s s s s s s s s s s s s s s
Powell Realty, Inc. A Leader in Juneau, Alaska Real Estate A Leader in Juneau, Alaska Real Estate s
Property Search Buy a Home Sell a Home About Me Mortgage Information Juneau Area Information Home page s
Auke Lake, Alaska Auke Lake, Alaska s
s Ruth Blackwell Photo Auke Lake, Alaska Auke Lake, Alaska Auke Lake, Alaska s
s Auke Lake, Alaska Auke Lake, Alaska Auke Lake, Alaska Copyright - Dramatic Light s

Mortgage Information

Negotiating for a house is a lot easier when you have a check for the full amount in your pack pocket. That's about what you have when you pre-qualify for a mortgage. Based on your financial strength, a lender will give you a firm commitment on a loan for a certain amount even though you haven't yet identified a specific property.

DOCUMENTS REQUIRED TO QUALIFY FOR A LOAN

  • The past two or three years of tax returns
  • Paychecks or pay stubs for the past month that include your social security number
  • W-2 forms for the past two to three years
  • Recent credit card statements
  • Payment records for all other loans
  • Bank account statements for the past three months
  • Brokerage account statements for the past three months
  • Retirement account statement
  • Your car title(s)
  • Business tax filings if you are self-employed
  • If you're selling a house, the sales contract
  • Any bankruptcy documents
  • Life insurance policies
  • Documentation of any other sources of income, including a second job, anticipated overtime, sales commissions, bonuses, interest and dividend income, Social Security payments, alimony, child support, etc.
  • If your employer is offering relocation assistance, a documented agreement
  • A complete list of creditors, including minimum monthly payments and balances
  • Cancelled checks from recent rent payment

TYPES OF MORTGAGES

Some of the mortgage variations that are available:

  • Fixed Rate--A fixed rate mortgage requires a monthly payment that is the same amount throughout the term of the loan. When you sign the loan papers you agree on an interest rate and that rate never changes. This is the best type of loan if interest rates are low when you get a mortgage.

  • Adjustable Rate--. An adjustable rate mortgage allows the interest rate on your loan to vary with prevailing interest rates. If rates go up, so will your mortgage rate and monthly payment. If rates increase a lot, you could be in big trouble. If rates go down, your mortgage rate will drop and so will your monthly payment. A good strategy may be to stick with a fixed rate loan to safeguard against raising interest rates. And if rates drop, refinance your mortgage to take advantage of lower rates.

  • Pledged Asset Mortgages--In a pledged asset mortgage, you can use assets such as stocks, bonds, other property, etc. as collateral on your loan. This eliminates the need for a down payment and also avoids PMI (Private Mortgage Insurance).

  • Mortgage Help Programs- -There are programs that will assist you in obtaining and financing a mortgage. The number and variety of these programs makes it impossible to list and discuss them all here. Check with your bank, or a knowledgeable real estate agent.

  • Veterans Administration (VA) Loans --The Veterans Administration offers loan benefits to veterans who served in the armed forces on active duty during times of conflict, such as Korea, Vietnam, Desert Storm and Afghanistan, as long as they were not discharged dishonorably. The first step to obtain a VA loan is to obtain a certificate of eligibility, then submit it with your most recent discharge or separation papers to a VA eligibility center.
    • VA loans offer some very helpful benefits including:
    • 100% financing - That means no down payment
    • An origination fee of no more than 1% of the loan
    • Low interest rates
    • A loan guarantee from the VA
  • Federal Housing Administration (FHA) Loans-The FHA was created to aid people in obtaining affordable housing. FHA loans are actually made by a lending institution, such as a bank, but the federal government insures the loan. This is often the least expensive loan that non-veterans can get.

    To qualify for an FHA loan, you must be a permanent resident of the United States (although not necessarily a citizen), you must live in the home you purchase with the loan and the dollar amount of the loan must fall below a maximum set by the government. This amount is raised for those purchasing a home in designated "high cost" areas of the country. You also have to be "credit worthy," meaning you need to have your credit report in order. You know how to do that, right?
    • The benefits of an FHA loan include:
    • A choice of many different loan programs
    • Low down payment (as low as 5%)
    • Low closing costs
    • A higher qualifying debt ratio than other loans, meaning you can have more debt or less income
  • Borrowing against your 401(k) plan - If you contribute to a 401(k) plan at work, you might be able to borrow money from your plan to buy your house. You can borrow up to half of the money you have accumulated (up to $50,000). Even though it is your money you will have to pay it back as you would any other loan or you will be penalized. Usually it's paid back through monthly deductions from your paycheck.

  • Fannie Mae and Freddie Mac- Fannie Mae and Freddie Mac are two federal agencies that can assist you in finding approved lenders. They do not, however, make loans themselves.

 

Property Search | Buy a Home | Sell a Home | About Me | Mortgage Information | Juneau Area Information | Home

Ruth Blackwell, Associate Broker
9040 Glacier Highway, Juneau, Alaska 99801
Office 907-789-3888; Fax 907-789-7038; Cell 907-321-0615
E-mail: ruth@aukelake.com
Site design © 2006 Spectrum Design & Graphics
Privacy Policy | Terms of Use