Preferred Home Finance, LLC

1. What information do I need to get pre-approved for a mortgage? Answer

2. How do I know how much house I can afford? Answer

3. How much cash will I need to purchase a home? Answer

4. How long do I have to wait to buy or refinance my home if I've had a bankruptcy? Answer

5. Which type of mortgage is best for me? Answer

6. I've have a foreclosure in my past. How long do I have to wait to purchase a new home? Answer

7. I applied for a mortgage with my bank but was told I did not qualify. Can PHF help? Answer

8. What is a mortgage broker? Answer

9. What does my mortgage payment include? Answer

10. What does getting pre-qualified for a mortgage mean and how does that benefit me? Answer

11. I'm thinking about buying a house. What are the most important things I should do? Answer

Q: What information do I need to get pre-approved for a mortgage?

A: The following is a general list of items we would need to qualify you for a mortgage.

Some items may not apply to every situation.

A month's worth of paystubs for each borrower
Last 2 years W2's and tax returns
Most recent bank statement for each account
Copies of any divorce decrees or child support agreements
Copy of your bankruptcy discharge and all schedules
Most recent statement for any 401K, IRA, or stock accounts
Our Application Checklist is also available in a printable format.

Q: How do I know how much house I can afford?

A: Generally speaking, you can purchase a home with a value of two or three times your annual

household income. However, the amount that you can borrow will also depend upon your

employment history, credit history, current savings and debts, and the amount of down payment

you are willing to make. You may also be able to take advantage of special loan programs for

first time buyers to purchase a home with a higher value. Give us a call, and we can

help you determine exactly how much you can afford.

Q: How much cash will I need to purchase a home?

A: Generally speaking, you will need to supply:

Earnest Money - The deposit that is supplied when you make an offer on the house
Down Payment - A percentage of the cost of the home that is due at settlement
Closing Costs - Costs associated with processing paperwork to purchase or refinance a house

Q: How long do I have to wait to buy or refinance my home if I've had a bankruptcy?

A: Typically if you have been discharged for at least 24 months, and have re-established some credit, we

can get you approved for a mortgage.

Q: Which type of mortgage is best for me?

A: There is no simple formula to determine the type of mortgage that is best for you. This choice

depends on a number of factors, including your current financial picture and how long you intend

to keep your house. Preferred Home Finance can help you evaluate your choices and help you make

an informed decision.

Q: I've had a foreclosure in the past. Do I have to wait before trying to purchase a new home?

A: Depending on the circumstances surrounding your foreclosure, the normal wait time is 3 years.

We review these on a case by case basis and have gotten exceptions to the rule with as little as 24

months from occurrence.

Q: My bank told me that I do not qualify for a mortgage. Can PHF help?

A: We'd like to try! Give us a call. Most banks have a strict set of requirements that you must meet for

them to finance your mortgage. As a broker, we work with many lenders. This allows us to find the

loan that best matches your situation. If you were turned down by a bank because of a bankruptcy or

foreclosure, your debt to income ratio, your lack of a down payment, or your inability to provide a rental

history, Preferred Home Finance might be able to help you purchase a new home.

Q: What is a mortgage broker?

A: A mortgage broker is a full-time residential real estate finance professional. We are experts at working

through the mortgage lending process. We represent many lenders and are a source of many specialty

loans. A mortgage broker from Preferred Home Finance will select the best lender from our many

sources to provide you with a loan that meets your needs.

Q: What does my mortgage payment include?

A: For most homeowners, the monthly mortgage payments include three separate parts:

Principal: Repayment on the amount borrowed
Interest: Payment to the lender for the amount borrowed
Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.

Q: What does getting pre-qualified for a mortgage mean and how does that benefit me?

A: In the real-estate industry we do things a little backwards. Here is a very common scenario:

You decide you want to move. You call a realtor and start looking for a home. Finally, you find the home of your dreams and your offer is accepted by the seller. Of course you will want to do a home inspection to make sure there is nothing wrong with your new home. The cost of a home inspection is generally $200-$300 and is paid at the time the inspection is done.
Next, you will need to go to a lender and get a mortgage. At the mortgage application you will need to pay approximately $350 for an appraisal and credit report. After 3 or 4 weeks you will learn if your loan has been approved. If your loan was rejected you have now LOST almost $1,000.00 because the fees you paid are not refundable if your loan is rejected.
You can get pre-approved BEFORE you even go looking for a home. By being pre-approved you will know that your loan is already waiting for you and all you have to do is find your perfect home. You will also know how much you need to buy the home and what your monthly payment will be.

Q: I'm thinking about buying a house. What are the most important things I should do?

Get pre-approved for your mortgage BEFORE you start house hunting. You will then know how much home you can afford, how much money you will need at close, and be in a better position to make an offer on a house.
Consider using a buyer's agent. Most real estate agents represent the seller. There is a fairly new agent called a "Buyer's Agent." They represent you, not the seller. They can disclose things to you about the house that they could not if they represented the seller. You do not pay their commission.
Don't attempt the paperwork alone. Get help from your lender and agent. Their expertise will reduce the stress.
Ask about different options available to you. There are fixed rate mortgages, ARM's, Interest Only loans, and more. Explore your options and find the one that is best for you.
Be honest with your lender. The more information you provide the lender (good or bad), the easier it will be for them to obtain a mortgage for you.