Mortgage Qualifications
When you purchase a new home or refinance your existing home, there are four major factors for mortgage qualification. Our expert team of loan professionals can help you analyze this information to determine what programs are best suited to your situation.
How much do you earn?
Have you managed your debts in a credit worthy manner?
How much cash or liquid assets do you have to put towards your purchase?
Do you have excess debts, such as car loans and credit card debt, which limit the monthly mortgage payment you're able to make?
- Get pre-approved for a loan before you begin shopping for a home. This will help determine your price range and approximate monthly payment. Additionally, a pre-approval letter from your lender will let the Realtor know that you are a serious buyer and you are qualified to purchase a home.
- Keep your mortgage lender and real estate agent informed of any changes that may affect your loan approval.
- Provide as much documentation to the lender as possible. Not only will you take care of all the details early in the process, it will also help you qualify for the best loan available. Most importantly, this will help to prevent delays later in the loan process.
- Enjoy shopping for a home! Often, this is the single most important financial decision people make in their lives and you want to make sure it is the right one.
- Put together a database/list of homes currently on the market that meet your criteria. Criteria may include type of property, number of bedrooms, number of bathrooms, and a one or two car garage, etc.
- Set up showings of the homes that meet your criteria.
- Help determine the marketability of your current property.
- Write and submit a contract on the property you are interested in buying. The Realtor should assist in negotiation with the seller pertaining to the contract.
- Submit a copy of the signed contract to the lender, once it is accepted, so that the lender can move forward with your loan process.
- Most Current Two Years Completed Tax Returns Including all Schedules
- Most Current Two Years W-2 Forms
- Most Current Two Paystubs
- Name, Address, Phone Number, and Account Number for Savings and Checking Accounts
- Most Recent Mortgage(s) Statement(s) on any Current Mortgage Loan(s)
- Personal and Business Bank Statements (if applicable)
- Verification of Liquid Assets (statements on 401k, IRA's, etc.)
- Home Owners Insurance and Home Owners Association Information
(Company Name, Agent Name, Phone Number) - Copy of the 1st Mortgage Note (if requesting a 2nd Mortgage)
- Landlord Name, Address, Phone Number (if applicable)
- 12 Months Cancelled Rent Checks (if applicable)
- Signed Purchase Agreement (if applicable)
This is a partial list. Additional documentation may be needed
based on your particular situation.
| 30 YEAR FIXED | 4.25% |
| 15 YEAR FIXED | 3.875% |
| 3/1 ADJUSTABLE | 4.125% |
| 5/1 ADJUSTABLE | 4.00% |
| FHA 30 YEAR FIXED | 4.375% |
| JUMBO 3/1 ARM | 4.625% |
| JUMBO 5/1 ARM | 4.75% |
| JUMBO 30 YEAR FIXED | 5.375% |
| HELOC AT PRIME | 3.25% |
*Interest rates shown are at par pricing. Rates are subject to change daily and are not guaranteed until approved and locked. Call or apply for details.
To help you calculate your monthly payments, ALMC Mortgage has made two mortgage calculators available. Use the basic calculator to estimate your monthly mortgage payment. Use the advanced calculator to determine how various pre-payment options can reduce your interest and pay off your loan early.
The advanced calculator is designed to illustrate three things; calculate a simple monthly payment, figure the effects of prepaying your mortgage, and analyze the composition of your monthly payments in the future.
Pay Down the Principle Balance of Your Mortgage
By paying a little extra on your monthly mortgage payment, you will significantly reduce the amount of interest you pay over the life of a loan. Roughly, two extra payments a year can reduce a 30-year loan to an 18-year loan. Use this tool to reduce the finance charges on your mortgage and start to realize the savings immediately.
Consolidate Debt with a Mortgage Loan
Borrowers who qualify can combine credit cards, auto loans, and consumer credit account balances into a new mortgage loan and reduce their overall monthly expenses. This type of consolidation loan also allows borrowers to lower their overall interest rates and deduct the interest on the mortgage loan (in most cases).
