Q & A with Dottie Herman

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Q1 - I have heard some stories where people lost their rate because their loan approval took a very long time. What might delay approval of my loan?

A - If you provide the lender with complete, accurate information, the loan process should run smoothly. If the underwriter discovers credit problems, however, there could be delays. Make sure you notify your lender if you change jobs, have an increase or decrease in your income , incur additional debt or change marital status between the time you submit an application and the time the loan is funded.

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Q2 - Why is the rate you are quoting me higher than advertised rates?

A - There is no such thing as "the" rate. The interest rate is specific to each transaction and is determined primarily by your credit score, down payment, property type and intended property use.

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Q3 - Do I want a fixed or adjustable mortgage?

A - This will depend upon how long you plan on staying in your home and your tolerance for risk, and whether you like to have your payments fixed for the life of the loan, or if you can you handle your payments changing after the ARM resets after the fixed period.

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Q4 - I am thinking of purchasing a property. When should I formally apply for a mortgage?

A - It is suggested that you apply for a pre-approval before you place an offer on a property. Applying early will ensure there is enough time to process your application without potentially delaying your closing. It will also give you an idea on what price point is within your limits and will save you time.

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If you have a real estate question for Dottie, please send it to; Reporters@WorldPropertyChannel.com

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