Home Financing

Buyer Prequalification:

Buyers always ask me, Amit, when should I buy a home?  I answer, you buy when you qualify.  Knowing how much you can afford is the first step in the home buying process.  I analyze all your financial details in strict confidence and provide you with the maximum home value you can afford at prevailing market interest rates.  Your home qualification is dependent on various factors, some in your control and some not in your control.  These are:

1.  Your household income

2.  Your debts- car payments, credit card payemnts, student loans etc.

3.  The PITI (principal, Interest, Taxes and Insurance) payments on your home

4.  Home Owner Assoication (HOA) dues, if any

5.  Prevailing interest rate in the market.

6.  Loan Program (Adjustable rate mortgages-ARMs, fixed rate loans, loan terms)

7.  Your comfort level with the total debt payments.

Lenders like to see your monthly debts anywhere between 28% to 50% of your monthly income. During our meeting and also during the buyer presentation, we will anaylize all your finances to provide you with a prequalification letter.  The prequalification letter is better than preapproval since it involves detailed analysis of your finances and your credit scroes.  In some situations-like multiple offers we can also provide you with the lender approval subject to getting property in contract.

Qualification for Various Scenarios:

We proide you with detailed analysis of various loan scenarios and help you plan for a smooth loan approval process in any of the following scenarios.

1. Buying a home before selling existing home.

2. Buying a home and planning to rent existing home

3. Adding an occupant coborrower on the loan

4. Adding a non-occupant borrower on the loan

5. Qualifying based on large assets and income on the assets

Loan Programs:

The current lending environment has loans ranging from 3.5% down payment with mortgage insurance to 20% of more down payment without mortgage insurance.  Depending on your financial position, we can structure a loan program that is easy on your savings and unceratinty of the chaging real estate markets.  Typically FHA isured loans require minimum of 3.5% down payment to purchase a home.  Conventional loans can go up to 90% loan to value ratios (LTV= ratio of loan to value of the property) depending on the availability of mortgage insurance in the market place.  Most of the loans with 80% or less LTV do not require you to pay mortgage insurance. Loan programs have varying rates depending on the loan terms like the amortization periods, interest only payments, borrower credit score, loan to value ratio, number of units and owner occupany vs an investment property.

Our expertise help you manuver through the myriad of loan options and finalize on the right loan program that maximizes your ability to purchase and your ability to digest risk.