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.

FREE Home Loan Evaluation

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

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

Whaat does it mean to get pre-approved for a Home Loan?

So what does it mean to get preapproved???

Before you begin looking for a home it is very important to get preapproved.  This will give you an idea of how much of a home you can afford.  And if you will qualify at all.

So what happens when you get pre-approved for a Mortgage. 

For a FREE Pre-approval contact Keith at hollistermortgage

1. We pull and evaluate your credit. (Offer credit help if work needs to be done.)
2. Evaluate you income.  Based on your pay stubs
3. Evaluate you work and work history.
4. Evaluate you assests.  If you have enough for a down payment or closing costs.
5. Evaluate you debt to income ratio (DTI)

All these things put together helps us pre-approve you.  It also give you a range of what you can and cannot afford.   For example if your DTI is too high you will have to look for a cheaper home.

For more information contact me at mortgages4california

Call me at 831-801-8667

Keith Woeste
ANF
NMLS 292588
hollistermortgage
mortgages4california
repairmy-fico

# 4 and 5 of the 20 Whats of Home Mortgage

4. What hurts my credit scores? - High balances on credit lines hurt your score. Any amount that exceeds 20% of your account limits will hurt you score. Late payments will hurt your score. Late payments will stay on you report for 7 years. Collections will hurt your scores. In fact, FHA and USDA require all collections be paid. On conventional loans it is decided by the underwriting system. Tax Liens will significantly hurt your scores. And obviously foreclosures, short sales and bankruptcies will affect your scores.

For More Home Loan Information and FREE Interest Rate Quote go to mortgages4california


5. What is the minimum down payment? For FHA the minimum down payment is 3.5%. For USDA you can get a “0” money down home loan. With a “VA” loan (for military vets and active military only) you can purchase with 100% financing. With a conventional loan you can buy with 5% down up to a loan amount of $417,000. Above $417,000 it is 10% down payment. ( Note: for conventional loan FICO score can affect your down payment amount and interest rates)

Calfornia Home Loan Interest Rate Quote hollistermortgage

Keith Woeste
AFN
831-801-8667
NMLS 292588

The 20 What of Mortgage #2 and #3

Here is Number 2 and 3 or the Whats of Home Mortgage

2. What is a home loan credit report and the FICO score? A home loan credit report is a report called a “Tri-Merge Credit Report.” It is a credit report that merges your credit report form all three Credit Bureaus. The three are Trans Union, Experian and Equifax. It will combine all into one. The FICO score is the number that each credit company establishes for you. They use credit lines (credit cards, car loans, home loans etc…), account balances, current and late payments, collections, foreclosures, short sales, and derogatory to calculate a FICO score.

Got to mortgages4california


3. What is the minimum credit scores need for a home loan? The minimum score is 640 for a FHA home loan. In some cases a score of 620 can obtain a FHA home loan. For a conventional loan the minimum score is 640, but you with the lower the credit score the higher the interest rate. With FHA the interest rate does not adjust with the FICO score.

To reach us for more go to hollistermortgage

Keith Woeste
AFN
831-801-8667
nmls 292588
hollistermortgage
repairmy-fico

The 20 Whats of Home Mortgage

Here are the 20 Whats of Home Mortgage.  #1

This report is designed for people looking to buy a home or interested in a home mortgage. I have been in the mortgage industry for many years. I love helping people reach the ultimate goal of buying a home. The best feeling is to get a “thank you” when some gets there dream home.


There are always many questions that relate to home mortgages. I am writing this report to answer those questions. Thus, I am calling this report the “What” to answer your questions. So here we go…

1. What is a mortgage? It is a loan secured with your home through the use of a note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which is the loan.

For more home loan information vists hollistermortgage or mortgages4california

Keith Woeste
Hoem Loan Consultant
831-801-8667
NMLS 292588
http://www.hollistermortgage.com/
http://www.mortgages4california.com/
repairmy-fico