The first stage in applying for a mortgage is typically prequalifying for one. Your credit score determines your interest rate, loan choices and your minimum down payment. Ultimately, the maximum size of your loan amount will be determined by your debt-to-income ratio (DTI), which is the percentage of monthly gross income that goes towards paying debts. In general terms, the lower your DTI, the more you may be eligible to borrow and the more financing options may be available to you.
We recommend that you are pre-qualified before starting to look for your new home as this will 1. allow you to search for properties in your price range, 2. let the seller know that you are a serious and qualified buyer which ultimately puts you in a better position to negotiate, and 3. help you close your loan as quick as possible.
To receive a pre-qualification letter from us typically you will need:
For self employed borrowers:
Before choosing a loan option for your specific needs it is important to ask yourself the following questions:
Fixed Rate Loans:
With a fixed-rate mortgage, your interest rate stays "fixed" for the life of the loan. That means your "principal and interest payments will also stay the same" for all the years on your mortgage. Your property taxes and insurance tend to increase or decrease on a yearly basis, therefore, adjusting your overall total monthly payments. One of the advantages of this type of loan is that if rates in the market increase, your rate won’t change unless you decide to refinance. With a fixed-rate mortgage, borrowers are also able to predict their monthly cash flow needs as this type of loan comes with lower payments that can be spread out over fifteen or thirty years.
Adjustable Rate Loans"
An adjustable rate mortgage (ARM), is a loan in which the interest rate varies according to the performance of a predetermined index and pricing schedule. The initial interest rate will be fixed for an allotted period of time, after which it is reset periodically. As an example, a 3/1 ARM locks in the current interest rate for the initial three years. After that, the rate for that particular product will change based on a predetermined index + margin with a cap every year.
ARMs could start with better interest rates than fixed-rate mortgages, in order to compensate the borrower for the risk of future interest rate fluctuation. This is a viable option if you only plan to live in your new home for a few years.
This is one of the most important steps in the loan process. In this steps your loan mortgage loan officer will introduce you to a very important member of our company and our team, your "loan processor". This person along with your mortgage loan officer is responsible for working with you:
This is the stage you have been waiting for since applying for your loan. Congratulations! You must now decide where you would like for the closing to take place:
Regardless of the location chosen for closing, the signing will take place in front of a notary public registered with the state.
You are now ready to begin signing the final loan documents. It is our recommendation that you take the time to review every page of the loan documents for accuracy of your name, agreed upon terms at time of approval and additional terms and conditions associated with your desired loan.
With the purchase of a home and transfer of its ownership there are several fees (to include the down payment) that must be paid at or prior to closing. These fees will be disclosed by the title company prior to closing. Normally, personal checks are not accepted and these items are paid via a cashiers check.