help home buyers
We can help home buyers with all types of
fixed rate and adjustable rate mortgages
You may qualify for a Fannie
Mae, Freddie Mac, FHA or VA mortgage loan. We also have Jumbo Loans and Expanded
programs for people with special loan size, income documentation or credit
Now - Apply Here
Iíve had bad credit, and
I donít have much for a down-payment. Can I become a homebuyer?
bad credit and 5% down, you
may be a good candidate for one of the expanded mortgage
programs that are available.
I am self employed and can't
document all of my income. Can I become a homebuyer?
good credit we can get you up to 100% financing. If you have had some
credit issues and 10% down, you
may be a good candidate for one of the expanded mortgage
programs that are available.
Iím a single mother. How
would I go about buying a home?
Although you wonít have the benefit of two incomes on which to qualify
for a loan, thereís no reason that you canít become a homeowner.
Become familiar with the process, pick a good real estate broker, and
think about getting pre-qualified for a loan.
Should I use a real estate
broker? How do I find one?
Using a real estate broker is a good idea, especially for novice
homebuyers. All the details involved in
home buying, particularly the financial ones, can be mind-boggling. A
good real estate professional can guide you through the entire process
and make the experience much easier.
A real estate broker will be well acquainted with important things youíll want to know
about a neighborhood you may be considering...the quality of
schools, the number of children in the area, the safety of the
neighborhood, traffic volume, and more.
He or she will help you figure
the price range you can afford and search the classified ads and
multiple listing services for homes youíll want to see. With immediate
access to homes as soon as theyíre put on the market, the broker can
save you hours of wasted driving-around time.
When itís time to make
an offer on a home, the broker can point out ways to structure your deal
to save you money.
You may want to have the seller pay some of your
closing costs. Seller contributions will help you avoid any cash
crunch at closing time.
He or she may help explain the advantages and
disadvantages of different types of mortgages, guide you through the
paperwork, and be there to hold your hand and answer last-minute
questions when you sign the final papers at closing. And you donít
have to pay the broker anything! The payment comes from the home seller
- not from the buyer.
How much money will I have
to come up with to buy a home?
Well, that depends on a number of factors, including the cost of the
house and the type of mortgage you get. In general, you need to come up
with enough money to cover three costs: earnest money -
the deposit you make on the home when you submit your offer, to prove to
the seller that you are serious about wanting to buy the house; the down
payment, a percentage of the cost of the home that you must pay
when you go to settlement; and closing costs, the costs
associated with processing the paperwork to buy a house.
When you make an offer on
a home, youíre real estate broker will put your earnest money into an
escrow account. If the offer is accepted, your earnest money will be
applied to the down payment or closing costs. If your offer is not
accepted, your money will be returned to you. The amount of your earnest
money varies. If you buy a HUD home, for example, your deposit generally
will range from $500 - $2,000.
The more money you can
put into your down payment, the lower your mortgage payments will be.
Some types of loans require 10-20% of the purchase price. Many
first-time homebuyers qualify for loans that require only 3% to 5% down
- and sometimes less.
Closing costs - which you
will pay at settlement - average 4% of
the price of your home. These costs cover various fees your lender
charges and other processing expenses. When you apply for your loan,
your lender will give you an estimate of the closing costs, so you
wonít be caught by surprise.
How do I know if I can get
Use our simple mortgage
calculators to see how much mortgage you could pay - thatís a good
start. If the amount you can afford is significantly less than the cost
of homes that interest you, then you might want to wait awhile
Another good idea is to
get pre-qualified for a loan. That means you apply
for a mortgage before you actually start looking for a home. Then
youíll know exactly how much you can afford to spend, and it will
speed the process once you do find the home of your dreams.
How do I find a lender?
With all of the programs available here, you can finance a
home with a loan from a bank, a savings and loan, a credit union, a
private mortgage company, or various state government lenders.
Different Investors can offer quite different interest rates and loan
fees; and as you know, a lower interest rate can make a big difference
in how much home you can afford. Evaluate several loan programs before
you decide. Most lenders need 3-6 weeks for the whole loan approval
In addition to the mortgage
payment, what other costs do I need to consider?
Well, of course youíll have your monthly utilities. If your utilities
have been covered in your rent, this may be new for you. Your real
estate broker will be able to help you get information from the seller
on how much utilities normally cost. In addition, you might have
homeowner association or condo association dues. Youíll definitely
have property taxes, and you also may have city or county taxes. Taxes
normally are rolled into your mortgage payment.
So what will my mortgage
Most loans have 4 parts: principal: the repayment of the amount you
actually borrowed; interest: payment to the lender for the money
youíve borrowed; homeowners insurance: a monthly amount to insure the
property against loss from fire, smoke, theft, and other hazards
required by most lenders; and property taxes: the annual city/county
taxes assessed on your property, divided by the number of mortgage
payments you make in a year.
Most loans are for 30 years, although 15
year loans are available, too. During the life of the loan, youíll pay
far more in interest than you will in principal - sometimes two or three
times more! Because of the way loans are structured, in the first years
youíll be paying mostly interest in your monthly payments. In the
final years, youíll be paying mostly principal.
What do I need know when I apply for a mortgage?
question! If you have everything ready you when you apply,
youíll save a good deal of time. You should have:
1) social security
numbers for both your and your spouse, if both of you are applying for
2) copies of your checking and savings account statements for
the past 3 months
3) evidence of any other assets like bonds or
4) a recent paycheck stub detailing your
5) copies of your last 2 yearsí income tax
statements and W-2 forms
6) the name and number of someone who can verify your
employment in HR.
Depending on your lender, you may be asked for other information.
You won't need all of this information when you apply online but you should
locate it and have it ready for your processor.
I know there are lots of
types of mortgages - how do I know which one is best for me?
Youíre right - there are many types of mortgages, and the more you
know about them before you start, the better. Most people use a
fixed-rate mortgage. In a fixed rate mortgage, your interest rate stays
the same for the term of the mortgage, which normally is 30 years. The
advantage of a fixed-rate mortgage is that you always know exactly how
much your mortgage payment will be, and you can plan for it. Another
kind of mortgage is an Adjustable Rate Mortgage (ARM). With this kind of
mortgage, your interest rate and monthly payments usually start lower
than a fixed rate mortgage. But your rate and payment can change either
up or down, as often as once or twice a year after your initial lock
period of 2 to 5 years expires. The adjustment is tied to
a financial index, such as the U.S. Treasury Securities index.
advantage of an ARM is that you may be able to afford a more expensive
home because your initial interest rate will be lower.
There are several
government mortgage programs that might interest you, too. Most people
have heard of FHA mortgages.
FHA doesnít actually make loans. Instead,
it insures loans so that if buyers default for some reason, the lenders
will get their money. This encourages lenders to give mortgages to
people who might not otherwise qualify for a loan.
When I find the home I
want, how much should I offer?
Again, your real estate broker can help you here. But there are several
things you should consider:
1) is the asking price in line with prices
of similar homes in the area?
2) Is the home in good condition or will
you have to spend a substantial amount of money making it the way you
want it? You probably want to get a professional home inspection before
you make your offer. Your real estate broker can help you arrange one.
3) How long has the home been on the market? If itís been for sale for
awhile, the seller may be more eager to accept a lower offer.
much mortgage will be required? Make sure you really can afford whatever
offer you make.
5) How much do you really want the home? The closer you
are to the asking price, the more likely your offer will be accepted. In
some cases, you may even want to offer more than the asking price, if
you know you are competing with others for the house.
What if my offer is
often are! But donít let that stop you. Now you begin negotiating.
Your broker will help you. You may have to offer more money, but you may
ask the seller to cover some or all of your closing costs or to make
repairs that wouldnít normally be expected. Often, negotiations on a
price go back and forth several times before a deal is made. Just
remember - donít get so caught up in negotiations that you lose sight
of what you really want and can afford!
So what will happen at
Basically, youíll sit at a table with your broker, the broker for the
seller, probably the seller, and a closing agent. The closing agent will
have a stack of papers for you and the seller to sign. While he or she
will give you a basic explanation of each paper, you may want to take
the time to read each one and/or consult with your agent to make sure
you know exactly what youíre signing. After all, this is a large
amount of money youíre committing to pay for a lot of years! Before
you go to closing, your lender is required to give you a booklet
explaining the closing costs, a "good faith estimate" of how
much cash youíll have to supply at closing, and a list of documents
youíll need at closing. If you donít get those items, be sure to
call your lender BEFORE you go to closing. Be sure to read our booklet
on settlement costs
courtesy of Addie Mae . It will help you
understand your rights in the process. Donít hesitate to ask
- Apply Here