Presentation towards theme: “Welcome Real estate 101. Real estate 101 Home buying 101 Shown because of the NASA Federal Borrowing Union Bert Aguilera Mortgage Representative NMLS #551894 (301) 249-1800,”- Demonstration transcript:

dos Home buying 101 Home buying 101 Displayed by the NASA Federal Borrowing Commitment Bert Aguilera Home loan Associate NMLS #551894 (301) 249-1800, x334

step three What exactly is a mortgage? It is also referred to as an interest rate, a lien, or a protection desire that is kept because of the a lender. The latest lien is actually paid back and you may put out immediately following and work out prompt repayments to your name of the loan, the loan is refinanced to alter new conditions, or perhaps the home is sold. It can be called a home loan.

5 The borrowed funds Market Moved Returning to Concepts Whenever applying getting home financing 25 years back, four anything was basically crucial: ? Jobs Balance ? Dollars ? Borrowing from the bank ? Money Today, speaking of nevertheless very important!

6 How can you Be eligible for Home financing inside the 2014? A healthy Credit rating Dollars to close Full Documents

7 Things to Stop While preparing To track down A mortgage Lots of personal credit card debt Biggest instructions (to buy a vehicle or other large points) Changing efforts Applying for the fresh credit

8 Paperwork Requirements The fresh records requested for the an interest rate are to search for the creditworthiness of user of course he or she is in a position to pay off the debt. Asset files to support financing having advance payment, closing costs, and you will supplies. Income records such present pay stubs covering a single day several months and W-dos statements during the last two years are typically needed for salaried staff.

nine Papers Conditions Cont’d To possess one-man shop individuals, extra documents eg tax statements going back 2 years and season yet profit-and-loss statements are essential. Having S firms and businesses that is incorporated, company tax returns the past two years also are expected.

10 Payment Costs Costs regarding the closure the borrowed funds Typically projected within 4%-6% on buy deals. Precise settlement costs relies upon costs charge near you, how much you are borrowing, the manner in which you money your own home loan (points), as well as your closure time, i.elizabeth., in which they drops inside the month. Settlement costs are in inclusion on the down-payment amount requisite.

eleven What is actually a spot? A point is a charge the fresh associate can choose to blow to minimize the interest rate. The supplementary markets will get implement most other items having credit rating, occupancy, under financial support (etc). Per part is equal to step one% of one’s loan amount in fact it is put into the entire closing will cost you. People can elect to spend items or lenders increases the fresh given rate of interest to reduce the fresh https://paydayloanalabama.com/rainbow-city/ appropriate affairs.

twelve What exactly are almost every other settlement costs? Pre-paids (escrows for property fees and homeowners insurance) County and you can local import and you can recordation fees Origination Charge Assessment Costs (reduced external closing) Credit file, Flood Degree, Income tax Services Charge Payment Charge, for example name research and you will label insurance policies, examination fees, survey, tape charge, and you can buyer attorneys charges

13 Create I want a downpayment? Never. The credit connection offers a zero Down, Zero MI collection special. Almost every other mortgage loans normally require at least deposit off step three.50%, 5%, 10%, or even 20% of one’s conversion process price. Some financial applications need to have the money to be your loans. The sole lent money need certainly to are from a secured asset particularly once the a beneficial 401(k) package. Others allow you to fool around with a gift out of a close relative to cover your deposit.

fourteen First Mortgage Terms and conditions LTV (loan-to-value) – The new proportion between your quantity of the borrowed funds together with overall worth of the house or property. CLTV (combined-loan-to-value) – This means there clearly was the next mortgage ()() for the possessions. Arm – variable price financial EMD – Serious currency put GFE – Good faith imagine MI – Financial insurance rates that is expected if for example the LTV are higher than 80%. P/We (PITI) – Dominating and focus (taxes & insurance) DTI – debt-to-money proportion HUD-step 1 – payment piece detailing final price of get

fifteen Sorts of Mortgage loans Style of Mortgage loans Compliant to $417,000 Non-Compliant Jumbo Mortgage loans more than $417,000 FHA & Va /5 or No Down No MI Unique (pick just)

17 Brand new Apps 100% Financing to $650,000 – Zero Downpayment called for- Purchase Money – Zero mortgage insurance rates (MI) expected – You want Good credit, Income and Coupons Development – Available on 29 and fifteen year Repaired, 3/step one, 5/step one, 7/step one and you will ten/1 Case – 95% Money to $850,000 having 5% advance payment It provide is limited in order to well-qualified individuals. Certain constraints can get implement. Bring is true to have number one Household Merely.

18 Record Low interest Rates have not been it lower once the 1971 cuatro.00%, 30 12 months Fixed – Compliant Prices energetic * susceptible to change daily 3.75, 20 Seasons Repaired 3.125%, 15 12 months Fixed What this implies To you…

20 Payment per month Shot having a good $eight hundred,000 Real estate loan Identity: 29 Seasons Fixed RateP&We Payment Count cuatro.00%$step one,910 5.00%$2,147 six.00%$dos,398 Total payment per month (PITI) includes property taxes, homeowner’s insurance policies and maybe mortgage insurance coverage

21 Points to consider When searching for Your property? Location and you can “need” features Your own limitation pre-recognized loan restrict your Realtor House Advantage (mycuhomeadvantage)mycuhomeadvantage The Settlement Organization CU Term

twenty-two House Advantage System Accessibility system as a consequence of Hook with the NASA’s site Totally free system in order to players Look at latest listings from the Numerous Number Services (MLS) Obtain school and you will area analysis See an experienced realtor and found doing 20% of its payment to your settlement costs.

Equivalent demonstrations

23 Are you ready Buying A property? Name NASA Federal’s 1 st Mortgage Masters Very first. We can advice about an individual visit. Get Pre-Approved And then make an offer on property along with your agent Exactly what can be expected regarding financial when your bring is actually recognized and you can ratified by sellers (locking rates, disclosures, handling, underwriting) Financing Commitment Page Payment / Closure

24 Information Cure as often consumer debt that one can Rescue, Cut, Save to possess an advance payment & settlement costs Do not make significant requests, transform work, or score brand new borrowing from the bank if you’re qualifying to have a home loan Thoroughly look at your credit history Free yearly credit history (annualcreditreport)annualcreditreport Have fun with Balance to own credit session

25 Capital that have NASA FCU You to definitely-Prevent Shop! –Regarding wanting a representative in order to Capital in order to Closing! Timely, Courteous, Top-notch Solution All the way down Fees On the internet Devices Personal Services

twenty six Free Individual Session Discover how much you really can afford Talk about additional loan choice Remark the home to purchase techniques If you are not already a person in NASA FCU to get a person is effortless!! Inquire united states how.