Glenda Feeken - Come Live and Play on the Kenai

• Estimated Purchase Costs—It is important to know how much youll need to buy a home not only for the down payment but for all of the fees that are charged in connection with getting the loan and conveying title.
• Mortgage Qualification—Discover what size mortgage you can qualify for using the same guidelines that a mortgage company uses.
• 80-10-10—This report will show you the savings achieved by eliminating Private Mortgage Insurance. Not only will you save money in the initial purchase costs but also in the monthly payment.
• Alternate Financing Plans—Choices will help you to make a better decision as to how to finance your new home. You deserve to know what options are available and that is exactly what youll get.
• Mortgage Accelerator—Discover the advantage of adding an additional amount of principal to your fixed rate mortgage on a regular basis to shorten the term and save tens of thousands of dollars in interest.

Pre-Approval an Advantage

Applying for a loan and obtaining approval before a buyer finds a home they want to buy can be a distinct advantage. Making a loan application is going to need to be necessary eventually anyway unless they are going to pay cash for the home.

Pre-qualification is a procedure where you get an opinion from a mortgage officer about how much you qualify for. In the process, any obvious difficulties that might cause problems might be discovered. This process is always recommended but it doesnt have the advantages of a pre-approval.

Pre-approval requires a complete application with credit reports and verifications. The Mortgage Company will issue a commitment subject to a specific interest rate and points and a satisfactory appraisal when the property is identified.

Time limits are usually placed on pre-approval commitments. It is recommended to be ready to look at homes and make a decision after you receive your pre-approval commitment.

The advantages of being pre-approved are:

• Looking at the right-priced homes.
• Avoiding disappointment in deciding on a home that you cant afford.
• Saving money with a seller who is confident about taking their home off the market with buyers who have a definite loan commitment.
• One less contingency that the seller will be concerned with to get their home sold.
• Closing more quickly the lengthiest contingency is usually the mortgage approval. The appraisal can be done quickly.
• Minimizing the anxiety of not knowing whether or not you qualify.

Preparation for a Mortgage Application

Employment

• Names and addresses for two full years
• Gross monthly income
• W-2s for two years, if available
• Year to date pay stub
• Proof of income from rentals, investments, etc
• Proof of retirement, disability or Social Security
• Proof of child support or alimony paid/received

If self-employed:

• Two years Federal Income Tax Returns
• Current year profit and loss statement

Creditors

• Each creditor's name, addresses and type of account
• Account numbers for each
• Monthly payments and approximate balances
• Amounts of child care expenses

Banking

• Names and addresses of banking institutions
• Account numbers for all accounts
• Type of accounts and present balances

Miscellaneous

• List of assets in stocks, bonds, and property
• Life insurance cash value (documented if used as cash down payment)
• If applicant is selling a home, a copy of sales contracts
• Social Security numbers for all parties
• Veterans - Certificate of Eligibility & DD-214
• Cash or check to pay for application fee

Property

• Copy of sales agreement
• Copy of listing on property
• Instructions on how appraiser is to gain entrance