Please contact our mortgage consultants at a location near you.
Buying a home is not a difficult process. It is basically a ladder of events. Our brokers are happy to walk you through the process.
Lenders look at the last 2 plus years of employment to verify a steady source of income
There are various types of loan programs design to suit the financial needs of individual borrowers. In deciding the type of loan program for which you would like to qualify, it is important to consider your loan amount ……
A point is one percentage of the loan amount. Lenders offer rates which may be lower but require paying points. A rate of 7.875% with 1 point for a loan of $100,000 would require the borrower to pay a total of $1000 to the lender upon settlement of the loan. A rate of 8.000% with 0 points will require no payment to the lender, but the interest rate is slightly higher. Points will lower rates and are of benefit if you have some cash for the down payment and can therefore lower the rate. You should intend to keep the loan for its full term.
Pre-approval is a new trend in the mortgage industry that allows a borrower to be pre-approved for a loan before shopping for a home. Sellers and real estate agents will know you are a serious and qualified buyer. Pre-approval can be obtained within seven days of filling out the online loan application. Final approval of the loan will be subject to an appraisal of the property.
The loan requires certain documents for approval. These may include credit reports, the loan application, an appraisal of the property, income verification, asset verification, and various other documents depending on the complexity of your personal financing situation.
The settlement closing of a loan requires about 30 days from the date of the locked-in rate. While at settlement, you will read and sign numerous documents related to the purchase or refinance of your property. Your settlement agent will be able to answer any questions you may have regarding these documents. Settlements usually run smoothly and are completed within 60 minutes.
Once a loan has been approved by the lender, the buyer is asked to go to settlement to sign papers, and the loan process is complete! There are certain costs involved in closing a loan which usually amount to about 2%-6% of your mortgage loan. For example, if your mortgage loan is $85,000, your closing costs might range from $1700 to $5100. These closing costs will be in addition to your down payment on the house.
Mortgage payments consist of costs for principal, interest, property tax, Home Owners Insurance, and mortgage insurance.
Refinancing involves obtaining a new mortgage loan on a property already owned – often to replace existing loans on the property. When the mortgage rates are low, it may be a good time to refinance. Refinancing can save you money on your monthly mortgage payments.
A lock-in, or rate lock option, ensures the borrower a commitment to a specified mortgage rate, including not only the interest rate but also its discount/origination points. The borrower must agree with an authorized representative of Hometown Equity Mortgage Company for a specific interest rate in order to choose this option. It is also possible to choose not to lock-in a specific rate, but instead to “float” for a certain number of days. Floating means simply a borrower electing to have interest rates move up and down according to market conditions until a specific rate is elected to be locked-in. All borrowers electing this option must lock-in a rate and its discount points at least five (5) business days prior to a scheduled settlement, or else your settlement will be delayed.
At Hometown Equity Mortgage, loan applicants can lock rates over the phone using a credit card. In order to lock-in rates and points, Hometown Equity Mortgage accepts a non-refundable fee of $357.00. This amount will be credited toward appraisal and credit report fees once the loan settles. Lock-in rates are usually valid for 30 to 45 days, depending upon a borrower’s specific needs.