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Franklin First’s guide outlines all you’ll go through to obtain a mortgage. Continue down to read each topic in order. Or, click here to print this page.
Mortgage lenders will require your credit risk score from reputable credit bureaus such as Experian, Equifax, or TransUnion. Commonly known as your *FICO® score, this number will help determine if you are a “good risk.” The higher the score, the more options available to you. The credit report looks at a number of factors including:
- Have you paid your bills on time
- Any outstanding debts and loans
- Credit limits
- What types of credit you have
Your credit history may have blemishes and prohibit some lenders from giving you a loan. But, with the knowledge we’ve acquired over our many years of structuring mortgages allows Franklin First to provide mortgages when others can't. We look deep into your individual situation to find the hidden assets that will get you the loan.
Contact a mortgage specialist and we will be happy to discuss the many mortgage options available for all types of home buyers, even those with poor credit.
How much home can you afford?
Get an estimate of a home price that would work within your monthly budget. It makes no sense to start looking for a house until you know how much you can comfortably afford.
How much you put down at closing can determine your payment. If you are selling your present house, ask your real estate agent for an estimate of its worth. This will help you determine what type of down payment you'll be able to put down on a new home.
Budget 101
What do you have for down-payment money?
A majority of the time , you will have to provide a down payment to purchase a home and obtain a mortgage. There are loan programs that allow you to put no money down, but these are usually only for people with higher credit scores. If your credit is less than perfect, you will have to bring some of your own funds to the equation. Home mortgage lenders usually require you to provide 10-20% of the purchase price. To determine the exact amount required for your down payment, one of our Franklin First mortgage specialists will be happy to assist you.
How many years do you plan on living in the home?
How long you plan on staying in this home is a critical factor in determining the best mortgage for you. Certain adjustable rate mortgages (ARMs) and interest-only loans may be the best options for you if you plan on living in your residence on a short-term basis (5 years or less). These types of mortgage loans might help you qualify for a higher valued home or end up costing you less than a fixed rate mortgage.
The arrival of a new child, changes in employment or career can determine how long you plan to stay in a home. It is advised to make sure that the home you are considering will satisfy your needs at least for the near future (1-3 years).
Consider the ongoing costs of home ownership.
Owning your home carries some expenses that are different than renting or leasing. Insurance, local taxes, home associations, maintenance and improvement expenses are just some of the costs that you need to plan for in addition to your monthly mortgage payment. Be certain to calculate them when determining what you can afford.
Franklin First mortgage specialists are here to guide you through this process. No matter how much you know about obtaining a mortgage, have one of our mortgage specialists involved as early in the process as possible. They will answer any of your questions, help you with issues that may delay or prevent your loan, and advise you on what mortgage structure is best for you.
There are several ways you can get in touch with us:
Because we don’t believe in just giving you a generic rate and term, your Franklin First mortgage specialist will spend some time getting to know your situation and needs. The leg work done here will make the process smoother in the long run. So be sure to disclose everything at this time. Important things to mention include:
- Who is on the title of your current house and who will be on the new title.
- Who besides you will be a decision-maker in this process.
(It’s important to get everyone involved early.)
- Your marital history, including past marriages, and children you are responsible for.
- All of your assets, including things you might not immediately consider relevant assets (like expensive jewelry or a antique collector's automobile)
Once we compile a profile of your situation, we’ll be able to get to work on some mortgage options for which you may qualify for and make sense for you. your social security number will need to be provided in order to continue with the process. Please refer to our Privacy Policy for more information.
This is the part of the process where you can relax. We’ll be doing the work reviewing your credit score, doing some paperwork and developing some mortgage options that meet your needs. Time is of the essence when you’re trying to buy a home and Franklin First knows that, so we will get back to you in a couple days, if not hours.
At this time, we’ll also send you disclosure statements, which all mortgage companies are required by law to send their clients. The rates and fees disclosed in these documents represent a preliminary good faith estimate based on our initial discussions with you. We will update you on all material changes to the rates, fees and terms associated with your loan as we get closer to the actual loan closing. Please sign these documents and send them back to us.
Soon after our initial call, we’ll get back in touch with you about your mortgage options. There’s a trade-off in most mortgages. A higher interest rate comes with a longer term to pay off the loan. No matter what your situation, your Franklin First mortgage specialist will respond with options and they will walk you through.
If you own a home, an official appraisal by a third-party vendor is needed to understand what your house is worth. We will put you in touch with an appraiser in your area so that you can schedule an appointment. It may take several days or weeks to get an appointment, depending upon your location. so be sure to do this as soon as possible. The cost of the appraisal is small, but is your responsibility.
Once you decide which loan is right for you, we’ll need to finalize the loan package. You won’t be approved for your mortgage until a complete loan package is submitted. We will request certain documents from you depending on what type of mortgage you decided upon. Typical documents needed include:
- Purchase or sales contract signed by all parties
- Signed disclosures
- Appraisal (if you currently own)
- Rent checks front and back (if you currently rent)
- Source of funds for down payment
- Copy of down payment check, front and back
- Realtor’s name, number, and pager
- Attorney’s name and number
- Two recent pay stubs for each borrower
- W-2's from the past two years
Your closing date (also known as your settlement date) will be schedule once your mortgage loan has been cleared to close. After the closing process has been completed you become a homeowner! Here is what to anticipate on your closing date.
Who will be present at your closing?
There are several people who are required to attend your closing who represent both the sellers and the buyer.
Home buyer
Seller
Attorney for both parties
Real estate agent
Escrow/closing officer or Lender’s attorney (depending on state)
A Franklin First representative is typically not present at the closing. But you should feel free to call your Franklin First mortgage specialist at any time during the closing if you have any questions whatsoever. Your specialist or their supervisor will be standing by to assist you.
Closing costs
- Attorney’s fees
- Escrow fees
- Property taxes
- Loan origination fee
- Recording fees
- Survey fee
- Loan discount points
- First premium of mortgage insurance (if applicable)
- Paid receipt for homeowners insurance policy
- Title insurance
- Document preparation fees
Papers you will sign at closing
- Original note and deed of trust or mortgage
- Lender's Escrow instructions
- HUD-1 Settlement Statement
- Escrow instructions
- Real Estate Settlement Procedures Act (RESPA) Documents
- Truth in Lending Disclosure Statement (TIL)
- Warranty Deed
- Escrow Analysis
- Tax Authorization
Your closing step-by-step
- Present the receipt of your homeowner’s insurance to the lender.
- Review and sign the HUD-1-Settlement statement with the seller and closing agent.
- Pay closing costs with certified checks.
- Review and sign remaining documents.
- Establish an escrow account to cover taxes, insurance, interest and private mortgage insurance if applicable.
- Review and sign mortgage or deed of trust.
- The lender will give a check to the closing agent covering the amount of the mortgage.
- You will receive the title to the property.
- Get the keys to your new home!
- The attorneys, escrow and title company will record the legal documents.
Once in your new home, remember to do these things to make home ownership easier.
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Keep your mortgage paperwork and title in a safe, secure place, like a fireproof file cabinet that can be locked.
- Mark your calendar with the date and amount of your first mortgage payment. Since you’re not in the habit of making this payment, the first one could slip your mind. Avoid late fees by making your payments on time.
- Refer your friends and family to your Franklin First mortgage specialist. Word of mouth is the best advertisement and important to our business. Franklin First continues to provide hassle-free, straightforward mortgages to people nationwide.
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