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Shopping for the right mortgage

Finding a mortgage that's right for you should be easy. But there are many programs to choose from and many ways to structure a loan. Different loan programs will offer benefits that appeal to borrowers at different stages of life.

Before you begin, ask yourself these important questions:

  • How long do you anticipate living in your new home?
  • Do you expect any changes over the next few years, such as expanding your family or having children go off to college or move away?
  • Do you expect any changes in income due to promotions, relocations, retirement, inheritance or pensions?
  • Are you expecting a change in your investments?
  • Do you have a retirement plan at work and do you contribute to it?
  • Do you have other debt?

In the end, be sure you are given a complete picture of exactly how much your mortgage will cost you over the period of time you anticipate having the loan in place. This is the single most important factor you should consider when shopping for a mortgage. Not only does this data illustrate the bigger picture of your financial goals, it allows for adjustments should things change a little sooner than expected. A good time frame for this projection is anywhere from three, five or even up to seven years.

When shopping for a mortgage, you should always evaluate your choices carefully and consider how they will fit in with your long-term financial plan.

Call us for a free consultation. Together, we'll find the program that's best for you.

A step-by-step walkthrough of purchase loans

The loan process to purchase a home has many steps. The walkthrough below provides an overview of that process. We'd be more than happy to answer any questions you may have along the way.

Pre-approval - Get pre-approved for a mortgage and know in advance exactly how much payment you can afford. Completing this step will also increase your negotiating power since you'll be viewed as a "cash buyer."

Loan Search - Put yourself in the hands of an experienced mortgage professional, someone who will help you to determine which financing options best suit your needs today and in the future.

Loan Application - It's crucial to supply the lender with as much information as possible, as accurately as possible. All outstanding debts, as well as assets and income should be included.

Documentation - Paperwork supporting the application must also be submitted. Information commonly sought includes pay stubs, two years' tax returns and account statements verifying the source of the down payment, funds to close and reserves.

The Hunt - Begin shopping for a house. Once you find the right one, the terms of the sale will be negotiated, including the price and potentially the terms of the loan being sought.

Appraisal - Lenders require an appraisal on all home sales. By knowing the true value of the home, the borrower is protected from overpaying.

Title Search - This is the time when any liens against the property are discovered. A lien may have been placed on a property to ensure payment of outstanding debts by the owner. All liens must be cleared before a transaction can be completed.

Termite Inspection - While most purchase loans do not require a formal inspection for termite and water damage, some loans (especially government loans) allow for the possibility. If problems are found, repairs may be necessary.

Processor's Review - All pertinent information will be packaged by your mortgage professional and sent to the lending underwriter, including any explanations that may be needed, such as reasons for derogatory credit.

Underwriter's Review - Based on the information put together by the loan professional, the underwriter makes the final decision regarding whether a loan is approved.

Mortgage Insurance - Many lenders require private mortgage insurance when borrowers put down less than 20 percent on a loan.

Approval, Denial or Counter Offer - In order to approve a loan, the lender may ask the borrowers to put more money down to improve the debt-to-income ratio. The borrower may also need a bigger down payment if the property appraises for less than the purchase price.

Insurance - Lenders require fire and hazard insurance (often referred to as Homeowners Insurance) on the replacement value of the structure. Flood insurance will also be required if the property is located in a flood zone. In California, some lenders require earthquake insurance on condominiums.

Signing - During this step, final loan and escrow documents are signed.

Funding - At this point, the lender will send a wire or check for the amount of the loan to the title company.

Confirmation of Funding - The lender authorizes the disbursement of loan proceeds.

Closing - Documents transferring title will now be officially recorded by the County Recorder.

About

Independence Home Mortgage Corp. is a residential mortgage company dedicated to the American Dream of home ownership. We are a customer focused mortgage brokerage firm who strives to build lasting relationships by providing personalized mortgage solutions and unsurpassed service. We offer residential loans including conforming conventional, jumbo, FHA, VA, USDA, and portfolio options. We arrange financing for purchase, refinance, construction, and reverse mortgages on multiple property types. ...

 

Contact Us

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- NMLS: 122142
720 Johnsville Blvd
Suite 1205B
Warminster, Pennsylvania 18974
Phone: (215) 323-4120
Email: information@ihmtg.com

 

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© 2018 Independence Home Mortgage Corp NMLS ID# 122142.  All rights reserved.  This is not a commitment to make a loan.  The terms and conditions in connection with any extension of credit are effective as of the date you receive material and are subject to change within the sole discretion of Independence Home Mortgage Corp without notice.  All loans are subject to credit and property approval.  Not all products are available for all loan amounts, programs or credit grades.  Other restrictions and limitations apply.  There are maximum loan amounts.  All loan approvals are subject to underwriting guidelines through third party providers. Independence Home Mortgage Corp is a licensed mortgage broker, NJ Department of Banking and Insurance and Pennsylvania Department of Banking and Securities.  Registered Mortgage Broker - NYS Department of Financial Services.  All loans arranged with Third Party Providers.  

This site is not authorized by the New York Department of Financial Services. As such, no mortgage loans for properties located in New York will be accepted through this site.