Common Questions for Mortgage Lenders

Hi Everyone, it's Sabrina here with blog number four for Levi Cox, Realtor with United Country Blue Ridge Land and Auction.  In our little piece of the country we are experiencing the changing of seasons.  It is beautiful!  The drive into our quaint Town of Floyd Virginia has been such a delight as the trees are clothed in their glorious colors.  There is nothing more calming than nature and I enjoy watching each season come and go.  Our hope is you are finding calm in your little piece of the country with each season of change.

    In our last blog we discussed the buying process and with this blog we are taking a different approach.   We gleaned information and wisdom from a local New River Valley lender with Alcova Mortgage, Wallace “Wally” Andrus.  Wally provided background information on the beginning of ALCOVA mortgage.  He shared, “Alcova Mortgage began with a friendship and was bound by a common background.”  Wally continued “this background was inspired by a passion to serve.”  Wally explained, “Childhood friends, Bobby Nicely, Billy Siple and Rob Lindstrom humbly began the company in Blacksburg VA and it slowly grew to serve more states in the Mid-Atlantic and Southwest.”  ALCOVA Mortgage has seen substantial growth and Wally stated the reason for this growth is “the constant technological advances our team makes, making the buyer's mortgage process easier every step of the way.”  Due to these technological advances they have transitioned to an online application and the loan application process can take under 10 minutes to complete.  Once the application is complete Wally explained “the team will handle the most stressful part of the buying experience.”  

    So what should prospective home buyers do first?  Wally informed, “they should contact a local lender to get pre-approved.  A preapproval consists of doing a full loan application and gathering some initial documents for the lender.”  Doing this first helps the buyer understand the amount they are able to spend on a house.  Income and assets are important when obtaining a loan and these will be asked for when completing the loan application.  Wally explained “sometimes a lender will require 30 days of paystubs, 2 years of W2’s and tax returns if you are self-employed.”  Wally continued, “regarding assets they are able to use electronic verifications 90% of the time however if the client would rather use bank statements then they would obtain the most recent two months.”  Loan types depend on the borrower's credit, income and property type.  According to Wally, “there are four different loan types in our area, Conventional, FHA, VA and USDA.”  Determining the loan type is a process the loan officer will guide the buyer through.  Wally provided insight stating, “a buyer should work with a lender that will dig deep into their financials and personal situation and decide as a team which loan is best for them and the property they are considering.”  Wally continued, “it is important to work with a realtor and a lender that have a plethora of options available to meet their specific goals.”  Ultimately the buyer will make the final decision however Wally informed, “it is the responsibility of the lender to present the buyer with a few options (if applicable) that will work for their scenario.”  ALCOVA mortgage is also able to assist with raw land purchases and construction loans.  Wally provided, “ALCOVA is one of the few mortgage lenders that also offer land loans and construction products are also available depending on the specific scenario.”  

    When asked if there is a difference between a mortgage lender versus a bank/institution, Wally gave us his insight.  He stated, “the biggest difference noticed is the availability of products as banks typically only sell their products having a limited number of loan options available.  A mortgage lender will have 10 to 20 investors they can look and shop with as well as have a larger pool of loan products to meet the needs for the area.” Another important aspect to remember is building a solid relationship is important with all parties associated with a mortgage transaction.  As Wally reiterated, “buying a home is one of the most stressful moments in someone’s life, therefore you want to have a team on your side.”  This team is referring to a real estate agent and loan officer that you trust and know will assist you throughout the process.  Wally continued, “your agent will be your biggest person to lean on during the buying process so it is important to locate an agent that you can talk to about anything and is plugged into the area well.”

    We would like to thank Wallace “Wally” Andrus for his time in providing us information on how the mortgage loan process works as well as insight into the different loan types.  If you are looking for a local lender give him a call at 540-471-0501, he will be happy to assist you.  Levi and Wally have worked together since Levi began real estate.  They have a great working relationship and communicate well assisting the buyer to achieve the purchase of their dream home.  Remember to #listwithLevi and until next time enjoy your little piece of the country.