Resource Center

Does Fannie Mae Own Your Loan? Click on the Link Below to verify if Fannie Mae is servicing your mortgage. You may be eligible for a new refinance up to 105%.

http://loanlookup.fanniemae.com/loanlookup/

If there is no match found, move on to the following link to see if Freddie Mac is servicing your mortgage. You may still be eligible for a refinance up to 105%.

https://ww3.freddiemac.com/corporate/

For a free home value check, go to www.redfin.com. You will be able to search local listings and receive three value estimates from Zillow, EAppraisal, and Cyberhomes.

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PRODUCT MIX

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Tips for Accumulating a Down Payment

• Save
  Look for ways to reduce your monthly expenditures to save toward a down-payment. You could enroll for an automatic savings plan at your bank to have a portion of your payroll automatically transferred into savings. Most people save a couple of years for their down payment.

• Borrow the down payment from your retirement plan
  Check the provisions of your retirement plan. You can borrow funds from a 401(k) plan for a down payment or make a withdrawal from an Individual Retirement Account. Be sure you understand the tax consequences, repayment terms and/or possible early withdrawal penalties.

• Move
  You may be able to save additional funds if you can move into less expensive housing.

• Reduce other higher interest rate debt
  Paying off credit cards will initially reduce your savings, but the money you will save from higher interest rates will pay-off in the long run.

• Make a deal with the seller
  In some circumstances, it is appropriate to ask the seller to carry a second-mortgage to cover your down payment. Typically, you will pay a slightly higher rate for this second mortgage.

• Sell some investments

• Get a second job and save your earnings

• Skip a year’s vacation

Gift from Family

Parents and other family members are often anxious to help children buy their first home and may have the means to give you a gift of money for a portion or all of your down payment.

Documenting Your Down Payment

Documenting that the down payment comes from your savings and that you will have savings and/or assets over and above the down payment gives the lender confidence in your strength as a borrower and your ability to repay the loan.

Take extra care to document the sources for any monies to be used for the down payment or closing costs.

Acceptable Down Payment & Closing Costs Sources

• Cash in a bank account
• Mutual funds / stocks / IRA / 401K
• Proceeds from the sale of another property
• Gift from an immediate relative

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Verifying Your Down Payment, Closing Costs, Assets, Income and Debts

A critical step in the mortgage loan application process is to verify the sources for your down payment, closing costs and assets, as well as documenting income and debts. The lender uses this step to determine your qualifications as a borrower. Be sure to download our loan application checklist to help organize all of this information.

Down Payment & Closing Costs

Documenting that the down payment comes from your savings and that you will have savings and/or assets over and above the down payment gives the lender confidence in your strength as a borrower and your ability to repay the loan.

Take extra care to document the sources for any monies to be used for the down payment or closing costs.

Acceptable Down Payment & Closing Costs Sources

• Cash in a bank account
• Mutual funds / stocks / IRA / 401K
• Proceeds from the sale of another property
• Gift from an immediate relative

Assets

Collect information about your personal assets that add to your net worth and help to prove your credit worthiness.

Common Assets Considered in a Mortgage Loan Application

• Stocks, bonds, mutual funds, 401K and retirement accounts
• Life insurance
• Personal property estimate – cars, boats, antiques, jewelry, etc.
• Other real estate or property

Income and Employment

The lender will want to confirm your current gross income and have evidence of stable employment. Documentation requirements vary depending upon a number of factors – including the source of income (hourly, salary, salary + bonuses, salary + commission, commission, self-employed, etc.).

Debts

Your lender will want to review a list of all your current debts. This along with your credit report will provide the lender with a snapshot of your obligations. The lender will want to confirm that you will not be overextended when the mortgage payment is added to your current debt load.
The amount you have available for a down payment will affect what types of loans for which you can qualify. Down payments typically range from 3 to 20 percent of the sales price for the property.

Once you’ve got all of this information head on over to the Apply Now page to get started on your loan application!