Owning YOUR own house is one of the best possessions to have in life and rather an expensive one too. One cannot make it happen until one is in the ownership of a lot of fortune. In scenarios like these, a Great Mortgage can make all the difference in the world.
That’s why; Crown Mortgage of the West has constructed this Step-By-Step guideline to help you get YOUR BEST MORTGAGE.
STEP 1: Contact Us to Check Your Credit Score
Your credit scores represent your Repayment Rate and your Probability to keep up with the mortgage payment. The “higher” the credit score, the “higher” your chances on getting a great mortgage.
We at Crown Mortgage of the West make sure to review your Credit reports properly to ensure that there aren’t any errors that might damage your score when you apply for a loan with us. We also check to see how small payments or other strategic moves might add points to your FICO. Our expert team double-checks your personal information, credit accounts, loans listed, balance, and status before going deep into the application process
STEP 2: Know What You Can Afford
It’s fun to fantasize about a dream home with every imaginable bell and whistle, but you should really only purchase what you can reasonably afford.
The smartest and most reliable way to determine how much you can afford is to contact Crown Mortgage of the West for help with your Budget and calculating your Debt-to-income ratio (DTI).
Our team calculates your DTI by adding all of your long-term (more than 10 months) obligations and dividing that by your gross monthly income. Fannie Mae and Freddie Mac loans allow a maximum of 50% DTI. If your ratio is higher than that, your Crown Mortgage of the West representative will explore with you all the possibilities available to you.
Our Teams also takes into account of all your monthly expenses before closing the best deal for you. It is essential because the last thing you want is to be tied to a mortgage payment that inhibits your lifestyle and keeps you from achieving your savings goals.
STEP 3: Let Us Help You Choose the Right Mortgage
There are many types of Mortgages, and three of the more popular one are:
These are best for homebuyers with solid credit and 5% or more for down payment. This is 90% of what we do here at Crown Mortgage of the West.
Government- insured loans (FHA, USDA or VA):
These can be great options for qualified borrowers who may otherwise struggle to buy a home.
- FHA loans are widely available through many institutions, but are targeted at borrowers with less-than-stellar credit.
- USDA loans can go as high as 100% loan-to-value (LTV), but have some geographical restrictions.
- VA loans can also go to 100% LTV, but only go to members of the military, veterans or their spouses.
These are for the big spenders out there. Conventional loans have a maximum allowable value based on Country, and if you need to finance more than that ($625,000 in most parts of the country or $822,375 in more expensive areas), you’ll need to get a jumbo loan.
*Always Remember, Mortgages can either have “fixed-or adjustable rate”, meaning the interest rate is either fixed for the duration of the loan term or changes at predetermined intervals. These interests usually commonly come in 15- or 30-year terms, although there also are 8-year, 9-year, 10-year, 11-year…all the way up to 40-year mortgages available.
STEP 4: Choose Crown Mortgage of the West as Your Mortgage Lender
Because “we” are Brokers and not Bankers, we negotiate your loan with many different lenders to find you the BEST DEAL. Bankers only negotiate with you, because it’s in their best interest to have you pay the highest rate. We keep Our interests aligned with Yours.
We price every loan with 105 different wholesale lenders to assure that you end up with the best deal. Interest rates, points (if any), fees and terms can vary substantially from lender to lender. Having Crown Mortgage of the West on your side takes the pressure off of you, as we shop <MULTIPLE WHOLESALE LENDERS> against each other.
Crown Mortgage of the West will help you navigate all the different loan options available to you in order to secure more favorable loan terms than you’d get applying on your own.
STEP 5: Get Preapproved for a Loan with Us
At Crown Mortgage of the West, we offer borrowing home-buyers our <TBD Loan>, which stands for “To-Be-Determined loan”.
This is a loan that goes through the full Fannie Mae and Freddie Mac loan approval process, before YOU have determined your subject property. This is a VERY POWERFUL TOOL, especially in very tight markets where multiple offers are often presented.
Knowledgeable Sellers and their Realtors look at TBD loans as almost all cash and OURS typically close within two weeks of Purchase Contract signing.
*Understand though, that our TBD loans require full documentation and are only for serious Buyers. These are not the weak, ineffectual pre-qualification letters that are written by most Loan Officers. This is why they are our most effective tool.
STEP 6: Begin House Hunting with Your Full Approval in Hand
After you have your full Fannie Mae and Freddie Mac loan approval in hand, you can begin seriously searching for a property that meets your needs. And, you can do so knowing that you are not going to be wasting yours and your Realtor’s time and efforts.
In a competitive market where available homes go fast and bidding wars are common, you’ll need to be aggressive and pounce quickly. That is why, it’s essential to know what you’re looking for and what is feasible in your price range.
WE ADVISE YOU to spend time examining the housing inventory, and be prepared to move quickly once the house that meets your criteria goes on the market.