costs?

Accepted Answer

Closing costs include lender fees, appraisal, title insurance, and taxes, usually totaling 2–5% of the loan amount.

Question 16

How Long Does a Pre-Approval Last?

Accepted Answer

A typical pre-approval lasts 60 to 90 days. After that, updated financial documents may be required.

Question 17

What Is a Reverse Mortgage and Who Can Get One?

Accepted Answer

A reverse mortgage allows homeowners aged 62 or older to convert home equity into cash without selling their home.

Question 18

What Is Mortgage Insurance and Is It Required?

Accepted Answer

Mortgage insurance is required when the down payment is less than 20%. It protects lenders if a borrower defaults.

Question 19

Mortgage Underwriting 101: Why It Matters for Homebuyers

Accepted Answer

Underwriting ensures you meet all lending requirements. It verifies your finances, credit, and property details before final loan approval.

Question 20

What Belongs on Every Home Shopper’s Checklist?

Accepted Answer

Key checklist items include budget, credit score, pre-approval, loan options, property research, and inspection readiness.

Question 21

Pre-Approval vs. Pre-Qualification: What’s the Difference?

Accepted Answer

Pre-qualification gives an estimate of how much you might borrow, while pre-approval is a verified assessment based on actual financial documents.

Question 22

How Soon Can You Refinance a Mortgage?

Accepted Answer

Most lenders require at least six months after your last loan closing before refinancing, though it varies by loan type.

Question 23

Refinancing: Frequently Asked Questions

Accepted Answer

Refinancing replaces your existing mortgage with a new one, typically to lower rates, adjust terms, or access home equity. Eligibility depends on equity and credit profile.

Question 24

Jumbo Loans: Frequently Asked Questions

Accepted Answer

Jumbo loans exceed standard conforming limits. They often require higher credit scores, larger down payments, and strong financial profiles.

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