The First Step To Buying A Home
The very first step in the home buying process is to visit with us before you begin looking for your home. We will pre-qualify you for a mortgage. As a special advantage to homebuyers, we have access to thousands of Mortgage Pre-Approval Programs, where we calculate how much home you can afford and actually approve you for a mortgage loan before you've chosen your home! All we would then need is for you to find your dream home. HBRC will help you with this step at no cost to you.
By obtaining a mortgage commitment in advance, you will be able to look at homes that are within your budget. You will also have confidence and peace of mind, knowing that your mortgage funds will be available when you find the right home.
Your pre-approved mortgage can also give you an advantage when negotiating with a seller. The seller, knowing you have the funds available to purchase the home, will view your offer more favorably than an offer from another buyer whose offer is subject to obtaining approval. If a seller is anxious to sell quickly, he/she may be willing to accept a reduced price because you already have the funds to buy the home.
The Mortgage Application Review Process
Our company's goal is to help you purchase a home that is within your budget. The most important factors when determining how much you can afford to borrow include your down payment, income, debts, and credit. Any of these can impact the amount of mortgage you qualify for. With our ZERO DOWN HOME LOAN Programs you don't need the down payment.
This section explains some of the major factors mortgage lenders consider when determining if you qualify for a mortgage loan. We also include tips to increase your purchasing power.
Speeding Up the Application Process
You can ensure your mortgage application is processed quickly and efficiently by supplying all the requested information. We will provide you with a list of all the information you will need. It is vital that you provide us with current, accurate information. If additional information about your financial record is required, please provide your response promptly. Our Zero Hassle Program makes your home buying experience as seamless a possible.
Your Down Payment
Your loan amount is determined by subtracting the amount of your down payment from the price of the home. We will look at your loan-to-value ration (LTV for short). The LTV is figured by dividing your loan amount by the value of your home. The value of the home is equal to the lesser of the sales price or the appraised value. So, if you put $4,500 down for an $80,000 home, your loan amount is $75,500 ($80,000 less $4,500). The LTV is 94.4% ($75,500 divided by $80,000).
We will also look at the source of your down payment and funds to close. Sources may include your bank accounts and gifts from family members.
Zero Down, Zero Hassle Home Loans are what we specialize in here at GSF Mortgage. We have a number of different ways that a customer can purchase a home without the traditional down payment. In some cases we utilize grant, or a down payment assistance programs to take care of your money down. This results in free equity in your new home. In other cases we use 100% LTV mortgages. In this case you are borrowing 100% of your home's value . In either case you are engaged in a strong, valuable process that allows you to achieve homeownership without the years of saving for a down payment.
When you purchase a home with a down payment that is less than 20% of the purchase price, you will be required to obtain private mortgage insurance. This protects the lender in the event the loan is not repaid as agreed. Private mortgage insurance is what makes it possible for mortgage companies to make loans with as little ZERO DOWN. The cost of this insurance is paid monthly as a part of your regular monthly mortgage payment.
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