Bart Medlock, ABR/e-Pro
Cell/Text: 812-987-6387
Toll Free: 888-987-6387
Email: Bart@BartMedlock.com
Fax: 800-851-1091
Cell/Text: 812-987-6387
Toll Free: 888-987-6387
Email: Bart@BartMedlock.com
Fax: 800-851-1091
Home Financing
Getting Started.
Need for mortgage preapproval:
Most lenders can offer pre-approval with
information you provide over the phone, but if
you want a strong pre-approval it's best to
provide the following to your loan officer prior
shopping for a home.
Most lenders can offer pre-approval with
information you provide over the phone, but if
you want a strong pre-approval it's best to
provide the following to your loan officer prior
shopping for a home.
- Last 30 days pay stubs
- Last 2 years W-2 forms
- Last 2 months bank statements
- Last 2 years address/employment history
- If applicable, most recent statement for
401K/IRA or other retirement or
investment accounts - If self-employed, last 2 years tax returns
with all schedules - If you have filed bankruptcy within the last
seven years, you'll need all your
discharge papers
Need help?
I'm happy to assist you with selecting the right
lender to finance your home.
Having spent several years in the mortgage
business, I use the knowledge and experience I
acquired to help you.
With an extensive network of established
relationships with a variety of banks and mortgage
brokers, I'm familiar with a many different types of
mortgage loans to suit the needs of all types of
borrowers.
WHAT IS TITLE INSURANCE?
I'm happy to assist you with selecting the right
lender to finance your home.
Having spent several years in the mortgage
business, I use the knowledge and experience I
acquired to help you.
With an extensive network of established
relationships with a variety of banks and mortgage
brokers, I'm familiar with a many different types of
mortgage loans to suit the needs of all types of
borrowers.
WHAT IS TITLE INSURANCE?
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Mortgage Terminology
Today's mortgage market offers home
buyers a variety of choices. When most
people think mortgage they assume a
30YR fixed rate loan.
While a 30YR fixed rate mortgage is still
the most popular, there are many other
options. Selecting the right type of
mortgage for your situation can mean big
savings on the interest you pay.
Review the different types of mortgages listed
below. Don't hesitate to ask me or your lender
what product might be best for your situation.
30YR, 20YR, 15YR, 10YR fixed rate - Your
interest rate and the monthly principal and
interest payment you start with stay the same
for the life of the loan. The shorter the term of
the loan, the lower the rate. For example, the
rate on a 15YR fixed rate mortgage may be
5.25% while the rate on the 30YR is 6.00%. A
fixed rate mortgage is usually best for a more
conservative borrower who wants the security
of knowing their principle and interest payment
will never change for the life of the loan.
1YR, 3YR, 5YR, 7YR ARM - ARM is an
abbreviation for adjustable rate mortgage.
These loans start out at a fixed rate of interest
for a certain period of time usually 1, 3, 5 or 7
years. When the fixed rate period ends after 1,
3, 5 or 7 years, your rate can adjust. There are
several factors in determining what the rate
can adjust to. Ask me or your loan officer if you
want to know more. The benefit of an ARM is
the interest rate is lower when compared to
30YR fixed rate meaning a lower payment and
more savings on the interest you pay. An ARM
is typically best for someone who plans to live
in a home for a few years before moving on.
Interest Only Mortgages - Selecting an
interest only mortgage allows a borrower to
buy a more expensive home while keeping
their payment as lower. Currently, my wife and I
have a 5YR interest only ARM on our first
mortgage. I would be happy to explain more
about this type of loan. Please call with
questions.
Combo Loan - These loans allow you to avoid
paying private mortgage insurance when you
don't have a 20% down payment. You may
hear your someone say 80/20, 80/15 or 80/10
when referring to a combo type of mortgage.
When taking out a combo loan you have a first
and second mortgage. The interest rate on the
first is usually less than the rate on the second.
The benefit to this type of loan is, as I said,
avoiding PMI. PMI isn't tax-deductible, but the
interest you pay on your mortgage typically is.
Consult your tax advisor to determine if this
type of loan may be in your best interest.
HELOC - Home equity line of credit. This is the
most common type of second mortgage
allowing someone easy access to the equity in
their home through a line of credit with the
lender.
Equity - The difference between what you owe
on your home and your home's current market
value determine by an appraiser. For example,
if you owe $110,000 on your home, but it's
current appraised value is $150,000 you would
have $40,000 in equity.
Escrows - When used in talking about a
mortgage, this typically refers to an account
set up by your lender to pay your property
taxes and homeowner's insurance. A certain
amount of your monthly mortgage payment is
put into your escrow account by your lender.
When your taxes and insurance come due
each year, your lender already has the money
in your escrow account to pay these expenses.
Closing costs/Pre-paids - The expenses
associated with obtaining a mortgage and
setting up your escrow account. Anytime you
apply for a home loan, the lender is required to
provide you with a good faith estimate or GFE.
On the GFE you will see a breakdown of the
lender's charges, pre-paid expenses for setting
up your escrow account, title costs as well as
recording fees or other miscellaneous costs.
NOTE: Your lender should be able to provide
you with a clear explanation of what the costs
are. Please ask me if you have any questions.
Coming from the mortgage business myself, I
usually like to review the GFE's the lender
gives my clients in case I have any questions
or think any of the fees can be negotiated to
save you money.
Today's mortgage market offers home
buyers a variety of choices. When most
people think mortgage they assume a
30YR fixed rate loan.
While a 30YR fixed rate mortgage is still
the most popular, there are many other
options. Selecting the right type of
mortgage for your situation can mean big
savings on the interest you pay.
Review the different types of mortgages listed
below. Don't hesitate to ask me or your lender
what product might be best for your situation.
30YR, 20YR, 15YR, 10YR fixed rate - Your
interest rate and the monthly principal and
interest payment you start with stay the same
for the life of the loan. The shorter the term of
the loan, the lower the rate. For example, the
rate on a 15YR fixed rate mortgage may be
5.25% while the rate on the 30YR is 6.00%. A
fixed rate mortgage is usually best for a more
conservative borrower who wants the security
of knowing their principle and interest payment
will never change for the life of the loan.
1YR, 3YR, 5YR, 7YR ARM - ARM is an
abbreviation for adjustable rate mortgage.
These loans start out at a fixed rate of interest
for a certain period of time usually 1, 3, 5 or 7
years. When the fixed rate period ends after 1,
3, 5 or 7 years, your rate can adjust. There are
several factors in determining what the rate
can adjust to. Ask me or your loan officer if you
want to know more. The benefit of an ARM is
the interest rate is lower when compared to
30YR fixed rate meaning a lower payment and
more savings on the interest you pay. An ARM
is typically best for someone who plans to live
in a home for a few years before moving on.
Interest Only Mortgages - Selecting an
interest only mortgage allows a borrower to
buy a more expensive home while keeping
their payment as lower. Currently, my wife and I
have a 5YR interest only ARM on our first
mortgage. I would be happy to explain more
about this type of loan. Please call with
questions.
Combo Loan - These loans allow you to avoid
paying private mortgage insurance when you
don't have a 20% down payment. You may
hear your someone say 80/20, 80/15 or 80/10
when referring to a combo type of mortgage.
When taking out a combo loan you have a first
and second mortgage. The interest rate on the
first is usually less than the rate on the second.
The benefit to this type of loan is, as I said,
avoiding PMI. PMI isn't tax-deductible, but the
interest you pay on your mortgage typically is.
Consult your tax advisor to determine if this
type of loan may be in your best interest.
HELOC - Home equity line of credit. This is the
most common type of second mortgage
allowing someone easy access to the equity in
their home through a line of credit with the
lender.
Equity - The difference between what you owe
on your home and your home's current market
value determine by an appraiser. For example,
if you owe $110,000 on your home, but it's
current appraised value is $150,000 you would
have $40,000 in equity.
Escrows - When used in talking about a
mortgage, this typically refers to an account
set up by your lender to pay your property
taxes and homeowner's insurance. A certain
amount of your monthly mortgage payment is
put into your escrow account by your lender.
When your taxes and insurance come due
each year, your lender already has the money
in your escrow account to pay these expenses.
Closing costs/Pre-paids - The expenses
associated with obtaining a mortgage and
setting up your escrow account. Anytime you
apply for a home loan, the lender is required to
provide you with a good faith estimate or GFE.
On the GFE you will see a breakdown of the
lender's charges, pre-paid expenses for setting
up your escrow account, title costs as well as
recording fees or other miscellaneous costs.
NOTE: Your lender should be able to provide
you with a clear explanation of what the costs
are. Please ask me if you have any questions.
Coming from the mortgage business myself, I
usually like to review the GFE's the lender
gives my clients in case I have any questions
or think any of the fees can be negotiated to
save you money.