FAQ
How do I know how much house I can afford?
Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.
What is the difference between a fixed-rate loan and an adjustable-rate loan?
What is the difference between a fixed-rate loan and an adjustable-rate loan?
With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.
How is an index and margin used in an ARM?
With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.
What does my mortgage payment include?
With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.
How much cash will I need to purchase a home?
The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
- Earnest Money: The deposit that is supplied when you make an offer on the house. This is typically 3% of the agreed upon sale price.
- Down Payment: A percentage of the cost of the home that is due at settlement
- Closing Costs: Costs associated with processing paperwork to purchase or refinance a house
What is the paperwork required to obtain a loan?
The paperwork involved depends on what type of income you receive. There are two primary categories of incomes: A) Employed or B) Self-employed. Self Employed borrowers include retirees, sole proprietorship receiving a 1099 and/or filing Schedule “C” tax return, owners with > = 25% ownership of company, and/or any borrower who receives significant Schedule B, D or E incomes used for qualification purposes.
For Employed borrowers the minimum requirements are:
For Self-Employed borrowers including retirees:
For Employed borrowers the minimum requirements are:
- A legible copy of drivers license or identification card for all borrowers
- A copy of paychecks covering a one month period (this is typically two pay-stubs if pay is biweekly or semimonthly, or a single stub if monthly)
- Last two most recent years W-2
- Last two months complete bank statements for checking, savings, investments, and retirement. If statement is issued only once a quarter, then only one statement is needed.
For Self-Employed borrowers including retirees:
- A legible copy of drivers license or identification card for all borrowers
- Last two years complete Federal Tax returns (State portion is not needed)
- Last two years complete Federal Tax returns for business if filed separately from individual (i.e. a Corporation, LLP or LLC)
- Last two months complete bank statements for checking, savings, investments, and retirement. If statement is issued once a quarter, then one statement will suffice. Please note: business assets cannot be used or considered. Only personal assets in the name of the borrower(s)
- Retirees: include social security award letter, pension award letter and/or an annuity distribution statement.
Which bank or lender will fund my loan?
University Investments is able to do business with many lenders including but not limited to the following.
University Investments is able to do business with many lenders including but not limited to the following.
APPROVED BANKS & INVESTORS
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