Frequently Asked Questions
1. What States is Money Well Lending Licensed In?
Money Well Lending, LLC is licensed in Arizona, California, Florida, Idaho, Iowa, Oregon, Texas, and Washington.
2. When Should I Refinance?
Refinancing can make sense if mortgage rates drop 1–2% below your current rate. Even a 1% reduction can lower your monthly payments. However, personal factors—like how long you plan to stay in the home—matter. Contact us for a personalized savings analysis.
3. What Are Points?
A point equals 1% of the loan amount. For instance, one point on a $100,000 loan is $1,000. Points (often called “discount points”) are paid upfront to lower your interest rate over time.
4. Should I Pay Points to Lower My Interest Rate?
Paying points can be advantageous if you plan to keep the property for a few years, allowing you to recoup the upfront cost through lower monthly payments. If you might move or refinance soon, you may not benefit enough to offset the initial expense.
5. What is an APR?
The Annual Percentage Rate (APR) reflects the yearly cost of your mortgage, including the interest rate, points, and some fees. It’s a tool to compare loans, but doesn’t directly change your monthly payment—which is determined by the note rate and loan term.
6. What Does it Mean to Lock the Interest Rate?
A rate lock holds your quoted interest rate for a specific timeframe (often 30–60 days) during the application process. This protects you from rising rates, though there may be fees for longer or extended locks.
7. What Documents Do I Need for My Loan Application?
You’ll usually need:
- Property: Sales contract, deposit verification, contact info.
- Income: Recent pay stubs, W-2s, employer info, tax returns if self-employed.
- Funds: Bank statements, proofs of stocks/bonds, any gift letters.
- Debts: Account numbers, balances, monthly payments.
Additional documents may be requested based on your unique situation.
8. How is My Credit Judged by Lenders?
Lenders often use credit scores like
FICO (ranges from 350–850). Payment history, debt levels, credit length, and new inquiries all factor in. You can request a free report annually from each credit bureau at
annualcreditreport.com.
9. What Can I Do to Improve My Credit Score?
Pay bills on time, reduce outstanding balances, limit new credit inquiries, and keep long-term credit lines open. Consistency over time is key to improving your credit score.
10. What is an Appraisal?
An Appraisal is a professional’s estimate of a property’s fair market value. Lenders require it to ensure the loan amount aligns with the home’s actual worth.
11. What is PMI (Private Mortgage Insurance)?
PMI is typically required when your down payment is under 20% on a conventional loan. It protects the lender if you default on the mortgage. You can often remove PMI once your equity reaches 20%.
12. What is 80-10-10 Financing?
In 80-10-10 financing, you take out an 80% first mortgage, a 10% second mortgage, and pay 10% down—usually avoiding PMI. Variations like 80-15-5 also exist.
13. What Happens at Closing?
Closing, also called funding, is when ownership is transferred from the seller to you. You’ll sign final documents, pay closing costs, and receive the keys after a final walk-through of the property.
Disclaimer: The content provided in this FAQ is for general informational and marketing purposes only. It is not legal, tax, or financial advice. Mortgage products and terms are subject to change based on individual qualifications, underwriting requirements, and state laws. Consult with Money Well Lending, LLC (NMLS #2260651) or a licensed attorney for advice tailored to your specific financial situation. Money Well Lending, LLC is licensed in AZ, CA, FL, ID, IA, OR, TX, WA. Equal Housing Lender.