Key Questions Your Mortgage Lender Will Ask Before Handing You The Loan

Most mortgage lenders will run a thorough background check on you before handing you the money to buy your home. This fact sometimes irritates the borrowers, but imagine yourself in your mortgage lender’s shoes and ask yourself that whether or not would you want to know a person whom you’re handing hundreds of thousands of dollars?

You would. Right?

So, before you apply for a mortgage, be prepared for these common questions to be thrown in your way by your mortgage lender. The only purpose of these questions is to help your lender know you better and determine whether you are eligible for a loan or not.

Here is a glimpse of what you can expect.

Questions Related to your Employment and Income

·        What organization do you work for?

·         How much do you earn? (You’ll be required to submit a proof of income as well)

·         How long have you been working for the same organization?

·        Do you have a fixed salary or an irregular income? (You might be required to provide details in case your income varies each month)

Questions Related to Debt

·         What recurring debts do you have?

·         How much money you spend on those debts? (credit cards, car payments etc.)

Questions Related to Savings & Assets

·         What is your bank balance like? (You might be asked to submit copies of bank statements)

·         How much do you own in bonds, stocks and other assets?

Questions Related to Down Payment

·         How much down payment will you be able to afford?

·         What is the source of the down payment money?

Purpose of the Loan

·         Are you buying a new home or refinancing?

·         If you are refinancing, do you need to take cash out? If yes, how much?

Questions Related to Use and Type of Property

·         What is the address?

·         Is it going to be your primary residence, an investment or a vacation home?

All the best mortgage lenders, be it online or banks, will ask these questions. So get your answers prepared before you apply for a mortgage loan.

All Western Mortgage is a mortgage company specializing in residential home loans since 1981. If you have any questions regarding mortgages or are planning to buy a home, give us a call at 702-850-2790. To know more about us, visit http://www.awmlending.com/about.php

Qualities of Top Online Mortgage Lenders

There is a lot more to finding good online mortgage lenders than just choosing the one whose website looks flashy and promises the best interest rates. You need to make sure that the lender you have chosen, possesses a few qualities that will make your loan process a positive experience.
Here are the qualities you must look for in an online mortgage lending company before finalizing one.

1. Personalized Attention: The process of mortgage lending can be a bit stressful, confusing and tiresome. Therefore, it is important to look for a lender or a company that will offer you his/its time for answering all your queries and to walk you through the path of mortgage with patience and expert guidance. Also, a good lender must be available at the time when you need him.

2. Experience: Experience is the most important quality of a mortgage lender. Experienced lenders have first-hand knowledge about the entire mortgage process and they possess the technical know-how of handling complex applications. Therefore, before you choose a lender or an online mortgage loan company, find out for how long they have been in this business.

3. Educator: If you are buying your first home, chances are that you must not be aware of a majority of its terms and formalities. Therefore, you need a lender who can guide and educate you about the entire process.

4. Must Provide Different Options: When it comes to taking a mortgage loan, different individuals have different needs and are tackling different situations. Therefore, it is wise to choose a lender who has a variety of loan options in his arsenal from which you can choose the one that suits your requirements in the best possible manner.

5. Reputation: Reputation of a lender is an extremely important pre-requisite for you to choose him over others. If a lender’s previous customers have good things to say about him, chances are that you’ll have a better experience as well. There are various online forums where you can check the authenticity of a lender or you can obtain information regarding his reputation from Better Business Bureau.

AWM Lending has been helping its clients in buying their dream homes since its inception in 1981 and possesses all the above mentioned qualities. Come, talk to us on 702-850-2790 and help us in helping you get your perfect home.

Adjustable Rate Mortgage: What is it and what are its Benefits

Adjustable Rate Mortgage loan is a type of home loan in which the interest rate gets adjusted after a specific period, which generally is of one year. The common perception with ARMs is that they are risky business and many homeowners prefer the safety of a fixed rate mortgage, in which the interest rate remains fixed throughout the term of the loan.

 

However, the new age hybrid ARMs aim to negate the risk and also offer a variety of benefits. A hybrid ARM offers a loan at fixed rate for the initial years of the term and only after the completion of the fixed rate duration, the rates start to adjust. Moreover, there are caps on the adjustments of the interest rates to protect the borrowers from paying more than a pre-specified percentage of interest.

Another major benefit of hybrid ARMs is that for the initial years, the rate of interest that remains fixed is less than the interest rate offered by FRMs, which allows you to save thousands of dollars in that time period.

Types of ARMs offered by AWM Lending:
•    3/1 year adjustable rate mortgage: The interest rate remains fixed for the initial 3 years and starts adjusting yearly after the completion of 3 years.
•    5/1 year adjustable rate mortgage: The interest rate remains fixed for the initial 5 years and starts adjusting yearly after the completion of 5 years.
•    7/1 year adjustable rate mortgage: The interest rate remains fixed for the initial 7 years and starts adjusting yearly after the completion of 7 years.
The term for all these types of ARMs is 30 years.  To know more about ARMs call us on 702-850-2790 or visit our website.