MORTGAGE
LOANS
TYPES
OF LOANS:
Conventional
Fixed Rate
Loans
that have a fixed rate and monthly payment for the entire
life of the loan. It's easy to budget for this type
of loan because your payment will always be the same.
The rate on a conventional mortgage loan is generally
higher than an adjustable rate mortgage.
Adjustable
Rate
Loans
that usually start with a lower rate than fixed rate
loans. We'll let you know how much the rate can be adjusted
over the life of the loan, so you will know the absolute
maximum amount you would ever have to pay. If you will
be moving in a few years or if you think interest rates
will be going down, you'll want to consider this type
of loan.
VA
Loans that are guaranteed by the Veterans Administration.
They provide 100% financing on the purchase
of a home, and 90% for refinancing. You will need normal
closing costs to move in, but there is
little or no down payment.
FHA
They require a relatively small down payment, and are
insured through the Federal Housing Administration.
Bond
Money
Loans that typically have a lower interest rate than regular
secondary market loans. Can be either conventional,
FHA, VA or Guaranteed Rural Housing loans. There are many
pluses, and minuses about
Bond Money loans, be sure and ask for details.
Guaranteed
Rural Housing (formerly FMHA)
Loans
that provide up to 100% financing including closing
costs. Certain income qualifications must be met.
MORTGAGE
LOAN APPLICATION CHECKLIST:
Items
needed by all applicants
Buyer
should bring:
Name
and address of employer(s) for the past two years Most
recent payroll stubs showing year-to-date information
covering the latest 30-day period. Social Security or
retirement income verifications. Residence addresses
for past two years Name, address and telephone number
of landlord(s) for the past two years. Lender's name,
address and account number on your present home.
Proof
of disposition of present home by providing either a
listing contract, offer and acceptance,or closing statement
(HUD 1).
List of all debts-for each including;
1.Account Number
2.Monthly Payment
3.Lender's
Address
4.Current Balance.
Last
three statements for each bank account reflecting the:
1.Bank
Address
2.Type
Account
3.Account
number
4.Current
Balance.
Copy
of I.D. with photo (driver's license, etc.)
Copy
of Social Security card, DD Form 214 or Certificate
of Eligibility (VA loan), Divorce decree and copy of
child support registry, Tax returns for previous two
years, Application fee for appraisal and credit report,
W2s for previous two years.
Owner,
Seller or Agent Should Bring:
Real
estate contract (offer and acceptance), Verified copy
of legal description (deed-abstract), Correct address
of property (even if rural), Current taxes and a hazard
insurance quote, Lot size and date home was built, Address
and telephone number of seller, Name and telephone number
of occupant, Key- if house is vacant, Abstract location
or copy of recent title policy, Present lender, account
number and loan type.
Items
needed by self-employed applicants:
How
to determine if you are considered to be self-employed:
1.You
are considered to be self-employed if no Federal withholding
tax is deducted from your earnings.
2.If
you are the principal stockholder in a corporation or
a partner in a legal partnership, you areconsidered
to be self-employed, even if you are drawing a salary.
You
should bring:
The
past three years signed personal tax returns, Year to
date profit and loss statement, Current balance sheet
(financial statement). If you are a principal stockholder
in a corporation or a partner in a partnership, you
should bring:
The
past three years tax returns for the corporation or
partnership reports
Corporation
profit and loss statement - year to date
Copy
of corporation minutes authorizing salary
Remember
these special requirements:
All
tax returns must be signed by the taxpayer All balance
sheets, profit, and loss statements, and other financial
documents must be signed by the borrower All financial
data must be in detail, itemizing the individual liabilities,
expenses, and income sources
When
calculating your income to payment ratios:
1.Real estate depreciation can be added back to your
income
2.Equipment depreciation can not be added back to income
Items
needed for proposed construction or suggested exhibits.
Conventional,
FHA or VA Appraisals for proposed construction require:
Two
Sets of plans including:
Floor
plan including measurements
Foundation
plan
Elevations
Cabinet
detail
Cross
Section footing, foundation, walls and attic
Truss
detail with architect's stamp
Heat
duct layout with register size
Plot
plan, including:
Existing
elevations on corners of lot
Show
all walks, drives, and dwelling
Finish
floor elevation noted
Location
of well and septic tank
Full
legal description
All
lot dimensions shown
Specifications:
On
FHA Form 1852 dated 7/76--description of materials
Model
and make of all
1.Appliances
2.Electrical equipment
3.Plumbing fixtures
Must
be signed by builder and buyer
Should
be well coordinated with the plans
Manual
"J's" (heat loss calculation)
Department
of Health approval on proposed septic and well
Detailed
contract between buyer and builder
Complete
cost breakdown
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