Read Updates By Larry M Finkelberg of Amerihome Lending
Contact an Amerihome Lending Loan Specialist
Contact an Amerihome Lending Loan Specialist
Mortgage Statistics
Mortgage Info
Types Of Mortgages
Mortgage Application Process
After the seller has accepted the sales contract, you must apply for your home loan, or mortgage. At first, this
process may seem a little overwhelming; however, as with anything, knowing what to expect makes it easier
Applying for a mortgage loan
Your loan officer will assist you in completing a mortgage loan application, and you will be required to pay
for your credit report and property appraisal at the time the application is completed. You need to sign a
variety of forms so that your lender can verify your rental or mortgage payment history, employment, savings
and checking accounts, child care expenses, and any installment debt accounts.
Mortgage loan insurance
Whenever a borrower makes a down payment of less than 20 percent of the purchase price of the home, the
lender will require some type of mortgage insurance. This insurance protects the lender against loss if the
borrower defaults on the loan. Listed below are the different insurers of mortgage loans. Each mortgage
insurer has different down payment and qualification criteria.
1. Conventional/Mortgage Insurance (“Ml”)
Typically the Ml Company will require the borrower to have a 3-5% down payment from their own funds
invested in the transaction. A gift from a relative may be received for additional down payment or closing
costs. The cost for Ml varies depending on the amount of down payment that you make, and is added to your
monthly mortgage payment.
2. Rural Development Guaranteed Loan Program (“RD”)
RD will insure loans that meet their guidelines and are located in rural designated areas. This program sets
maximum income limitations as well as maximum loan amount limitations.
3. Veterans Affairs Guaranteed Loans (“VA”)
VA will issue a guarantee on loans for 100 percent of the sales price for veterans with VA eligibility and for
eligible reservists with six years of service. Specific VA qualifying guidelines must be met.
4. HUD-insured Loans (Federal Housing Administration or “FHA”)
The U.S. Department of Housing and Urban Development may also insure loans. Maximum loan amounts
are calculated based on the acquisition cost (sales price + borrower-paid closing costs) and are limited by
the HUD-designated limits. HUD-insured loans must meet specific property requirements, and HUD specified
borrower-qualifying guidelines. A gift for the full down payment and closing costs is allowed.
The application process
Here’s what happens after you and your loan officer completes the loan application:
1. Verification process
You will be requested to sign forms authorizing your lender to verify your current and previous employment,
bank accounts, rental payment history and other credit references at the time of loan application.
2. Disclosure forms
You lender will provide you with certain disclosures about your loan. You should ask your loan officer about
anything that you do not understand.
3. Payment of fees
You will be required to pay for your credit report and the property appraisal.
4. Loan processing
An individual will be assigned to assist with the processing of your loan. Your lender will mail the verification
forms and order your credit report and appraisal. Based upon the information that results from this process,
you may be requested to provide explanations or additional documentation to explain items such as gaps in
employment, newly opened checking or savings accounts, past delinquent credit or recent inquiries by
creditors.
5. Loan decision
You will be notified in writing of the final decision on your loan. If your loan is approved, you will receive a
commitment letter, which indicates the terms of loan approval and conditions that must be met prior to the
closing of the loan
process may seem a little overwhelming; however, as with anything, knowing what to expect makes it easier
Applying for a mortgage loan
Your loan officer will assist you in completing a mortgage loan application, and you will be required to pay
for your credit report and property appraisal at the time the application is completed. You need to sign a
variety of forms so that your lender can verify your rental or mortgage payment history, employment, savings
and checking accounts, child care expenses, and any installment debt accounts.
Mortgage loan insurance
Whenever a borrower makes a down payment of less than 20 percent of the purchase price of the home, the
lender will require some type of mortgage insurance. This insurance protects the lender against loss if the
borrower defaults on the loan. Listed below are the different insurers of mortgage loans. Each mortgage
insurer has different down payment and qualification criteria.
1. Conventional/Mortgage Insurance (“Ml”)
Typically the Ml Company will require the borrower to have a 3-5% down payment from their own funds
invested in the transaction. A gift from a relative may be received for additional down payment or closing
costs. The cost for Ml varies depending on the amount of down payment that you make, and is added to your
monthly mortgage payment.
2. Rural Development Guaranteed Loan Program (“RD”)
RD will insure loans that meet their guidelines and are located in rural designated areas. This program sets
maximum income limitations as well as maximum loan amount limitations.
3. Veterans Affairs Guaranteed Loans (“VA”)
VA will issue a guarantee on loans for 100 percent of the sales price for veterans with VA eligibility and for
eligible reservists with six years of service. Specific VA qualifying guidelines must be met.
4. HUD-insured Loans (Federal Housing Administration or “FHA”)
The U.S. Department of Housing and Urban Development may also insure loans. Maximum loan amounts
are calculated based on the acquisition cost (sales price + borrower-paid closing costs) and are limited by
the HUD-designated limits. HUD-insured loans must meet specific property requirements, and HUD specified
borrower-qualifying guidelines. A gift for the full down payment and closing costs is allowed.
The application process
Here’s what happens after you and your loan officer completes the loan application:
1. Verification process
You will be requested to sign forms authorizing your lender to verify your current and previous employment,
bank accounts, rental payment history and other credit references at the time of loan application.
2. Disclosure forms
You lender will provide you with certain disclosures about your loan. You should ask your loan officer about
anything that you do not understand.
3. Payment of fees
You will be required to pay for your credit report and the property appraisal.
4. Loan processing
An individual will be assigned to assist with the processing of your loan. Your lender will mail the verification
forms and order your credit report and appraisal. Based upon the information that results from this process,
you may be requested to provide explanations or additional documentation to explain items such as gaps in
employment, newly opened checking or savings accounts, past delinquent credit or recent inquiries by
creditors.
5. Loan decision
You will be notified in writing of the final decision on your loan. If your loan is approved, you will receive a
commitment letter, which indicates the terms of loan approval and conditions that must be met prior to the
closing of the loan
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
202.361.8384
wayne@affordablereos.com
wayne@affordablereos.com
| COMPANY FEATURED LISTINGS |
| Ashburn, VA $460k |
| Sterling, VA $399k |
| Woodbridge, VA $385k |
