Mortgage Information

Financing | Credit App | Credit Problems | Refinancing | Home Price Comparison | Calculators Interest Rate Information | Rent v.s. Own QUESTIONS TO ASK A MORTGAGE BANKER When talking to a mortgage banker prior to making an application, it might be helpful to have the answers to the following questions in order to make an informed decision. Will this loan be sold on the secondary market or will it be placed in your portfolio? If private mortgage insurance is required, at what point will it be necessary so that it can be dropped? When does the servicing department pay the property taxes to insure the income tax deduction for that year? How many months worth of property taxes and insurance are required for the reserve account? If obtaining an adjustable rate mortgage, describe how and when the loan can be converted to a fixed rate mortgage and what charge will be involved. Will another appraisal be required? If obtaining an adjustable rate mortgage, what is the margin, index, and anniversary for adjusting the payments? When is the house payment due and when is the late fee incurred? What is the late fee? Can I "pre-pay" my loan at any time and without "pre-payment penalty"? What is the up-front charge for private mortgage insurance? Can I please have a "good faith" estimate in writing? ( This will reveal all the lenders fees and costs. I will be happy to review it for you .) Email Jennifer Singer with any questions regarding Alan Schrum of Affiliated Financial, Jennifer's Lender of choice. You may also call Jennifer at 303-409-6126 and also Alan Schrum at 303-267-0408. Top FINANCING PROCESS 1. COMPLETE THE LOAN APPLICATION. AN APPLICATION FEE MAY BE REQUIRED BY THE LENDER. 2. THE LENDER BEGINS PROCESSING THE APPLICATION 3. THE LENDER WILL PROVIDE A BOOKLET CONTAINING SPECIFIC LOAN INFORMATION AND A GOOD FAITH ESTIMATE OF CLOSING AND RELATED COSTS. 4. THE LENDING INSTITUTION REQUESTS AN APPRAISAL OF THE HOME, A CREDIT REPORT AND VERIFICATION OF EMPLOYMENT AND ASSETS, SUCH AS BANK ACCOUNTS. 5. AN ESTIMATE OF YOUR LOAN COSTS IN THE FORM OF AN INITIAL TRUTH IN LENDING DISCLOSURE STATEMENT (REGZ) IS ISSUED. 6. THE LENDER EVALUATES THE APPLICATION ALONG WITH SUPPORTING DOCUMENTATION AND APPROVES THE LOAN. 7. THE LENDER DISBURSES THE FUNDS TO THE SETTLEMENT OR CLOSING AGENT. SELLER IS PAID AND TITLE TO THE HOME IS YOURS. 8. SIGN CLOSING DOCUMENTS AND THE LOAN IS FUNDED. 9. APPROPRIATE DOCUMENTS RECORDED AT THE COUNTY RECORDER'S OFFICE. TEXT DEEMED RELIABLE BUT NOT GAURANTEED. INFORMATION TAKEN FROM THE COLDWELL BANKER HOMEBUYER GUIDEBOOK Top ITEMS NEEDED FOR A CREDIT APPLICATION EMPLOYMENT Addresses for two full years Gross monthly Income W-2s, if available Proof of pensions, retirement, disability or Social Security Proof of income from rentals, investments, ect. Year to date pay stub If self-employed: Two years 1040 Tax Returns Current year profit and loss statement CREDITORS Each creditor's name, address and type of account Account numbers Monthly payments and approximate balances Amount of child care expenses BANKING Names and addresses of saving institutions Account numbers for all accounts Type of accounts and present balances MISCELLANEOUS List of assets in stocks, bonds, land 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 & DD-214 Cash or check to pay for application fee REALTORS Copy of sales agreement Copy of listing on property DID YOU KNOW THAT A MAJOR CONTRIBUTOR TO YOUR ABILITY TO OBTAIN A MORTGAGE IS YOUR CREDIT REPORT. IT MAY BE USEFUL FOR YOU TO OBTAIN A PERSONAL CREDIT REPORT BY CALLING EACH OF THE THREE CREDIT REPORTING AGENCIES 1. EQUIFAX/CBI PO Box 740256 Atlanta, GA 30374 1-800-378-2732 /1-800-685-1111 2. TRANS UNION CORP. PO Box 390 Springfield, PA 19064 800-851-2674 at prompt press 1 at following prompt, press 9. 3. EXPERIAN/TRW 701 Experian Pkwy, PO Box 949 Allen, TX 75013 1-800-422-4879 UNDERSTANDING HOW YOUR SCORE IS CREATED AND WHAT IS ON YOUR CREDIT REPORT IS IMPORTANT SO YOU CAN BE SURE THAT IT IS ACCURATE. OF SPECIAL NOTE OBTAINING TOO MANY CREDIT REPORT INQUIRIES CAN ALSO NEGATIVELY AFFECT YOUR CREDIT Email Jennifer Singer with any questions regarding Alan Schrum of Affiliated Financial, Jennifer's Lender of choice. You may also call Jennifer at 303-409-6126 and also Alan Schrum at 303-267-0408. Top TIPS ON REPAIRING AND AVOIDING CREDIT PROBLEMS There are many reasons why credit problems occur.... Here are some possible explanations - You were a co-signer on a loan that was not paid on time. - You allowed someone else to use your credit cards. - You may have thought your spouse paid the bill. - You thought your insurance company was going to handle the payment. - You are divorced but your former spouse had credit problems. Some lenders will work with you to find a credit solution. They have special programs and financing options that allow you to get a mortgage even with minor credit blemishes. However, it is in your best interest to keep your credit report in good standing. Here are some helpful hints for your credit report - Never go over 90 days past due on any accounts - Keep your credit card debt below 50% of your monthly obligations - If paying bills after the due date, always pay within the grace period. - If at all possible try to avoid any "lates" on mortgage payments. Email Jennifer Singer with any questions regarding Alan Schrum of Affiliated Financial, Jennifer's Lender of choice. You may also call Jennifer at 303-409-6126 and also Alan Schrum at 303-267-0408. Top REFINANCING YOUR HOME There are many "rules of thumb" used to determine when is the right time to refinance a home. You might have heard something like, the interest rate on the new loan must be at least two percent less than the old loan or it is not a good decision. Another frequently quoted but just as frequently incorrect statement says that if your loan is less than two years old you shouldn't refinance now. Neither of these is entirely accurate. The decision to refinance a home should be based on whether you will own the property long enough to recapture the expenses connected with the new loan. The procedure can be as simple as subtracting the proposed new house payment from the existing payment to find out what the monthly saving will be, Then, divide the monthly savings into the cost of refinancing to determine the recapture point in months. If you are planning to stay in the home at least as long, then, in most cases, you should refinance. The only exception is that when the existing mortgage is in the last few years of its life, it could be amortizing very fast. Usually, this will not occur unless you are in the last quarter of the loan life. On refinancing a home, the points paid to acquire the loan, as well as the loan origination fee, cannot be written off as interest full paid in the year paid. They must be spread over the life of the mortgage. For that reason, you will probably be better off getting a "par value" loan which means there will be few or no points charged. Even though the rate will be higher, the interest is full deductible as long as the federal limits are not exceeded, and you the cash in your account to earn interest. If you are considering refinancing it probably means that the rates have gone done or you are in a different (perhaps) better financial loan situation. It is important to identify your personal situation and have guidance in doing so. I am happy to help you with this difficult decision and I always recommend you contact a lender for additional information and support. Email Jennifer Singer with any questions regarding Alan Schrum of Affiliated Financial, Jennifer's Lender of choice. You may also call Jennifer at 303-409-6126 and also Alan Schrum at 303-267-0408. Top Below are several links which will be very useful to you in your query. Home Price Comparison Index - Will allow you to compare your current home with other homes aound the nation. Rent vs Buy Calculator - Compare buying a home to renting. Max Loan Calculator - Find your maximum loan amount. Monthly Payment Calculator - Find out what your monthly payment will be. Mortgage Rates - Monster.com's Mortgage Rates. Pre-Qualify Calculator - Find out what you can prequlify for. Top