Your Questions About Mortgage

Joseph asks…

Mortgage??

I have a disabled 6 yr old daughter and eventually we are going to be needing a 3 bedroom bungalow and they are very rare through our local council. This means we are eventually going to have to get a mortgage, I am only 23 and quite confused with the whole thing but I have been told you can get a mortgage although you are unemployed, if you are receiving long term disability benefit is this right?

admin answers:

You generally have to prove that the disability will continue for 3 years in order to use the income to help you qualify for the mortgage.

Jenny asks…

mortgage…….?

morning boys and girls.. my daughter and her boyfriend are saving to get a mortgage,in your oppinion which is the best to go for. or would renting be better. (in england). thank you ppl.

admin answers:

Getting a mortgage is going to always be the best option as you are buying your own property however it may not be the best option for them yet. They need plenty of savings, 1 to get the mortgage rate down and 2 so that they can decorate the house etc. House prices and mortgage rates are going up and it is getting harder and harder for first time buyers to get on the property ladder why? Because most young people dont earn enough to secure £150,000 mortgages which will only get you a nice 2 bed house! The more they save the bigger the mortgage can be. If they have never lived together before I would suggest renting for 6 month, so that they can 1 get a feel of living away from home and paying bills etc and 2 see how they get on living together. They may realise they dont want to after a while! It takes longer to sell a house then it does to just move out after 6 months renting. Yes it may be ‘dead’ money but it wont have been for nothing and 6 months of wasted money is better than years of wasted money which is what some people do by renting all their life!

Nancy asks…

mortgage ?

is it possible for my partner to sign their house into both of our names so we are both shared owners or would we have to take out a new joint mortgage? we live in scotland so this would be based on scottish laws!

admin answers:

Probablyl, but would ask around first! 🙂

Linda asks…

Mortgage…?

If you get a mortgage for 20 years can you pay it only for 5 years, for example, sell the house after the 5th year and get back what you paid?
alterfemego – basically, say I buy a house on a 20 year mortgage for £200,000. I pay £900 a month for 5 years then decide to sell it. If the house goes for £201,000, would I have to pay off the entire amount to the mortgage company or do I have to pay the amount that I have not paid yet in the remaining 15 years?

admin answers:

Good question.

When you make a payment, the payment constitutes two parts – interest and principal. The interest portion goes to the bank. The principal payment each month pays down the outstanding balance. The next month, the interest that is paid is the interest rate times the remaining outstanding balance. You make another payment the next month, pay down the balance a bit more, and so on and so on. At the end of 5 years, you’ve paid down the mortage a bit, right?

You can calculate this in a spreadsheet. Say you start with a balance of $100,000 at an interest rate of 12%, which is 1% per month. And say that your monthly payment is 1,065.71 (20 year loan). Your monthly interest is 1% x 100,000 (outstanding principal) = 1,000. The principal payment is therefore 65.71. The next months outstanding principal balance is 1,000 – 65.71. Then you start all over for the next month.

So let’s take your example — you take out a loan for $200,000. For argument sake, let’s say you don’t make a downpayment when you purchase the home. After 5 years the house is worth $210,000. The remaining balance on the loan, let’s say, is $195,000. The $15,000 is yours. You have $10,000 in capital gains. And you paid down the $5,000 with your monthly payments.

Yes, this is how it works.

Ruth asks…

mortgage???

what parerwork loan officer ask for mortgage?
example like 2 yr of W2, 1 month bank statement, credit report etc

admin answers:

It depends on what document type you’ll be going on. Full, stated, no doc, etc…

From your example list I assume you’ll be going “Full Doc” in which everything must be provided.

Here is a list which I give to my clients… Depending which lender your loan officer takes you to some of the things listed below will not be required.

Property Information

– Purchase Agreement

– If you are selling your current home, copy of your listing contract.

– If you have sold your current home, a copy of the settlement statement. (HUD-1)

Income and Assets

– Pay stubs for the last 30 days.

– For the Past two years:
– Names and addresses of each employer.
– W-2s

– Statements for each bank, mutual fund, and/or investment account for the last three months.

– Estimated value of personal property and furniture.

– If you have made any large deposits to your accounts:
– Explanation and source for deposit.
– If large deposit was a gift:
– Signed gift letter (lender can supply).
– Copy of gift check.
– Copy of deposit receipt.

– If you own more than 25% of a business:
– Corporate or partnership tax returns.

– If self-employed:
– Tax returns for the last 3 years
– Year-To-Date Profit and Loss statement prepared by an accountant.

– If you are retired:
– Pension Award Letter.
– Social Security Award Letter.

Debts

– Names, addresses, account numbers, balances, and monthly payments on all current loans.

– Explanation of credit report anomalies, including:
Late payments, credit inquiries in the last 90 days, charge-offs, collections, judgments and/or liens.

– Bankruptcy filed within the last seven years:
– Bring a copy of your bankruptcy papers.

Miscellaneous

– Copy of Photo ID and Social Security Card.

– Residence addresses for the past 2 years
– If you are not a citizen: copy of the front and back of your green card.

As you move down in doc type from full to stated and from stated so on less and less will be asked from you.

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