Does the loan have a prepayment penalty?

Most of our loans do not involve prepayment penalties. Depending on the program you choose and are eligible for, a prepayment penalty may be required. However, for a nominal fee, you may have the option to reduce the number of years for your prepayment penalty. These options can be discussed during your application process.

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How can a shorter term save me money on a Fixed Rate Mortgage?

By opting for a shorter term, you can save thousands of dollars in interest - not only because you'll be paying off the loan sooner, but lenders generally offer better interest rates on shorter-term loans. And though your payment will be more each month, it may not be as much as you may think. The grid below illustrates the savings on a $100,000 loan at 8.5% interest.

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What type of loan will be best for me?

We can point out loan options you may not be aware of. We can point out loan options that would be the best fit for your current situation whether you want to purchase, refinance or take out a home equity line on your home. Prospect Financial Services can help you determine what is right for you. You can also visit our Learning Center to read more about your choices.

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How much can I borrow for my home?

The amount you may be able to borrow will depend on your income and current debts as well as the value of the home you're purchasing, the amount of your down payment and the current mortgage rates.

Generally, your monthly mortgage payment for principal, interest, taxes and insurance should not exceed 28 percent of your monthly pre-tax income. Monthly payments on other debts, such as car loans, school loans or credit card payments, should not exceed an additional 5 to 8 percent of your monthly income. These percentages can be higher or lower depending on the type of loan you apply for, but they're a good place to start estimating.

Loans obtained during times of high interest rates will have higher monthly payments. Consequently, the lower the interest rate at the time you get your mortgage, the lower your monthly payments and the more you may be eligible to borrow.

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Can I get a credit pre-approval decision before I select my home?

Yes! A credit pre-approval decision will help you and your real estate professional a great deal during your search. Not only will it put your mind at ease that your credit has already been reviewed, but a pre-approval decision also lets sellers know that you are a serious buyer and that a sale shouldn't be held up by mortgage problems down the line.

Prospect Financial Services offers credit pre-approval decisions for our clients. At the time you apply for credit pre-approval, a loan officer will collect any necessary documents to verify your income and assets up front. If your credit is approved, you'll receive a pre-approval letter that you can present with your offers to purchase a home.

Final loan approval will be subject to a completed sales contract, a satisfactory appraisal of the property, updating the information you have provided and any other commitment conditions of Prospect Financial Services related to your situation.
If you're interested in obtaining a credit pre-approval decision, contact your Prospect Financial Services Loan Officer at 877-468-4728.

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How much down payment will be required?

Borrowers may qualify for several mortgage programs that require a low or even no down payment. Qualified veterans may be able to obtain a loan with no down payment at all through the VA home loan program.

You will find that the greater the down payment, the more types of loans and options may be available to you.

To cover the risk on lower down payment loans, you may be required to purchase private mortgage insurance (PMI) which protects lenders against losses. PMI is usually required for loans with less than 20 percent down. The cost of PMI will be reflected in slightly higher monthly payments and, possibly, an additional fee at settlement.

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How can I compare interest rates?

To determine your best finance options, compare not only interest rates, but also other related charges. Lenders are required by the federal government to provide you with the annual percentage rate (APR) in order to help you make comparisons.

Remember that there are factors to consider when selecting your lender other than interest rate. It is true that a lower rate will give you a lower payment, but the stability of the lender, mortgage types and service are also important.

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What programs can help first-time buyers?

There are so many programs available for first-time buyers today, that buying a home may be easier than you think. Generally, these loan programs reduce down payment or closing cost requirements because savings is often the biggest challenge when buying a first home.

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Can I get a loan if I'm not a U.S. citizen or if I live outside the country?

Yes! As long as the property you are buying or refinancing is in the United States, you can apply right here online. We offer special programs for foreign nationals and resident aliens.

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Can I finance a vacation home with a loan from Prospect Financial Services?

Yes! We have aggressive programs to help borrowers purchase or refinance a second home. We can provide you with several differnt options and help you to decide which type of loan would be most beneficial for you.

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Can I finance an investment property with a loan from Prospect Financial Services?

Yes! There are many options available when it comes to financing investment properties. Some programs can even be a 30-year fixed. You may even qualify for a high loan to value on the investment property with no mortgage Insurance required! Contact us to find out more about financing your investment properties.

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