| Years you plan to
stay in the home |
Recommended program |
| 1-3 years |
3/1 ARM, 1 year ARM or 6 month ARM |
| 3-5 years |
5/1 ARM |
| 5-7 years |
7/1 ARM |
| 7-10 years |
10/1 ARM, 30 year fixed or 15 year fixed |
| 10+ years |
30 year fixed or 15 year fixed |
| Loan Program |
Advantages |
Disadvantages |
Fixed Rate Mortgages
- 30 year fixed
- 15 year fixed
|
- Monthly payments are fixed over the life of the
loan
- Interest rate does not change
- Protected if rates go up
- Can refinance if rates go down
|
- Higher interest rate
- Higher mortgage payments
- Rate does not drop if interest rates improve
|
| |
| Loan Program |
Advantages |
Disadvantages |
|
Adjustable Rate Mortgages (ARM)
- 10/1 ARM
- 7/1 ARM
- 5/1 ARM
- 3/1 ARM
- 1 year ARM
- 6 month ARM
- 1 month ARM
|
- Lower initial monthly payment
- Rates and payments may go down if rates improve
- May qualify for higher loan amounts
- 30 year term, no balloon payment
|
- More risk
- Payments may change over time
- Potential for higher payments if rates increase
|
|
| |
| Loan Program |
Advantages |
Disadvantages |
|
| Balloon Mortgages
|
- Lower initial monthly payment
- Lower payment for a predetermined period of time
- Many balloon mortgages offer the option to
convert to a new loan after the initial term
|
- Risk of rates being higher at the end of the
initial fixed period
- Risk of foreclosure if you cannot make balloon
payment, refinance, or exercise the conversion
option
- Balloon payment requires you to sell or
refinance after the term, as opposed to a 7/1 or 5/1
program with a 30 year term
|
|
| |
| Loan Program |
Advantages |
Disadvantages |
|
| First Time Buyer Programs |
- Lower down payment
- Easier to qualify
- Lower rates may be available
|
- May be subject to income and property value
limitations
- Some government subsidized programs may generate
a recapture tax if you sell the house too soon
- Education courses may be required to qualify for
these loans
|
|
| |
| Loan Program |
Advantages |
Disadvantages |
|
| Stated Income Programs |
- Don't need to verify income
- Faster approval
- Good for borrowers who may not qualify with a
full income documentation program
|
- Higher rates
- Higher down payment
|
|
| |
| Loan Program |
Advantages |
Disadvantages |
|
| Interest Only Programs |
- You have several payment options
- Lower monthly payments
- Qualify for a higher loan amount
- Qualify at the interest only payment
- Option to pay the full normal payment
- Interest only payments for up to ten years
|
- Higher rates
- Principal loan balance will not decrease during
the interest only payment period
- Payment will be higher for the remaining term
|
|
| |
| Loan Program |
Advantages |
Disadvantages |
|
| No point, No fee Programs |
- No out-of-pocket loan costs at closing
- Closing costs are paid from the lender rebate
- Less money required to close
- Refinance without increasing your loan amount
|
- Higher rates
- Higher payments
- Some lenders may have a short payoff penalty
which is usually charged to the loan broker, but may
be passed on to you
- Some require a prepayment penalty for the first
one to five years
|
|
| |
| Loan Program |
Advantages |
Disadvantages |
|
| Imperfect Credit Programs |
- Potential for reestablishing credit if you pay
your mortgage on time
- When used for debt consolidation, you may be
able to reduce your monthly debt payment
|
- Higher rates
- Terms may not be as favorable
- Harder to get long-term fixed loans
- Loans may have prepayment penalties
|
|
| |
| Loan Program |
Advantages |
Disadvantages |
|
| Home Equity Line of Credit |
- You only borrow what you need
- Pay interest only on what you borrow
- Flexible access to funds
- Interest may be tax deductible
- May be free of closing costs
- A good source for an emergency fund, if set up
in advance
- Can be used for debt consolidation and lower
payments
- Rates are usually lower than consumer loan or
credit card rates
|
- Rates can change. The maximum interest rate can
be relatively high
- Payments can change
- Harder to refinance your first mortgage
|
|
| |
| Loan Program |
Advantages |
Disadvantages |
|
| Home Equity Fixed Loan |
- Fixed payments
- Interest may be tax deductible
- Get cash out for any purpose
|
- Higher interest rates compared to first mortgage
- Harder to refinance your first mortgage
- Interest is paid on the entire loan amount,
compared to an equity line of credit
|
|
Top of page
A properly documented loan application makes the loan process go
smoothly. This checklist will help customers gather their paperwork.
- Complete and sign the residential loan application, Form
1003, and the attached loan info sheet, credit authorization and
fair lending notice. Page 4 of the application is a continuation
page in case you need additional space for your assets or
liabilities. If you make a mistake while filling out the
application cross it out, and make a change. Do NOT use
whiteout.
- If you are salaried: provide W-2's for the previous
two years and one month of paystubs. If you are self-employed,
provide tax returns for the previous two years, including all
schedules, and an YTD profit and loss statement. (Note: provide
copies of all requested documents. Do not provide original
documents.)
- If you own rental property, provide recent rental agreements
and tax returns for the previous two years, including all
schedules.
- To speed up the approval process, provide bank statements
for the most recent three months, and recent statements for
stock, mutual funds and IRA/401K accounts.
- If you are requesting cash out refinance, provide a letter
explaining how you will use the refinance proceeds.
- If applicable, provide a copy of your divorce decree and
settlement agreement.
- If you are NOT a US citizen, provide a copy of your green
card (front & back). If you are NOT a permanent resident provide
a copy of your H-1 or L-1 visa.
- If any borrower has filed bankruptcy, provide the Discharge
Notice, Filing and Schedule of Creditors.
- If you are applying for a home equity line of credit or loan
(second loan), also include your first mortgage note. (This
should be with your closing loan documents.)
Top of page
Getting qualified before customers apply for a loan can help
them understand how much they can borrow.
When buying a home, customers may
be pre-qualified or pre-approved. Customers can be pre-qualified
over the phone or on the Internet in a few minutes.
Pre-qualification is not as useful as pre-approval. Pre-approval
requires a more rigorous process, including verification of your
credit, income, assets and liabilities. It is highly recommended
that homebuyers be pre-approved before they start looking for a
home. Being pre-approved will:
- Inform homebuyers of your maximum affordable home value, and
save them from previewing properties outside their price range.
- Put homebuyers in a stronger negotiating position with the
seller, because the seller will know the loan is pre-approved.
- Help homebuyers close quickly, since the loan is
pre-approved.
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What loan program is best for your situation?
- Think about how long you plan to keep the loan. If
the homebuyer plans to sell the home in a few years, they may
want to consider an adjustable rate or balloon loan. If they
plan to keep their home for a longer time, they may want to
consider a fixed rate loan.
- Understand the relationship between rates and points.
Points are considered prepaid interest and may be tax
deductible. Each point is equal to 1 percent of the loan. For
example 1 point on a $150,000 loan is $1,500. The more points
you pay, the lower your rate.
- Compare different loan programs. With so many
programs to choose from, it's hard to figure out which program
is best for you. Sanders Realty Development can help homebuyers
find a loan program that best fits your short- and long-term
plans.
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Once customers’ loan application has been received, First
National Mortgage will start the loan approval process immediately.
This involves verifying:
- Credit history
- Employment history
- Assets including your bank accounts, stocks, mutual fund and
retirement accounts
- Property value
- Based on your specific situation, additional documents or
verifications may be required.
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After
customers’ loan is approved, they will be required to sign
the final loan documents. This will normally take place in the
presence of a notary public.
- Bring cashiers check for down payment and closing costs if
required. Personal checks are normally NOT accepted.
- Review the final loan documents. Make sure that the interest
rate and loan terms are what were promised. Also, verify the
accuracy of the name and address on the loan documents.
- Sign the loan documents. The notary will require that
customers have their picture ID with them. Some lenders also
require to see Social Security card.
Customers’ loan will normally close shortly after they have
signed the loan documents. On refinance and home equity loan
transactions, federal law requires that customers have three days to
review the documents before their loan transaction can close. Others
mortgage service offered include:
- Purchase homes with no down payment.
- Piggyback loans: 80-10-10 or 80-15-5. Avoid PMI payments.
- Debt consolidation programs.
- Home Improvement loans.
- Customers may qualify even if they been turned down before!
We pride ourselves on providing superior customer service and
creating satisfied customers. Sanders Realty Development will work
hard to satisfy the mortgage needs and exceed the expectations of
our customers.
National Association of Investors and Mortgage
Consultants
Sanders Realty Development, LLC
Home Loans and Home Grants Program
0% Down and 0% Closing Cost
We have access over 360 Lenders. We provide loans to individuals
with Excellent, Average, or Damage Credit (A-B-C-D). The
Down Payment Assistance provides a gift to a homebuyer from a
pre-existing pool of funds. The money to the buyer is an outright
gift. Our Home Grant Partners is a Non-Profit, tax-exempt program.
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Requirements:
1. Buyer gets approved for a loan - Buyer is qualified for a
grant.
2. Grants provided regardless of the sales price up to $35,000.
3. Grants provided regardless of the amount of the loan.
4. NO income limitations.
5. We provided loans and refinance for Residential Properties,
Investment Property, and Commercial Properties. Also, grants are
provided for Commercial Properties.
The American Dream, for most Americans, this involves an
investment in your own home. Now you have a choice of how to pay for
your home with our access to over 360 lenders.
For more information please contact Derek Sanders, Owner
at: 404-484-4298 or email at
dsanders_94@yahoo.com
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