In order to get pre-qualified for a mortgage, we will need to run a credit report. However, we will never pull your credit score without obtaining verbal or written permission from you.
Generally speaking, you can purchase a home with a value of two to three times your annual household income. The amount you can borrow will depend upon your employment history, credit history, current savings and debts and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first-time buyers for your home purchase.
With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.
An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally, the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).
There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. DSLD Mortgage, LLC can help you evaluate your choices and help you make the most appropriate decision.
For most homeowners, the monthly mortgage payments include three separate parts:
- Principal: Repayment on the amount borrowed
- Interest: Payment to the lender for the amount borrowed
- Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company. Mortgage Insurance may be applicable based on the loan program chosen.
Interest rates for mortgage loans are based on a variety of factors such as the loan purpose, your credit history and ability to repay, the value of the collateral and the loan amount. Interest rates are also influenced by the financial markets and can change daily – or multiple times within the same day. The changes are based on many different economic indicators in the financial markets. Give us a call to speak with one of our mortgage loan originators regarding today’s rates.
The amount of cash that is necessary depends on the number of items. Generally speaking, though, you will need to supply:
- DSLD does not require a deposit/earnest money when you write a contract
- Down Payment: A percentage of the cost of the home that is due at settlement
- Closing Costs/Prepaids: Costs associated with processing paperwork to purchase or refinance a house