#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

Online Mortgage Quote

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

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

Our New Website Come Visit --- TODAY!

Hello,

Wanted to tell you about our new website.  It is an awesome site.  Got to hollistermortgage for a FREE hoem loan evaluation.

We offer FREE credit reports and FREE home loan consultations.

American Financial Network offer outsatnding service where we treat you like part of the family.  We have VA, FHA, USDA, Conventional and Jumbo Financing.

We have 100 % financing with USDA and VA.

Low Down with FHA and up to 95% financing with Conventional Financing

Visit hollistermortgage for FREE Interest rates quote, No obligation and No SS# required.


Keith Woeste - American Financial Network
Home Loans Consultant

NMLS 292588

831-801-8667
hollistermortgage

mortgages4california.com

repairmy-fico