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You have the option of shopping around for the best terms you can
obtain. Generally, a mortgage acceptance requires 15-30 days for
conventional, 30-45 days for VA and FHA from application to approval.
Competition among lenders is lively, and smart borrowers shop carefully
to find the financing that best suits their circumstances and needs. Here’s
Where to
Shop
Mortgage Lenders - Mortgage lenders issue mortgages to borrowers. They
then process and sell the mortgages to large investors or into the
secondary mortgage market.
Mortgage Loan Brokers - Some individuals or groups charge a fee
(usually to the borrower) to match borrowers with lenders. Sometimes
they make direct loans. An advantage of working with mortgage brokers
is that they often represent many investors and can provide you with
many more financing alternatives, usually at the same price as the
mortgage banker.
Financial Institutions - Mutual savings banks, savings and loan
associations, insurance companies, and some commercial banks are the
traditional sources of mortgage loans. Savings and Loans often grant
favorable terms to their own account holder.
Private Lenders - Individuals (often home sellers) and groups
(sometimes sellers’ employers—if the seller is being transferred) lend
money. This source is especially helpful in arranging second mortgages,
but can also assist with first trusts, wrap-arounds, and other mortgage
plans.
Credit Unions - Federal credit unions can write 30-year conventional
and government insured mortgages. Some will make loans; others may not.
This may be a good source for credit union members.
Finance Companies - To compete with the more traditional lenders, some
finance companies promise quick service and some do not charge mortgage
“points” or “pre-payment penalties”.
Ten
Questions
Most
Lenders
Will
Ask
You
Here's the information most lenders will need:
-
The amount of money you wish to borrow and the length of time you will
need the money.
-
Your current address and any other addresses covering the previous 24
months.
-
Your social security number.
-
Your current employer’s name, address and phone number and the same
information for any other employers in the previous 24 months.
-
Your gross monthly income including documentation: most recent pay
stub, final pay stub for any job you may have left in the current year
and previous year’s W-2 forms.
-
Complete account statements (all pages) for any bank, credit union,
retirement, or brokerage accounts.
-
Your assets (real estate, personal property, stocks and bonds, life
insurance with cash value, etc.).
-
A complete list of your debts including account numbers, balances and
minimum payments.
-
A copy of the sales contract.
-
An account, in writing, of any problems concerning your application and
any documentation of the circumstances of those problems.
With this information in hand, here are the steps the lender will take
to process your application:
-
Verify the facts.
-
Get a credit report.
-
Make a property appraisal.
-
Review your application.
-
Decide whether or not to make the loan.
Some
Questions
You Should
Ask Most
Lenders
Here's
how to
shop, a
few of the
questions
to ask a
lender:
- Are
both
fixed-rate
and
adjustable
mortgage
loans
available?
- What
is the
interest
rate?
- What
are the
"points"?
- How
long can
I
"lock-in"
the
financing
at the
current
interest
rate?
- What
are the
other
fees a
lender
may
charge
me in
conjunction
with my
loan?
- Are
funds
for a
second
mortgage
available?
- On
adjustable
loans:
- How
often
will the
interest
rate be
adjusted?
- Is
there a
maximum
limit on
each
rate
change?
- How
often
will the
monthly
payment
be
adjusted?
- Is
there a
ceiling
on
payment
adjustments?
- Can
the term
of the
loan be
extended?
- Is
there a
pre-payment
penalty
clause?
This
involves
extra
charges
for
paying
off the
loan
before
maturity.
About 80
percent
of all
loans in
the
United
States
are paid
off
early.
- Is
there an
open-end
clause?
This
clause
in a
mortgage
allows
you to
borrow
in the
future
for home
improvements
or other
purposes,
up to
the
amount
of
principal
you’ve
paid
off.
- What
is the
“grace”
period?
How late
can a
monthly
payment
be made
before a
late
charge
is
assessed?
What
will
happen
if a
payment
is
missed?
- If
you sell
your
house,
will the
new
buyer be
able to
assume
your
mortgage
at the
same
interest
rate?
- Do
you have
to pay
“points”
to get
your new
mortgage?
Usually
lenders
charge
points
for the
cost of
giving
you a
mortgage
loan. A
“point”
is 1% of
the
loan.
- Will
the
lender
require
mortgage
insurance?
Please
Contact
Denise for
more
Information
on Mortgages
Denise
Sacks
Mortgage
Broker
1420
Celebration
Blvd.
Suite
200
Celebration,
FL.
34747
denise@sacksrealtygroup.com
Tel:
321-559-1101
Toll-Free:
866-254-6877
Fax:
321-939-2307
Cell:
321-2354-4057
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