Mortgage Terms:
Points - A
point is a one-time charge paid to the lender at closing to obtain
a lower intreset rate on the mortgage loan. One
point is equal to 1% of the loan amount (i.e., two points on a
$100,000 motgage would cost $2000).
Term - The length of time from when you close on your mortgage
loan to the time the mortgage note will be paid in full.
Type
of property - Is the type of property you are purchasing
or refinancing a Single Family Residence, Condo, Townhome, Villa
or Investment property?
Down
Payment - The monies put down on the purchasing of a property. Most
programs require anywhere from 3% to 20% down, however, this may
vary depending on loan.
Mortgage
Insurance - If your down payment is less than 20% you may be required to
pay this fee. It is insurance to protect
the lender.
Cedit - The
better your credit rating, the better chance you have of securing
a mortgage loan and a lower intreset rate. Bad
credit reflects high risk to the lender and you may find that your
mortgage application is denied or approved at a higher intreset
rate. The goal is to keep your credit good at all costs.
Providing
The Necessary Documentation:
If You Are Self-Employed:
- Two
Years' signed personal & business tax returns
- Current
balance sheet
- YTD
Profit & Loss
If
You Are Retired:
- Social
Security Award Letter
- 1099
or 2 months' bank statements
- Copy
of pension check or supporting documentation
If
You Work For A Company:
- Last
two most recent paystubs showing year to date income
- Last
two years tax returns and W-2 forms
Other
Information:
- Most
recent two months' bank statements
- Credit
card company names and account numbers
- Any
other installment loan names and account numbers (automobiles,
boats, 2nd Mortgages)
- Copy
of Divorce Decree, separation agreement, alimony (if applicable)
If
You Are Buying:
- Signed
Sales Contract
- Real
Estate agent's name, address, fax & telephone numbers
If
You Are Refinancing:
- Copy
of note/deed and survey
- Copy
of settlement agreement
- Copy
of homeowner's insurance policy
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