Diamond Mortgage Services, Inc.

Frequently Asked Questions

Q: What is HARP?
A: The Home Affordable Refinance Program (HARP) is designed to help homeowners in refinancing their mortgages – even if they owe more than the home’s current value. The hope for the Home Affordable Refinance Program is that refinancing will help responsible borrowers by reducing their monthly principal and interest payments, reducing their interest rate, reducing the amortization period, or moving them from a more risky loan (such as an interest-only mortgage or a short-term  ARM) to a more stable product (such as a fixed-rate mortgage). Contact us to see if you are eligible for HARP.

Q: I was laid off last year from my job and I am back to work now, will this mean I am not qualified for any kind of loan?
A: No, there are many circumstances under which you could be fine and should pursue getting pre-qualified to make sure.

Q: I have no money of my own but a family member can give me a gift for the down payment, can I still buy a home?
A: Possibly, there are loan programs available for which you may qualify with this down payment arrangement.

Q: If I request a pre-qualification, am I obligated in any way to go forward?
A: No, our pre-qualifications are free of any obligation what so ever.

Q: What is the difference between Pre-Qualification and Pre-Approved?
A: When you are pre-approved you are asked to provide documents that back up your declared income, assets and possibly debts. In addition your information is submitted to a Lender’s underwriting system that will conditionally approve your loan application. Diamond Mortgage Services can obtain both for you.

Q: How long does it take to get Pre-Qualified?
A: Most interviews take no more than 25 minutes depending on how straight forward or complicated your particular finances and credit history is.

Q: I heard there are some programs for first-time home buyers. Could you explain what they are?
A. Two government backed grantors of mortgages Fanny Mae and Freddie Mac offer programs to help some first time homebuyers and others in select categories.  Fanny Mae has home loan program called “My Community” that has some advantages for first-time home buyers--those with minimal credit history and little money for a down payment or closing costs. Borrowers can get up to 97% financing, loan terms up to 40 years, and it has reduced mortgage insurance requirements. For details call us.
Freddie Mac offers “Home Possible Mortgages.” It includes stable monthly payments for fixed-rate mortgages, reduced mortgage insurance coverage levels, flexible closing cost funding options, and no cash-out refinancing.  It does have income limitation restrictions which vary by county and state making it difficult to take advantage of and also in areas with high real estate values.  Call us to see if you qualify.

Q: What credit score do I need to qualify for a loan and how can I improve my score?
A. Today lenders are looking for scores of .... and above. To understand your score look as an analysis of Fico credit scoring. It is made up of five categories each of which has a percentage to show the relative importance of each category. The categories are:   
        Payment history (35%), Amounts owed (30%), Length of credit history (15%), Types of credit used (10%), and New credit (10%).
        See this credit education link for more information.