Do you want to finance your new home in South Huntington? Prudential Douglas Elliman Real Estate and DE Capital Mortgage can help.
Financing a home in today’s dynamic real estate market requires a mortgage lender that can navigate ever-changing guidelines while providing superior service throughout the process. DDD , Home Mortgage Consultant with DE Capital Mortgage represents the perfect partnership of two of the most well respected names in real estate—Wells Fargo Home Mortgage and Prudential Douglas Elliman Real Estate—and offers experience, competitive rates, high touch service, a broad product line and convenience. DE Capital Mortgage has a variety of loan programs that can help you buy a home with little or no cash. To find out how click here. To get any of you home finance questions answered contact, DDD , at HHH .
The professional mortgage consultants at DE Capital Mortgage leverage Wells Fargo Home Mortgage's processing and underwriting services while working hand-in-hand with your Prudential Douglas Elliman broker to make your real estate transaction smooth and successful. Our expertise in private mortgage banking combined with lending programs exclusive to our clients allow us to provide mortgage options that meet your current situation while complementing your long-term financial goals.
Whether you are purchasing a new property, renovating your existing home or simply want to refinance, DE Capital Mortgage has the solutions for all your real estate financing needs. Learn more about our great refinancing options by clicking here. If you are considering a reverse mortgage learn more by clicking here.
Mortgage Rate Monitor Alerts (click Here) . Time your home purchase or refinance by staying informed about interest rate trends. Receive daily or weekly email alerts about interest rates, get optional alerts when rates hit a desired target and reminders when you're nearing a rate adjustment for an adjustable-rate mortgage. This timely financing information can be sent to your in-box and to your mobile phone.
1 – Assemble a list of questions about your loan program
If you don't totally realize the pros and cons of the various loan programs, make sure to bring a list of questions with you. I or one of my trusted lenders can assist you in understanding the advantages and disadvantages of both programs, because it's hard to know the differences between both fixed and adjustable rate mortgages.
2 – Determine when you want to lock
By locking in the interest rate, a mortgage lender is holding to the mortgage interest rates for the loan – most often at the time the loan application is presented. By floating the rate, you can lock the rate anytime between application and at the time of closing. Buyers who choose to float presume the interest rates will dip in the near future. Click here to see the outlook for the next 90 days of interest rates.
3 – Decide if you want to pay additional points to reduce your interest rate
When you choose to pay additional points to lower the rate of your loan, you will do so by paying for them in cash at the time of closing. Every point is 1 percent of the loan. We can help you determine if buying points is right for you.
4 – Bring your paperwork
Getting a loan requires a lot of paperwork, so you should take some time to get your documents together.
If you are ready to apply or just have questionsfeel free to contact me at HHH .
Loan Application Checklist
In general, the documentation you will need includes:
Check for application fee
Property Information (if you already have a contract on a house)
Purchase Agreement.
Copy of legal description and MLS sheet.
If you are selling your current home, copy of listing contract.
If you have sold your current home, copy of settlement statement (HUD-1).
Income & Assets
Pay stubs for the last 30 days.
For the past two years:
Names and addresses of each employer.
W-2s
Statements for each bank, mutual fund, and/or investment account for the last three months.
Estimated value of personal property and furniture.
If you have made any large deposits to your accounts:
Explanation and source for deposit.
If large deposit was a gift:
Signed gift letter (lender can supply).
Copy of gift check.
Copy of deposit receipt.
If you own more than 25% of a business:
Corporate or partnership tax returns.
If self-employed:
Tax returns for the last three years (with schedules).
Year-to-Date Profit and Loss Statement prepared by an accountant.
If you own rental property:
Tax returns for the last two years and current rental agreements.
If you are retired:
Pension Award Letter.
If you receive Social Security:
Social Security Award Letter.
If you are counting child support as income:
Copy of divorce settlement.
Copy of twelve months of cancelled child support checks.
Debts
Names, addresses, account numbers, balances and monthly payments on all current loans.
Explanation of credit report anomalies, including:
Late payments, credit inquiries in the last 90 days, charge-offs, collections, judgments and/or liens.
Bankruptcy filed within last seven years (bring a copy of your bankruptcy papers).
VA Loans
Copy of DD Form 214, Report of Separation.
Miscellaneous
Photo ID and proof of Social Security number.
Residence addresses for the past two years.
If applicable, a copy of your divorce decree.
If you are not a citizen, a copy of the front and back of your green card.
I am your professional mortgage consultant, and I will help you every step of the way. If you have any qiestions contact me, DDD , at HHH .
Mortgage Programs
Private Sector
Conventional Loans - The only security guarantee is the value of the property.
Conforming Loans Conventional loans that follow the terms and conditions established by the guidelines of Fannie Mae and Freddie Mac.
Fixed-Rate Mortgage The interest rate and the principal payments remain fixed throughout the loan. Keep in mind your monthly escrow account payment could vary from year-to-year as taxes and insurance rates change.
Variable or Adjustable-Rate Mortgage The interest rate on the loan fluctuates over the period of the loan. Periodic adjustments to the interest rate are made based on changes to a defined index. The loan's interest rate is determined by adding a fixed number of points to the defined index.
Balloon Loan Short term, fixed-rate mortgage that has monthly payments usually based on a 30-year amortization schedule and a lump sum payment due at the end of term, usually 3, 5 or 7 years. The interest rate on balloon loans is usually less than a 15- or 30-year fixed-rate mortgage.
Piggyback Loan A second mortgage that closes with the first. Often the first mortgage is for 80% of the purchase price and the "piggyback" is for 10%. The home buyer covers the remaining 10% with their down payment. (Some lenders will write a second mortgage of 15% or even 20% of the purchase price.)
Housing Finance Agencies These agencies offer special loan programs to low- and moderate-income buyers, buyers interested in rehabilitating a home in a targeted area, and other groups as defined by the agency. Working through a housing finance agency, you can receive a below market interest rate, down payment assistance and other incentives.
Jumbo and Non-Conforming Loans Loans above the maximum amount established by the guidelines of Fannie Mae and Freddie Mac. Often the interest rate charged for a jumbo or non-conforming loan is higher than that of a conforming loan.
B/C Loans Loans for borrowers who cannot meet the credit guidelines established by Fannie Mae and Freddie Mac. The purpose is to offer temporary financing to someone whose credit history disqualifies them for a conforming loan (including someone who has recently filed for bankruptcy, foreclosure or late payment on their credit report). Typically the interest rates run higher and vary depending upon the individual credit situation.
Government
FHA Loans The Federal Housing Authority (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD), plays a significant role in helping low- to moderate-income families qualify for mortgages. FHA assists first-time buyers and others who would not qualify for a conventional loan, by providing mortgage insurance to private lenders. Interest rates for an FHA loan are usually the going market rate, while the down payment requirements for an FHA loan are lower than conventional loans. The required down payment can be as low as 3 percent and the closing costs can be included in the mortgage amount.
VA Loans VA Loans are guaranteed by the U.S. Department of Veterans Affairs. Service persons and veterans can qualify for a VA Loan, which usually offers a competitive fixed interest rate, no down payment and limited closing costs. While the VA does not issue the loans, it does issue a certificate of eligibility required to apply for a VA loan.
RHS Loan Programs The Rural Housing Service (RHS), which is part of the U.S. Department of Agriculture, guarantees loans from private lenders to help low- to moderate income families qualify for mortgages.
I will find the right progam to fit your needs.
The Cost of Your Mortgage Loan Locking-in the Rate
When shopping for a mortgage, the lender may give you a quote for the mortgage interest rate and points (additional fees charged by the lender usually paid at closing by the borrower). These only represent terms available at the time of the quote. They may not be available by the closing date (which may be weeks or months in the future). To ensure the rate and points are the same at closing as they are when quoted, you'll need to lock-in the interest rate (also known as a rate lock or rate commitment).
Obtain a Written Agreement
Floating the Rate
Buyers opt to float the loan when they believe interest rates will drop after their loan application date and prior to closing. The risk is that rather than dropping, interest rates rise, increasing the mortgage payment.
Most lenders will commit, in writing, to a mortgage interest rate for a specified time period while your loan application is processed - this is known as "locking-in" the rate.
If you elect to lock-in an interest rate, it is best to deal with a lender who provides a written lock-in agreement. Be sure to read this agreement carefully, some lock-in agreements become void due to actions beyond your control - such as a change in the maximum rate for VA-guaranteed loans.
Lock-in Options
The following lock-in options are common among lending institutions. Be sure to ask the mortgage lenders you are considering which lock-in options they offer.
Lock-in interest rates and points. This will give you a clear understanding of how much your mortgage will cost. Neither your interest rate nor points increase during the lock-in period. This protects you against rising market conditions.
Lock-in interest rates and floating points. Your interest rate is locked-in and will not change for the lock-in period, while your points may rise and fall with market conditions. With this option, your lender may allow you to lock-in the points at the current market condition some time between submitting the loan application and closing.
Floating interest rates and floating points. This gives you the option to lock-in the interest rate at some time between submitting the loan application and closing. This puts you at risk if interest rates and points rise and may not be best for a homebuyer with a tight budget.
The Cost of Locking-in the Rate
It is not unusual for a lender to charge a fee for locking-in an interest rate and points. This fee may vary depending on the amount of time you want to lock-in the rate (the lock-in period).
The fee may be charged when you lock-in the rate (and is rarely refundable if you withdraw your application, if your credit is denied or if you do not close on the loan) or it may be included in your closing costs. The amount of the fee and when it is charged will vary among lenders.
The Lock-in Period
Most lenders will offer lock-in periods of 30-60 days. Some lenders may only have short lock-in periods. And still others may offer a longer lock-in period (expect higher fees for longer lock-in periods).
The lock-in period should be long enough for the loan approval process and to allow for any other contingencies that may delay closing.
The Lock-in Expiration Date
If unexpected circumstances prevent the loan from settling prior to the last day of the lock-in period (whether caused by you or others in the process - including the lender), you lose the interest rate and points that were locked. Prevailing interest rates and points are usually charged under these circumstances. Be sure to ask your lender before you lock-in what interest rates and points will be charged if the loan is not closed before the lock-in period expires.
As your professional mortgage consultant at DE Capital Mortgage, I will advise you if points or locking in your rate is right for you. When you have questions, I have answers. Feel free to contact me, DDD , at HHH .
