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Frequently Asked Questions
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Can I get a loan if I can't verify my income?
Typically how long should a pre-approval take on a non-conforming mortgage?
What is the most important factor to look for when choosing a mortgage company?
Can GFI's flexible lending policies help me?
How long should it take to close the loan?
How do I get a loan to purchase a co-op?
How do I get a loan to purchase a condo?
How do I get a loan to purchase a single family home?
Why should I refinance?
What do I need to do to refinance my existing mortgage?
How do I know if I should refinance or obtain a home equity loan?
To learn more about the mortgage
process or for information regarding rates, pre-approval, or
starting the application process
Can I get a loan if I can't verify my income?
The answer is YES! With our NoDoc, No Income Verification Loan Programs, anyone can get a loan. The following should help you determine which program will best suit your individual needs:
Stated Income: You fill out a complete application, stating your employment and income. Your employment will be verified by no documentation or verification of income is required. Your bank will require two to three years of self-employment history, or employment history in the same field. Your ability to afford the loan will be based on the income stated on the application.
Note: The claimed income must be in line with your occupation. These loans are approved based on your credit history, verified liquid assets and the value of the property. Again, verification of assets should be consistent with the income claimed (for example, six months of stated income in savings, prior to closing). Most banks will require approximately six months of post-closing reserves. Ask your loan officer or real estate attorney about post-closing reserve requirements.
No Ratio: Similar to the Stated Income program, except that no income information is provided or verified.
No Documentation: No employment or income information is provided or verified. Approval is based on down payment, credit history, and property value. Note: Some programs still require asset documentation, while others do not.
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Typically how long should a pre-approval take on a non-conforming mortgage?
In general, complete a Quick Application. Credit will be checked and reviewed by a loan underwriter. This process can be done in less than one day.
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What is the most important factor to look for when choosing a mortgage company?
Service, Service, Service! Deal with a company that will be there to answer your questions and approve your loan quickly. At GFI, we pride ourselves with both. "We deliver mortgages, not promises."
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Can GFI's flexible lending policies help me?
Absolutely. GFI has a broad range of programs. Our trained professionals will put together a program that fits your needs.
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How long should it take to close the loan?
It depends on the location and type of property. For example, if it is a single family home or condo in Florida, it could take as little as 10 working days. If it is a Co-op or apartment in New York, it could take as little as 30 days. For ithe time frame specific to your individual property, contact your Loan Officer
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How do I get a loan to purchase a co-op?
When you buy an apartment in a co-op, you are buying shares in a corporation, along with a proprietary lease. This allows you, the shareholder, the right to occupy space under specific restrictions. Since you are not buying actual real estate, co-op loans are not mortgages.
Most co-ops are stock corporations with a governing Board of Directors. The co-op receives most of its income from the maintenance fees paid by shareholders (who lease their apartments from the co-op). Therefore, lending banks must first appove the co-op before it can approve you, the borrower, for a loan. The financial health of the co-op is as important as the borrower's.
The co-op has title to the building and the transfer or sale of shares. A co-op is not subject to real estate laws. Deeds, mortgage notes, and title insurance do not apply as well. The co-op usually has an underlying mortgage on the entire building and then, you the borrower of the unit obtain a separate co-op loan to purchase the shares and the proprietary lease allocated to the unit. Note: The shares and the proprietary lease serve as loan security.
There are also guidelines which determine the ratio of owner/occupancy in the building (similar to that of a condo guideline). Working with a GFI Loan Officer puts you in an advantage over working with a mortgage broker. GFI, as a direct lender, can combine its efforts in finding the best financial program for you. With our long-term relationships with top bankers/investors, we possess the luxury to finance most co-op buildings regardless of their — at times — difficult guidelines.
It is important for you to know that most co-op boards will require, in addition to his/her lenders loan approval, a board approval which includes borrower's finances, before they can close on their property. The board can impose limitations on the amount of money you can borrow to purchase your apartment. Some co-ops require buyers to close with a minimum of 50% cash down payment. Hence, it is important to notify your loan officer of these requirements, if aware of them. This will expedite the process.
Borrowers benefit when purchasing a co-op because they are approximately 20% less than a condo. Closing costs and fees are also minimal compared to purchasing a condo or single family home. Ask your real estate attorney or financial advisor regarding closing costs and fees.
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How do I get a loan to purchase a condo?
When you purchase a condo, you buy your own apartment and a percentage of the building, commonly knowns as common areas (lobby, laundry room, courtyard, health spa/pool area, etc.). Condo buildings have common charges, instead of maintenance fees or homeowner's dues. These charges pay for the building's services such as management fees, door staff, plumbing roofing, common walls, etc.
When purchasing a condo, the lender will not review the building's financials, unless you are borrowing less than 75% of the purchase price. Lending banks will accept completed condo buildings that are 90% occupied. A condo is real property, therefore your loan is a mortgage secured by the apartment itself. Interest rates on condo mortgages carry approximately the same low rates as for a single family home. GFI Mortgage Bankers will work with you in finding the best available rate, with the best financing terms and conditions.
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How do I get a loan to purchase a single family home?
Your loan type will be determined on the value of the home you are purchasing and the amount of money you will need to borrow. Once this criteria has been determined, your loan officer will be able to accurately give you interest rate information. You need to determine if you are applying for a jumbo loan or a conforming loan. A conforming loan is a loan which has limits set by the Federal National Mortgage Association (FNMA, aka Fannie Mae) and the Federal Home Loan Mortgage Corporation (FHLMC, aka Freddie Mac): $322,700 (1 family); $413,100 (2 family); $499,300 (3 family); and $620,500 (4 family).
A jumbo loan is a loan which is larger than the limits set by the Federal National Mortgage Association (FNMA, aka Fannie Mae) and the Federal Home Loan Mortgage Corporation (FHLMC, aka Freddie Mac). Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate. In today's market, you can purchase a home with as little as 3% cash down payment. Ask your GFI Loan Officer for available programs that might suit your needs.
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Why should I refinance?
Refinancing should be considered under the following conditions: If your existing mortgage interest rate is higher than 7%; if you need to release financial stress; if you are going to be staying in your existing home longer than expected and have an adjustable rate mortgage. By simply consolidating your debt (credit cards, student loans, car payments, etc.), you can lower your monthly payments and receive tax benefits. Consult with your financial advisor for tax benefits. With today's low interest rates, you can convert your 30 year mortgage into a 15 year and perhaps maintain the same low monthly payment or slightly higher. Statistics show that there has never been a better time to refinance in a 40 year history.
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What do I need to do to refinance my existing mortgage?
The answer is simple: contact a GFI Mortgage Consultant for a FREE analysis and credit review. They will guide you and walk you through the process, without ever feeling pressured to do business with us. We feel confident that our expert and reliable information will assist you to make the right decision and determine if this is the right time for you!
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How do I know if I should refinance or obtain a home equity loan?
GFI has long term fixed rates on all our programs. By spreading out all your credit card debt into one low fixed monthly payment, you can save as much as $1,000 per month or more.
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To learn more about the mortgage
process or for information regarding rates, pre-approval, or
starting the application process
Call us at 718-407-6330 and get free professional consultation.
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