Austin Lenders & Creative Financing

Recommended Lender:  Summit Lending Group
Income Property Specialist, Monty Busch:
www.texasinvestorloan.com or www.uslandfunds.com

5 Great Reasons to be Pre-Qualified by a Lender

  1. You will know in advance what your closing costs and payments will be.
  2. You won’t waste time considering property that won’t qualify for an acceptable loan.
  3. You can select the best loan package without being under pressure. There are many options to choose from in today’s market.
  4. Sellers may find your offer to purchase more favorable if they know in advance of your ability to secure financing. This may make your offer more competitive if you are in competition with other offers.
  5. Peace of mind.

 BEST PIECE OF ADVICE:
Take the pre-qualification one step further and get a full loan approval. This is the
best approach. Republic of Texas, Realtors can help you with all of the details!

Items Needed For A Loan Application

Employment

  1. Addresses for two full years
  2. Gross monthly income
  3. W-2’s, if available
  4. Proof of pensions, retirement, disability or Social Security
  5. Proof of income from rentals, investments, etc.
  6. Year to date pay stub
  7. If self-employed:
                Two years 1040 Tax Returns
                Current year profit and loss statement

Creditors

  1. Each creditor’s name, address and type of account
  2. Account numbers
  3. Monthly payments and approximate balances
  4. Amount of child care expenses

Banking

  1. Names and addresses of saving institutions
  2. Account numbers for all accounts
  3. Type of accounts and present balances

Miscellaneous           

  1. List of assets in stocks, bonds, land
  2. Life insurance cash value (documented if used as cash down payment)
  3. If applicant is selling a home, a copy of sales contracts
  4. Social Security numbers for all parties
  5. Veterans—Certificate of Eligibility & DD-214  
  6. Cash or check to pay for application fee
  7. Income/Expense Statement on Investment Properties

Real Estate Agents

  1. Copy of sales agreement
  2. Copy of listing on property
  3. Instructions on how appraiser is to gain entrance

Understanding Closing Costs

Application Fee:  Fee charged by lender to offset fixed costs related to mortgage loan processing such as appraisal, credit report, and underwriting.

Closing Fee:  The fee charged by the closing agent who prepares the closing documents and closes the loan on behalf of the lender.

Commitment Fee:  This is often called an origination fee and is generally computed at 1% of the mortgage amount.

Discount Points:  Each point is equal to 1% of the mortgage amount. Points are used by the lender to adjust the yield on the mortgage when it is sold to an investor. By paying more points, the borrower can obtain a lower mortgage interest rate.

Funding Fees:  Normally applicable on VA loans only, equal to 1% of the loan amount. The fee is due at closing or may be added to the loan amount and financed.

Homeowner’s Insurance:  One year premium is due in advance at time of closing.

Mortgage Insurance:  Insurance required by the lender when the down payment is less than 20%. In the case of loan default, this insurance reduces the lender’s loss.

Pre-payables:  Adjustment to escrow accounts from the date of closing to the date of the first payment. Interest is paid through the end of the month of closing, taxes are paid through the end of the month of closing plus the following month. Two months of PMI (Principle Mortgage and Interest) are collected. Two months of homeowner’s insurance may be collected. A homeowner’s insurance policy must be provided along with a receipt showing that the first year’s premium is paid.

Processing Fee:  Fees charged by the escrow processor, either working for the escrow company, title company, or real estate company, for administrative escrow services performed from the point of contract through closing.

Recording Fees:  Fees charged by state or municipal entities for entering the closing documents into the public record.

Survey Fee:  Is usually required and is used by the lender to check for encroachments from within or from outside the subject property.

Title Insurance:  Provides protection for lenders and homeowners against financial loss resulting from legal defects in the title.

Underwriting Fee:  Usually included in the application fee. However, practices vary from lender to lender.

 

About Austin ~ About Texas ~ Maps of Austin ~ Fun in Austin