Choosing the Right Loan | Mortgage Programs | Apply Now
What We Need | Prequalification

Choosing the Right Loan

Most of you do not buy the very first home you look at. Or if you do you’ve looked at some others before coming back to the first home. And most of you are looking at these houses with an agent that’s helping you "decipher" a lot of information. A mortgage loan should be no different.

So, often, a person expends tremendous energy finding the "right home" and then the mortgage process is an afterthought. With literally hundreds of loan options available, it is important that you choose your mortgage counselor wisely. Just like the wrong house could cost you, the wrong mortgage program could cost you tens of thousands of dollars over a 30-year period. So the most important part of this process is not getting the lowest interest rate quote, but finding a mortgage professional that knows the programs available and knows how to find out which one fits your needs and goals.

With 13 years in mortgage lending, most of it right here in the Triangle, I guarantee you…"Together we will find you the best program to meet your needs and goals."

Here is a brief list of just a few of our most popular loan types.

• Fixed rate loans. These loans have a set interest rate that will not change. These loans can be from 5 years in length all the way to 40 years.
• Adjustable Rate Mortgages or what we call ARM loans. These can be spread over 30 years. They have a fixed rate period followed by an adjustment period. While the fixed period could be as little as one month, the most popular lengths are 2, 3, 5, or 7 years.

Now you can take these 2 basic types of loan and "mix and match" the various mortgage programs. Whether it be for a primary home, rental property, first-time buyer or vacation home, the combination of programs and loan types provides for a virtually endless list of available scenarios.

With all that said, you need to ask yourself the following questions…

HOW LONG WILL I LIVE IN THIS HOUSE?
WHAT ARE MY FINANCIAL GOALS? I.E… LOWEST PAYMENT, LOWEST DOWNPAYMENT, ETC…

Mortgage Programs

There are basically two reasons you may wish to obtain a first mortgage: to make a home purchase or to refinance an already owned property. Inside these two categories are a wealth of variations addressing most every scenario possible. You may not realize it but the mortgage opportunities are so great that many people can buy houses they could not otherwise afford due to the unique products we offer. You also probably did not know that the lifespan of an average mortgage loan in the Triangle area is now less than 5 years. This is due in part to homeowners "moving up" or "moving down," dependent upon their goals.

First Time Homebuyers
We have numerous programs that are designed to help individuals become homeowners for the first time. While they generally do not require that you be a first-time homeowner, the parameters are geared toward first timers. We offer loans that require as little as zero downpayment. We even offer some programs that allow you to include up to 3% in closing costs in the loan amount.

Vacation/Investment Properties
We offer many programs allowing as little as 5% downpayment on vacation properties. Fixed rate loans, ARMs and even balloon programs are available, giving many choices to get the payments affordable.

You can purchase or refinance rental properties up to as much as 90% of the value/sales price. History has taught us that real estate is one of the safest and best uses of your excess funds to generate a higher rate of return on your money. We can assist you with properties as large as 4 units. Anything larger is considered commercial.

Refinances
There are two categories of refinances: rate/term refinances and cash-out refinances. Whether it be to reduce the time remaining, to reduce your monthly payment or to get equity out for any reason, refinancing has become a valuable tool to manage your financial resources.

Second Mortgages
Many people confuse themselves trying to understand the term second mortgage, or equity line, or home equity loan. Very simply, a second mortgage is just that... a second loan tied to your home. There are fixed rate loans, equity lines of credit, interest only loans, and many other types but they are all called the same thing: a second mortgage. We offer equity lines at no charge if done in conjunction with a first mortgage transaction. We also use these loans as an integral tool in managing your financial strategy. Maybe you want to avoid private mortgage insurance (PMI), or you're selling another home and want to pay a large amount down in the near future. Or possibly you're attempting to keep your new loan balance under the "jumbo" limits. We can explore a myriad of different programs and scenarios to ensure you're getting the best "Total loan" package.

These are but a few of the programs or combinations that we can develop for you.

What We Need

In an effort to process, approve, and close your loan as quickly as possible, please provide the following items (as they apply to you) as soon as you can.

1. Proof of income. For regular salaried borrowers – one month's pay vouchers and the most recent year’s w-2’s. For self employed borrowers – we need complete copies of the last 2 years federal returns, all pages. If you have an S-corp, we need those also.
2. All pages of the last 2 month’s Bank statements for all pertinent assets. In most cases we only need the liquid accounts (checking, savings, moneymarket). For refinance transactions, we only need last month's statements (not 2 months). Pay special attention to any downpayment funds you’re using. We must verify all downpayment funds. If this is for a refianance, we only need to prove you have enough to cover the "cash to close" requirement.
3. Completed application which you may print from this wesite.

The following items are needed in every case…

If a purchase…

1. Copy of purchase contract.
2. Are you selling your present home? We will need a copy of that contract also. If it is not under contract yet, let me know.
3. Name of your choice of closing attorney and home insurance agent, and the designated close date.

If a refinance…

1. Copy of most recent home insurance declarations page, showing agent, phone number, and policy dates.
2. Copy of most recent mortgage account statements on all mortgage loans you have tied to this home. This will give valuable information about escrows and recent payments. If you do not get statements, then the account number, company name, and phone number will suffice.
3. Copy of the old title insurance policy (you can find it in the old loan closing papers).
4. Please note, if you own rental property, we may need copies of the leases and/or copies of the last 2 federal tax returns. We will need a check for $350 payable to National Mortgage. This covers the appraisal and credit report fees. Since these items are done prior to closing and must be paid for, we need to collect this money in advance. If an appraisal is not ordered $300 may be refunded to you.

There may be a few other needs but this will greatly speed up our approval process.

Prequalification

I will be happy to do a pre-qualification for you and determine what your maximum limits are. The first step is to complete the loan application and send to me. You may fax it or mail it if you wish. But I always like to set a meeting the first time so we can discuss goals/needs early on.

It is very important to get pre-qualified early in the home search process, usually before you actually begin. Most realtors and nearly all sellers want proof that your finances have been reviewed by a qualified mortgage professional to be sure you are capable of buying a home.

With an application and a pay-stub, I can review your credit and issue you a pre-qualification letter. This can usually be done in less than one hour. While it is not a firm commitment, it lets all parties involved know that you are serious and you are qualified.