Approved Lender
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Overview
We look forward to helping you through your new home purchase. Our Sales Associates
will make every effort to ensure that your experience will be as smooth and easy
as possible.
To assess your financial situation it's a good idea to order your credit report
and review before you start looking at new homes. Even if your credit report is
spotless, sometimes they can contain errors or discrepancies that take time to
correct. Once you have made the decision to purchase a new home, call one of our
preferred lenders to determine how much house you can afford with ease and convenience-our
preferred lenders make it easy!
To assist you in the home financing process, we have provided you with our preferred
lender's information.
 FRANKLIN AMERICAN
1150 Haywood Road, Greenville, SC 29615
Call MICHAEL PITTS
Office: (864) 467-1900
Mobile: (864) 915-6552
Email: mpitts@franklinamerican.com
*FREE ONLINE APPROVAL*
Preferred Lender For Communities in Anderson, SC
Melissa Peacock Office: 864.226.4774 Cell: 864.276.4661 Fax: 864.605.5827 Email: melissa.a.peacock@wellsfargo.com Website: www.wfhm.com/melissa-peacock Doug Mooney Office: 864.226.4774 Cell: 864.320.5180 Fax: 866.359.5175 Email: douglas.l.mooney@wellsfargo.com Website: www.wfhm.com/doug-mooney
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Home Loan Information
Before shopping for a home, you should get pre-approved by one of our approved
lenders. Pre-qualification typically is based on an in-file credit report and
a loan application. Pre-approval is based on a hard copy credit report, verification
of employment, income, and funds to closes, and back up documentation required
by your particular loan program. Any conditions for loan pre-approval should be
satisfied during this time.
The following is a list of the different types of loans:
The Fixed Rate Loan
The interest rate remains the same throughout the life of a loan. Fixed rate
loans usually are available for terms of 15 or 30 years.
The Adjustable Rate Loan
The interest rate can adjust during the life of the loan. The adjustable rate
mortgage (A.R.M) can be designed to adjust as often as every year or may no adjust
for 3-10 years. All adjustable rate loan have an annual cap, which means they
cannot adjust more than that each year, and a life cap, which means they cannot
adjust more than for the life of the loan. Some adjustable rate loans have a conversion
clause allowing you to convert to a fixed rate loan at the time of the first adjustment.
Interest Only Loans
These typically are adjustable every 3 or 6 months. There are two benefits to
this loan:
1. A low monthly payment
2. The ability to pre-pay principal at that time
If you have an existing home to sell, and particularly if you are transferring
from another city, this might offer a way for you to qualify for two mortgage
payments until you sell your home. Making regular payments of principal will enable
you to build equity much faster than with a 30 year amortized loan. The danger
in this loan is not making principal payments during the term of the loan.
FHA Loans
These types of loans are available in many programs similar to Conventional Loans.
Your Loan Officer can recommend a program that will work best for you. Although
the interest rate usually is 1/4 percent higher than conventional loans, the MIP
(Mortgage Insurance Premium) is lower. FHA also allows a higher debt ratio.
VA Loans
These types of loans are available to qualified veterans who have VA entitlement.
For qualified veterans the benefit is the ability to obtain a 100% loan at a rate
slightly higher than conventional. Higher debt rations are allowed.
Credit Scores
All lenders use credit scoring for conforming loans, and your credit score will
affect the type of loan and the terms available to you. Keep in mind that there
will be other underwriting requirements. Because the three reporting agencies
report differently and may update at different times, your score may vary from
one agency to another. Typically, the lender will use your middle score.
It would be a good idea to order a copy of your credit report in advance of applying
for a loan if you are unsure of your credit rating. This will enable you to correct
any mistakes or pay off any old debts and have your credit report updated. All
credit reported remains on the report for 7 YEARS from the last date of activity, except for bankrupcies which are on the report
for 10 YEARS. The last activity is any change reported on your account, including your last
charge, your last payment, or the date you paid off your balance.
You will find a variety of offers for purchasing an online credit report.
Here are some TIPS:
1. Always make payments on time. Deliquent accounts in the most recent 24 months
have the most weight on your scores.
2. Avoid inquiries (loan shopping). Excessive inquiries may diminish your credit
rating.
3. Avoid store accounts, including 90 day "same as cash" offers, as most stores
sell their accounts to finance companies, and this will not look as favorable
as a bank credit card or loan.
4. Avoid balances of more than 35% of your available credit line on your cards. Note: It is not a good idea to consolidate all of your debt on one card. A lower
balance and longstanding good payment history on serveral cards is better than
one larger balance.
5. Legal actions such as judgements (court decisions), collections, and bankrupcies
harm credit ratings.
6. Check your credit reports regularly for accuracy. If you find a mistake, be
sure to dispute it in writing and check to make sure it has been corrected.
7. Be sure to get a commitment from the creditor that your date of activity will
not be changed at the time of the pay off when you you have paid off an old debt.
Otherwise, it may remain on your credit for 7 years from the time of payoff. NOTE: Paying off a deliquent account will not remove this bad credit from your
report. It will remain for 7 years from the date of last activity, but will show
that it has been paid off.
8. If you decide to pay off and close an account, be sure that it has been reported
that the account was closed at the consumer's request.
For Loan Application You Will Need
1. Check or cash for Credit report and Appraisal fees.
2. Names, addresses, phone numbers, and dates worked for each employer for the
past two years. Most recent pay stub and W-2's for the past two year.
3. A copy of your present driver's license and Social Security card.
4. Names, addresses, account numbers and balances of all bank accounts you currently
have open.
5. A copy of your previous three months' bank statements on each open account
(all pages of the statement).
6. Debts (credit cards and loans): Names, account numbers, addresses, balances,
and monthly payments. Include accounts with zero balances and student loans.
7. Current or recent mortgage holders, if any, with names, addresses, and account
numbers. NOTE: This includes any equity loans you may have.
8. Value of life insurance policies and the amount of their net value.
9. Approximate value of personal property, such as furniture, appliances, jewelry,
expensive equipment, etc.
10. Make, year, and value of vehicles.
11. Copy of the purchase agreement on the home you are buying.
The following additional information may be required at loan application:
Self employed persons will need to supply the previous two year's tax returns,
signed and with all attachments, and a signed Year-to-Date Profit and Loss Statement
prepared by an accountant. If you are incorporated, please bring two years' complete
corporate tax returns.
Applicants with rental property will be asked to supply information on lenders
and copies of rental or lease agreements.
If present home is pending sale or sold, a copy of the sales contract and/or
HUD 1 (Settlement Statement).
If you are applying for a VA Loan, bring your Certificated of Eligibility and
discharge papers (DD214).
WOW! I know this sounds like a lot of information that the lender needs, but
once it's done, you are one step closer to owning your dream home!
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