Need a mortgage? Your Money Store of Texas can offer you several loan programs from 3 major Financial Institutions to help you compare rates, term and fees. These quotes will come in the form of a good faith estimate, with the closing interest rate and disclosing all lender and third party fees. Your Money Store has many satisfied clients and “Would Love the Opportunity to earn your business”.

 

 

Special Rebates: If, you finance your new home with Your Money Store and use one of our preferred Realtors to find your home, we will rebate at closing 1% of the purchase price to help pay your closing costs. This is a great offer and only provided by Your Money Store. Contact Jeanne Tays at 888-618-5363. Jeanne has been in the banking and lending business for over 20 years and is the best at what she does. Give her a call and you will see why so many families all over the United States only use her for their lending needs.

 

Your path to homeownership can either be a rocky road or a smooth sailing path. Our goal at Your Money Store is to help guide you through the unknown chartered arena of “Buying a Home” or “Refinancing your home”.

 

In this uncharted territory known as the “Loan Process” mistakes can be made…after all you are only human. By being aware of some of the more common mistakes, you will be helping your transaction avoid some of the lenders and mortgage broker’s road blocks.

 

Credit Scores: #1 factor when it comes to getting a mortgage rate. Before a homeowner ventures out looking for homes to buy, they should consult a mortgage lender or a loan broker to get an accurate credit report. The credit reports you can obtain free via internet are not the same scoring system the Lenders and Mortgage Professionals use. Once you talk with a Mortgage Professional prior to your searching for a home,  then everyone knows what the maximum dollar amount you can afford to buy…this saves a lot of time and disappointments.

 

Pre-qualified vs. Pre-approved: Pre-qualification is an “informal” review process based on income earn, monthly consumer debt, and money saved for down payment and/or closing costs.

 

Pre-approval is a more formal review process which includes completing a loan application for review. Along with the application you may be ask to submit the following pay stubs, bank statements, and other information pertaining to your particular loan program.

 

Having a formal pre-approval letter when making an offer to purchase, will let the seller know you are a serious buyer with the means to purchase. This is a valuable tool to have in this Real Estate Market.

 

Buying too much House: With over several 100 Investors to choice from along with several Loan Programs, Buyers can fit into a loan program that may cause them to spend more than they had intended too bring a debt to income ratio well over 50%...a conservative number for one’s debt to income ratio should be approximately 33%; however, the reality is most homeowner’s fall between 40% - 45% debt to income ratios.

  

Closing Costs: Again, by communicating with a Mortgage Professional prior to your offer to purchase, your Mortgage Professional should advise you of the closing costs prior to negotiations. On most loan programs, Sellers can pay up to 3% of the purchase price towards the Buyer’s closing cost (if it’s negotiated in the offer to purchase contract). Keep in mind your taxes and insurance are collected at the time of closing as well. Depending on the time of year you close your transaction, the taxes could increase the closing costs quite considerably.

 

Cash Accounts: Savings Accounts, 401K accounts and Pensions accounts all qualify as “Cash Accounts”. Once you spend all your monies on the closing cost and/or down payment to purchase your home, it is best to have three months cash reserves after closing. By having a reserve account, it will help with any unforeseen purchase such as window coverings or new appliance… There are some loan programs which will not require cash reserves; however, it is always best if you have some monies left over for yourself or that “rainy day” fund.

 

Equity: The equity in your home is also a valuable consideration when discussing the possibilities of purchasing a new home or refinancing your current home. If you are buying a home and you put down a larger down payment your interest rate will reflect a more conservative rate vs. having less money down the interest rate will be higher.

 

Many borrowers make a refinance work for them by tapping into their home equity, or by “cashing out”. With rates still excellent, you may refinance without increasing your monthly out go by too much. For example; let’s say you have a note rate of 7.75% loan amount $225,000, 30 year fix mortgage payment is $1611.93…you refinance taking an extra $25,000 cash to pay off some consumer debt. Your note rate is 6.75% loan amount $250,000, 30 year fix mortgage and your monthly principal and interest payment is $1621.50…a difference of $9.57… When refinancing your mortgage most clients will opt to have the closing costs come out of the proceeds of the loan….leaving their out of pocket expense to a minimum of about $400…for the appraisal. If you have any questions about financing options, please call Jeanne Tays at Your Money Store Inc. Toll free at (888)-618-5636 or (214)-705-7355