FINDING THE RIGHT LENDER 

Todays mortgage programs offer a loan for just about everyone.  Mortgage rates couldn't be much better and housing costs are building equity every day you own your home. If you are serious about taking advantage of the housing and cost of money environment we're in, there is no amount of information we can websource you that can possibly equal the time you spend talking directly to a mortgage professional.  To make sure you know your options and your qualifications talk to one of our Lenders Now !

Whether you are buying a home, refinancing your current home or, looking for a home equity loan simply click on the appropiate State and you're on your way...

Choose the state where the property is located:     

SOME MORTGAGE TIPS

Choosing a lender is a matter of doing your research regarding loan types, local interest rates available and the fees involved. Then, compare other sources making sure you are aware of all of the factors involved in what really effects rates.  If a lender gives you a mortgage quote without knowing your credit score, your income, your loans amount, your downpayment, upfront fees and, the type of property and occupancy, chances are you may not have a valid quote and you should want to be very clear that you are on the same page regarding your quote.  Make sure you are comparing apples to apples when you compare rates.  Referals are a great way to look for a lender but, keep in mind your neighbor may always want you to think he or she got a great deal and tell you a rate that is unavailable or not disclose that they paid a Discount poit or tw to obtain that rate. We have seen people walk away from a very good and honest quote because they heard of a better rate somewhere else only to find that the bottom line was not the "great deal" they thought they were getting. The comfort level you feel from a lender will go a long way in obtaining a good leder and rate. You should have a discussion about length of time you intend to stay in the home, Product types and risks, the loan process from start to finish and the lenders ability to get the job done in the time available.

Local Banks 

Normally your local bank has an overhead that keeps them from being really competitive for your primary mortgage needst but, they can be a great place to start your research about rate and costs.  If you have an account at a local bank, they may have special offerings for their customers for home loans. Banks are good places to look for second mortgages (to help with a down payment) and home equity loans to pull the equity out of your home for debt consolidation etc.

Mortgage Bankers and Brokers

Mortgage bankers and brokers are now the main providers of home mortgage loans.  Mortgage bankers sell all the loans they originate to large investors and financial institutions, sometimes government backed, that hold large bundles of such loans. Mortgage brokers originate mortgages for other lenders and are often able to create a loan product or combination of products that will be right for you.

The Process  

Your Initial Meeting with a Mortgage Professional

The mortgage approval process usually starts with an initial conversation where you and the loan professional layout the potential loan with all of your needs and abilities. You will need to have access to documentation to verify your employment, your income, your assets and consider the lender's access to your credit history.

You may prefer to make mortgage arraingements before looking for a house to understand, in advance, if you qualify for a loan and the amout of a loan you can afford. This phase is called pre-qualification and can save you time and hassle by making sure you are looking within your means.

To complete the Basic Mortgage Application, you should start to collect :

Most Lenders or Brokers have a processing staff that can get you DU (Desktop Underwriting) decision within 24 hours. In those cases you will know exactly what you'll need to close your loan. But, even then you should look for the following...

• Your bank account numbers and the address of your bank , along with checking and savings account statements for the prior 2 months ALL PAGES!
• Pay stubs, W2's, tax returns normally for two years, or other employment documentation and income verification ( Unless you choose a stated income product)
• Show 12 months of payment history if you are currently renting.
• Tax returns, if you are self-employed. Or, a letter from your CPA if you are Stating your income. This letter would normally simply state the length of time you've been in the same line of work at the same address for the past two years.
• Any gift letters, if you are using a gift from a parent or relative to help with the down payment and/or closing costs. This letter states that the money is in fact a gift and will not have to be repaid. Your Mortgage Loan professional should have a copy of this simple document for you.
• A purchase contract for the house (if you have one)
• You should contact your hazard insurance agent and discuss your mortgage intensions. Your Lender will finalize the details with your agent after you provide his name and phone number.

Having these items on hand when you talk to your lender or Broker will help ensure you can make this loan happen amd in a timely manner. Some lenders ask for an application fee before they pull your credit or send you a loan package.  This is simply to ensure they do not invest their time and experience in someone who doesn't want to stick with the terms they have agreed to.  If it is their policy, it's not unreasonable.  For refinances, the borrower normally pays for the appraisal at the door.  After the you have committed to a lender, you should have a pretty firm committment within a few days of submitting everything the underwriter asks for.

Often the key to a smooth loan process is you...

Once you complete your application and sign any the required documents, your file will be given to a processor who will sort your paperwork and possibly verify your employment, bank balances, and other information.

Be sure to act promptly to requests regarding any information while the processing is taking place.

The processor is gathering this information prior to presenting it to an underwriter. The underwriter matches all the information to the guidelines set forth for the mortgage product you and your loan professional have selected.  The underwriting phase will to determine if the applicant meets all of the criteria. With underwriting done and once approved, a lender should be able to give you a letter of commitment, which is a promise from the lender to fund a loan.

Here's a quick application to get you fast results in your search for a mortgage....

After the Mortgage Application

Your lender will begin the task of verifying all the information you've provided.

This process can take anywhere from one to four weeks, depending on the type of loan you choose, and the length of time it takes for you to make this requested documentation available.

Within three business days after your application, your lender must give you a good faith estimate of your closing costs along with a document showing monthly payment and the cost (Truth in Lending) of your financing over the life of the loan. Remember to stay in touch with your lender to ensure your loan is on track...your lender will let you know when you're a pest. Don't be intimidated by the closing process.  If you are unsure about any aspect of the process, review what to expect with your lender.

An Important Tip... Once you receive your approval, and you're waiting to close on your new home, watch what you spend on credit. Your mortgage lender may need to do a final check of your credit report or bank accounts to make sure you're not taking on any new debt or tapping your cash reserves.