Mortgage Resources

How much can you afford? What would your monthly payments be? What’s the right mortgage type for you? Just click any of the buttons below to get answers to these questions and more.

Documents needed when completing a loan application

Bring the following items with you to the first meeting with your potential lender:

  • Copy of your Purchase & Sale Agreement (if you have already made an offer on the home).
  • Your present mortgage information (if applicable).
  • Two- year history of employment and verification of income sources.
  • If self-employed, copies of the past two years Federal Income Tax Returns.
  • Information about your checking, saving and credit card accounts.
  • Name, account number and outstanding balance of each of your debts.
  • Application deposit for credit report and appraisal.
  • Information about any assets.
    • If FHA loan – copy of Social Security Card and photo ID.
    • If VA loan – copy of Eligibility Certificate or DD214.

 

Questions to ask a lender

  • Are both fixed-rate and adjustable-rate mortgages available?
  • What is the interest rate?
  • How long can I lock-in the financing at the current interest rate?
  • Is a float down lock available in case rates drop after I have locked in?
  • What are the other fees a lender may charge me in conjunction with my loan?
  • Are funds available for a second mortgage?

On adjustable loans:

  • How often will the interest rate be adjusted?
  • Is there a maximum limit (cap) on each rate adjustment?
  • How often will the monthly payment be adjusted?
  • Is there a ceiling (lifetime cap) on the payment adjustments?
  • Can the term of the loan be extended?
  • What is the maximum rate that can be charged over the life of the loan?
  • Is there any potential for negative amortization?
  • Is there a pre-payment penalty clause? This involves extra charges for paying off the loan before maturity.
  • What is the grace period? How late can a monthly payment be made before a late charge is assessed? What will happen if a payment is missed?
  • If I sell my home, will my loan be assumable by the buyer?
  • Do I have to pay points to get your mortgage? Usually lenders charge points for the cost of giving you a mortgage loan. A point is 1% of the loan amount.
  • Will the lender require mortgage insurance?
  • Is the loan serviced locally or is the servicing sold?
  • Ask for a written good faith estimate.

Mortgage Choices: Which Type of Mortgage is Right For You?

How To Buy A Home : Infographic from The Mortgage Reports

Check local mortgage loan limits at The Mortgage Reports.