Reverse Mortgage

Beginning Steps

Many times you will find that people will not even consider purchasing a home because they have a fear that they will not be able to afford it. However, home ownership is completely within reach for most people especially when they take advantage of the many first time home buyer programs. Many times, home ownership is just as affordable as renting, and some times it is even much more affordable. We are committed here at Lending Hands to make sure you get moved into the home of your dreams. Contact us today for a free, no committment pre-qualification for your purchase at finance@lendinghandsonline.com or (800) 378-6950.

Locating the Right Realtor

It is important to know that choosing the right Real Estate Agent is very important to how smoothly your house hunting experience goes. The Realtor is the person you are counting on to do home research for you and to present properties to you that fit your criteria of what you are looking for. The agent should be working closely with you helping you to put you and your family in the right home. They need to also be a skilled negotiator that will assist you in getting the best deal on the home of your dreams. Ask us how you can get cash back when you use one of our nationwide network of real estate affiliates.

In choosing the right Realtor and having them work closely with your Lending Hands loan officer you can secure priority treatment by making sure that special neighborhood and property reports are delivered for you desider home shopping areas. In addition, you can expect great up to date home sales info as well as school locations, church locations, and other locations of sites that are important to you. Together we also should be able to help you find other providers such as home owner's insurance, moving services, home inspectors, and much more...

Are you aware that if Lending Hands helps you find a real estate agent in your area you can get cash back at the closing of your new home? * Click here for more information.

Be Aware of Your Financials

There is no better system than to be fully prepared. This means you need to have a real budget. Make sure you know how much money comes into your house hold on a monthly basis and how much is going out. It will both assist you, and also assist the loan representative at Lending Hands find the best loan program for you.

Make Up of Home Mortgage Payment

Principal and interest.

That is the primary answer that most will give regarding the make up of your home mortgage payment. However, in every mortgage loan payment, no matter which loan program you are using, there is usually more than that. The principal is reall the amount of money that you are actually borrowing from lenders. Logically it is the make up of your home's sale price less the down payment you make. Every time you make a payment, as long as a portion of your payment goes towards the principal, this amount will decrease. Interest however, is what you are paying for the right to borrow the money. You are basically buying a loan by paying interest.

Ok, so what else is a mortgage payment made up of that is not either interest or principal? Usually there will be a portion paid into a specific escrow account set up by us. This special account has money deposited into it on your behalf in order to cover the costs of things such as property taxes, homeowners insurance and mortgage insurance. ( This element of the monthly payment could constantly fluctuate even if you are in a fixed-rate mortgage loan.) Many people prefer to pay their taxes and insurance on their own by putting aside money every month to do it. This way they can gain interest for themselves on those accounts.

As a first time homebuyer it is usually easiest to have us set up one of these accounts for you to make sure that all of your payments are made on time. If we set your loan up with one of these accounts, then your monthly mortgage payment will also include 1/12 of the annual total to cover your insurance, taxes and other expected charges. These bills are then paid by us from that account that we set up for you.

Discount Points Explained

What is a point?

A point is equivelent to 1% of the total mortgage loan amount. So 1 point on a $300,000 mortgage is $3,000 (one percent of $300,000). You will generally have to pay all points at closing. Lending Hands offers a variety of mortgage programs with several different point and interest rate combinations. Usually, the lower the interest rate, the more points you pay at the settlement. (Interest rates adjust your monthly mortgage loan payment while the points determine the level of cash that you will need to have at the settlement.)

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For example, if a loan with the current market interest rate has two points, a loan with an interest rate that's one-half percent higher than the market rate may have no points. Your choice among the various interest rate/points options will depend on how much cash you have available for the closing and settlement.

What interest rate will you pay?

As you discuss different mortgages with your Moving Solutions Consultant, there are other conditions and terms that you should keep in mind. The most important of them is how and when the actual interest rate you will pay is determined.

We will quote a rate and fee at the time you apply for a loan, and then guarantee-or lock-the quote for a specified time (generally 120 days if you have not selected the property. However you may opt to not locking this rate until you have selected your property). While this protects you from paying more for your mortgage if interest rates rise, it also means you will pay the quoted rate even if interest rates fall.

Lock periods usually run from 10 to 120 days. The longer the period of the lock the higher the fee or rate will be. You will want your lock period to be long enough to get you through closing and settlement.

Ditech.com will give you the option of letting the interest rate for your mortgage float, so the rate can change between the time you apply and the time you close (the rate is usually set after some specified period, but before the actual closing).

What You Will Need to Complete an Application

Yes, there's a lot to do. But when you break it down into its parts, it starts to get a lot simpler. Basically, you'll need to supply information about who you are, where you work, your finances and the house you are interested in buying. That's it.

1. Start with Personal Information

Under the U.S. Patriot Act, lenders will require proof of identity (picture ID, driver's license, passport, Resident Alien Card and the like).

You will supply further information including your social security number, date of birth, number of years of schooling, marital status, number and age of dependents, and your current address and telephone number. (If you lived elsewhere in the past two years, be ready to provide those addresses too.)

2. Now Get all Your Work Information Together

List, for the last two years, your employer's name, address and telephone number; your job title or position; how long you held the job; and all your other financial information (including salary, bonuses, commissions and average overtime pay). You may be asked to sign a form that will be sent to your employer (and previous employers if you've held your current job less than two years) to verify this information.

Provide all your W-2 forms for the past two years and your two most recent pay stubs. If you are self-employed, be prepared to provide complete tax returns for the last two years, along with a profit-and-loss statement for the current year.

Don't forget proof of other sources of income such as rental income, social security or disability payments, alimony, child support, etc. Proof of these could be canceled checks, copies of leases, divorce decrees, certification of benefits or other documents. Income from alimony, child support or separate maintenance need not be revealed if you do not want ditech.com to consider it in determining your creditworthiness.

Finally, if there are any gaps in your employment over the past two years for whatever reasons (illness, layoff and so on) provide a brief written explanation.

3. Information about what You're Buying (if you already have contracted for a property)

In most cases, this will already be in the hands of ditech.com, supplied to them by a broker or agent. However you should be aware of all the elements. Just as we started with your basics, there are also the property's basics: address, a detailed description, an independent appraisal and contact information for access to the property (usually the seller or the seller's agent).

In addition, your lender should have a complete copy of the signed sales contract.

Where Did My Down Payment Come from?

Ditech.com will want to know where you will obtain funds for your down payment, closing costs and other fees. Gifts may be used for this purpose, but must be verified in writing (even gifts from relatives). If you're providing less than five percent of the sales price in down payment, the gift must come from a relative, along with a letter stating the person's relation to you, the amount of the gift and that no repayment is expected.

Quick List of What to Gather (a preliminary checklist)

Photo ID ( you will need this at closing)
Last two pay stubs
Proof of other income
Last 2 W2's
Last two tax returns (if you are self employed)
Employment history (two years), including addresses
Mortgagers or landlords (past two years)
List of savings
List of other properties
Source of down payment
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Current Offers

Personalized home buying, home selling, and moving services through ditech.com program.

$3 cash-back for every $1,000 when you buy and/or sell your home through our national network of participating Real Estate brokers*

Examples:

Home Selling Price $3 Per $1,000 Cash-Back Home Purchase Price $3 Per $1,000 Cash-Back Combined Cash Awards
$100,000 $300 $150,000 $450 $750
$150,000 $450 $200,000 $600 $1,050
$200,000 $600 $250,000 $750 $1,350
$250,000 $750 $300,000 $900 $1,650

Discounted rates on interstate moving services**

Dedicated Personal Move consultants at no charge

1-866-654-4622
*Cash-back offer may be limited or prohibited by law in some states and is not available in those states. Location of property being purchased or sold determines applicable state law. Cash-back offer not available in a number of states, including the following: Alaska, Delaware, Iowa, Kansas, Louisiana, Mississippi, Missouri, New Jersey, New Mexico, Oklahoma, Oregon, Tennessee, and West Virginia. You must contact GMAC Home Services before contacting a real estate broker. Cash-back is based on the purchase/sales price of the home. Allow 30 days after closing for cash-back to be awarded. If your home is already listed, or you are currently working with a real estate agent, this is not a solicitation for business. Real estate services provided by GMAC Home Services.

** Moving services provided through GMAC Global Relocations Services, Inc

Other considerations:

Of course if you are self employed and don't wish to provide proof of income, we do have several Stated Income programs for you at a very competitive rate.

We know we've given you a lot of information. If you have questions about any of the information above, or you just need someone to explain the process more clearly, call one of our friendly loan agents today.

Or, contact us now for a free, no obligation pre-qualification for your home purchase.

1-866-654-4622

First Time Home Buyer Programs