Cirila Cothran

real estate

Mortgage Process

Logo-FinalWe understand that the mortgage process can be overwhelming! Pre-Approval is the first step and a very important one to beginning your real estate adventure. Here is some helpful information to get you started. When you are ready find several institutions to get a mortgage quote from to find the best value for your transaction. Any  questions? We are here to help.

***The following information is usually required during the loan process:

Your Social Security number
Current pay stubs or, if self employed, your tax returns for the past two years
Bank statements for the past two months
Investment account statements for the past two months
Life insurance policy
Retirement account statements for the past two months
Make and model of vehicles you own and their resale value
Credit card account information
Auto loan account information
Personal loan account information
If you currently own Real Estate:

Mortgage account information
Home insurance policy information
Home equity account information (if applicable)

***Mortgage Terminology (click here) ***

***Types of Loans
Thirty-Year Fixed Rate Mortgage
The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.

Fifteen-Year Fixed Rate Mortgage
This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate—and you’ll own your home twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn’t that great.

Hybrid ARM (3/1 ARM, 5/1 ARM, 7/1 ARM)
These increasingly popular ARMS—also called 3/1, 5/1 or 7/1—can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a “5/1 loan” has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It’s a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.

***Home Purchase Basics
Congratulations on your decision to buy a new home! There are many important things to consider throughout the process, especially if you’re a first-time homebuyer. Here’s some information that will keep you on track.

In General….

A home purchase may be your largest financial transaction to date, so it’s important to make the right decisions and to keep an eye on the details. With the assistance of your Real Estate Agent and Loan Officer, it should be an efficient, pleasant, and ultimately rewarding experience.

Count On Your Real Estate Agent To:

Preview available homes to weed out those that are overpriced, or undesirable in some other way.
Present the homes that suit your needs as you’ve defined them.
Help you determine the difference between a “good buy” and a property which, because of its nature (neighborhood, market appeal, etc.), might have to be discounted if you decide to sell in the future.
Negotiate the best deal for you. With a Pre-Qualification letter from us in hand, your Real Estate Agent will be able to demonstrate that you are a qualified and capable borrower. This will strongly influence the Seller, and may make the difference between the Seller accepting your offer or someone else’s — even if your offer is lower!
Count On Your Mortgage Lender and Loan Officer To:

Assist you in selecting the best loan to meet your personal situation and goals. (This single decision can save you thousands of dollars throughout the years!)
Keep you informed of your loan status throughout the entire process.
Keep your Real Estate Agent informed of our loan progress (Note: your personal information is always kept confidential between you and us; only deal points and progress are shared).
Get the appropriate loan for you at the best rates and fees. This will save you significant money “up front” and throughout the years to come.
Count On Yourself To:

Keep your Real Estate Agent informed of any questions or concerns as they develop.
Keep the process moving by providing documentation and decisions as soon as reasonably possible. By doing so, many of the details are taken care of early in the process so you can comfortably concentrate on any last-minute details or events that require your attention.
Enjoy purchasing your home, but do remain objective throughout — to make the business decisions that are best for you.
Make sure you are pre-approved as early as possible. This will put the power of financing behind you so you can concentrate on selecting your home.

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