Demonstration on motif: «Invited Home buying 101. Property 101 Real estate 101 Presented by the NASA Federal Credit Connection Bert Aguilera Financial Consultant NMLS #551894 (301) 249-1800,»- Demonstration transcript:

dos Home buying 101 Real estate 101 Presented by the NASA Federal Borrowing Partnership Bert Aguilera Financial Agent NMLS #551894 (301) 249-1800, x334

3 What exactly is a mortgage? It is categorised as an interest rate, a great lien, or a protection notice that is stored by a lending institution. New lien is reduced and you can put out immediately after and come up with prompt money toward identity of one’s financing, the mortgage try refinanced to change the newest words, or perhaps the house is sold. It’s very known as home financing.

5 The mortgage Industry Has gone Back to Rules When implementing having a home loan 25 years before, five one thing was vital: ? Jobs Balances ? Cash ? Borrowing ? Income Now, speaking of nonetheless extremely important!

six How can you Be eligible for A mortgage from inside the 2014? A wholesome Credit history Dollars to close off Complete Paperwork

seven What you should Avoid While preparing To track down Home financing A great amount of personal credit card debt Big instructions (to get a motor vehicle and other highest items) Altering operate Making an application for the brand new borrowing from the bank

8 Papers Standards This new paperwork requested into a mortgage was to find the creditworthiness of your representative and in case he could be able to pay back your debt. Resource documentation to help with financing for deposit, closing costs, and reserves. Money papers like current shell out stubs covering a-one day months and you may W-dos statements going back a couple of years are normally needed for salaried employees.

9 Paperwork Requirements Cont’d For self employed individuals, a lot more papers for example taxation statements the past couple of years and you will 12 months to date profit-and-loss statements are required. To have S companies and you will firms that try integrated, team taxation statements the past 2 years also are requisite.

10 Settlement Costs Costs in the closing the borrowed funds Generally estimated within cuatro%-6% on get purchases. Exact closing costs is dependent on fees charge in your area, just how much you are borrowing, the manner in which you money their financial (points), along with your loans Boligee closing time, i.elizabeth., where it falls for the few days. Closing costs have addition to your down payment matter needed.

eleven What exactly is a point? A point are a fee new representative can decide to expend to reduce the interest rate. The supplementary markets can get incorporate almost every other facts for credit rating, occupancy, subordinate investment (etc). For every part is equivalent to 1% of the loan amount which can be put into the entire closure will cost you. Members normally elect to shell out circumstances otherwise loan providers increases the fresh new offered interest to attenuate new appropriate points.

12 Just what are other closing costs? Pre-paids (escrows to own possessions fees and you can homeowners insurance) Condition and you can local import and you can recordation fees Origination Charges Appraisal Charge (reduced additional closing) Credit history, Flood Qualification, Income tax Service Charges Settlement Charges, instance identity browse and you can term insurance, assessment charges, survey, tape costs, and you can buyer attorneys costs

thirteen Would I wanted a down-payment? Never. The credit connection also offers a zero Down, No MI collection unique. Most other mortgage loans is need the absolute minimum advance payment from 3.50%, 5%, 10%, if not 20% of sales speed. Some financial programs require the currency are your financing. Really the only borrowed funds need to come from a valuable asset instance since the a 401(k) plan. Other companies allows you to play with a gift of a close relative to pay for your own downpayment.

14 Basic Home loan Conditions LTV (loan-to-value) – The brand new ratio within quantity of the loan therefore the full worth of the property. CLTV (combined-loan-to-value) This means discover one minute financial ()() for the possessions. Sleeve variable speed financial EMD Earnest currency put GFE Good-faith imagine MI Financial insurance coverage which is needed if your LTV is higher than 80%. P/We (PITI) Dominant and focus (taxes & insurance) DTI debt-to-money ratio HUD-step one payment layer detailing finally price of get

15 Particular Mortgage loans Form of Mortgages Compliant around $417,000 Low-Compliant Jumbo Mortgages over $417,000 FHA & Virtual assistant /5 or Zero Down Zero MI Unique (purchase just)

17 The latest Software 100% Financial support so you’re able to $650,000 – Zero Downpayment needed- Get Fund – No home loan insurance (MI) requisite – You need Good credit, Money and Coupons Development – On 29 and you will fifteen season Fixed, 3/step 1, 5/step 1, 7/1 and you may ten/1 Sleeve – 95% Resource in order to $850,000 that have 5% downpayment That it bring is limited in order to well-qualified individuals. Certain limits may apply. Offer is true having no. 1 Household Just.

18 Checklist Low interest Cost have not been it lower because the 1971 cuatro.00%, 29 12 months Repaired Compliant Cost active * subject to alter each day step three.75, 20 Seasons Repaired step three.125%, 15 Year Fixed What this means For your requirements…

20 Payment per month Shot getting good $eight hundred,000 Home loan Term: 29 Season Repaired RateP&I Payment Number 4.00%$step one,910 5.00%$2,147 6.00%$2,398 Full payment per month (PITI) will include possessions taxation, homeowner’s insurance and maybe mortgage insurance

21 Points to consider When searching for Your house? Place and you may should have have The restrict pre-recognized financing limit your Realtor Domestic Advantage (mycuhomeadvantage)mycuhomeadvantage The Payment Company CU Label

twenty two Domestic Advantage Program Availability system due to Link into the NASA’s site 100 % free program to help you members Examine newest postings through the Numerous Listing Service (MLS) Obtain college or university and you can area analysis See a professional real estate agent and you may found up to 20% of the percentage towards your closing costs.

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23 Are you ready Buying A property? Label NASA Federal’s step 1 st Home loan Gurus Earliest. We can assistance with your own visit. Rating Pre-Recognized And make a deal with the a home together with your representative What to anticipate out of financial once your bring was approved and ratified of the providers (securing price, disclosures, control, underwriting) Loan Commitment Page Settlement / Closing

24 Pointers Eliminate normally personal debt that you can Save yourself, Cut, Save your self getting a down payment & closing costs Do not make big requests, alter services, otherwise get the fresh borrowing while qualifying having a mortgage Very carefully consider your credit score Free annual credit report (annualcreditreport)annualcreditreport Play with Harmony to possess borrowing from the bank appointment

25 Funding that have NASA FCU You to-Avoid Shop! Out of interested in a realtor so you’re able to Capital so you can Closing! Prompt, Polite, Elite Solution Down Charges On the web Devices Personal Consultations

twenty six Totally free Personal Session Learn how much you can afford Explore various other mortgage possibilities Feedback our home purchasing techniques Whenever you are perhaps not already a person in NASA FCU to get you’re easy!! Query you how.