42 years in business.

Thursday, August 18, 2011

Six Steps to Owning a Home- Bank Side

The following are six steps toward owning a home on the finance side. Your REALTOR can also assist you in obtaining a mortgage and consult with you on affording a home.

1.Determining a mortgage payment you can afford.

Many times you can qualify for a bigger mortgage than you may feel comfortable paying. Calculate how much of a house you can afford before looking. You don't want to find your dream home only to determine that it is out of your budget.

2. Pre-Qualify

Visit a local lender to determine the dollar amount of the mortgage or purchase price you qualify for. Pre-qualification is based on income, debts, available cash, and credit history. A buyer may also have to provide job history and a debt to income ratio.

3. Submit the Application for Mortgage

This typically happens after you have a signed purchase contract on a property.

4. Rate Lock

At the time you submit your application you have the option of locking your rate which means your mortgage will be based on the current mortgage rate that day. There is also the option of waiting or "floating" the rate. Check with your mortgage lender on terms and conditions.

5. Coordinate Your Closing

After your application is approved a closing coordinator will assist you as you get closer to your closing date to ensure that all documents needed are signed and given to the correct parties.

6. Closing

At closing you will sign all the legal documents and pay necessary fees. You will receive the keys to your new property.
Congratulations. You are a home owner.


Wednesday, August 3, 2011

Mortgage Programs

Conventional Mortgages
  • 5% minimum down - five percent of purchase price
  • Fixed or adjustable rates available
  • Closing costs may be financed (check with your lender for terms and amount)

  • For first-time buyers or US Veterans* (those who have not owned a home within past 3 years)
  • Owner- occupied properties only
  • Minimum 3% down payment
  • Purchase price and income limits apply
For more information check out the NYS Homes and Community Renewal Website.

FHA Mortgages

FHA insured loans are a type of federal assistance and have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford. To obtain mortgage insurance from the Federal Housing Administration, a mortgage insurance premium (MIP) equal to a percentage of the loan amount at closing is required, and is normally financed by the lender and paid to FHA on the borrower's behalf. Depending on the loan-to-value ratio, there may be a monthly premium as well.

  • No income limits
  • Minimum 3.5% down payment
  • Required federal government mortgage insurance

VA Loan

  • The only mortgage product with NO down payment
  • No private mortgage insurance
  • Relaxed credit qualifications
  • All-time low interest rates
  • For more information click here