What Clients Ask The Most
Where do I start?
I always make sure my clients are satisfied and totally onboard with everything I do. If something isn’t clear after going through my site, take a look at these commonly asked questions regarding mortgages, and other related subjects. Still can’t find what you need? Feel free to contact me for more assistance and information.
Determine how much you can borrow...
A preapproval is a big first step towards getting a mortgage. It shows sellers that you’re a serious buyer and allows you to understand how much you can borrow and what kind of payment you can expect. The preapproval process starts with verifying your income, credit, assets, and liabilities to determine how much you can borrow. Our team of dedicated professionals will guide you through the entire process step by step so you can get preapproved and look for homes that are in your price range. Being preapproved also puts you in a better position when negotiating and allows you to close on your loan even quicker.
LTV and Debt-to-Income Ratios
LTV or loan-to-value is the maximum amount that a lender is willing to lend for the purchase of your home. (ex: $100,000 home value x (times) 80%LTV = (equals) $80,000 mortgage loan). Lenders will traditionally lend a higher percentage of the homes value, even up to 100% for creditworthy borrowers. Another consideration is the debt-to-income ratios, which is the ratio of your monthly debts payments (such as auto and personal loans) to your income. the rule of thumb states that your monthly mortgage payments should not exceed 1/3 of your gross monthly income. Whereas, borrowers that have a higher debt-to-income ratio will need to pay a higher down payment in order to to qualify for a lower LTV ratio.
Source of Downpayment...
When it comes to a mortgage, lenders expect borrowers to come up with a sufficient amount of cash for the down payment and closing costs at the time of funding the loan. These funds usually come from a borrower’s savings, however, if the borrower does not have the required funds, they may receive gift funds from an acceptable donor. The donor must provide a signed statement that the funds do not have to be paid back. Other sources of downpayment may include home equity loans, 401(k) plans, and other sources of liquid assets. Regardless of the source of funds, lenders must verify the source and the amount of the downpayment.
Select the Right Loan Program
When it comes to home loan types, it can be difficult to decide which one is right for you. At Our Mortgage Company, we understand that the decision can be overwhelming, which is why we provide personalized guidance to help you select the loan that best meets your needs. We offer a variety of loan types, including fixed-rate, adjustable-rate, FHA, VA, and jumbo mortgages, among others. Our team of experienced professionals will take the time to review your individual situation and provide you with the information you need to make an informed decision. With our help, you can choose the loan type that best suits your current financial situation and your future goals.
No matter what type of loan you choose, it is important to understand the terms and conditions so you can make an informed decision. Therefore, working with one of our professional loan officers, you will be confident in selecting a mortgage loan program that is right for you and your financial goals.
Fixed Rate Mortgage
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Fixed-rate mortgages provide borrowers with a loan amount and a set interest rate that will remain the same over the life of the loan. This type of loan is ideal for those who want to keep their monthly payments the same and don't plan on moving or refinancing anytime soon.
Adjustable Rate Mortgage
Adjustable-rate mortgages (ARMs) give borrowers the option to choose a lower interest rate with the risk of the rate increasing over time. ARMs are a good choice for those who plan to move or refinance in the future, and are willing to take on the risk of a variable rate.
