Powered By:
Chris Hernandez
Senior Loan Officer
NMLS# 276755
Community Mortgage, LLC
An Equal Housing Lender
NLMS# 224143
T 816-916-7723
Email: chris@communitymortgagellc.com
Community Mortgage, LLC
19045 E. Valley View Pkwy., Suite F Independence, MO 64055
QUESTIONS? CALL: 816-916-7723
General
Purchasing a home is a big decision, but it can have big benefits too that renting cannot provide such as Appreciation, the Mortgage Tax Deduction, No more rent increases, you get to make it your own (paint, decorate, remodel), and most of all ---- It’s Your Home!
A typical closing period is 30 days; some can take a little longer depending on the type of financing. Being prepared is a good way to help ensure a smoother and faster transaction, and our mortgage documentation checklist will help you get your paperwork in order.
Your parents can be co-applicants on the mortgage with you, but they have to qualify and provide the same paperwork you will. It’s more involved than just a couple of documents.
A fixed-rate mortgage locks in your interest rate for the life of the loan. Your base monthly mortgage payment (the principal & interest payment) will always stay the same (although your taxes and insurance may change).
With an adjustable-rate mortgage, you get a lower interest rate for an initial period of time, usually the first 1, 3, 5, or 7 years. After that, your interest rate will reset at the market rate. Most ARM’s have caps that will limit how high the interest rate can go. Your loan officer will make sure that you will be able to afford the payment if your interest rate reaches that cap.
Private Mortgage Insurance is to protect lenders against loss if a borrower defaults. In most cases, this will mean that you will have to pay Private Mortgage Insurance if your down payment is less than 20% of the value of the home you are purchasing or refinancing. The monthly mortgage insurance premium is included in your monthly mortgage payment.
Local lenders, like myself, want to win your business and the best way to do that is by offering superior customer service and face-to-face relationships. We create a relationship of trust and reliability and will hold your hand through the entire process, help prevent you from making any mistakes, and answer all your questions especially when they happen outside the traditional work hours.
With an online lender, to save time, there is no need to have an in-person, time-consuming face-to-face meeting. You can fill out their paperwork online, at your own convenience. Online lenders also tend to have slightly lower interest rates and closing costs, but for this savings, you sacrifice customer service and availability. For example, if you have questions or concerns the call center maybe closed for the weekend or the holiday so be sure to ask plenty of questions about the availability and their response time when first applying.
What a broker does is sell your loan application to another lender, Community Mortgage doesn’t do that.
As a direct lender, we process your application, underwrite, close, and fund your loan. We access the capital markets to find you the lowest rate possible and match you to the investor who best matches your loan profile. We take 100% responsibility for the entire process, including making sure the transfer to your permanent servicer goes smoothly.
Our goal is to provide full transparency.
Down Payment
It can be shocking to realize how long it will take someone to save a 20% down payment especially with today’s home prices. There are several low down payment options that can help you achieve the dream of homeownership. There are mortgages that, if you qualify, have down payment options that range from 3%, 5%, 10%, or yes, 20% down.
We have down payment assistance programs for borrowers who do not have money for a down payment. We also offer the USDA mortgage which is 100% financing if you would like to live in a rural area.
If you’re receiving any money from a family member or significant other to use towards the purchase of a home, this is considered a GIFT. Let your loan officer know as soon as possible if this is what you’re planning on using for your down payment. There is specific paperwork that will need to be completed so that you can use that gift money.
It depends, not all retirement plans will allow you to do this. You’ll want to call the company that manages your 401k/retirement plan and ask them if they’ll allow you to do that. If they do, get a copy of their “Terms of Withdrawal”. Not only will we need this, but it will explain their process and fees for allowing you to do this.
Credit
A credit score is a three digit numeric rating that tells a lender how likely you are to repay a loan or make credit payments on time. The most widely used score was developed by Fair Isaac and Company. It is referred to as a FICO score.
The FICO score is determined by evaluating the five main categories of information contained in your credit report. The categories are as follows:
- Payment History - What is your track record? Approximately 35% of your score
- Amounts Owed - How much is too much? Approximately 30% of your score
- Length of Credit History - How established is yours? Approximately 15% of your score
- New Credit - Are you taking on more debt? Approximately 10% of your score
- Types of credit in use - Is it a healthy mix? Approximately 10% of your score
Don’t worry! You’re not alone, if you don't have the best credit score you still may be able to purchase a home, you may just have fewer options. Don’t let previous problems discourage you from trying a fresh start.
Your credit score helps lenders evaluate your ability to pay back your loans, based on your borrowing history. The higher your credit score, the better rates you’ll be able to get. This will lead to a significant savings over the life of your mortgage.
No, unfortunately not. If you’re shopping around with a couple of different lenders, credit bureaus typically only dock your score once within a 30-day period. That means if you’ve already had another lender pull your credit, but now want to switch to us, it will not impact your score.
As a homebuyer, even if you’ve purchase a home in the last few years, you’re going to have questions as this industry is constantly changing. We’re happy to answer any questions you may have because it’s our job to help guide you thru this process as smoothly and stress free, as possible.
Mortgage Payments
When determining what size monthly payment you can afford, you’ll want to consider what other monthly expenses you’ll have as well. Monthly expenses such as car payments, day care, and utility bills all play a role in how large a monthly payment you’ll be able to afford.
This is a good question. Your monthly mortgage payment will generally include, Principal and Interest, Property Taxes, Homeowners Insurance, and Mortgage Insurance. The mortgage insurance is included in your payment if you put less than a 20% down payment; although we do have mortgages that have lower down payment requirements with no mortgage insurance.
Yes. The mortgages that we carry allow you to pay your mortgage off as soon as you want. We do not offer mortgages with pre-payment penalties.
