Choosing A Mortgage Company

 

      

Your choice of your mortgage company must be a well thought out decision, as this could make a huge difference in your financial situation. Understanding the different types of loans available and being able to make a wise decision as to which is best for you and your family is extremely important. Even though we have knowledge and understanding of most available loans we feel that a true professional in the mortgage arena would be best qualified to guide you to the right home loan for you. We will supply you with a list of lenders that we have dealt with in the past and have found to be very reputable as well as competitive.

Financial Proposals         
                                   

You´ll be able to make better decisions when you have good financial information on which to base them. These reports are simple to read and easy to understand. By investigating alternatives, you´ll make the right choices.

 

Buyer Qualification - Using the same guidelines that a mortgage company uses, you´ll discover how much mortgage you can qualify for on both fixed rate and an adjustable rate loan.  

Only for Informational Purposes.  If you are serious please confer with a Lender.

 

Buyer's Closing Costs - It is important to know how much you´ll need to buy a home, not only for the down-payment but for all fees the associated with closing.

 

Alternate Financing Plans - Choices will help you to make a better decision as to how to finance your new home.  You deserve to know what options are available.

 

Adjustable Rate Mortgage vs. Fixed Rate Mortgage - This report will show you the savings and costs between these mortgages based on current rates over a period of time.  You´ll be able to see where the break-even point is and where the costs of the adjustable could exceed that of the fixed rate.

 

Mortgage Comparison - This report can show you the actual cost of different mortgages so you can choose the one that is best for you. It is especially helpful when terms, points, and rates are all different.

 

Mortgage Accelerator - Learn the benefits of prepaying your fixed rate mortgage on a regular basis to shorten the term by years.  You could save tens of thousands of dollars in interest.

 

Mortgage Specialist - We proved a list of experienced mortgage experts that will discuss with you the best options concerning your current financial situation.

 

 

Tax Advantage

NOTE: The information on this page is intended as a generalization showing of the advantages of home ownership. Ask me to prepare one for you specific to your individual requirements.

Tax Advantages
Purchase Price              $210,000.00
Less Down Payment      - $60,000.00
Mortgage Amount          $150,000.00

Length of Loan: 30 years                       Interest Rate: 6.5%

First Year's Interest ............................................................................. $9,700.58

Plus Property Taxes .......................................................................... +$1,577.10

Total Deductible Items ........................................................................ $11,277.68

Annual Tax Savings ........................................................................... $3,721.63 at Owner's Tax Bracket of 33%

Total Fixed Rate Monthly Payment (PITT) .............................................. $1,188.27

Less Monthly Savings ............................................................................ -$310.14

Net Monthly Payment ............................................................................. $878.14

Investment Potential

Based on a constant appreciation of 3% over a 12-year holding period, a home purchased for $210,000.00 would be worth ..................................................................................................... $299,409.79

Unpaid Balance ............................................................................. $120,537.96

Gross Equity ................................................................................. $178.871.83

This form is not intended to be a comprehensive analysis, nor is it an offer to extend credit as defined by Section 226.6 of Regulation Z. Its purpose is to assist in making decisions about real estate. While the information contained herein is deemed reliable, no warranty, expressed or implied, is granted. If concerned, parties should seek counsel from their tax or legal advisor.

NOTE: The information on this page is intended as a generalization showing of the advantages of home ownership. Ask me to prepare one for you specific to your individual requirements.

Monthly Gross Income ....................................................................... $10,000.00

Recurring Debt .................................................................................... $1,795.00

Qualifying Ratios: 28/36            Loan to Value: 90

Fixed Rate

Length of Loan: 30 Years                       Interest Rate: 6.5%

Maximum Qualified Mortgage ............................................................ $236,770.78

Down Payment .................................................................................. $10,000.00

Maximum Qualified Sales Price ......................................................... $246,770.78

Principal & Interest Payment ................................................................ $1.496.55

Private Mortgage Insurance ..................................................................... $102.60

Monthly Tax Impound ............................................................................. $154.44

Monthly Insurance Impound .................................................................... +$51.41

Total Monthly Payment ...................................................................... $1,907.60

Adjustable Rate

Length of Loan: 30 Years                       Interest Rate: 6%

Maximum Qualified Mortgage ............................................................ $247,371.15

Down Payment .................................................................................. $10,000.00

Maximum Qualified Sales Price ......................................................... $257,371.15

Principal & Interest Payment ................................................................. $1,483.12

Private Mortgage Insurance ...................................................................... $107.19

Monthly Tax Impound .............................................................................. $161.07

Monthly Insurance Impound ..................................................................... +$53.62

Total Monthly Payment ...................................................................... $1,912.19
Maximum Qualified Mortgage has been restricted due to recurring debt.

This form is not intended to be a comprehensive analysis, nor is it an offer to extend credit as defined by Section 226.6 of Regulation Z. Its purpose is to assist in making decisions about real estate. While the information contained herein is deemed reliable, no warranty, expressed or implied, is granted. If concerned, parties should seek counsel from their tax or legal advisor.

Pre-Approval Program

One of the 1^s things that you must do is get

                  Pre-Qualified

 

Pre-Qualification entails making a complete application, ordering the credit reports, verifications and everything for the borrower. 

 

The Mortgage Company will issue a commitment subject to a specific interest rate and points and the satisfactory appraisal when a property is located.

 

There is usually a time limit placed on pre-approval commitments.  You´ll want to be ready to look at homes and make a decision after you receive your pre-approval commitment.

 

There are several distinct advantages to becoming pre-approved:

 

You look at only the "right" homes means looking at homes you can afford.  Why be disappointed choosing a home that you may not be able to afford.

 

You save money dealing with a seller who is comfortable about "tying up" their home with a party who has a definite loan commitment.  This is one less contingency for the seller to be concerned with.

 

You close more quickly because in most cases, the thing that takes the most time is getting a mortgage.  The credit reports and all of the verifications take time to be mailed out and returned.

 

You Minimize Stress of not knowing whether or not you qualify.

 

Greater Negotiating Power

 

Items Needed For A Credit Application

 

Employment

                   Addresses for past five years

                   Gross monthly income

                   W-2s, if available

                   Proof of retirement, disability or Social Security

                   Proof of income from rentals, investments or other income

                   Proof of child support or alimony paid/received

                   Year-to-date pay stub

                   If self-employed: You will need to show two years of Tax Returns

                   Current year profit and loss statement

 

Creditors

                  Each creditor's name, addresses and type of account

                  Account numbers

                  Monthly payments and approximate balances

                  Amounts of child care expenses

 

Banking

                  Names and addresses of saving institutions

                  Account numbers for all accounts

                  Type of accounts and present balances

                  Copy of Bank Statements (All Pages)

 

Miscellaneous

                  List of assets in stocks, bonds, and property

      Life insurance cash value (documented if used as cash down payment)

                  If applicant is selling a home, a copy of sales contracts

                  Social Security numbers for all parties

                  Veterans - Certificate of Eligibility and DD-214

                  Cash or check to pay for application fee

 

I will advise you of any other items a particular lender may require prior to your application.