First Time Home Buyers Frequently Asked Questions and Answers
The closing costs for each Poli Mortgage loan are tied to many factors. These include property, state, loan amount, and optional coverage’s like home owners title insurance. Rest assured, Poli Mortgage Group is a known mortgage leader and offers some of the most competitive rates and closing costs for first time home buyers in the industry.
Yes. Your Poli Loan Officer will need you to supply two full years of tax returns to verify your self-income. For more information about mortgages for self-employed borrowers, call 781-232-8000 to speak to our experienced team about these guidelines further.
Generally, a two-year employment history is required to qualify for a first time home buyer loan program through Poli Mortgage. However, if you have changed jobs, we can often use income and tenure information from your previous employer. We will also recognize college as work history if you are currently working in the same field you were studying.
Yes. The FHA allows the purchase of a 1-4 family property, and as long as the home is also your primary residence, the FHA will recognize a portion of your rental income in your qualification process.
Yes. Private Mortgage Insurance is not necessary in some circumstances. For instance, Private Mortgage Insurance would not be needed if you were to initiate two mortgage loans for the purchase of the home. The first mortgage would fund 80% of the purchase price, the second mortgage would fund 10% of the purchase price and the borrower would fund the remaining 10% of the purchase price with their down payment. Speak to a Poli Mortgage Loan Officer for more details.
Yes. Private Mortgage Insurance is always required if the mortgage loan is above 80% of the purchase price.
No. In most cases first time home buyers receive the same rates as those that are not first time home buyers. However, there are some programs which are advantageous for first time home buyers in different ways.
Yes. Poli Mortgage Group’s FHA mortgage loan program allows for gifts to apply toward all or some of your down payment. Conventional financing also allows for gifted funds to be applied toward your down payment. However, your portion of the down payment must be at least 5% of the purchase price unless 20% or more is gifted
For FHA financing, you will be expected to have a credit score of 580. If you are participating in a conventional mortgage loan program, you will be expected to have a minimum credit score of 620.
Our down payment requirements vary by program and credit score. We’ve listed the average down payment requirements below for each program:
- FHA: The FHA down payment required is 3.5% of the purchase price
- VA: Qualifying Veterans can qualify for up to 100% financing
- USDA: Properties that fall into the USDA Rural Housing Program qualify for 100% financing Conventional: Conventional mortgage loan programs require a minimum 5% down payment of the purchase price
Yes. Poli Mortgage guidelines do allow for mortgages on properly documented rent-to-own contracts.
Poli Mortgage guidelines allow first time home buyers to purchase single family residences, 2-4 family primary residences, condominiums, townhomes, row homes, and co-ops if they are common to the area.
No. The address on your pre-approval letter can be noted as “to be determined” (TBD). This letter will be valid for 30 days, so you will have time to shop for a home after receiving your Poli Mortgage pre-approval status. Be sure to let your realtor know you’ve received a Poli Mortgage PRE-APPROVAL letter versus a PRE-QUALIFICATION letter, as this distinction carries more status with realtors and home sellers.
No. Poli Mortgage supplies a firm pre-approval letter at no charge.
Although the required paperwork may differ based on the type of employment history, the following list is a great start:
- W2’s for each applicant for the previous two years and/or if self-employed, two years of federal tax returns, as well as the last 30 days of consecutive pay stubs with year to date earnings on them
- All pages of the two most recent and consecutive checking and savings account statements
- All borrower full names, social security numbers and full addresses for the past two years
- A copy of each borrower’s driver’s license
If information and documentation is readily available, your Poli Mortgage pre-approval letter could be issued in as little as 24 hours.
A pre-qualification can typically be done in about an hour. Getting pre-qualified is a good first step which will let you know if you should proceed to the pre-approval process. For pre-qualification, you will need to complete a mortgage application and allow us to request your credit from the credit bureaus. Your loan officer will review the mortgage application and credit and determine if you are pre-qualified.
A valid pre-approval is the best tool you can have in hand when shopping for a new home. The pre-approval, unlike the pre-qualification, has been examined by an underwriter. Poli Mortgage Group has underwriters on staff; therefore, this process can be done relatively quickly. A pre-approval typically identifies you as a qualified buyer to the real estate agent and seller.
Poli Mortgage Group offers several mortgage loan products for first time home buyers through government mortgage programs such as FHA, VA and USDA, as well as conventional mortgage loans.
Common Loan Refinancing Questions
Poli Mortgage does have programs which may assist home owners to refinance, even if the value of their home has dropped significantly. One such program is called the HARP program. Contact us at 781-232-8000 for more information on this program.
A traditional refinance typically requires an appraisal.
To get started, Poli Mortgage asks for your most recent pay stubs, W2s, bank statements, home owners insurance, along with a copy of your current mortgage statements. Underwriting may require additional documentation and your Poli Loan Officer will let you know of any additional requirements.
We are a direct lender, and move quickly to close your financing. As soon as we obtain all the required documentation and appraisal, we enter the application and supporting documentation into our system. If all items are in order, we can approve and close in a number of days. Generally, from start to finish, refinances will take about 25 days.
Poli Mortgage has direct access to the secondary mortgage market, which gives us full control over the process and pricing we can offer our customers. Also, mortgages represent 100% of our business. This exclusivity enables us to offer the most competitive mortgage loan rates within the industry at large.
Poli Mortgage will run your completed application package through our underwriting system right away. Pending the appraisal results, we will have an approval status back to you within 24 hours.
Not necessarily. We are able to offer some of the best refinancing rates available in the industry with and without closing costs.