|
Prequalification
Our first objective is to determine what properties you can afford based
upon your credit, debt and income history. We do so by having you complete our basic information form in the application and forms section of this website or on a five minute phone
consultation.
Most lenders use certain formulas to determine how much of a loan to offer you. Typically, your
monthly house payment should be around 30 to 40 percent of your total monthly gross income. And your total monthly debt (including your mortgage, car payment and credit cards)
should not exceed 40 to 45 percent of your gross income.
Types of Mortgages
American Capital Mortgage is equipped to provide a
variety of loans with a range of terms, based upon your specific needs. Some of the programs we offer include:
- Adjustable Rate
- Adjustable loans are usually offered at lower rates than fixed rate mortgages, but rates can rise considerably over the length of the loan.
- Conventional - Loans conforming up to $333,700.00
- Convertible - A mortgage loan that combines features of fixed rate and adjustable loans.It
can be converted to a fixed rate mortgage during a specified period…allowing the borrower to enjoy the benefits of both during the course of the loan.
- Fixed Rate
- A 30 year fixed rate loan is by far the most popular fixed rate that we offer. You may also want to consider a 10, 15 or 20 year fixed loan as you can pay up to one third less over the life of the loan.
- Fixed Initial Rate
- This is the exact opposite of a Convertible mortgage loan. The borrower benefits by a lower fixed rate initially and is subject to an adjustable rate later. Fixed Initial Rate loans are typically 3, 5, 7 or 10 year programs.
- Jumbo - Loans over $333,700.00
- Zero Down Mortgage
- We offer several programs that allow you to purchase property with no cash down payment. These loans can be very advantageous for our clients who qualify.
Please e-mail or call us (310) 391-3770 with any questions you have.
Loan Application Checklist
(below is the information you will be required to provide):
- Residence address(es) for past two years.
- Names and addresses of each employer for the past two years
- W-2s and last two pay stubs or if self-employed; last two years federal tax returns
- For each bank account: name of financial institution, account number, account balance and copies
of last two months statements.
- Investment and retirement account statements for prior 2 months.
Mortgage Terms to Know
- Appraisal - An evaluation of a property’s value completed by an independent
licensed appraiser.
- Closing Costs - Fees that are paid at the time of close of escrow. These may
include and are not limited to: appraisal fee, title search, lender fees, escrow fees, county recording fees and/or points. These costs are in addition to your down payment.
- Escrow - The process where a neutral third party holds the funds and documents
that change hands during the buying, selling or refinance process.
- Home Insurance - Lenders require that homeowners carry insurance as a condition
of their loan. This protects you from a range of hazards depending on the type of coverage you purchase.
- Inspection - An evaluation of a property to determine if there are any problems or
pre-existing damage that could change its value.
- Points - Finance charge paid to the lender and/or broker as part of the closing
costs. Each point equals 1 percent of your total mortgage loan.
- Prepayment - Making extra payments toward the principal of your mortgage
balance can shorten the length of your mortgage and lower your interest. Be sure to read about prepayment conditions (or penalties) associated with your mortgage.
- Private Mortgage Insurance (PMI) - When loans are made without a 20% down
payment, many lenders require you to purchase this insurance to protect them in
the event of a mortgage default.
- Please e-mail or call us (310) 391-3770 with any questions you have.
back to top
|
The following are key topics we recommend you review before
making your next real estate purchase. Whether you are a first-time buyer or seasoned veteran, experience has shown that added knowledge streamlines the mortgage lending process.