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

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/
 

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.

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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 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

Tax credit FAQ's

Who Qualifies for the Extended Credit?
•• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.


•• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.



If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.

Which Properties Are Eligible?
The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?
The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer's Credit Amount Determined?
Each home buyer’s tax credit is determined by tow additional factors:

1.The price of the home.
2.The buyer's income.
Price



Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income


Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?
Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.