What is the loan purpose and why do I need to provide it?
The loan purpose is the primary reason you are requesting a loan from Semper Home Loans. Some examples of home loan purposes would be:
- Purchasing a single-family, multi-family or condo
- Purchasing a second home or investment property
- Refinancing to shorten repayment term
- Refinancing to lower current mortgage rate
- Refinancing to cash out for home improvements
Understanding the loan purpose, in addition to other variables, can help us determine the level of risk associated with the loan. The mortgage rate that you are eligible for will also fluctuate based on the loan purpose. The less risk you take on as a borrower may reflect better rates as the lender is also taking on less risk.