Dunwoody Mortgage Services
Are you ready to buy a home? If you are a first time home buyer, if you are moving up, or if you are downsizing, making a personal budget and planning for your house payments are critical steps for you. Take some time to determine how much home (payment) you can comfortably afford before you start looking at houses. The loan officers at Dunwoody Mortgage will do more than just get you prequalified to buy a home; we will help you plan for a home purchase that best fits your budget and your lifestyle. Take some time to go through these videos that teach how to buy a home using wisdom and planning.
Mortgage & Home Buying Mythbusters
Home ownership is the American Dream. A recent study showed that 90% of Americans want to own their own home. But there are some myths about home ownership. A majority of Americans believe you must make a 20% down payment to buy a house. The truth is you can buy a home with a small down payment. A majority of Americans also believe that you must have “great credit” to buy a home. The truth is that many people can buy a home with an “average” credit score. Watch this video to learn more about how home ownership may be within your reach.
Buying a new home is very exciting, but don’t get caught up in home buying euphoria without doing some planning first. The most common home buyer mistake is buying a house without carefully budgeting for the mortgage payment and the other costs of home ownership. Carefully plan a budget to keep your home ownership costs manageable – within your current lifestyle. The best thing that you can do when you want to buy a home is to do some financial planning first, so that your home (payment) does not own you.
Cash to Close
Now that you understand the importance of a budget, a good next step is to determine your savings goal. How much money do you need to save to purchase your home? This video describes “cash to close,” which is the money you will need at closing to buy your home. Watch this video to learn about what items are included in your cash to close, and different options you may have for coming up with the cash you need to buy your dream home. Buying a home may be within your reach, if you know the options available.
After your loan closing, you will own your home and have a monthly mortgage payment. Your mortgage payment has several components including (1) principal, (2) interest, (3) escrow to cover homeowner’s insurance and property taxes, and potentially (4) mortgage insurance. The video below briefly describes each of these home payment components. When you plan to buy a home, you will need to understand how these components affect your monthly house payment.
One potential component of your monthly home mortgage payment is called mortgage insurance. This insurance is required when you cannot make a 20% down payment. If you can make a 20% down payment, mortgage insurance is not required. Mortgage insurance can significantly increase your monthly mortgage payment. When buying a house, we recommend that our clients try to make a 20% down payment to avoid this monthly cost. There are many mortgage insurance variables, depending on your loan program. The professionals at Dunwoody Mortgage will help you navigate these complexities to best fit your needs as a home buyer.
Your Mortgage Options
There are so many mortgage options from which to choose – how do you decide which loan is best for you? You can get loans from private lending sources (we call those conventional loans) and you can get government loans (from FHA, VA, USDA).
Adjustable Rate Mortgage or ARM
Once you decide the lending source, then you must consider the interest rate
and amortization – you can get fixed rate loans with terms between 10 and 30
years. Or you can get an adjustable rate mortgage, which are commonly
referred to as an ARM.
Fixed Rate Mortgages
If you have any uncertainty in your time horizon for owning your home, or if you just don’t like the perceived “risk” of an adjustable interest rate, then a fixed rate mortgage is likely the best choice for you. With a fixed rate loan, the interest rate can never change. The principal and interest component of your loan payment will not vary over the life of your loan. You can get various loan terms (amortization periods) with fixed rate loans. Available terms are 10, 15, 20, and 30 years. Typically, borrowers can get lower rates on shorter term loans. However, the shorter term loans require that you pay your principal faster, so the monthly payments are usually higher for a shorter term loan. Watch the video to learn more about buying a home with a fixed rate mortgage.
Loan Application & Pre-qualification Letter
To show Realtors and home sellers that you are a serious, qualified buyer, you will want to obtain a pre-qualification letter. This letter from your lender shows that you have been prequalified to purchase a home up to a certain price point. When you get prequalified, you are basically completing a loan application. When doing this, your lender will collect the following types of data from you and your coborrower (if applicable): Personal information such as name, birthdate, and contact numbers; Residential history to identify where you have lived for the last 2 years; Work history to identify your jobs and employers over the last 2 years; Income data to specify your gross monthly income; and Asset data to identify the liquid assets you can apply to your down payment. After analyzing this data to determine home purchase price and monthly payment targets, your loan officer will pull your credit report. If you have a minimum qualifying score of 620, we can issue a prequalification letter and help you start the home buying process. Completing the application should take you about 15 minutes. We can do this in person, over the phone, or you can complete the application online using our secure weblink. With your pre-qualification letter, you are prepared to go search for a home of your own.
Home Buyer Series Offer
Paul Busino, President of Dunwoody Mortgage Services personally thanks you for completing the home buyer education video series. To show our commitment to you and to support your home buying process, if you complete and submit our education questionnaire and close a loan with us, Dunwoody Mortgage Services will pay for your appraisal. This will save you between $375 and $450 on your closing costs. We will credit this cost to you at closing, so the offer applies to customers who complete the questionnaire and close a mortgage with Dunwoody Mortgage Services. Click on this link (http://vid.us/wmik9g) to access the online questionnaire. This offer reinforces our commitment to be your partner in the home buying process. If you have any questions about the mortgage process, please call Paul directly or reach out to any of the DMS loan officers. Please let us know if we can help you in any way with your home buying process. Good luck, best wishes, and we hope to see you soon.