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Homebuyer Planning Kit
live – we commit to you
love - you are the heart of our success
be - we believe in making sure you’re ready
live it. love it. be it.
Accredited Business
Why Us
?
Direct Lender Complete Supervision Super Low Rates Save Money Real Pre-Approvals Save Time Experience Real Answers Streamline Process Easy & Efficient Modern Operation Convenience
Understanding Our Process
1 3 2
Learn Plan Close
During the
discovery period,
we get to learn
about you and your
goals.
We take the
discoveries and
create a plan: Rates,
Programs, Payments
and more.
After selecting a plan,
we finish processing
your loan and get you
ready to close.
Pre-Approval
Checklist
Two ID Cards
Drivers License
Social Security Card
Income Documents
Most Recent Paystubs
Last 2 Years of W2’s
Last 2 Years of Tax Returns
Proof of Funds 2 Most Recent Bank Statements
1
2
3
Additional Documents may be requested.
Lender
Attorney
Real Estate Agent
Home Inspector
Appraiser
You
Your Team
Key players work together to help accomplish
your goal of home ownership.
Get A Rate Online
Get a Quick and Easy mortgage rate with our online pricing engine.
Shop
Lender
s
Compar
e
Rates
Save
Money
Steps Kick Off Week 1 Week 2 Week 3 Week 4
Pre Approval
Find an Agent
Time To House Hunt
Place An Offer (Contract)
Find An Attorney
Attorney Review (3-5 Days)
Order Inspection
Home Loan Submission
Lender Orders Appraisal
Clear Underwriting Conditions
Mortgage Commitment
Title Ordered
Review & Sign Final
Disclosures
Clear To Close
Closing On Your Home
Move In
Timeframes listed are based on averages and are subject to change
Home Loan Process
Personal Profile
New Jersey State Licensed Mortgage Banker of Get A Rate Home loans, a
New Jersey Direct Lender Experience with Real Estate Transactions
Experience
Mortgage Banker since 2011 10+ years in sales and customer satisfaction Kean University Bachelors in Marketing
Languages English and Spanish
Products Conventional, Jumbo, FHA, VA, 203K, Construction, USDA, No Condo Questionnaire Foreign National, No PMI and more.
Office
1 U.S. 46 Suite 46
Elmwood Park, NJ 07407
201-393-0200 Ext 2019
Cell
973-900-0914
FAX
201-456-6080
WEB
Www.GetARate.com
“Over 200 Real Estate Agents refer their clients to Get A Rate”
Neftali Ricardo Hernandez Mortgage Banker
Michael I Sema President
201-393-0200 ext. 2030
Nick
Marenoski Vice President
201-393-0200 ext.
2024
Our Management Team Is Here For You
Debbie Taylor Underwriting Director
201-393-0200 ext.
2011
Joe Berg VP Of Sales
201-345-5533
Jose Munoz Branch Manager
201-345-5533 ext.
1005
Poor 619 Below
Fair 620-679
Average 680-719
Excellent 720-759
Elite 760 Plus
We Choose Your
Middle Credit Score
Do Make sure to factor in your
lifestyle.
Do some research on your own –
know the area you want to be in
and what home prices are at this
time.
Do create a checklist of must
haves and a wish list so that you
are only looking at homes that
meet your expectations.
Do think about the future.
Consider what you want today
and for the next 5 years.
Do relax. You are with the right
lender. You control a lot of the
timing. If documentation is
required, get it to your originator
as soon as possible.
Do Make sure to factor in your
lifestyle.
Do some research on your own –
know the area you want to be in
and what home prices are at this
time.
Do create a checklist of must
haves and a wish list so that you
are only looking at homes that
meet your expectations.
Do think about the future.
Consider what you want today and
for the next 5 years.
Do relax. You are with the right
lender. You control a lot of the
timing. If documentation is
required, get it to your originator as
soon as possible.
Do’s to Buying a Home
• Don’t use your credit card to buy
things for your home before you
close. (No excessive spending.)
• Don’t buy a vehicle. Even if you
are paying cash versus taking out
a loan.
• Don’t do either. Most home loans
close within 30-45 days. Wait
until you are in the home.
• Don’t quit your job.
• Don’t open new revolving credit
cards
• Don’t make out-of-the-ordinary
large deposits. If you must, be
prepared to provide a clear paper
trail from where and why.
•Don’t buy large items on your credit
cards. We can’t stress this enough.
•Don’t lie on your loan application.
•Don’t omit any information. (This can be
the same as lying!)
•Don’t co-sign on a loan for anyone no
matter how much you love them or how
many times they promise to pay it back.
•Don’t make sudden changes in your
spending habits or income.
•Don’t just get pre-qualified get pre-
approved.
Don’ts to Buying a Home
A
Adjustable-Rate Mortgage (ARM) - Loans with an
initial fixed rate period (usually 5,7 or 10 years. After the
fixed rate period, your interest rare may change once per
year- either up or down depending on market conditions.
ARM’s are almost always lower in rate than fixed loans
and can offer huge savings to first time home buyers
especially those who don’t plan on staying in their home
for more than 10 years.
Amortization - The paying off of a debt with a fixed
repayment schedule in regular installments over a period
of time.
Annual Percentage Rate (APR) - The total cost of a loan
which includes not only the interest rate, but all costs
associated with the loan, such as closing costs and fees.
Once this is determined, the APR is then amortized over
the life of the loan. In order to allow borrowers to compare
various loans and lenders, the APR is required to be
disclosed by the Federal Truth-in-Lending statues.
Application Fee - One time processing fee for a loan.
This fee may be applied towards various costs, including
the appraisal and credit report.
Appraisal - An estimate of the current market value of
the property. B
Buy down - The ability for the buyer to lower their initial
interest rate by providing money upfront or by paying
extra points up front at the closing of the loan. C
Closing - The time where buyer and seller exchange
money for title and sign closing papers to a new home.
This finalizes the agreements reached in the sales
agreement.
Closing Costs - Refers to the lender’s costs for closing
a loan, or all the costs associated with closing on a piece
of property as a buyer.
Conventional Mortgage - A loan that is underwritten,
following specific guidelines, by banks, savings and loans,
or other types of mortgage companies. Typically, this
refers to loans underwritten to the guidelines of Fannie
Mae or Freddie Mac.
Real Estate Terms
We Thought
You Should Know
P
PITI ( Principal-Interest-Taxes-and-Insurance)
Four pieces included in a monthly mortgage payment. Portion of
each payment applied to each of those elements.
Point - Each point equals one percent of your total loan amount.
The more points you pay, the lower the interest rate you get.
Private Mortgage Insurance (PMI) - Paid in monthly
installments by a borrower or upfront as part of the closing costs, this
insurance allows a lender to lend more than 80 percent of the value
of a property while protecting the lender on risk to the top 20 percent. L
Loan Origination Fee- Fee charged by a lender to cover
administrative costs of processing a loan. Loan-to-Value Ratio (LTV) - The money borrowed in a mortgage
transaction compared with the value of the property you wish to
purchase. (loan amount / home value) M
Mortgage - The document providing a lien on a home in exchange
for a lender’s financing. The lender secures this financed loan
through this mortgage, and has the ability to foreclose on this home
as well.
Mortgage Banker - An entity that lends its own funds to
borrowers while also bringing together lenders and borrowers.
Mortgage bankers may also collect monthly payments. R
Recording - Filing documents at various government agencies,
local, state, and federal to create a public record. S
Settlement Statement - Known as the HUD-1, this details the
transaction paid out and received by the buyer and seller at closing, T
Term - Typically 15 or 30 years, this is the life of the loan.
Title – The title is the actual document that gives evidence of
ownership of a property.
Title Insurance - Title insurance protects lenders against any title
dispute that may arise over a particular property. Home title
insurance is a required fee paid at closing.
D
Deed of Trust - The legal document that transfers property
from one owner to another.
Down Payment – The amount of your home’s purchase price
you pay upfront. E
Earnest Money - Upfront money provided by the borrower to
the seller as a show of good faith towards the purchase price of
a home.
Escrow Closing - A third party that acts as a neutral party and
receives documents for the exchange of the deed by the sellers
for the buyer’s money.
F
First Mortgage - Takes priority when there are other
voluntary liens present. G
Gift Letter - A letter, which details the amount of gift and
name of the giver, which indicates a gift of cash to the buyer of
a home. This can be provided by relatives, friends, non- profit
organizations, or government agencies depending on the
requirements of given lender and product.
Good Faith Estimate (GFE) – A written estimate of closing
costs that lenders are required to provide potential borrowers
within three days of an application submission. H
Hazard Insurance- Also known as homeowner’s insurance,
this covers the property from damages that may affect the
value. I
Interest- The fee a lender charges for permitting the borrower
to use their money for a specific length of time.
Interest Rate Cap- The max amount of percentage points that
ARMs may rise over a loans life. O
Origination Fee- A fee that is charged by a lender to cover
the administrative costs of processing a loan.
30 Year Fixed A 30 Year Fixed Mortgage offers the budget-conscious homeowner lower monthly payments. A fixed rate allows you to lock in a set principle and interest payment.
15 Year Fixed Another popular loan for homeowners who want to secure a lower mortgage rate and pay less interest over the life of the loan.
FHA Loan FHA loans help families with financial limitations become homeowners. The lower down payment makes it possible to buy a new home even with limited funds.
Adjustable Rate Loan Adjustable Rate Mortgage fluctuates based on current market trends at pre-determined times throughout the duration of the loan. These loans are ideal when buying a home when interest rates are high but are expected to drop in the future.
Jumbo Loans Jumbo loans were established for larger purchases. They come with specific limits and guidelines.
VA Loans Offer veteran buyers home loan options with no down payments or mortgage insurance.
HARP Is your home “underwater,” meaning that your outstanding balance on your existing NJ home mortgage currently exceeds the value of your home?
Reverse Mortgage Reverse mortgages are great for homeowners 62 and older who want to help supplement their income or take cash out for whatever need.
FHA Streamline If you already have an FHA loan and are looking to refinance, this is a great option for you AND you won’t need an appraisal!
Construction Loans Thinking of making structural repairs on your home or any other repairs – you may qualify for a Construction loan.
No PMI Mortgage No PMI Mortgages are a great option if you don’t have enough for a 20% down payment.
Loan Options
Act responsibly with the highest level
of ethical standards.
Educating our clients is a top priority.
Strive to make a positive difference in our community.
Locations
1 U.S. 46 Suite 101, Elmwood Park, NJ, 07407
201-393-0200
129 Washington Street Suite LL1, Hoboken, NJ, 07030
201-3450-4445
Email Us – [email protected]
www.getarate.com
