ADR BLOG

Absolutely! Even if you haven't so much as picked out houses to visit yet, it's important to see your mortgage professional first. Why? What can we do for you if you haven't negotiated a price, and don't know how much you want to borrow?

When we pre-qualify you, we help you determine how much of a monthly mortgage payment you can afford, and how much we can loan you. We do this by considering your income and debts, your employment and residence situations, your available funds for down payment and required reserves, and some other things. It's short and to the point, and we keep the paperwork to a minimum!

Once you qualify, we give you what's called a Pre-Qualification Letter (your real estate agent might call it a "pre-qual"), which says that we are working with you to find the best loan to meet your needs and that we're confident you'll qualify for a loan for a certain amount. 

When you find a house that catches your eye, and you decide to make an offer, being pre-qualified for a mortgage will do a couple of things. First, it lets you know how much you can offer. Your real estate agent will help you decide on an appropriate offer, but being pre-qualified gives you the confidence to know you can follow through.

More importantly, to a home seller, your being pre-qualified is like you walked into their house with a suitcase full of cash to make the deal! They won't have to wonder if they're wasting their time because you'll never qualify for a mortgage to finance the amount you're offering for the home. You have the clout of a buyer ready to make the deal right now!

You can always use the calculators available on our site to get an idea of how much mortgage you can afford -- but it's important to meet with us. For one thing, you'll need a Pre-Qualification Letter! For another thing, we may be able to find a different mortgage program that fits your needs better.


Posted by Andrew Walter May on July 20th, 2018 10:43 AM

Deciding how much house you can afford is a personal decision.Many factors come into play.How much can I borrow?  How much can I put toward my down payment? What size monthly payment can I afford?

There are no black and white answers to these questions.  It’s a matter of give and take. If you plan on a 30 year mortgage, you can probably make a lower down payment (or perhaps no down payment at all) and still manage the monthly payments.  If, on the other hand, you plan on a 15 year mortgage, you’ll probably want to make a larger down payment to keep your monthly payments in line with what you can afford.

How large a down payment can I make?

Many buyers look at their cash on hand as their only source for their down payment.  This simply is not the case. One way to fund or partially fund a down payment is by using a gift.   Parents, grandparents and other family members are often eager to help by making a cash gift toward the purchase of your home.

There are also down payment assistance charities that can help you.  And, of course, if you are selling a home, the equity you’ve built up can be applied to your down payment.

But these are not your only options.  We can help you explore all your down payment options, including low down payment and 100% mortgage financing options that might be right for you.

What size monthly payment can I afford?

When determining what size monthly payment you can afford, you’ll want to consider what other monthly expenses you have.   Tangible expenses such as car payments, day care and utility bills, all play a role in how large a monthly payment you can afford.

There are also the intangible expenses or lifestyle expenses that you’ll want to consider.  Things such as dining out, travel and when you buy your next car can affect how much you can afford.  Are you willing to curtail or delay some of these expenses in order to afford a larger monthly payment?

How much can I borrow?

This is a question you’ll want to get answered before you begin your home search.   This is something that we're here to help you with. Our mortgage calculators will help you see how your down payment, monthly payment and the amount you borrow are all interrelated.

We can answer any questions you may have about the mortgage process.  But the best way we can help is by getting you pre-qualified for a mortgage loan.  To get started, simply complete the form below to let us know a good time to contact you.  We look forward to


Posted by Andrew Walter May on June 22nd, 2018 3:25 PM
Just last month a former client that relocated to Virginia (we fund NC and VA mortgages) called in a panic. The client had just put down a $100k deposit with a builder and was now reading the fine print. The fine-print forced the client to use the in-house loan officer (at a $12k additional cost). Similar stories abound with Real Estate Agents that refer first time home buyers and move-up buyers to what has become known as the highest cost channel of distribution in the mortgage business: the in-house unlicensed loan officer.

Real estate agents and builders have set up networks of these low-paid, under-performing, "loan officers".  They are rarely state-licensed and all "professionals" are associated with the same desire - get your loan closed and you in the property at a higher cost across the board. There is seldom any independent advice and all parties are singing from the same hymnal.

I get these calls all the time. What can I do? I'm stuck. I can't get away from my referred unlicensed loan officer (who won't take my calls, yells at me, treats me poorly). In the case above, I provided a genuine Closing Disclosure so the client was able to save 1/2 of the additional charge (they weren't willing to come close to matching true market rates).

Where are the regulators you ask? There are no state banking regulators when it comes to credit unions and banks that affiliate with large realty firms. Therefore, it's 1980-something and these consumers get pancaked in fees that aren't disclosed (I know many Realty firms that charge $500 per transaction for the owner - which you are told about near the end of the transaction).

What can you do about it? Get educated by using Google. Go beyond the BBB report to the CFPB (consumer financial protection bureau) and other websites (consumeraccess.org) that show you who you are dealing with. It takes 5 minutes to get a feel for what your experience will be like, based on others comments on the web. 

At ADRMortgage.com we've had 0 BBB complaints ever to date, are transparent, compete on rate and service, and take pride in taking care of our customers. You are treated like family here. So, next time your real estate agent refers a builder, a unlicensed loan officer that happens to sit in/near the same office as the real estate agent, or you find out that the people you are dealing with have more than one complaint, call us. We'll let you know if you are getting a high-cost ($10k+ more in fees) run around. 

www.adrmortgage.com. NMLS 88010. 103418. 
Posted by Andrew Walter May on May 8th, 2018 11:42 AM

The above scenarios are based on generally available closing costs. At ADRMortgage.com we currently do not charge a processing fee (at a potential savings of $850). Additionally, we compete on rate. Lower closing costs, lower rate, better service. Check us out at www.adrmortgage.com.


Posted by Andrew Walter May on May 7th, 2018 1:22 PM

Archives:

My Favorite Blogs:

Sites That Link to This Blog:

Mortgage Calculator

$
%
%
yrs
$