Mortgages - How it all Works

Appraisals
must meet FNMA appraisal standards and conform to the Uniform Standards of Professional Appraisal Practice (USPAP). Broker / Lender is responsible for reviewing the property value report to ensure the property has a general market acceptance with a strong probability of value retention. Property value, condition, and marketability must be evidenced by a real estate appraisal completed by a state-licensed appraiser in accordance with the following guidelines.

Approval Letter
You'll receive a loan decision for free if approved. We will outline details of your loan. Your free mortgage approval letter is good for 90 days. You may choose to obtain a mortgage with us at the same time.

Mortgage Brokers
Mortgage Brokers are loan professionals that work with several financial institutions to find the best interest rate, term and type of loan to suit your needs. Make sure you get to know your mortgage broker before you commit to them. Be careful you are not charged any junk fees. Those are fees that are not paid to a third party, such as the title company, or appraiser etc.

How Much Can I Afford
Calculate your affordable price range and monthly mortgage payment before you look for a home. See high and low estimates of the home you can finance and find loan options that extend your affordable range. You may also call us at 616-534-3104 for assistance in determining your price range for your new home

First Time home buyer in Michigan
First time home buyer, we recognize that is an emotional decision you are making, as a first time home buyer. A Michigan Lending Company's primary goal is help you in obtaining your new home, and also make the most of your money for your new home. We will place you into the best mortgage loan program so that you feel more secure.

Income
What income is required to qualify for a mortgage home loan? There are many factors to determine if you qualify for a loan and how much you can afford. It's very easy to find out. See our Qualifying worksheet and How much can I afford worksheet. There are also many ways to determine your gross earnings. See Income Form.

Lenders Compete
Lenders Compete for your mortgage information and to do this they must get your attention. One way is to post interest rates that at times they cannot deliver. They can tell you the market can and has changed and those rates are no longer available or the closing costs are very high. We shop for the best mortgage lenders for your financial needs. We are a discount direct mortgage lender in Michigan. We do not sell your information to brokers, bank or lenders like most online financial information gathering companies.

Prequalification For A Mortgage Loan
Pre-qualifying is the very first step in finding a home. Pre-qualifying simply means that you have disclosed to the lender your gross income information as well as your current debts and authorization to pull your credit report. The lender can estimate what price range you can afford (See qualify calculator worksheet

Mortgage Loan Processing
There is a lot of work in the processing of your loan. There is the application form detailing information about you, your subject property, employment, assets, and liabilities. Part of the processing is gathering information from you. See Customer Information Request Form

Mortgage Seasoning
Mortgage Seasoning or Non-seasoning mortgage is a loan that is less than one year from the day you purchased your home. The reason for refinancing this type of loan is get a much better rate. Many times I see borrowers go to closing and the lender or broker has increased their interest rate and doubled their closing costs at the time of the closing.

Sub-Prime Loans
These types of loans are outside Fannie Mae and/or Freddie Mac guidelines. Reason is, less than perfect credit, income issues or situation, unique (collateral) property, and many other reasons.

Title Company Insurance
Title Company plays a very important part of the real estate and mortgage finance business. They work with all parties to eliminate risks prior to completing any subject real estate property transaction. Michigan title insurance companies have many functions in each transaction.

Mortgage Underwriting
Underwriting guidelines determine what home loan options you have for your type of financial needs. Also understand your loan qualifications, based on four major factors.

1. Credit Report
2. Debt-to- Income Ratios (DTI)
3. Down payment or equity
4. Compensating factors