Category: locking rate

Kentucky First Time Home Buyer Mortgage Guide


There are several alternative mortgage options
available if you don’t have a down payment,
haven’t established a strong credit history,
or are unable to supply documentation for a
“traditional” mortgage. Some options include:


DOWN PAYMENT ASSISTANCE (DPA) by KHC


These programs often come from states and
municipalities allowing you to purchase a
home with a smaller down payment. Many
DPA programs come in the form of a repayable
second mortgage or a deferred or forgiven
grant


Kentucky FHA (FEDERAL HOUSING ADMINISTRATION)


An FHA loan is insured by the Federal
Housing Administration and is ideal for low-
or moderate-income individuals or families,
or borrowers with past credit problems or
limited down payment resources.

FHA loans are popular for Kentucky first-time home buyers because they
offer down payment options as low as 3.5% and
an upfront Mortgage Insurance Premium (MIP)
financed into your loan amount. 100% of the
money needed at closing is allowed to be a gift.


FHA also allows a “streamline” refinance when
rates go down to lower your interest rate.


Kentucky VA (VETERAN’S ADMINISTRATION)


If you have served or are currently serving in
the U.S. military, we thank you for your service!
The VA loan program offers low rates and low-
or no-money-down payment options. VA loans
do not require mortgage insurance, and also
offer a low-cost Interest Rate Reduction Loan
(IRRL) program allowing you to refinance and
lower your mortgage payment. The maximum
VA loan amount varies, so check with your
Mortgage Professional for
up-to-date information.

Kentucky USDA Mortgage Loans


If you plan to live in a more rural area, the USDA
(United States Department of Agriculture) has
a variety of loans to help low- or moderate
income individuals and families buy, repair
or renovate a home. USDA loans often carry
lower interest rates and do not require a cash
down payment. Not all properties qualify, so
check with your

KENTUCKY HOME PURCHASE DOCUMENT CHECKLIST


l. INCOME
SALARY/HOURLY
„„ Most recent 30 days of pay stubs
„„ Last 2 years of W2s
„„ Most recent tax return (pages 1 and 2)
SELF EMPLOYED (all schedules)
„„ 2 years personal tax returns
„„ 2 years business tax returns
„„ P&L and balance sheet through most recent
quarter (FHA & Jumbo required)
OTHER (Social Security/Pension/Annuity)
„„ 2 years 1099s
„„ Awards letter


ASSETS (every page)


„„ Most recent 2 months bank statements
„„ Most recent quarterly statement for 401K,
Retirement, Profit Sharing accounts


PROPERTY


„„ Purchase Contract: disclosures, addendums,

copy of Earnest Money check

„„ Homeowner’s Insurance: Agent name and

MISCELLANEOUS (if applicable)
„„ Divorce Decree
*These documents may
„„ Child support order
upon receipt of fully ex
„„ Bankruptcy documents with discharge
„„ VA: Certificate of Eligibility (COE) / DD-214 Papers

OTHER PROPERTIES OWNED:
„„ Mortgage Statement
„„ Proof of Insurance
„„ Proof of any association fees


GIFT LETTER:
„„ Evidence of transfer/deposit (Conventional)
„„ Evidence of transfer/deposit and document donor ability to gift (FHA)

THE 8 STEPS OF HOMEOWNERSHIP
There are several events that will occur throughout your new home purchase process.
This guide will help you fully understand the process to eliminate stress:

  1. Save for Down Payment & Credit Scores
  2. Apply for Pre-Approval
  3. Determine Housing Criteria & Neighborhood
  4. Hire an Agent & Start Your Home Search
  5. Complete the Loan Application
  6. Move Through the Loan Process
  7. Set a Closing Date
  8. Understand Monthly Mortgage Payments
    STEP 1: SAVE FOR
    DOWN PAYMENT & CREDIT SCORES
    Buying a home requires some upfront cash, including your down payment and closing costs.
    Financial experts typically recommend a down payment of 20% of the purchase price. However,
    you can purchase a home with a down payment as little as 0-3% of the purchase price.
    While you’re working on saving for your down payment, keep an eye on your credit score. Your
    credit score is a number that indicates how much of a credit risk you pose when you borrow
    money and helps determine your interest rate. Typically, the higher your score, the lower your rate.
    There are three different credit scores agencies: Equifax (BEACON),
    Experian (FICO Risk Model), and TransUnion (FICO Risk Score, Classic).
    Credit scores range from 300-850. Each credit reporting agency gives
    you different scores, but all three should be pretty similar.
    Your credit score is divided into five factors:
    10%
    10%
    35%
    „„ Payment History……………………………………………………. 35%
    „„ Amounts Owed……………………………………………………… 30%
    „„ Length of Credit History………………………………………. 15%
    „„ Inquiries……………………………………………………………………. 10%
    „„ Type of Credit Used………………………………………………. 10%
    15%
    30%
    Often, when you’re shopping for a mortgage, you may look for the best rate from multiple lenders.
    Each lender may pull your credit report which is typically bad for your score. However, credit
    reporting agencies distinguish a single loan search from a search for many new credit lines by the
    length of time the inquiries occur. Avoid lowering your score by completing your rate shopping
    within a short period of time, such as 14 days.

Joel Lobb (NMLS#57916)

Senior Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223

Company ID #1364 | MB73346

Text/call 502-905-3708

kentuckyloan@gmail.com

If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.

Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/

NMLS Consumer Access for Joel Lobb

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Joel Lobb

Joel Lobb, American Mortgage Solutions (Statewide)

Joel has worked with KHC for 12 of his 20 years in the mortgage lending business. Joel said, “A lot of my clients would not have been able to purchase a home of their own or possibly delayed their purchase due to lack of down payment but with the $6,000 DAP loan program, this gets them into a house sooner and starts their path to homeownership while building equity instead of throwing their money away.”

When you’re ready to purchase a home in Joel’s area, contact him at:
Phone: 502-905-3708
Email: Kentuckyloan@gmail.com
Website: www.mylouisvillekentuckymortgage.com

Kentucky Home Buyers. Purchase a Home No Money Down.



I can answer your questions and usually get you pre-approved the same day. 
Call or Text me at 502-905-3708 with your mortgage questions.
Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916
American Mortgage Solutions, Inc.
10602 Timberwood Circle 
Louisville, KY 40223
Company NMLS ID #1364

Text/call:      502-905-3708

fax:            502-327-9119

Louisville Kentucky First Time Home Buyer Programs and Resources


Louisville Kentucky First Time Home Buyer Programs and Resources.

via Louisville Kentucky First Time Home Buyer Programs and Resources.

—

 
Joel Lobb
Senior  Loan Officer
(NMLS#57916)
 
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

 

Joel Lobb - Mortgage Broker or Lender at Kentucky FHA, VA, USDA, KHC and First Time H

Check out this great MSN video – Race to Lock in Lower Mortgage Rates


Check out this great MSN video – Race to Lock in Lower Mortgage Rates.

 

 

8 ways to lock in a mortgage rate you can live with

You can’t keep mortgage rates from bouncing around. But the right strategies can stack the odds in favor of snagging a lower rate.

By Marilyn Lewis

Mortgage rates are jumpier than a cat in a room full of rocking chairs. In a single week this month, the average rate on a 30-year fixed-rate loan shot from 4.29% to 4.51% (with 0.8 point). This week, rates averaged 4.37%,Freddie Mac says.

Those numbers matter. At the higher rate, your payment on a $300,000 mortgage would be $1,521. The week before: $39 less. That’s $468 a year — $14,040 more, if you kept the loan for 30 years.

Ping-pong

There have been other crazy rate surprises this summer, most of them bad for mortgage shoppers. Blips like these mean that home shoppers get less home for the money. Refinancing homeowners face higher monthly payments.

You can’t stop the mortgage rate ping-pong. But you can maximize your chance at a good rate. Mostly, that involves timing your interest rate lock.

A “rate lock” is your contract with a lender that guarantees you a certain prevailing interest rate. You agree to buy the loan at that rate within a time period — 60 days, say. The lock lets you nail down a rate, so you’re covered if rates rise. (Here’s more from Bankrate.com.) If rates drop and you want to exit the agreement early, you stand to lose a fee or deposit.

1. Catch a dip

Avoid locking when rates are on an upswing, says Dale Robyn Siegel, a real-estate attorney and owner of Circle Mortgage Group in Harrison, N.Y. Well, duh. Sure. But can you know if rates will go up?

You can’t know for sure. But you can watch rates every day at your bank’s website. And MSN Money (at the bottom left of the page) shows whether rates are trending up or down. Even when rates are rising generally, as they are now, they’ll probably take a few detours up or down along the way, Siegel says.

The trick is to lock in a dip. Whether you can wait and watch depends on your timing. If you are refinancing, you may have time. If your home purchase is closing soon, you may have to lock now.

2. Don’t act on news

Rates react to news. Recent rate jumps, for example, began when traders reportedly worried that the Federal Reserve would slow its bond-buying program, which has helped keep rates low.

After rates shot up they dropped back a bit, points out Perry Harmon, mortgage broker with Financial Strategies Group, in Berkeley, Calif.

Bad news financial news or a major catastrophe in the world can push rates higher temporarily. If possible, wait a bit to lock. Rates may simmer down.

3. Put service first

When shopping for a lender, focus initially on great service, says Siegel. Collect recommendations from friends, colleagues and family. Interview several of the lenders. Tell them your approximate credit score and any problems that could affect your application — bankruptcy, for example, or a short sale, or credit problems. But don’t allow them make credit score inquiries. Wait until you’ve selected a lender. Too many inquiries could drive down your score.

After you’ve found two or three good lenders, then compare their rates to help choose, Siegel advises. Ultimately, though, good advice from a smart, expertise of a great broker or lender’s representative might get you the best rate.

4. Ask about a ‘float down’

Some lenders offer a “float down,” a rate-lock provision that offers you the chance at a lower rate if prevailing rates drop after you’ve locked. These contracts vary and they cost extra.

5. Know your limit

Identify the highest rate you can afford. Use a mortgage calculator (here’s one, at MSN Money) to find the monthly payment at various interest rates.

Maybe it’s 4.75%, for instance. If rates go any higher, your monthly payments would be too expensive. When rates approach your limit, you’ll know it’s time to lock or drop out of the game.

6. Be ready to pounce

Be prepared to pounce when rates dip, says Harmon. Do that by clearing away obstacles as they arise. If your mortgage banker, broker or lender wants a document or piece of information, get it to them as quickly as possible, Harmon says.

7. Buy a shorter lock

The shorter your lock period, the smaller your lock fees. Most borrowers now lock for 45 or 30 days, so the rate guarantee won’t expire before the loan is processed, says Harmon. On a $300,000 mortgage, a 30-day lock costs about $540 less than a 45-day lock, he says.

Other factors may trump the rate-lock timing. If rates are trending up, for instance, you may need to lock quickly, even if you need a long lock. But ideally, wait until your appraiser has delivered his report to the lender and the loan processing is nearly complete. A 15-day lock could save you $960 compared with a 45-day lock, Harmon says.

8. Chill a little

These numbers matter, but only to a point. Obsessing over tiny rate increases that actually mean just $10 or $25 more or less a month could cause you to lose a good rate.

Don’t try for bragging rights among your friends over who got the lowest rate. Relax, says Harmon. “It’s not worth the worry.”

Mortgage rates rise at fastest pace in 10 years | HousingWire

Louisville VA, FHA, USDA, KHC , Fannie Mae Mortgage Guide: Mortgage rates rise at fastest pace in 10 years | … (louisvillekentuckyvamortgage.blogspot.com)


Mortgage rates rise at fastest pace in 10 years | HousingWire.

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