The Twin Team
Loan Application Checklist
For many buyers, applying for the mortgage loan is one of the more stressful aspects of buying a home. The loan application need not be a stressful time. By following a few easy steps, you'll sail through the loan application process. I'm here to help you through this process and work closely with your lender from contract to close The price you can afford to pay for a home will depend on several factors, such as:
* Gross verifiable income
* Funds you have available for the down payment, closing costs and cash reserves required by the lender
* Your current debts
* Credit history
* A credit score of 620 score on higher to get a mortgage
* Current interest rates
Another figure lenders use to evaluate how much you can afford is the housing expense-to-income ratio. It is determined by calculating your projected monthly housing expense, which consists of the principal and interest payment on your new home loan, property taxes and hazard insurance (also known as PITI).
Each buyer is unique and a mortgage professional can help you find out just what you can afford. | Your income and your debts will typically play the biggest roles in determining your price range.
1. Make a list of any questions you have about the loan program.
Be sure you understand the advantages and disadvantages of the various mortgage programs for which you may qualify, including the advantages and disadvantages of Fixed Rate Mortgages versus Adjustable Rate Mortgages.
2. Decide if you want to lock-in or float the loan's interest rate.
Locking-in the rate means that the lender commits to the mortgage interest rate for the loan - typically at the time the loan application is submitted.
3. Decide if you want to pay additional points to lower your interest rate. Typically you can elect to pay additional points (each point is 1 percent of the mortgage loan payable in cash at closing) to lower the interest rate of your mortgage loan.
4.Gather your paperwork, including any Divorce papers, Discharge of Bankruptcy, etc.