Purchase or Refinance?
Are you purchasing a home or refinancing your existing home loan? By refinance, we mean taking out a new loan to pay off your existing
loan. Most borrowers refinance to lower interest rates, improve loan terms
or borrower more money to use for other purposes.
Cash Out?
The term "Cash Out" is used to describe a refinance loan
where the applicant borrowers more money than is currently owed against the
property. The additional funds could be used pay off other debt like
credit cards or car loans, or can be used to improve the property or many other
usages.
Down Payment?
If your transaction is a Purchase, please enter the amount of money
you wish to place as a down payment. Most typical purchases require a
minimum of anywhere between 3% - 5% down. For example, a $400,000
purchase may require a minimum of $12,000 to $20,000 plus funds for closing
costs. Some programs dont require any down payment. If you are
looking for a "zero down" loan, simply enter a zero here. Keep in mind,
however that the more down, the lower your payments would be and in many cases,
the better your rate and term would be.
Documentation?
The Term "Documentation" refers to the type of documentation
you wish to provide in your loan package. Some loan products feature reduced or no documentation requirements.
For example there are loans which do not require the applicant to provide Income
Tax Returns or Bank Statements. Some don't even require that you reveal
any income at all! A "no-income" loan is also referred to as a
"No-Ratio" loan since typical income qualifying formulas known as
"front-end" and "back-end" ratios do not apply since the
applicants income is not required to be filled in the application.
"Full Doc" means that the applicant will be expected to provide
supporting documentation for all income and assets such as Tax Returns, Pay stubs
& W2 forms, Bank Statements, etc
"Stated Income" means that the applicant will only be required to
state their income on the application but will not have to provide any
supporting documentation for income. Typically, Assets documentation is
still required.
Credit
Your credit rating is important. Your initial Rate Quote will
be based on your classification of your own credit history. However, if
you do not know your rating, please specify "Don't Know" and we will,
at our discretion, obtain Credit Report on your behalf. Please realize that your classification of credit is
subject to verification prior to funding your loan.