Choosing A Mortgage Company
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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.
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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.
Insert the "A Quick Overview of Mortgages" and Interest Rate Chart.
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
1st 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.
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