Ever wanted to understand the difference between an FHA Loan and a Conventional Loan? Watch this video from the Houston Association of Realtors for more details. If you need help finding a reliable mortgage lender, please call me for a referral.

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• Mortgage Term – Mortgages are generally available at 15-, 20-, or 30-year terms. The longer the term, the lower the monthly payment if the same amount is borrowed. However, you pay more interest overall if you borrow for a longer term.
• Fixed or Adjustable Interest Rates – A fixed rate allows you to lock in a low rate for as long as you hold the mortgage and is usually a good choice if interest rates are low. An adjustable-rate mortgage (ARM) is designed so that interest rates will rise as interest rates increase; however they usually offer a lower rate in the 1st years of the mortgage. ARMS also usually have a limit as to how much the interest rate can be increased and how frequently they can be raised. ARMS are a good choice when interest rates are high or when you expect your income to grow significantly in the coming years.
• Balloon Mortgages – Balloon mortgages offer very low interest rates for a short period of time – often 3-7 years. Payments usually only the interest, so the principal owed is not reduced. However, this type of loan may be a good choice if you think you will sell your home in a few years.
• Government-backed loans – Government-backed loans, sponsored by agencies such as the Federal Housing Administration ( http://www.fha.gov ) or the U.S. Department of Veterans Affairs ( http://www.va.gov ), offer special terms, including lower down payments or reduced interest rates – to qualified buyers.
Slight variations in interest rates, loan amounts, and terms can significantly affect your monthly payment. For help in determining how much your monthly payment will be for various loan amounts, use my handy mortgage calculators. I offer over 15 different calculators to service your needs.

This information is reprinted from Realtor Magazine Online by permission of the National Association of Realtors, copyright 2005, all rights reserved.

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When you start looking for a home, you first need a pre-approval for a mortgage.  Below is a list of things your lender is going to need to process your loan.  They may ask for additional items, but this is a list to get you started.  Make sure you get these items to your lender in a timely manner your home purchase moving along.  This way, you will be able to close when you have planned to close on your new home.

10.  Previous addresses where you have lived over the past 5-7 years.

9.  Payments you are currently making; a list of current lenders and revolving creditors with account numbers.

8.  Credit card numbers with amounts you owe on each credit card.

7.  Verification of all income, including child support and part time jobs.

6.  Documentation on all retirement accounts, like a 401K.

5.  Asset list.  Things on this list would include boats, cars, collectibles, RV, etc.  Also include brokerage account statements for stocks and bonds.

4.  Two to three years of tax returns.

3.  Checking and savings account statements for banks and credit unions.

2.  Current pay stubs.

1.  W-2′s.

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Would you like to know how much your mortgage payments will be?  I offer over 15 calculators for FREE on my website.  You can even email the printable results directly to your inbox or someone else to share.  To aid in your decision-making process when buying a home, you can use my handy calculators to calculate your monthly payment with PMI, insurance, and property taxes.  You can also “peek into the future” to see the remaining balance of your mortgage after several months or years of payments.  There’s a mortgage length calculator that allows homeowners to determine what their savings will be if they make larger monthly payments.  Ever wondered how much you will pay for every $1,000 of your mortgage loan?  I have a calculator for that!  I offer an affordability calculator so you can find out how much you can borrow from a lender.  You can calculate your tax savings after a home purchase.  The financial analysis inclues first year as well as total tax savings.  Is your old APR (Annual Percentage Rate) too high? Find out if you should refinance by estimating the benefits of refinancing using my calculator.  Learn how you can cut current monthly debt payments using money from your Home Equity Line Of Credit (HELOC.)  Do you need to know how much money you must earn to purchase the house of your dreams? I offer a calculator that will help you figure it out.  What is better: take a second loan or pay PMI?  Housing market moving up too fast? Figure out how much you can afford with an interest only mortgage loan.  Interest-Only loans can drastically cut your mortgage payments, but what if you want to pay something toward your principal? Figure all of this out using my calculators.  Can’t decide which loan offer is better? Input your numbers to lock-in the best offer.  You heard that bi-weekly payments can significantly decrease the time of mortgage payoff?  Ioffer a calculator for that, too.  Still renting an apartment and thinking about a home purchase? I have a calculator that can help you make the final decision.  All of my calculators are FREE and the results can be emailed directly to you so you can easily share or print out the information.  Click Here to get started.

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Not only does owning a home give you a haven for your family, it makes great financial sense, too. You can use the “Calculators” on my website to help you figure out how much your mortgage payment will be based on the interest rate and the amount of the home you want to purchase. The calculation below will also help you figure out what you can afford. It assumes a 28% income tax bracket. If your bracket is higher, your savings will be, too.
Rent: _____
Multiplier: X 1.32
Mortgage Payment: __________
Because of tax deductions, you can make a mortgage payment – including taxes and insurance – that is approximately 1/3 larger than your current rent payment and end up with the same amount of income.

Reprinted from REALTOR Magazine Online by permission of the National Association of Realtors, Copyriht 2005, All rights reserved

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