Frequently Asked Questions
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In order to be prepared to buy your new condo, understanding your financial situation is the first step to contracting. The seller has hand selected lenders that can help you get your approval in order to move forward. We selected lenders that have the best track record, are producers in the downtown market, have in-house underwriting and the ability to get you to closing.
Do I need a pre-qualification for a new construction property?
We always recommend getting a pre- qualification letter from a preferred lender. It is not a requirement of the contract, not until we get closer to closing, however it is great to know your financial commitment before committing.
Can I put 5% down?
Yes, this will depend on your credit score and debt to income ratio. We recommend calling one of the preferred lenders as they are the professionals in this area and can give you the best advice on how to move forward. There are some instances where a buyer can put as little as 3% down.
What is PMI?
Property Mortgage insurance protects the lender in the event that you fall behind on your payments.
How much is PMI?
The cost of PMI can be anywhere from 1/2 of 1% to almost 6% of the principal amount of the loan depending upon the down payment, the type of loan (fixed or adjustable interest rate), and term of the loan, as well as borrower’s credit score(s)- once again, a simple call with a preferred lender is your best bet!
Do you accept VA loans?
The building is not VA approved.
What is a jumbo amount?
A loan is considered jumbo if the amount of the mortgage exceeds loan-servicing limits set by Fannie Mae and Freddie Mac — currently $726,200.
What is the new FHA amount?
The new FHA max loan amount is $571,550 with 3.5% down payment. FHA loans are for more challenged credit and higher debt to income ratio clients. The building is not FHA Approved.
What does my credit score need to be to get approved?
Conventional financing will allow for as low as a 620 credit score.
Why work with a preferred lender?
The preferred lenders have been hand selected based on their experience in Austin, Texas, having in-house underwriting and their ability to close loans. The preferred lenders bring value to the development in ensuring they have loan products that can get you to closing. They work with integrity and honesty and have the building approved for financing. With the use of a preferred lender the seller will assist with title policy fees which can save you money.
