What is APR?

1.       What is Annual Percentage Rate- "APR “ is a much better indicator than just the interest               rate of the actual cost of a mortgage loan, as it estimates what you will pay over the course of the entire year.   Items included in the APR are discount points, origination fees, Mortgage insurance premiums, prepaid interest.  The higher the APR the more closing costs infovled in the transaction.

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Such items included in the APR on a home loans are processing fees, underwriting fees, doc fees, wire fees, prepaid interest.  They can include appraisal fees, title fees etc... the APR can vary depending what is included in the costs of the loan.  A home mortgage is one of the most important things you will get in your life.  Do not take it lightly...

American Financial Network is a direct lender and FHA direct underwriting company.  We are a full service California home mortgage lending company.  We offer FHA, USDA, VA, Conventional and Jumbo home loans.  We offer great rates on both purchase and refinance loans

Keith Woeste

Home Loan Consultant

American Financial Network

330 Tres Pinos Rd.,Ste F3

Hollister, CA 95023

"Making Clients Family for Life"



PH.831-801-8667

FX. 831-665-5260

NMLS#292588

To complete and secure online application go to http://www.hollistermortgage.com

http://www.onlinemortgage-lenders.com/

http://www.repairmy-fico.com

http://www.hollistermortgage.com/

http://www.mortgages4california.com

#19 - The 20 Whats of Home Mortgage

19. What are Closing Costs- Are the costs associated with closing the transaction. Throughout the industry these fees are generally the same. These fees are lender fees such as:


• Processing fees

• Underwriting

• Doc Prep

• Appraisal

• Wire

• Credit Report

Click Here for Mortgage Company information

Other fees include Title Fees, they are for:

• Title insurance

• Notary

• Recording

• Transfer Tax

• Escrow Transaction

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If you desire or are required to have impounds (which we discussed earlier) you will need to pre-pay:

• 1 year homeowners insurance

• 3 to 6 months monthly taxes up front.

• Do not forget your DOWN PAYMENT

FREE home loan information

Keith Woeste


Home Loan Consultant

American Financial Network

330 Tres Pinos Rd.,Ste F3

Hollister, CA 95023

"Making Clients Family for Life"



PH.831-801-8667

FX. 831-665-5260

NMLS#292588

To complete and secure online application go to http://www.hollistermortgage.com


http://www.onlinemortgage-lenders.com

http://www.repairmy-fico.com

http://www.hollistermortgage.com/

http://www.mortgages4california.com

Can I buy a home after a short sale, or foreclosure?

     What are the rules regarding Foreclosures, Short Sales and Bankruptcy? -    For foreclosures and short sales the minimum time before you can buy a home again is 3 years.   There are a few exceptions one is, if you had a short sale, but remained current throughout, you can get a new home loan in less than 3 years.  There are also extenuating circumstances such as death of primary provider. 

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 For bankruptcy (BK) the time period on chapter 7 is 2 years for BK discharge.  If a mortgage is included it will be considered a foreclosure then it is 3 years.   Note. Something we are seeing more is, If you had a second on a property that had foreclosed and the second lien holder did not release you from the debt, it will need to be settled before you can purchase a home.

Morgan Hill Mortgage Lenders

For more info call me

Keith Woeste

Home Loan Consultant

American Financial Network

330 Tres Pinos Rd.,Ste F3

Hollister, CA 95023

"Making Clients Family for Life"



PH.831-801-8667

FX. 831-665-5260

NMLS#292588

To complete and secure online application go to http://www.hollistermortgage.com/

http://www.onlinemortgage-lenders.com/

http://www.repairmy-fico.com/

http://www.hollistermortgage.com/

http://www.mortgages4california.com/

What not to do when you are planning to buy a home!!!

So you want to bu a new home.  You have made the decision and you and your family really want to buy a new home.  We talk so much about what you should do, save money, watch your spending, get your credit in line, get pre-approved etc...

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But what should you NOT do?

*Make any large purchases.  Do not by a new car, toys like atv's.  Anything that will hit your credit and increase your DTI

*Charge up your credit cards.  Do not go out and by new furniture, charge a trip.  Let things ly.

 San Jose Home Loans

*Make large deposits into your accounts.  Any large deposits will need to be sourced.  Meaning you will have to prove where they came from.

* Have anyone give you large cash deposits.

*Make Late payments

*Mix business and personal account funds

Interest Rate Quotes here

*Pay off or allow any collections.  Pay the collections through escrow.

* Quit, Retire or Change jobs.

* Get divorced

These are just a few things that I have seen that effect loan files in the past.



 Keith Woeste

 

Home Loan Consultant

 

American Financial Network

 

330 Tres Pinos Rd.,Ste F3

 

Hollister, CA 95023

 

"Making Clients Family for Life"

 

 

 

PH.831-801-8667

 

FX. 831-665-5260

 

NMLS#292588

 

To complete and secure online application go to http://www.hollistermortgage.com

 

http://www.onlinemortgage-lenders.com/

 

http://www.repairmy-fico.com/

 

http://www.hollistermortgage.com/

 

http://www.mortgages4california.com/
 

20 Whats of Home Mortgage

Here is 15, 16 and 17 of the Whats of Home Mortgage


15. What is a Discount point? - It is an amount paid to the lender, bank or investor to lower your interest rate.

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16. What is an Origination point? – It is an amount paid to the person that is doing the loan for you, the “mortgage originator”.

California Home Loans



17. What is a point? - A point is 1% of you loan amount. So if your loan amount is $200,000, a point is $2000. A loan amount of $500,000 a point is $5000.


Gilroy Lenders

For more information call me any time..

Keith Woeste


Home Loan Consultant

American Financial Network

330 Tres Pinos Rd.,Ste F3

Hollister, CA 95023

"Making Clients Family for Life"



PH.831-801-8667

FX. 831-665-5260

NMLS#292588

Home mortgage information

Her is the number 12 and 13 of thee 20 whats of home mortgage.

12. What are impounds or escrows? - It is when the property taxes and home owners insurance are included in your payment. This is required by FHA, USDA and VA. For conventional loans you will have a slightly higher interest rate if you do not have impounds.

click here for FREE home mortgages evaluation


13. What is mortgage insurance? – It is an insurance that you will mortgage. It is an insurance policy for the lender. Should you default that policy will pay off the loan to the lender. It will not pay you payment! FHA, USDA and conventional loans under 80% loan to value (LTV) require mortgage insurance.

FREE credit evaluations here


Keith Woeste


Home Loan Consultant

American Financial Network

330 Tres Pinos Rd.,Ste F3

Hollister, CA 95023

"Making Clients Family for Life"



PH.831-801-8667

FX. 831-665-5260

NMLS#292588

To complete and secure online application go to http://www.hollistermortgage.com


http://www.repairmy-fico.com/

http://www.hollistermortgage.com/

http://www.mortgages4california.com

The 20 Whats of Home Loans and Mortgage #11, 12, 13

11. What is a mortgage payment made up of? - Many times you will hear PITI. So what is PITI? It stands for principle (which is the money paying off the loan), Interest (the rent you are paying for borrowing the money), Taxes (property taxes) and Insurance (homeowners insurance).

Click here for FREE Home Mortgage evaluation


12. What are impounds or escrows? - It is when the property taxes and home owners insurance are included in your payment. This is required by FHA, USDA and VA. For conventional loans you will have a slightly higher interest rate if you do not have impounds.

FREE Credit Reports

13. What is mortgage insurance? – It is an insurance that you will mortgage. It is an insurance policy for the lender. Should you default that policy will pay off the loan to the lender. It will not pay you payment! FHA, USDA and conventional loans under 80% loan to value (LTV) require mortgage insurance.

For FREE credit evaaluation and mortgage evaluation contact me.


Keith Woeste

Home Loan Consultant

American Financial Network

330 Tres Pinos Rd.,Ste F3

Hollister, CA 95023

"Making Clients Family for Life"



PH.831-801-8667

FX. 831-665-5260

NMLS#292588

To complete and secure online application go to http://www.hollistermortgage.com

The Cost of FHA Home Loans going up?

So is the cost of buying a home going up?  The answer to a lot of home buyers is YES. 

FHA has announced that they will increasing the Up Front Mortgage Insurance Premium (UFMIP) by.75% and the annual by .10%.   As of April 1st  2012, the new UFMIP will 1.75% and the annual will go up to .65%

What is a FHA mortgage?  A FHA home loan is a loan that is backed by the Federal Housing Administration.  It provides for low donw payment home loans.  Through FHA you can buy a home with 3.5%  down payment and a FICO score down to 640 and in some cases 620 in California.  FHA also allows for higher DTI's,  non-occupying co-borrowers, gifts for down payments. 

 FOR FREE PRE-QUALIFICATION GO TO HERE

So what do this increase mean to you.  #1 It will not mean more money directly out of your pocket.  Why?  Your UFMIP can be financed into your loan.  But it will mean that you will have a higher loan amount and subsequently payment.  Also it will increase your payment with the increase in annual MI or monthly MI with the .10 increase.  

But will it decrease your buying power or how much you can buy??

 Click here to see if will effect your buying power

Click here for Credit Repair

For more information on California Home Loans and Mortgages

Call me at 831-801-8667

Keith Woeste
American Financial Network
NMLs 292588
Get a FREE home buying evaluation Here

http://www.mortgages4california.com/
http://www.hollistermortgage.com/

The 20 Whats of Home Mortgage # 8 -10

These are numbers 8, 9 and 10 of the 20 what of home mortgage...

8. What is full loan approval? - This is loan approval based on an under writers evaluation of documents and the ultimate loan decision.

For More information on California Home Loans go to hollistermortgage


9. What personal documents are needed when I get a loan? - Here is a list of documents.

A. 2 months current bank statements (all pages, all accounts)

B. 1 months pay stubs with year to date income for all borrowers

C. Copy of your Social Security card and ID

D. Copy of and retirement statements (all pages)

E. Copy of last 2 years Federal Tax returns and W’2s

F. If Divorced we will need copy of divorce decree.

G. Many time letters of explanation with is needed.

For a Completely FREE Home loan Evaluation got to Mortgages4california


10. What is a loan lock? - It is when your loan interest rate is locked in. Interest rates are very dynamic. They can and will change multiple times in a day. So an interest rate quotes now may not be the same interest rate in an hour from now. So if your loan is not locked it is not your rate.

Stay tuned for more of the 20 whats of home mortgage.

Thanks
Keith Woeste
American Financial Network
831-801-8667
NMLS 292588
Mortgages4california
hollistermortgage
repairmy-fico

Tha 20 Whats of Home Mortgage # 6 and 7

So here is the number 6 and 7 what of home mortgage.  For more Information on California Home Loans go to mortgages4california.com

6. What are the different loan types? There are FHA home loans which are backed by the Federal Housing Administration. FHA home loans offers 2 types of loans. They are Conforming (up to $417,000) and High Balance ($417,000 to $625,500). There is a slight difference in interest rate.




USDA - Home loans are back by the US Dept of Agriculture. These loans have limited loan amounts due to income limits. USDA is for low to moderate income families.



VA - Loans are backed by the Veterans Administration. They are for veterans and current military. VA offers 100% financing on loans up to $625,500, but loan amounts are limited by your entitlement amount.



Conventional Conforming - Loans are loans backed by Fannie Mae and Freddie Mac that offer loan amounts up to $417,000.



Conventional High Balance - Are loans backed by Fannie and Freddie that have loan amounts $417,000 to $625,500. But the maximum loans amounts are dependent on county loans limits. These limits are based on county incomes.

Jumbo home loans - Are loans with loan amounts from $625,500 and up. These guidelines are much stricter. FICO scores need to be higher and down payments are higher. Why? Because, these loans are not backed buy and government programs. These are made by private investors and they want more security for their money.


For a preappproval and more info Click here hollistermortgage  Up to date information on home loans.

7. What is a preapproval? - A preapproval is a loan approval based on the application, credit report, bank statements and pay stubs. This is not a full approval. This is an approval based on basic information provided by a borrower.

Keith Woeste
American Financial Network
NMLS 292588
831-801-8667
hollistermortgage
mortgages4california
repairmy-fico