Lenders

What paperwork does the lender need to process the application?

Generally the lender will require proof of employment and income in the form of paystubs and/or tax returns and proof of assets in the form of bank or brokerage statements. Usually, this documentation and a credit report is sufficient for the lender to determine whether the borrower can afford the requested loan amount. If a property is identified, then an appraisal, property condition report, and preliminary title report will be required along with a complete copy of the purchase contract.

How can I compare the rates quoted by different lenders?

Here are three considerations in determining the price of a loan. These considerations are the contract rate quoted, the amount of points and/or origination fees associated with that rate, and the length of time the lender will promise to deliver that price to you. For example, two lenders could quote to you a 30-year fixed rate at 8%. However, one lender will quote 1.5 points and guarantee that day’s rate for 30 days. The other lender will quote only 1 point but will not guarantee the rate at all. The rate could easily change before you have a chance to close the transaction. So which is the better price?

Do I have to have a property to apply for a loan?

The most efficient way of shopping for a home is to know ahead of time the financing for which you qualify. One step better is to have the lender approve you for a specific loan amount so that you and the seller will know that you are able to complete the transaction.

How do I know when it is a good time to refinance?

The old rule of thumb on refinancing held that the interest rate would need to decline by at least 2% for the refinancing to be worthwhile. A more accurate measurement would be to consider the savings in monthly payment, the costs of the loan transaction, and the term of the new loan compared to the old term. The key is to determine whether the benefits of payment savings and/or term reduction exceeds the costs of the transaction. 

To get a Mortgage contact the following preferred lender:

Bryan DeKraker at National Home Lending call him directly at 734-521-2637

Bryan is a Loan Officer with National Home Lending located in Livonia, MI.  Bryan has helped several of my clients get pre-qualified and optain their mortgages.

A FINAL WORD - All loan requests are not approved. If your request is declined, you are legally entitled to know the reason. Your lender should be willing to discuss the findings with you, so you can identify potential problem areas. This discussion can be vaulable to you in preparing for your real estate purchase.