Frequently Asked Questions

When should I first contact a mortgage provider?

When you start thinking about buying or refinancing a home.

Can I afford a home?  How do I get started?

One of the biggest obstacles to home ownership is the fear of not being able to afford it.  In today’s market, home ownership is as affordable as renting.  Optal Home Loans has special programs for first time home buyers.  If you would like to know exactly how much you can afford and would like to get started, give us a call at (888) 572-9820 or submit an online pre-qualification form and we will contact you at your request.

How do I apply for a loan?

During the application process, we will help you decide on a loan that fits your needs and…

• Gather information for your application and explain the forms
• Request your signature on the loan application
• Set up an appointment for an appraisal on your home
• Provide you with information and disclosures explaining your rights

What does my monthly home loan payment include?

The monthly payment can include three separate parts: a payment on the principal, which is the amount you borrowed, a payment on the interest and a payment into an escrow account, which is a special account that your lender maintains to pay hazard insurance and property taxes.  To calculate payments please use our calculator tools or call us at (888) 572-9820 and we will be happy to assist you.

How much home can I afford?

Before you start looking at homes, you should have an idea of what you can afford.  Optal Home Loans can help you get the best mortgage to fit your needs and provide you with a pre-approval so you can concentrate your efforts on finding your ideal home.

How do I refinance my existing loan?

To refinance your loan in order to obtain a lower interest rate and start saving on your monthly payments, Optal Home Loans can offer you a range of programs to meet your needs.  A few to consider:

• Cash out Option - You can refinance and utilize the equity in your property for home improvement, debt consolidation, or whatever you want.
• 30 Year Fixed Rate Refinance - If you want a low monthly payment that does not change and you’re planning to remain in your house for years to come.
• 15 Year Fixed Rate - If you want a lower rate with a short loan life and low monthly payments are not a priority
• Interest Only - If you want a low monthly payment with the flexibility to send extra cash when available to reduce the principal loan balance without a penalty.

How do I know what my home loan rate will be?

Rates can vary and are primarily based on the type and purpose of the loan, your loan amount, credit history, income and value of the property and points you want to pay.  Points are fees added onto loans which are paid when the loan closes.

What type of loan should I select?

The right type of mortgage for you depends on many different factors such as: current financial status; how you expect your finances to change; how long you intend to keep the house; and last but not least how comfortable you are with your mortgage payment changing from time to time.

If I want to buy a house, how much money should I put down?

The amount you have available for a down payment will affect what types of loans for which you can qualify.  Down payments typically range from three to twenty percent of the sales price for the property.  For details give us a call at (888) 572-9820.

How does my credit history impact my ability to get a home loan (“mortgage”)?

If you have had credit problems, please give Optal Home Loans a call and be prepared to discuss them honestly.  We understand that there can be reasons for credit problems, such as loss of a job, illness or other legitimate financial difficulties.  If you had a credit problem that has been fixed and your payments have been made on time for over a year, your credit will probably be considered satisfactory.

Do I get a tax advantage from having a home loan (“mortgage”)?

Interest on a mortgage is usually tax deductible, but you should consult a tax attorney or accountant for specific details.