Page 14 - Westchester - 2017 Relocation Guide

REAL ESTATE
MWortgage 101
BY IRENE AMATO, President A.S.A.P. Mortgage Corp., Cortlandt Manor
FOTOLIA
hen shopping for a mortgage it’s amazing how everyone has advice to offer. Among them are industry profession- als, friends and family, Internet companies and recent homebuyers. The advice I give is that when shopping for a mortgage professional, the last thing you want to consider is, believe it or not, interest rates.
Interest rates change daily, sometimes several times a day. The rates vary based on loan type, credit score, loan-
to-value percentage, debt-versus-income ratios, property type, down-payment percentage, location of the property and several other criteria. Therefore, until you have chosen a property type, location, lock term, agreed on a purchase price, loan product and actually locked in the loan, nothing is guaranteed. An interest-rate quote is simply that, a quote! What follows is a recap of what the process typically consists of.
LOAN PROCEDURES
Pre-qualification. You will speak with a licensed loan professional who will review your income, assets, job history and other areas to evaluate your “buying power.” It is important now to discuss any questions or concerns with your loan professional.
Application. You will speak with a li- censed and trained mortgage professional to complete your loan application. This can be done online, in person or over the tele- phone. This procedure will require some time and is a more detailed then the pre- qualification process. Be certain to review the documents for accuracy, and address any questions you might have with your loan originator. I advise discussing “lock- ing” versus “floating” a rate at this stage.
Submission. After your loan application is completed, a loan processor verifies that all information is correct by obtaining verifi- cations of employment from your employers and Tax IRS transcripts from the IRS. Your loan package is then submitted to the lender and assigned to an underwriter for review.
Approval. The lenders’ underwriter re- views your loan package to make sure it meets the criteria for approval. If every- thing is acceptable, the underwriter will is- sue a commitment letter. Additional condi- tions generally are requested now and will be requested from you. The loan commit- ment is now delivered to you and your at- torney. Once the additional condition items
have been submitted, the file is returned to underwriter, along with the property ap- praisal report for final review.
Preparing for closing. Upon final re-
view and clearance of all outstanding condi-
tions, your attorney will discuss a definitive
closing date with all parties and the lender
will schedule the file to close. Most lenders
require a minimum of 96 hours’ notice to
prepare closing documents. You will receive
the CD (closing disclosure) with all the final
numbers and cash needed to bring to the
closing. The CD must be delivered to you 3
business days prior to the closing. Immedi-
ately review this document and address any
questions or concerns with your mortgage
professional and attorney. Your real-estate
agent will meet you at the property to com-
plete a walkthrough, generally the day of or
the day prior to the closing. This is the time DON’T you will need to discuss any damage to the
property or if any items were removed that were contracted to stay.
Closing. You should arrive at the closing approximately 15 minutes early, prepared with the certified checks or wire transfers you discussed with your attorney. Be pre- pared to sign multiple documents and al- ways remember to ASK questions. Never sign a document that is not fully completed, and always retain a copy of all documents. Once the questions and signatures are com- pleted, monies will be exchanged, and you will receive the keys to your new home!
The following is a list of mortgage-shop- ping do’s and don’ts from Irene Amato of A.S.A.P. Mortgage Corp.
DO
• stay current on all credit accounts.
• continue to use your credit card as you
normally would.
• contact your home-insurance agent
to discuss coverage and receive
insurance quotes.
• update your pre-qualification letter if it is
past 60 days from the date of the letter.
• keep a paper trail of any large deposits or
transfers to accounts you will be using for the purchase of the home.
• for any new credit, as inquiries can lower credit ratings.
• close any credit card accounts as this can reduce credit ratings.
• co-sign any new debt.
• make any major purchases without
reviewing with your loan originator. • exceed 50% of your credit line on
credit cards.
• credit reports excessively
• buy a new car or trade up to a larger
lease payment without speaking with your loan professional.
The founder of A.S.A.P. Mortgage Corp., Irene Amato has been a Westchester Magazine Best Businesswoman and Best Mortgage Broker, having also received the General Excellence award from 914INC. In 2013, she was named Broker of the Year by the NYAMB and Affiliate of the Year by HGAR.
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