We understand that the process can seem overwhelming, but with a good lender and the right education, you don't need to stress. After all, this is probably the biggest purchase you'll ever make! Take a deep breath and relax!

Think of the first meeting with your lender as a "get to know you session". We simply want to get to know you, learn a few basics, and determine your goals to see how to proceed.

Once you are ready to apply and see how much loan you qualify for, we will need to collect documentation. This includes proof of employment, your income, any debt you have, credit score, and your assets. Additionally, we will require information on how much you plan to put down on your home. By providing these documents upfront, we can expedite the loan qualification process and help determine the best loan options available to you. 

From this point, we will build a game plan to help you find a home in the price range you qualify for and comfortable with.

To determine how much home you can afford, we need to look at your debts, income, and the interest rate you qualify for.

Calculating your buying power is crucial in this process. It takes into account all these factors to determine the maximum amount you can comfortably spend on a home. By considering your financial situation, we can help you make an informed decision that aligns with your budget and goals. To accurately assess your buying power, we would need specific details about your income, expenses, and any outstanding debts. This information will enable us to provide you with a comprehensive analysis of what is financially feasible for you.

For Example:

A hypothetical borrower makes $6,7000 per month, qualifies for a 7% interest rate*, and has monthly obligations of $200 per month.

This borrower would be able to afford roughly $347,000

* Loan Program is an FHA Program with 3.5% down payment ($12,600). Purchase price would be $360,000, with a base loan amount of $347,400. Interest rate is a 30 year fixed 7% / 7.31% APR. P&I payment $2,351.70 (does not include taxes, insurance(s) or HOA

Here’s what the typical monthly mortgage payment includes:

Principal

Interest

Homeowners Insurance

Property Taxes

Mortgage Insurance (Depending on loan program and down payment)

Note - HOA is paid separately BUT used in your debt to income ratio

Home Insurance

Homeowners insurance pays out if an event covered under your policy damages or destroys your home or belongings. It will also cover you in certain instances if you injure someone else or cause property damage. Because it gives you property and liability coverage, a homeowners policy is a financial safety net.

Mortgage Insurance

Mortgage insurance is required when your Loan to Value on a Conventional Loan (the balance or your loan divided by the value of your home) is higher than 80%. Or if you get an FHA Loan. Mortgage Insurance actually protects the lender in case of default on the loan. The monthly premium will be included in the borrower's monthly mortgage payment.

"I have encountered some financial difficulties in the past, resulting in negative marks on my credit history such as bankruptcies, charge-offs, and collections. As a result, I am uncertain if I meet the necessary qualifications for obtaining credit."

Do not assume that you can not qualify based on items reporting on your credit. Schedule a consultation with a lender and lets talk about what your concerns are and lets determine together if you need to wait, clean anything up on your credit, pay items off, or if you are good to go as is.

You wont know unless you ask!

We have all types of programs available that we can look at and see which program is right for you!

Conventional

FHA
Jumbo

Down Payment Assistance

VA

Bank Statement

P&L

DSCR

Investment Programs

Reverse Mortgage

Cash Out Refinance

Rate and Term Refinance

and so much more!

So let's talk about your goals, financial situation and see which loan program is right for you!

"Cash to close" is amount of money needed to close on your loan and will include a combination of the down payment and closing costs.

Down Payments will vary depending on the loan program, Closing Costs can range between 3-5% of the loan amount but will be dependent on the structure of the loan.

All deposits need to be sourced AND seasoned! "Sourced and Seasoned" means funds need to be deposited in your bank account prior to the 2 most recent bank statements in order to use those funds to close on the home.

If you need a little assistance with your cash to close, some loan programs allow sellers to contribute to closing costs or you can look to get a gift. Who can gift and how much is dependent on each loan program. Generally this is a family member, but there are other options we can go over during your individual consultation.

Earnest money has become standard, especially in today's competitive real estate markets. The purpose of earnest money is to tell the seller that you're serious about purchasing the home. By backing up your offer with some cash, a seller is more likely to trust that you'll follow through with the home purchase.

This money is put down to go into contract, but do not worry this is not an extra expense. The earnest money will be applied to your cash to close amount that will be due at closing.