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Improve Your Chances  |  Mortgage Application Checklist  |  Questions For Your Lender 
Financing Options  |  Home Buying Glossary

 

Improve Your Chances

It is of great importance that you position yourself to have the "Best Chance" to get your offer accepted. You enhance your chance of getting the home of your choice by doing the following:

bulletGet pre-approved for the purchase:
This takes very little time and is of great value. At this time, identify the price range for which you qualify and which fits your lifestyle.
bulletSubmit a strong competitive offer:
Submit the offer as if there will be multiple offers.
bulletInclude substantial earnest money deposit:
Acceptance of an offer is sometimes determined by the amount of the deposit. A larger amount may signify a bigger commitment to the seller.
bulletMinimize or eliminate contingencies:
The fewer contingencies, the stronger the offer.
bulletMake a buyer profile available:
Time on the job, flexibility, reason for purchasing seller's home, etc.
bulletBe prepared to preview a new property quickly:
Homes sell sometimes very quickly. Be prepared to make decisions quickly and be accessible to change the terms instantly.
bulletBuyer and agent to have instant communication access:
Let us maintain instant access to each other via cell phone, voice mail, or fax.
 

  Mortgage Application Checklist

  Copy of your Purchase and Sale Agreement.

Your present mortgage information.

Two year history of employment and verification of all income sources.

If self-employed, copies of past two years Federal Income Tax Returns.

Information about your checking, savings and credit card accounts.

Name, account number and outstanding balance of each of your debts.

Application deposits.

Information about any assets.

Information regarding any other assets that will be used as funds to close.

If FHA - Copy of Social Security card and photo ID.

If VA - Certificate of Eligibility or DD214.

If Employee Relocation Client - include relocation information and copy of offer, promissory note and copy of check on bridge loan.

 
 

  Questions For Your Lender

Are both fixed-rate and adjustable mortgage loans available?

What is the interest rate?

How long can I "lock-in" the financing at the current interest rate?

Is a float down lock available in case rates drop after I have locked in?

What are the other fees a lender may charge me in conjunction with my loan?

Are funds for a second mortgage available?

On adjustable loans:

bulletHow often will the interest rate be adjusted?
bulletIs there a maximum limit on each rate change?
bulletHow often will the monthly payment be adjusted?
bulletIs there a ceiling on payment adjustments?
bulletCan the term of the loan be extended?
bulletWhat is the maximum rate that can be charged over the life of the loan?
bulletIs there any potential for negative amortization?

Is there a pre-payment penalty clause? This involves extra charges for paying off the loan before maturity. About 80% of all loans in the United States are paid off early.

What is the "grace" period? How late can a monthly payment be made before a late charge is assessed? What will happen if a payment is missed?

Do you have to pay "points" to get your new mortgage? Usually lenders charge points for the cost of giving you a mortgage loan. A "point" is 1% of the loan.

Will the lender require mortgage insurance?

Is the loan serviced locally or is the servicing sold?

Ask for a written "good faith deposit".

 
 

 

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Cindi LaSalle-Shanks
(928) 533-1012
Fax: (928) 541-8799
RealtorCindi@aol.com
126 N. Marina Street, Suite 100
Prescott, AZ 86301