Michael Bringhurst

Tips for a Simple Loan Approval

If you encounter a special situation, it is best to mention it to us right away so we can help you determine the best way to achieve your goals.

DO’s

• DO call us if you have any questions.
• DO provide requested documentation promptly and in its entirety.
• DO continue living at your current residence.
• DO continue making your mortgage or rent payments.
• DO continue to use your credit as normal.
• DO keep working at your current employer.
• DO keep your same insurance company.
• DO stay current on all existing accounts.

DONT’s

• DON’T change your employment or marital status.
• DON’T make any major purchases (car, furniture, jewelry, etc.).
• DON’T change bank accounts.
• DON’T make any large cash deposits into your bank accounts.
• DON’T transfer any balances from one account to another.
• DON’T close any credit card accounts.
• DON’T consolidate your debt onto one or two credit cards.
• DON’T apply for new credit or open a new credit card.
• DON’T max out or overcharge on your credit card accounts.
• DON’T take out a new loan or co-sign on a loan.
• DON’T pay off any loans or credit cards, charge offs, or collections without discussing it with us first.
• DON’T finance any elective medical procedure.
• DON’T join a new fitness club.
• DON’T open a new cellular phone account.
• DON’T start any home improvement projects.
• DON’T have your credit pulled or dispute any information on your credit report.

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10 Steps to Homeownership

From pre-approval to closing, Academy will help you along the road to homeownership. You can count on us for responsible, honest, and ethical service in every step of the process.

1. Loan pre-approval. Pre-approval allows you to search for a home that you can afford based on your credit, income, and assets. An application and supporting financial documents must be submitted to your Loan Officer, including pay stubs, tax returns, and account statements.
2. Home search Once pre-approved, start shopping with your real estate agent! When you decide on the right home for you, the terms of sale are negotiated and your agent presents your offer to the seller.
3. Formal loan application and product selection. After the seller accepts your offer, formally apply for home financing and select the ideal loan product to meet your needs.
4. Appraisal and home inspection. As your application is being processed, an appraisal is ordered to identify any discrepancies between the sale price and appraised value. Properties are also inspected for water and termite damage and other safety hazards.
5. Processor’s and underwriter’s review. A loan processor reviews the entire loan file and sends all pertinent information to an underwriter who makes the final decision to approve the loan.
6. Final loan approval. If you have a good credit score and debt-to-income ratio, your loan will likely be approved. Keep in mind that there may be financial conditions or property conditions that need to be met before final loan approval.
7. Closing. Final loan and escrow documents are prepared and signed by you (the buyer) and the seller.
8. Funding. A wire or check for the amount of the loan is sent to the title company.
9. Close of escrow. Documents that transfer titles are recorded with the county.
10. Confirmation of recording. The title company authorizes the escrow company (or closing agent) to draft a check to the seller.

Ultimately the final step . . . MOVE INTO YOUR NEW HOME!

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BUYING VS. RENTING

For many, the benefits of buying a home outweigh the advantages of renting. With mortgage interest rates at historic lows and rents on the rise, now is an affordable time to finance a mortgage with a fixed monthly payment lower than rent.

If you plan to stay in your home for more than six years, buying a home could save you thousands of dollars over renting. And don’t forget about the noisy neighbors upstairs.

The Benefits of BUYING

TAX SAVINGS
Mortgage loan interest is deducted from your state and federal income taxes and a portion of your property taxes may also be deducted.

STABILITY
Fixed mortgage payments (principal and interest) will not change during the loan term whereas rent payments may increase annually.

BUILD EQUITY
Owning a home long term allows equity to build and thus your home investment to grow.

The Benefits of RENTING

FLEXIBILITY
Renting may be the preferred option for those planning or needing to make a move in less than six years.

LITTLE OR NO MAINTENANCE
Renters are often able to rely on landlords and property managers to pay for and make necessary home repairs.

UTILITIES MAY BE COVERED
Some utility expenses may be included in monthly rent payments.

Contact me today to start realizing the benefits of homeownership.

Please consult a tax professional about your specific situation and the tax savings benefits of homeownership.

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