Know How Much Home You Can Afford
How much you can afford? What would the monthly payments be? What's the
right mortgage type for you? Just click any of the buttons below to get
the answers to these questions and more.
· Affordability
Calculator
· Payment
Calculator
· Fixed-Rate
vs. Adjustable Rate
· Buying
vs. Renting
Documents Needed When Completing A Loan Application
Bring the following items with you to the first meeting with your
potential lender:
· Copy
of your Purchase & Sale Agreement (if you have already made an offer on
the home).
· Your
present mortgage information (if applicable).
· Two-
year history of employment and verification of income sources.
· If
self-employed, copies of the past two years Federal Income Tax Returns.
· Information
about your checking, saving and credit card accounts.
· Name,
account number and outstanding balance of each of your debts.
· Application
deposit for credit report and appraisal.
Information about any assets
If FHA loan - copy of Social Security Card and photo ID.
If VA loan - copy of Eligibility Certificate or DD214.
Questions to Ask a Lender
· Are
both fixed-rate and adjustable-rate mortgages available?
· What
is the interest rate?
· How
long can I lock-in the financing at the current interest rate?
· Is
a float down lock available in case rates drop after I have locked in?
· What
are the other fees a lender may charge me in conjunction with my loan?
· Are
funds available for a second mortgage?
On adjustable loans:
· How
often will the interest rate be adjusted?
· Is
there a maximum limit (cap) on each rate adjustment?
· How
often will the monthly payment be adjusted?
· Is
there a ceiling (lifetime cap) on the payment adjustments?
· Can
the term of the loan be extended?
· What
is the maximum rate that can be charged over the life of the loan?
· Is
there any potential for negative amortization?
· Is
there a pre-payment penalty clause? This involves extra charges for
paying off the loan before maturity.
· What
is the grace period? How late can a monthly payment be made before a
late charge is assessed? What will happen if a payment is missed?
· If
I sell my home, will my loan be assumable by the buyer?
· Do
I have to pay points to get your mortgage? Usually lenders charge points
for the cost of giving you a mortgage loan. A point is 1% of the loan
amount.
· Will
the lender require mortgage insurance?
· Is
the loan serviced locally or is the servicing sold?
· Ask
for a written good faith estimate.
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