My name is This email address is being protected from spambots. You need JavaScript enabled to view it. and I am the Mortgage Specialist for Virginia Mountain Mortgage located inside of the Bank of Botetourt at Lakewatch Plantation at Smith Mountain Lake.  I have heard many of the same questions over and over from customers concerned about the terms of their mortgage loan.  I compiled a few of these to help you understand about loans. 

Will my loan be sold right away or will Bank of Botetourt service it?
We do not service any of our secondary market mortgages they will be sold to one of our lender partners at the time of closing.   In selling the servicing of your loan will not change any of the terms or conditions of your loan, just who you make your payments to:

Can my loan be directly withdrawn from an account each month at the same time?  Yes, once your loan is set up in servicing that servicer will send you documentation giving you all the options to pay your mortgage monthly.   You can set it up at that time.

If you are getting an in house mortgage then we would be servicing your loan but your only options are 5 year ARM or 15 year fixed.


You say I have to have mortgage insurance on my loan that I pay monthly. Does that mean that if I die that the mortgage will be covered by that insurance?
No, the mortgage insurance that is included in your loan is insurance for the lender if you are to default on your loan.   It is required by all lenders if you have less than 20% equity position on your property.   Depending on the type of loan that you obtain will determine whether you can eventually drop that mortgage insurance off of the loan completely.

If you are interested in that type of insurance that would be a question that you could ask a financial officer because that would be a life insurance policy.

 Credit Karma, Credit card company or even Equifax says my credit score is 800, so that is what you need to work off of right?
Unfortunately, these scores are helpful to know what range your score is in but is not one that we actually can use in the mortgage industry.   Each of these companies have different credit score models and the mortgage industry only accepts, and works from the FICO score model.   This score is always helpful to get a feel for where your score is but I cannot use that to base anything to do with the loan I will originate for you. 

I just had my credit score pulled by another company and I do not want my credit score to go down with you pulling it again.
That is fine to use as a guide, but ultimately we will have to pull all three scores again.   Inquiries make up about 10 % of your total score and built into the rules for credit scores is if you are shopping for an automobile or mortgage within a 14 day window all of those inquiries are looked at as one inquiry not multiply.   The caveat is that every day is a new day for credit scores so there could be other factors that are valued higher that affect the credit score going down not just hard inquiries.

What is a hard pull vs a soft pull of my credit?
Hard pull actually is shown on your credit report as an inquiry and can affect your score a soft pull is just an inquiry that sees what is out there but does not affect the score in anyway.   Every loan on the secondary market has a soft pull of credit around 3 days prior to closing to see if there have been any new inquiries made and if there are the borrower will have to explain and if there has been new credit given the new loan would have to be counted in the debt to income ratios

What parts of my credit report impact my ability to get a loan?
The part that most affect your ability to get a loan is you paying your loans on time. That is weighted most heavily at 35% of your overall score.   How long you have had credit and how much credit you have can affect the ability to pay off.

What kind of credit you use makes up about 15% of your total score.

Having collections that are medical are basically negated from the equation now up to $2k total, once you go over that then they want to see that you have at least set up a payment plan and are paying or pay them off at settlement

Judgments usually are required to be paid and shown paid by the court in order to eliminate from the report and the decision making process

What kinds of loans require less than 20% down payment?

Conventional requires as little as 3 -5%

FHA requires 3.5%

USDA requires 0

VA requires 0

How can I get money for my down payment?
Down payment money can come from a blood relative or a very close friend subject to establishing that relationship.   It can only be gifted,  meaning a letter will be signed that there is no paying back and the person giving it must be willing to show that they had the money to give it to you by a 30 day bank statement.

Should I pay off my credit cards before I apply for a loan?
Not necessarily,  t is usually best if you are wanting to prequalify for a loan that you let us take a look at what you have first and then together we can determine if there is anything that should be paid off.  

Can I borrow my down payment?
Yes, you can if you are using secured funds meaning the money is coming from an asset that the loan can secure ie: another piece of real estate, automobile, or other type asset

Can I use money that I have saved at home that is under the mattress or in the safe?  
The only way this can be used is if you are to deposit that money into an institution and then sit and wait for it to season for at least 60 days before it can be used in a mortgage transaction.

If you have additional questions, please contact me at Virginia Mountain Mortgage!