Understanding The Loan Process
December 30, 2009 by Rob Spring · Leave a Comment
An Overview of the Loan Process
Make no mistake, there’s a lot involved in getting a mortgage loan. You wouldn’t be here on our website if you could fill out a one-page application and get the best loan for you funded the same day. Don’t worry, we do most of the heavy lifting for you, so [...]
Being Pre-qualified vs. Being Pre-approved
December 10, 2009 by Rob Spring · Leave a Comment
Are you ‘pre-qualified’ or ‘pre-approved’ for a loan?
Before you begin to shop for a new home, you should set up a time to meet with me so we can figure out how much you can afford. This will put you in a better position as a buyer. That’s when it is important to understand the distinction [...]
Loan Application Checklist
November 30, 2009 by Rob Spring · Leave a Comment
Loan Application Checklist
In general, the documentation you will need for a “FULL DOC” loan:
(Download a copy of this list in PDF Format)
Documents needed for a Full Doc Mortgage- PDF.pdf
Property Information (if you already have a contract on a house)
Purchase Agreement (signed by all parties).
Copy of legal description and MLS sheet.
If you are selling your current [...]
What is a ‘Rate Lock Period’?
November 30, 2009 by Rob Spring · Leave a Comment
What is a “rate lock period”? How can you make sure your rate is low?
A rate lock or a rate commitment is a lender’s promise to hold a certain interest rate and a certain number of points for you for a specified period of time while your application is processed. This prevents you from going through your [...]
The DO’s and DON’Ts When it Comes to Getting a Loan
November 23, 2009 by Rob Spring · Leave a Comment
Things to avoid before buying a home or refinancing an existing mortgage:
Many new homebuyers make the mistake of rushing out to buy things to fill their home with as soon as the seller accepts their purchase offer and the lender pre-approves their loan. But there are still a few major hurdles to overcome before the [...]
Verifying Your Down Payment Sources
November 23, 2009 by Rob Spring · Leave a Comment
Verifying Your Down Payment,
Closing Costs, Assets, Income and Debts
A critical step in the mortgage loan application process is to verify the sources for your down payment, closing costs and assets, as well as documenting income and debts. The lender uses this step to determine your qualifications as a borrower.
Down Payment & Closing Costs
Documenting that the [...]
What is my Debt to Income Ratio?
November 23, 2009 by Rob Spring · Leave a Comment
Debt to Income Ratio
Your debt to income ratio is simply a way of determining how much money is available for your monthly mortgage payment after all your other recurring debt obligations are met.
Debt limit (Not necessarily a hard and fast rule)
There is generally a debt limit associated with each type of loan, such as a [...]
What is a FICO score?
November 23, 2009 by Rob Spring · Leave a Comment
Scoring your Credit – How’s your FICO?
In today’s increasingly automated society, it should come as no surprise that when you apply for a mortgage, your ability to pay can be reduced to a single number. All the years you’ve been paying your mortgage, car payments, and credit card bills can be analyzed, sliced, diced, spindled [...]
What is a Credit Score?
November 23, 2009 by Rob Spring · Leave a Comment
What is a credit score?
Before deciding on what terms lenders will offer you on a loan (which they base on the “risk” to them), they want to know two things about you: your ability to pay back the loan, and your willingness to pay back the loan. For the first, they look at your income-to-debt [...]
Closing Costs Related to Your Loan
November 20, 2009 by Rob Spring · Leave a Comment
Loan-Related Closing Costs
Loan Origination Fee
This covers the administrative expenses in setting-up and processing the loan. The loan origination fee may be a percentage of the mortgage amount.
Points (optional)
An option for the home buyer is to pay points to lower the interest rate at which the loan will be repaid. Each point equals 1 percent of [...]