Unless you are in a position to pay all cash for your home, you will need to obtain a home loan (mortgage) to complete the purchase. I will assist you in this process to help ensure that you obtain the financing that meets your needs.
- Being approved for a loan before you submit an offer will put you in a stronger negotiating position and can save time in the loan approval process.
- I can put you in touch with experienced loan officers at lending mortgage companies. Your loan officer will be your principal guide through the financing process.
- Various financing options may be available to you, including:
Fixed Rate Mortgage
Adjustable Rate Mortgage (ARM)
Government-assisted (FHA or VA) financing
Seller-assisted financing- You can expect the lender to ask for standard information regarding your income, expenses and obligations.
What Can You Afford?
Realistically assessing your finances up front will streamline the homefinding process.
Step 1 - Monthly Income
Wages, salaries, business income after expenses
Interest, dividends or rental income
Other income (alimony, child support, pensions, or social security)
Total Monthly Income $
Step 2 - Monthly Non-Housing Expenses
Food/clothing
Medical (include insurance premiums and prescriptions)
Life insurance
Child care
Automobile expenses (loan, insurance, maintenance)
Education/student loans
Travel/recreation
Monthly credit card payments
Monthly bank loan payments (other than a mortgage)
Alimony or child support you owe
Savings and investments
Income taxes
Total Monthly Non-Housing Expenses $
Step 3 - Amount Available for Monthly Housing Expenses
Total Monthly Income (step 1)
Minus Total Non-housing Expenses (step 2)
Equals Amount Available for Monthly Housing Expenses $
Step 4 - Monthly Estimated Housing Expense
Mortgage loan payment (principal and interest)
Property taxes
Mortgage insurance
Homeowner’s insurance (liability, flood, fire)
Utilities (heat, water, electricity, gas, trash removal)
Maintenance and repairs
Other (assessments, homeowners association dues)
Total Monthly Estimated Housing Expenses
$Compare Step 3 and Step 4 totals. The Total Monthly Estimated Housing Expenses (Step 4) should not exceed the amount available for Monthly Estimated Housing Expenses (Step 3).
The following information is typically needed when applying for a mortgage.
Purchase contract and property information
- Copy of the sales contract
- Mailing address and property description
- Contact information for access to the property
- Plans and specifications (new construction only)
Personal information
- Social Security number
- Age
- Years of schooling
- Marital status
- Number and ages of dependents
- Current address and telephone numbers
- Addresses for the past seven years
- Current housing expenses (Rent, mortgage, insurance, taxes)
- Name and address of landlord or mortgage holder for past two years
Employment history and income
- Two years of employment history, with complete details of each job
- Recent pay stubs and two years of W-2 forms
- Complete tax returns and financial statements if self-employed
- Written explanation of employment gaps
- Records and dividends and interest received
- Proof of other income
Assets
- Complete information on all bank and money market accounts
- Two months of bank statements
- Current values of stocks, bands, mutual funds and other investments
- Vested interest in retirement funds
- Value of life insurance
- Information on vehicles you own
- Information on real estate you own
- Value of significant personal property you own
Liabilities
- Itemized list of all current debts (loans, credit cards, and other bills)
- Written explanation of past credit problems
- Full details of bankruptcy during the last seven yearsFees
- Credit report and appraisal fees (usually $500 or less)
