|
  Purchasing 101 |
 Refinancing 101 |
 Foreclosures 101 |
 My Credit Score |
 Choosing a Loan Type |
 My Home Value |
|
|
|
|
Purchasing 101
A purchase transaction is a very complex transaction with a number of different parties involved: listing realtor, selling
realtor, sellers’ attorney, buyers’ attorney, buyer, seller, etc. This is why almost 50% of all purchase transactions fall
apart before or at the closing table. Midwest Custom Mortgage accepted this challenge back in 2004 and has mastered the process
through its successes and failures over the years. Midwest Custom Mortgage has designed and created
to keep
everybody involved in the purchase transaction up-to-date 24/7 with instant loan updates by text message and email. Your loan
moves through the process faster and easier with all persons you want involved receiving real-time updates and statuses. This
helps keep everybody on track and up-to-date so your purchase transaction will go smooth and fast...
|
|
 |
|
When Choosing A Location, Keep In Mind:
- Proximity to schools
- Proximity to work
- Proximity to other amenities
- Tax & crime rates
- Restrictive covenants
- Homeowners association
- Public transportation
- Safety & noise issues
- Neighbors
|
|
|
|
Refinancing 101
The first step of refinancing your home is to fill out a loan application, better known by lenders as a 1003. A 1003 takes
about five to ten minutes to complete and can be filled out over the phone or .
The information needed will include some basic personal information and 2 months of income, 2 years of housing, and
2 months of average balances on assets (checking, savings and 401ks).
Once the application is completed, we prepare the application for our Automated Underwriting System (AUS). The preparation
includes running credit reports on the borrowers and choosing a loan program (30/15/10 year fixed, Adjustable Rate Mortgage
(ARM), FHA, etc.).
After preparations are complete, we run the application through our AUS. The AUS will tell us if the loan qualifies for the
program chosen and describes any additional information needed to approve the application...
|
|
 |
|
Information Needed:
- 2 months of income
- 2 years of residency information
- 2 months assets (checking, savings, etc.)
- Copy of current mortgage bill
- Copy of government issued IDs
|
|
|
|
Foreclosures 101
One of the best places to invest is in foreclosures and bargain residential real estate. The current market conditions make
it a perfect time for a small investor or a first time home buyer to purchase one or more foreclosure properties for their
private residence, rental or resale. During economic downturns, more upscale homes go into foreclosure, so the notion that
foreclosure homes are only available in crime-ridden areas is inaccurate. Beachfront and homes in affluent areas are part
of the mix of foreclosed properties available.
But anyone considering buying a foreclosed home should forget about paying
pennies on the dollar. You can buy foreclosures for as cheap as 30% to 50% below market, but most foreclosures sell for
5% below market.
|
|
 |
|
A first time home buyer and the seasoned pro must learn to navigate the foreclosure process. Good buys are available,
but they require a great mortgage professional that understands foreclosures and the type of loan that will be
necessary for the transaction to go smoothly.
for more information.
|
|
|
|
My Credit Score
Home buyers who are seeking a mortgage find out early-on that their credit score plays an important part in the home buying
process and in determining the interest rate that a lender offers.
What is a credit score?
A credit score is a number that lenders use to estimate risk. Experience has shown them that borrowers with higher credit
scores are less likely to default on a loan.
How are credit scores calculated?
Credit scores are generated by plugging the data from your credit report into software that analyzes it and cranks out a
number. The three major credit reporting agencies don't necessarily use the same scoring software, so don't be surprised if
you discover that the credit scores they generate for you are different.
Get My FREE Credit Scores!
|
|
 |
|
Which parts of a credit history are most important?
- 35% - Your Payment History
- 30% - Amounts You Owe
- 15% - Length of Your Credit History
- 10% - Types of Credit Used
- 10% - New Credit
|
|
|
|
Choosing A Loan Type
Conventional loans are mortgage loans offered by non-government sponsored lenders. These loan types include: Fixed
Rate Loans, Adjustable Rate Loans (ARMs), Combination (Hybrid) Loans, Balloon Mortgages and Pledge Asset Loans,
Jumbo / Construction Loans, and Reverse Mortgage
FHA mortgage loans are issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division
of the U.S. Department of Housing and Urban Development. FHA loans are an attractive option, especially for first-time homeowners.
FHA loans are generally easier to qualify for, have lower down payment requirements, and cannot exceed statutory loan limits.
VA mortgage loans are government loan's available to veterans who have served in the U.S. Armed Services and, in
certain cases, to spouses of deceased veterans. The requirements vary depending on the year of service and whether the
discharge was honorable or dishonorable. The main benefit to a VA loan is the borrower does not need a down payment. The
loan is guaranteed by the Department of Veteran Affairs, but funded by a conventional lender.
|
|
 |
|
Afraid you won't qualify due to your home's value?
Ask one of our mortgage specialists about special programs which
may allow you to refinance up to 125% of your home's value!
for more information.
|
|
|
|
My Home Value
Your home's value is one of the key factors that determine which program(s) you may be eligible for when it comes to refinancing.
The value of your home is used to calculate your Loan-To-Value (LTV) which is calculated as [Loan Amount] / [Home Value]. In
most cases, the value of your home is determined by the appraisal that will be conducted during your refinance process.
Midwest Custom Mortgage has programs that may allow you to refinance up to 125% of your LTV and there are even Streamline
programs which may allow you skip the appraisal process all together!
Free online Home Value Estimators:
for more information.
|
|
 |
|
There are a number of factors that can affect your homes value which include:
- Location
- Number of bedrooms
- Number of bathrooms
- Finished basement
- Garage
- Lot size
- Overall condition
|
|
|
