1. You will know in advance what your payments will be.
2. You won't waste time considering homes you cannot afford.
3. You can select the best loan package without being under pressure. There are many options to choose from in today's market.
4. Sellers may find your offer to purchase more favorable if they know in advance of your ability to secure financing. This may make your offer more competitive if you are in competition with other offers.
5. Peace of mind.

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Loan Application

Once the Purchaser(s) and the Seller(s) have agreed on the price and terms of a contract, the next step is the loan application. The DeHanas Team can recommend several lenders who have earned our trust and with whom we’ve had good experiences in the past. Then, a preliminary loan application is completed with a loan originator. The loan originator’s goal is to expedite all the necessary paperwork and information, including ordering a credit report and appraisal of the property. It is very important for you to get the appraisal as soon as possible. You will need to furnish the lender with the information as outlined on the items needed for loan application page. The information you provide the lender is confidential. The application generally takes place at either the lender’s office or at The DeHanas Team office. All people who will be on the title as new owners should be present. The application normally takes about one hour. At this time, you will be required to pay in advance for your credit report (usually $57) and the appraisal (usually $300), which is required by the lender to determine that the amount of the loan does not exceed the value of the property. These are normally the only charges required by the lender prior to the closing.

Your loan originator understands your concerns and is there to help with the approval of your loan. Feel free to ask questions at the loan application about anything that you do not fully understand. Also, you will receive a GOOD FAITH ESTIMATE OF CLOSING COSTS at this time so you won’t have any surprises at the time of closing. Total time from loan application to loan approval averages between 20 and 45 days or more, depending on the loan type, market conditions and/or the complexity of verifying the borrower’s information and qualifications.

Homeowner's (Hazard) Insurance

A Homeowner’s Insurance Policy (or a Binder), also referred to as Hazard Insurance, will be required to be brought to and paid for at closing. This is true in absolutely all cases when financing of any type is involved. Even if you are paying cash for the home, and no one is requiring the insurance, it would be foolish not to protect your investment with Hazard Insurance. There are many variables to consider in choosing which insurer and which policy best meets your individual needs and preferences. These variables should be carefully discussed with your insurance agent before the policy you’ll purchase.

Employment

• Addresses for two full years
• Gross monthly income
• W-2’s, if available
• Proof of pensions, retirement, disability or Social Security
• Proof of income from rentals, investments, etc.
• Year to date pay stub
• If self-employed:
• Two years 1040 Tax Returns
• Current year profit and loss statement

Creditors

• Each creditor’s name, address and type of account
• Account numbers
• Monthly payments and approximate balances
• Amount of child care expenses

Banking

• Names and addresses of saving institutions
• Account numbers for all accounts
• Type of accounts and present balances

Miscellaneous

• List of assets in stocks, bonds, land
• Life insurance cash value (documented if used as cash down payment)
• If applicant is selling a home, a copy of sales contracts
• Social Security numbers for all parties
• Veterans - Certificate of Eligibility & DD-214
• Cash or check to pay for application fee

The Mortgage calculator below will show you the amount of principal and interest you can expect to pay on a mortgage. You can use it to estimate a "ballpark" figure for monthly payments you can expect to pay on a home. Keep in mind that the figures do not include the escrow portion of your payment most lenders require for real estate tax, mortgage and hazard insurance.

Mortgages At A Glance

Mortgages used to be simple. You made a down payment on the house of your dreams and borrowed the balance at a fixed rate of interest, promising to pay it back in regular monthly payments over a period of years.

Today you must make choices. Do you want the traditional 30 year fixed rate mortgage with its guarantees of unchanging monthly payments? Perhaps a fifteen year loan would be better? Or would you prefer an adjustable rate mortgage with monthly payments that can rise and fall in accordance with an index reflecting economic conditions?

Below is a brief synopsis and the pros and cons of some of today's most popular mortgage loans:

TYPE	DEFINITION	ADVANTAGES	DRAWBACKS	COMMENTS
30-YEAR FIXED RATE	A long-term loan in which principal and interest are amortized over 30 years; both interest rate and amount of monthly payment remain unchanged for life of the loan.	Considerable tax benefits, especially in early years. Payments never rise, regardless of inflation.	Slow equity build-up.	The most common mortgage in the U.S., a particularly good investment when rates are low.
15-YEAR FIXED RATE	Same as above, but payback period is 15 years.	Usually lower interest rate than 30-year. Faster equity build-up. Less interest paid out over life of loan.	Higher monthly payments. Less tax deductible interest.	An excellent option for middle aged and older buyers.
ARM (Adjustable Rate Mortgage)	A mortgage whose rate changes over time according to terms specified by the lender, usually according to short-term Treasury Bill rates.	Low initial interest rate, sometimes below market. Payments may decrease over time.	Payments may increase over time. Risky if rates rise significantly.	Good option for buyers whose income will rise and/or when rates are expected to drop
FHA/VA MORTGAGE LOANS	Government-insured or guaranteed mortgages that can make purchase more affordable than conventional loans.	Little or no down payment required. Marginally better rate than conventional 30-year mortgages.	Lower limits on the maximum that can be borrowed. VA requires current or past military service.	Good option for first time buyers with little to invest in a down payment.

All American First Mortgage has additional mortgage information and mortgage calculators on-line. If you would like to start the pre-qualification process call them at 301-870-7096.