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Now
that you've made the decision to pursue the dream of home ownership,
here are some answers to some commonly asked questions about how
to get started with the mortgage loan process:
How
do I pre-qualify?
Before you make
the emotional commitment to find the perfect home, you should first
find the perfect loan. At DKMC, we provide the expert guidance you
need to determine your maximum buying power. Our Mortgage Planners
will discuss various financing alternatives and eliminate the uncertainty
about qualifying for a mortgage loan. Then, you'll get pre-approved
for a specific loan amount before you start to shop. So, when you
find the home you want, you'll know the deal is as good as done.
A pre-approval
analysis is simple. After contacting a DKMC Mortgage Planner, we
will review your financial information, such as income and credit
history, and provide you with different financing options for the
type of loan which may be best for you. A pre-approval certification
will be furnished to you based on the information you provide and
be subject to credit approval, qualification and standard mortgage
loan approval practices for a new loan secured by a first mortgage
or deed of trust.
Our pre-approval
service is always free of charge and there is no obligation to buy
whatsoever. Put the pressure of finding the perfect loan behind
you and start concentrating on finding the home of your dreams within
your means. Call us today
I'm
worried about some credit problems in the past. Will I still be
able to qualify for a mortgage loan?
Of big concern
to many home buyers it he issue of credit. Because the circumstances
of every individual is different, it is difficult to get an exact
answer that will fit everyone. There is, however, a big difference
between those that have had a bad experience with credit in the
past and those who are unacceptable credit risks.
Any credit problem
has to be examined and looked at individually to determine what
was the cause of the particular problem, what was done about it,
and is the likelihood it will ever happen again. we realize that
there are many legitimate reasons for credit problems. If you're
prepared to discuss the situation openly and provide a written explanation,
this is often enough to render a satisfactory credit rating. Alternative
financing options are available for the more difficult credit problems.
No one should be afraid or embarrassed to find out if they can own
a new home.
Keep in mind
that our menu of loan programs offers an assortment of products
to fit the need of many home buyers. Your Draper and Kramer Mortgage
Corp. Mortgage Planner can help you determine how your credit concerns
will affect your ability to borrow and assist you in choosing the
right loan program.
How
large of a monthly mortgage payment can I afford?
Many factors
are involved when determining your maximum borrowing ability. Income
and long-term debt must be examined carefully to define exactly
what qualifies under these headings. the "how much can you
afford?" calculation requires the attention of a trained professional,
someone who can go beyond the numbers to determine how much house
you can truly qualify to buy. Using all of the latest and innovative
programs we have available, we go beyond the numbers to find a loan
product that will fit within your qualifying parameters.
Different loan
products offer different liberal qualifying guidelines. The best
thing to remember is to talk to a professional at DKMC. With the
expert guidance of our trained mortgage planners, we can show you
how to make a mortgage program work for you.
How
do I determine what loan program is right for me?
There are many
types of mortgage programs available in today's market. Selecting
a mortgage loan program to fit your financial goals requires the
appropriate analysis of your personal and financial position. The
mortgage planners at DKMC can help you choose the mortgage program
that best meets the needs of you and your family.
Your choice
of mortgage loan programs will be influenced by several factors,
including:
- How long
do you think you will stay in the home?
- Are you a
potential home buyer who transfers due to career demands?
- Do you expect
your financial situation to change?
- What is the
availability of down payment funds?
- Do you want
to build equity fast and be free of mortgage debt?
- Are you the
home buyer who wants to say put once you've found your dream home?
- What first-time
home buyer programs are available to help?
Among the many
choices in loan programs, most of them have either a fixed or adjustable
term over the life of the loan. There are also special loan programs
for first-time homebuyers which, for example, help you qualify for
a lower rate mortgage if you meet certain loan-specific criteria,
such a s a ceiling on maximum household income. In general, the
key to finding the right loan program is for you to discuss you
finances and plans with a DKMC Mortgage Planner. Whatever your particular
situation is, DKMC can help you sort out the differences and make
it easier to get the mortgage for you.
How
much do I need for a down payment?
Many years ago,
most lenders did require a 20 percent down payment. But over the
last 20 years, many new loan programs have been designed to make
home ownership affordable for most Americans. You might be surprised
to learn that many home buyer programs require little to money down.
It has never been easier than it is today to make a down payment
for a place you can call home. Some loan programs even allow you
to accept a gift from a relative or to borrow a portion of the money
you will need for the down payment. You owe it to yourself to discuss
the many options with a DKMC Mortgage Planner.
How
do I know that I am getting the best interest rate?
Today's home
buyer is more savvy than ever. Most are overloaded with information.
The downside to all of this information is that you may have difficulty
comparing "apples to apples." Most interest rates published
in the newspaper, Internet or on television do not give you more
than the basic rate for a "vanilla" type loan program.
Excluded from the rate may be adjustments that apply to the type
of property, loan amounts, down payment, and occupancy intent to
name a few.
Interest rates
are influenced by many economic variables and may change on a daily
basis, sometimes even more than once a day. When you get an interest
rate quote, it becomes your rate only once you lock it in. A lock-in
is a commitment to guarantee a specified interest rate to you provided
that the loan is closed within a set period of time.
At DKMC, our
Mortgage Planners will discuss all the options and offer competitive
rates for your situation.
What
are the costs associated with buying and what are they for?
The costs involved
with financing a home are, for the most part, consistent wherever
you go. However, you need to pay attention to the "junk"
fees and the cost of specific services. These costs represent nothing
more than fee income to the lender. For example, some lenders will
charge an "administrative fee", "underwriting fee",
"document prep", and/or "final inspection fee".
Ask what these are supposed to cover? Do not accept any fees, without
questions, if they seem excessive and unreasonable.
Closing costs
vary based on the type of the loan being selected. Some typical
closing costs from DKMC include an appraisal, credit report, and
a flood certification fee.
Although your
DKMC loan specialist will be handling your mortgage transaction
until the loan is closed, you will see that there are a number of
other companies and individuals involved in helping to complete
your mortgage transaction. A good faith estimate will be provided
to you at the time of your loan application estimating a detailed
itemization of all the charges you can expect to incur. Some of
the fees documented will be a result of the title company's involvement
and may include a closing fee, title policy and endorsements, and
recording fees. There may also be additional costs charged by the
county and township, depending on where the home is located, for
transfer taxes.
A tax and insurance
escrow may also be collected at closing. An escrow is an account
set up by lenders to pay the annual real estate tax and hazard insurance
premium when due.
Ask your DKMC
Mortgage Planner for the closing fees as they apply to your particular
loan program.
How
much information do you really need to start the process?
The paperwork
required to process your loan may seem a bit overwhelming, especially
if you're a first-time home buyer. An understanding of what we are
tying to accomplish may help. We're putting a snapshot together
to prove and substantiate your current financial status and that
picture requires documentation. Pay stubs, tax returns, bank and
investment-account statements, help to document your income and
assets. The ability to assess risk and determine how much we can
lend you is based upon these items.
Throughout the
loan approval process, you may be asked to supply additional documentation.
Please bare with us as we are working with you to achieve one goal
- to get your loan approved.
Each type of
loan requires different documentation. Make sure you discuss ahead
of time what is needed with your DKMC Mortgage Planner. Being prepared
will not only save you time and speed up the loan approval you're
looking for, but it will also help you complete the entire process
effortlessly.
How
do I know if I am ready to own a new home of my own?
Home ownership
has been a major part of the American dream. Draper and Kramer Mortgage
Corp. wants to help you realize that dream and explore all the options
associated with home ownership.
Millions of
people enjoy the rewards of home ownership. What are your reasons
for buying a new home? Are you tired of renting? Are you ready to
build equity in a home of our own? Do you want to take advantage
of the tax benefits associated with home ownership?
If you're considering
any of these, it's time to discuss your plans with a Mortgage Planner
at Draper and Kramer Mortgage Corp. They will show you how to buy
your dream home and help you sort out all of the questions associated
with the many options you will face.
How
do I begin the process?
When you start
thinking about buying a home, there are three things to remember
before you start looking: pre-qualify, pre-qualify, pre-qualify.
It is actually easier (you'll save time and money) to buy a home
if you know in advance how much house you can afford. Pre-qualifying
will provide you with an estimation of how much you can actually
borrow and the best loan type for you before you sign the sales
contract. You can make arrangements to be pre-qualified with a DKMC
Mortgage Planner.
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