Mortgages - What you need to know!

This first time home buyer flowchart helps to demystify the home buying process.  From establishing affordability, to credit scores, down payment information, and the proper documents you need.  You might notice this is from another lender, but the information is the same for all lenders and for soon to be home buyers.If you have any questions at all give me a call.

With home prices on the rise and for-sale homes in short supply in some markets, it's no wonder home buyers are looking for an edge. Some think that making an offer through the seller's agent, rather than their own buyer's agent, will save them money and provide an advantage amongst multiple offers. The answer isn't exactly clear since there are both pros and cons to purchasing a home through the seller's agent. Reduced commission? Maybe. Some listing agents will indeed give the seller a break on their commission if there is no buyer's agent, but that's not automatic. Rather, it's solely up to the agent to decide. Some listing agents -- not all, but some -- will offer a discount to the seller if they find their own buyer. In that case, a seller might say, 'I have these (two offers) and one is from my listing agent and one is from a buyer's agent, so instantly, I save maybe 1 percent. That does happen. Sometimes, not all the time. Most agents unde...

Mortgage underwriting is the process of evaluating a borrower's financial capacity to repay a loan. If you are a borrower, then the lender verifies your income, employment status, assets, credit standing etc and then determines whether or not you are creditworthy and are capable of paying off the mortgage loan. The work of an underwriter also involves an appraisal of the property value. Generally, lenders appoint underwriters to verify the information provided in your loan application and other related documents. They may also contact your employer to verify your role in the work area and your income at that position. Based on the evaluation, the underwriter decides whether the mortgage application should be approved or rejected. The mortgage loan underwriter also predicts the rate and term of the loan that are suitable for providing a certain loan amount. Usually lenders look into three areas before approving a loan amount. These include... Financial strength: Lenders take into ...

This infographic illustrates the closing costs associated with borrowing a loan. Closing costs include the origination fee, application fee, appraisal fee, transfer tax, title insurance, discount points and other miscellaneous fees. Closing costs on average are equivalent to 3% of the total home price. Infographic: Closing Costs

Mortgage Loan Process The loan application that you have submitted goes through a process of review before the lender gives his or her approval. The lender appoints a person, who is known as underwriter, to judge your creditworthiness. The mortgage underwriter verifies your loan application and gives green or red signal to the lender. After the lender approves the mortgage, he/she decides upon the date of closing. The closing involves the signing of legal documents including a mortgage note which obligates you to repay the loan on time. At closing, the lender requires you to pay the costs of originating and processing the loan. You will also have to deposit property taxes and insurance premiums into an escrow account which ensures that these payments will be paid on time. The remaining part of the taxes and insurances are paid along with the monthly mortgage payments in order to protect the lender from tax liens and uninsured losses. To sum up, mortgage loan helps you in fulfilli...

This infographic illustrates credit scores and their affect on obtaining your preferred mortgage loan. The credit score is divided in to payment history, amount owed, credit history, new credit and the types of credit. Before applying for a loan , be sure to check your credit 60 days ahead of time.