Adashun Jones Real Estate, Wisconsin Real Estate, Residential, Commercial, Lakefront, Condominiums, Subdivisions

Financing

What is a Pre-approval?	A pre-approval is defined as “a commitment from a lender to loan a certain amount of money to a buyer at a designated interest rate and for a specified period of time, thus giving the buyer an advantage in competing to purchase real estate or a home”. The pre-approval is meant to take place before a buyer finds a specific home to purchase.
The Importance of a Pre-Approval	A pre-approval is important because it not only shows the seller that a buyer is in a financial position to purchase the home, but it also shows the seller that the buyer is serious about purchasing the home. Pre-approval also gives the buyer peace of mind in knowing that the home is something that the buyer can afford. Therefore, when a buyer submits a pre-approval letter along with an offer to purchase, it makes a seller feel more confident that the buyer can afford the home. It also puts the buyer in a better position should there be multiple offers on a particular home.
Documents needed for a Pre-Approval	The following documents are needed to start and complete the pre-approval process: Credit report (obtained by lender) Tax returns for the past two years W-2’s for the past two years Most recent pay stubs Savings and checking bank statements Asset accounts statements Proof of other income Verification of current and previous residency Employment history Contact your lender or an Adashun Jones agent with any further questions on the pre-approval process.
Mortgage Calculator	Click here for mortgage calculator.
How can I improve my credit score?	The following are ways to improve your credit score: Pay bills on time. Payment history makes up roughly 35% of the total credit score. Recent payment history is weighed more heavily than what happened years ago, so start paying all bills on time in order to improve your credit score. Keep balances low on credit cards. High outstanding debt will work against you when trying to improve your credit score. Don’t close unused accounts or open new accounts. This could backfire and lower your credit score instead of raise it. Pay off debt instead of transferring it to another account. Having fewer cards with debt looks better than having the same amount of debt spread out over more cards, which may lower your credit score. Have credit cards but use them sensibly. Having credit cards and installment loans will help your credit score, as long as your payment history is clean. Having a credit history allows lenders to see how well you manage your money and can offer insight into how you will manage future loans.
Loans: Defined	The following are some loans offered by the government and private lending institutions. Contact a lender or an Adashun Jones agent for more information on loan options. FHA Loans Federal Housing Administration (FHA) loans have lower down payment requirements and can be easier to qualify for as opposed to conventional loans. There are certain requirements and limits. VA Loans Offered by private lending institutions and guaranteed by the U.S. Department of Veterans Affairs, VA loans allow veterans and service persons the ability to obtain a loan with favorable loan terms and usually with no down payment requirements. Lenders may limit the maximum amount for a VA loan. Fixed Rate Mortgages Fixed Rate Mortgages can come in different terms, ranging from 10 to 40 years. FRM’s offer payments that remain the same for the period of the loan. The most popular terms are 15 and 30 years. While a 30-year term offers smaller payments, a shorter term allows the borrower to repay the loan in half the amount of time with half the interest owed. Fixed Adjustable Rate Mortgages Fixed Adjustable Rate Mortgages have monthly payments that will fluctuate over time. A fixed ARM loan will remain fixed for a set amount of time and will fluctuate after that time has passed. For example, a five-year fixed ARM will remain fixed at usually a lower interest rate than a fixed rate mortgage, but after the five-year term is done, monthly payments will fluctuate and typically increase based on changes in a defined index. Contact your lender for other loan options available.