Mortgage FAQs | VA, FHA & Conventional | Chesapeake, VA

Question 1

How do I know how much home I can afford?

Accepted Answer

A comfortable home price depends on more than the loan amount you qualify for. Your income, monthly debts, credit profile, available funds, property taxes, homeowners insurance and other costs all affect your overall housing payment. I can help you review the numbers and understand what payment range makes sense for your situation before you start shopping.

Question 2

What credit score do I need to buy a home?

Accepted Answer

There isn't one credit score that guarantees mortgage approval. The minimum score can vary by loan program and lender, and your credit history, debt, income and other factors also matter. I can help you understand how your credit profile may affect your available loan options before you start shopping for a home.

Question 3

How much money do I need for a down payment?

Accepted Answer

The amount you need for a down payment depends on the loan program, the property and your financial situation. Some programs allow for a low or even zero down payment for eligible borrowers, while others may require more. Your down payment can also affect your monthly payment and overall loan costs. I can help you compare your options and understand what may make sense for your situation.

Question 4

What is the difference between prequalification and preapproval?

Accepted Answer

Prequalification is generally an early estimate of how much you may be able to borrow based on information you provide. A preapproval typically involves a more detailed review of your income, assets, debts and credit, along with supporting documentation. The exact process can vary by lender, so it is important to understand what has actually been reviewed before you start making offers.

Question 5

What documents do I need to get preapproved?

Accepted Answer

The documents needed can vary based on your income, employment, assets and loan program. Commonly requested items include recent pay stubs, W-2s or tax returns, bank or investment account statements, identification and information about your debts and other financial obligations. Self-employed borrowers or borrowers with other sources of income may need additional documentation.

Question 6

Who is eligible for a VA home loan?

Accepted Answer

VA home loan eligibility generally depends on your military service, duty status and length of service, along with other VA requirements. Eligible borrowers may include veterans, active-duty service members, certain members of the National Guard and Reserves, and some surviving spouses. The VA determines eligibility, while lenders also have their own underwriting requirements.

Question 7

Do VA loans require a down payment?

Accepted Answer

VA loans do not require a down payment in many cases when the borrower has sufficient VA entitlement and the purchase price does not exceed the appraised value. However, a down payment may be required in certain situations, such as when the purchase price is higher than the VA loan amount supported by the property's value and available entitlement. Other costs may also apply, so it's important to review the complete transaction.

Question 8

Do VA loans require mortgage insurance?

Accepted Answer

VA loans do not require private mortgage insurance (PMI). This is one of the key differences between VA financing and many conventional loan options. However, VA loans can include other costs, such as the VA funding fee, unless the borrower qualifies for an exemption.

Question 9

What is the VA funding fee?

Accepted Answer

The VA funding fee is a one-time charge associated with many VA-backed home loans. It helps support the VA loan program and is generally based on factors such as the type of loan, your military service, whether you've used your VA benefit before and the amount of your down payment. Some eligible borrowers are exempt from the funding fee. The fee may be paid at closing or, in many cases, financed into the loan.

Question 10

What is the difference between VA requirements and lender requirements?

Accepted Answer

VA guidelines establish the requirements for using the VA home loan benefit, including eligibility and program-specific requirements. Lenders also have their own underwriting standards for evaluating credit, income, assets, debts and other factors. A lender may have requirements that are more restrictive than the VA's minimum guidelines, so meeting VA requirements does not always mean every lender will approve the loan.

Question 11

What is the difference between an FHA and Conventional loan?

Accepted Answer

FHA and Conventional loans have different qualification guidelines, mortgage insurance requirements and cost structures. FHA loans are insured by the Federal Housing Administration and can offer options that may work well for borrowers with lower down payments or certain credit profiles. Conventional loans are not government-insured and can offer different pricing and mortgage insurance options depending on the borrower's qualifications. The right option depends on your specific financial situation and goals.

Question 12

Which loan is better for a first-time homebuyer?

Accepted Answer

There isn't one loan program that is best for every first-time homebuyer. VA, FHA, Conventional and other options each have different eligibility requirements, down payment options, mortgage insurance or funding-fee structures, and qualification guidelines. The right choice depends on your finances, goals, eligibility and the property you're purchasing.

Question 13

Can I get a mortgage if I'm buying a home in Chesapeake or elsewhere in Hampton Roads?

Accepted Answer

Yes. Mortgage financing is available for homes throughout Chesapeake and the broader Hampton Roads area, subject to the property's location, your eligibility and the requirements of the loan program and lender. I can help you review available financing options based on the property you're considering and your financial situation.

Question 14

How long does the mortgage process take?

Accepted Answer

The timeline can vary based on the loan program, property, appraisal, documentation and how quickly the required information is provided. Some purchases can move relatively quickly, while others take longer when additional review or documentation is needed. Your lender should explain the major steps and keep you informed as the loan moves from application through closing.

Question 15

What happens after I submit my mortgage application?

Accepted Answer

After you submit your application, your lender reviews the information and documentation provided and may request additional items or clarification. The loan then moves through steps such as document review, underwriting, appraisal and other required verifications before the final approval and closing process. The exact steps can vary depending on the loan program and your individual situation.

Question 16

How can I contact Mercantini Lending Team?

Accepted Answer

You can contact Mercantini Lending Team by phone at 757-553-6972 or by email at jim.mercantini@envoymortgage.com. We serve homebuyers and homeowners in Chesapeake, Hampton Roads and across Virginia. If you have questions about a mortgage, VA loan or another home financing option, reach out and we can discuss your situation and next steps.

Mortgage Questions Answered