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Mortgage Disclosure

Before You Apply For A Mortgage: Don't's

• Before You Apply

What to do to prepare up to a year in

advance of your mortgage application.

• Can You Trust Your Loan Officer?

Who does your loan officer work for,

and how do you find the best one?

• Lender, Broker, Or Bank?

What type of loan Provider is right for

you?

• Types of Mortgage Loans

The types of mortgage loans and

their advantages and disadvantages.

• Types of Documentation

Your options for disclosing how much

you make and where it comes from.

• Underwriting

What does an underwriter look for

when analyzing your loan application?

• Pre-Approval

What it is and isn't and how it saves you

time and heartache.

• Credit

What it is, and how it affects your life.

• Income & Employment

How much you need to make and for

how long in order to qualify.

• Asset/ Down Payments

How much, where from, and what kind

of money will work.

• Down Payment Assistance

Short on funds? Learn about your

options and explore these resources.

• Processing

What happens to your application after

you sign it and before you close?

• Title

What is it, what does it mean, and how

does it work?

• Appraisals

What is your home worth, why you

should bother to find out, and how

does it affect your loan?

• Alternate Financing

Facing rejection? Time to get creative.

• FHA

Low down payment, forgiving

qualifications. A great loan option.

Don'ts

1. Don’t make any big purchases. Unless you win the

lottery, the money for a big purchase will come from one of

two sources: either your pool of savings meant for a down

payment, or a new loan. Less down payment means higher

interest rate, and/or higher mortgage payments. A new debt

will hurt you under the lender's credit scoring systems.

Additionally, the new payments on a loan will raise your

monthly expense ratio, cutting into the amount of house you

will qualify for. And if you are lucky enough to come into a

windfall, put it toward your down payment, lower your future

mortgage payment, and use the savings to pay on a loan for

the luxury after you’ve moved in. Patience is all that is required.

2. Don't try to buy too much house. This is another variation on

“do know what you can afford.” But it’s worth repeating.

Lenders consider what's known as "payment shock" when

analyzing loans. Payments over 150% of current rent or mortgage

payments can cause problems in underwriting.

10 Questions