Realfinity Mortgage FAQ
Company
Realfinity Mortgage is a mortgage broker that assists homeowners and homebuyers in securing financing and guides them with a client-facing platform called HomeDashboard through the entire process from pre-approval to closing.
Realfinity Mortgage isn’t a lender; instead, we serve as a mortgage partner regarding all things home finances. With our help, homeowners and homebuyers can concentrate on finding and managing their dream home. Realfinity Mortgage has a range of wholesale lenders offering varied loans and closing costs. Our team of mortgage experts and HomeDashboard helps owners and buyers compare options and select the ideal mortgage.
At present, Realfinity Mortgage’s HomeDashboard is accessible to homeowners and homebuyers purchasing a primary residence, second home, investment property or refinancing a current home loan. However, borrowers must satisfy specific credit, employment, income, and asset criteria to qualify for Realfinity Mortgage’s services.
Realfinity Mortgage is a licensed mortgage broker operating in California, Texas, Oklahoma, and Florida, with pending NMLS status in Puerto Rico.
Realfinity Mortgage’s absence in certain states is due to varying licensing procedures and requirements. However, we’re actively working to expand to all 52 states.
Realfinity Mortgage collaborates with wholesale lenders to provide its homeowners and homebuyers with the lowest rates on the market. By working with a broker, like Realfinity Mortgage, wholesale lenders are naturally competing which causes the client to get the best possible rate.
Unlike other mortgage brokers, Realfinity Mortgage is data intelligent, enabling you to make the right homeownership decisions based on investment-grade data. Thanks to our tech background, we have optimized processes, resulting in reduced costs that are passed on to homeowners and homebuyers.
Good to Know
When you have your credit pulled for a mortgage, it typically does not have a significant impact on your credit score. To allow homeowners and homebuyers to shop around for the best rates, most lenders consider all mortgage inquiries within a specific period, usually 30 days, as a single inquiry. This means that you can have your credit pulled by multiple lenders without negatively affecting your score. Without checking your credit, a lender cannot approve you for a loan or provide an accurate rate quote, as credit is one of the many factors used to determine your rate. We recommend that you compare mortgage options from different lenders and get pre-approved. Realfinity Mortgage simplifies this process by providing access to loan options from multiple lenders with a single credit pull.
If you don’t have a specific property in mind yet but want to get pre-approved for a mortgage on HomeDashboard, you can provide a placeholder property address along with the expected purchase price and loan amount that you’re seeking pre-approval for. This will allow you to obtain a pre-approval letter which can help you make offers at that price point. Later, when you have found a particular home, you can update the address on the pre-approval letter accordingly.
After submitting a mortgage application, you will receive a Loan Estimate from the Consumer Financial Protection Bureau, which provides a clear breakdown of the costs associated with your mortgage. This includes expenses paid to third parties, your down payment, taxes, insurance, lender fees, and other costs that are combined into one amount known as “cash-to-close,” which may be overestimated. Your Realfinity Mortgage loan officer will assist you in understanding these costs and can address any concerns you may have to help you prepare for the closing process.
Obtaining a pre-approval is an initial step in the home-buying process, and Realfinity Mortgage permits you to obtain pre-approval online in no time, which is becoming increasingly prevalent in the industry – to be honest. Pre-approval informs you of the maximum amount you can afford in the eyes of the lender. It is distinct from locking in your loan, and your rate, as well as your affordability, may change before you submit an offer on a property.
Your down payment amount depends on your personal financial situation. Many programs are available for borrowers who don’t have a 20% down payment saved for the home’s value. However, most of these programs require some form of mortgage insurance if your down payment is less than 20%. It may be worthwhile to consider not using all of your savings on a down payment and investing that money elsewhere.
It’s not necessary to meet your mortgage partner in person or even speak with them directly. Many transactions are now being conducted remotely, which can result in quicker and more efficient closing times. As a homeowner or homebuyer, Realfinity Mortgage tailors the experience to your needs and is available to assist you and address any inquiries you may have.
Loan Types
Presently, Realfinity Mortgage supports refinances, purchases and second loans/HELOCs.
Realfinity Mortgage provides support for purchasing primary residences, second homes, and investment homes. This encompasses the following property types:
- Single-family homes that are either unattached (stand-alone houses) or attached (townhomes and row houses)
- Homes that consist of one to four units, given that at least one of the units serves as the borrower’s primary residence (duplex, triplex, or 4-plex)
- Condominiums (restricted to primary residence only)
Currently, Realfinity Mortgage does not offer mortgages for co-ops, multi-family homes comprising five or more units, planned unit developments (PUDs), manufactured homes, hobby farms, or commercial / mixed-use properties. If Realfinity Mortgage is unable to facilitate your loan directly, we have collaborators who can. Get in touch with us to find out more.
Realfinity Mortgage provides access to conventional fixed-rate mortgages with 15-year, 20-year, and 30-year terms, as well as adjustable-rate mortgages (ARMs) with 10/6, 7/6, and 5/6 terms, for those purchasing primary residences, second homes, or investment properties. We also have FHA loans available, which are government-backed mortgages that come with lower credit scores and down payment requirements. While VA and USDA mortgage loans are not directly available through our platform, we can connect you with partners who specialize in these programs. We also offer direct support for conventional loan programs that cater to low-to-moderate income borrowers with good credit.
Your primary residence is the dwelling where you reside for most or all of the year. Usually, it serves as your official address for receiving mail and registering to vote. A secondary residence is a single-family, one-unit property that you occupy for some period of time each year. Although you must reside in it for some duration of the year, you may rent it for weekends, holidays, or weeks when you are not present. However, the property cannot be a full-year rental or timeshare, and a management firm cannot regulate its occupancy. An investment property is a property primarily used to generate income, either through fixed, monthly payments from a long-term tenant or variable payments, such as a vacation or short-term rental.
Borrower Requirements
Realfinity Mortgage requires borrowers to have a minimum FICO credit score of 600 to be eligible for a mortgage. Additionally, all accounts on the borrower’s credit report must be current, with only one 30-day past due payment allowed in the last 12 months. If there are any outstanding non-medical collection or charge-offs, the balances cannot exceed $2,000.
Realfinity Mortgage does not support non-traditional credit. To determine mortgage eligibility, Realfinity Mortgage pulls credit reports from all three major credit reporting bureaus (Equifax, Experian, and TransUnion). If the scores vary, Realfinity Mortgage uses the middle score for eligibility and pricing. If a borrower has negative data on their credit report, such as bankruptcy or foreclosure, they may still be eligible for a mortgage if sufficient time has passed.
Realfinity Mortgage follows Fannie Mae’s waiting period requirements after significant derogatory credit events, although different waiting periods may apply to Non-Agency & Government Programs if the borrower does not meet Fannie Mae’s requirements. To learn more about credit requirements or understand available options, Realfinity Mortgage recommends speaking to a HUD-Approved Housing Counselor in your area.
In order to qualify for a mortgage with Realfinity Mortgage, borrowers must be able to demonstrate a consistent and reliable source of income. This can include various types of income such as base salary, wages, commissions, tips, bonuses, social security income, long-term disability benefits, or regular disbursements from a pension or retirement account. Variable income must be documented for at least two years.
Realfinity Mortgage requires borrowers to provide evidence that they have been employed in the same or a related field for at least two years leading up to the date of their mortgage application. If you have had multiple jobs in the past two years, you will need to prove that you are still working in the same profession. Additionally, if there was any period of time where you were not employed, the gap must not exceed 60 days. Realfinity Mortgage currently cannot offer its services to homeowners and homebuyers who have undergone a significant career change, been unemployed for more than a couple of months in the past two years, or are running a successful small business. However, this policy may change in the future.
The DTI ratio measures the percentage of your gross income that is required to cover your minimum debt obligations every month. For example, if you earn $5,000 a month before taxes and have monthly debt payments of $600, your current DTI ratio would be 12%. Realfinity Mortgage allows a maximum DTI ratio of 45%, which is the federal limit for qualifying mortgages. If your DTI ratio is higher than 45%, you may still qualify for special mortgage programs if you have exceptional credit and finances. Your Realfinity Mortgage loan officer can guide you towards these programs. It’s important to note that your monthly mortgage payment, including principal, interest, property taxes, and homeowners’ insurance, should not exceed a certain amount based on your income and debts.
If you do not meet Realfinity Mortgage’s eligibility requirements, do not worry. We are continuously expanding to serve a wider range of homeowners and homebuyers to make home financing more accessible. If you are not ready to buy a home yet, Realfinity Mortgage also offers solutions that can help you prepare for the future. You can still register for a homebuyer HomeDashboard (click the Let’s Go button in the header to get started). Contact us for more information and utilize other resources, such as the Consumer Financial Protection Bureau Mortgages, HUD Approved Housing Counseling Agencies, and Fannie Mae. We are here to help you along the way.
Mortgage Essentials
Your rate lock can have an expiration date, but you can avoid this by selecting a suitable option when locking in your rate. Typically, rate locks have a duration of 30, 45, or 60 days, but Realfinity Mortgage’s lending partners offer extended locks of up to 150 days depending on your specific situation. The appropriate lock period will depend on when your closing is scheduled and the type of property you intend to purchase.
Your mortgage payment primarily includes the repayment of the principal amount borrowed and the interest charged on it. If you have put down less than 20% of the purchase price, then the payment will also include mortgage insurance. Additionally, you are required to pay for your homeowner’s insurance and real estate taxes, which are deposited into an escrow account held by your lender. Other expenses may also apply. The principal payment reduces the original amount borrowed, while the interest payment is the fee charged for borrowing the money. The taxes and insurance portions of the payment are held in escrow and paid by the lender to the respective parties when due. However, some borrowers may have the option to not use an escrow account for these payments. If an escrow account is used, it’s important to note that the responsibility of paying taxes and insurance directly falls on the borrower once the mortgage loan is paid in full.
Discount points, or simply “points,” are fees that can be paid upfront to lower the interest rate on a mortgage. These points can help you save money on interest over the course of the loan, but it’s important to consider the cost of the points versus the savings from the lower rate. In contrast to points, lender credits are when the lender gives you money to use towards closing costs in exchange for a higher interest rate. The cost of originating a mortgage varies by lender and is based on a number of factors, including the perceived lending risk and interest rates in the broader market. These costs are often factored into the discount points or lender credits offered to homebuyers.
In simple terms, an escrow account is a bank account where your money is held until it is due to be paid for things like taxes, homeowner’s insurance, and HOA fees. When you take out a mortgage, you pay an upfront amount into the escrow account and then make monthly payments for the life of the loan. The upfront amount can vary among lenders, but typically covers two months of cushion payments for both HOI and property taxes, plus the necessary amount of taxes to ensure the full amount is available when the tax bill is due. The reason these bills are paid through an escrow account is that the bank or lender who financed your mortgage has an ownership interest in your property and wants to ensure you make the necessary payments each month.
Mortgage insurance is a type of insurance that is required for buyers who make a down payment of less than 20% on their home purchase. The insurance protects the lender in case the borrower defaults on their mortgage. Once the homebuyer has 20% equity in their home, many lenders will no longer require mortgage insurance payments. However, if a homebuyer cannot afford a 20% down payment, mortgage insurance allows them to purchase a home that they might not otherwise be able to qualify for.
