THE BASICS 
 

BayOne Mortgage Consultant help you look at the elements that make up your financial profile, including your credit history, the cash you have available for a down payment and closing costs, your income and your existing debt and financial obligations. Then, taking the current market interest rate into account, we can give you an idea of the maximum mortgage amount you can afford. 
 
How Important Is My Credit?
Your credit rating is an important consideration in a qualifying for a home mortgage.
Your credit or FICO score is a factor in the kind of mortgage program you may qualify for. Your credit history can also affect the amount required for a down payment, the amount of money you can borrow in relation to your income, or even the interest rate you are offered. But keep in mind that even if you have no established credit history or less- than- perfect credit, there are still loan programs that can help you buy a home.  
 
How Much Do I Need for a Down Payment?
 
Depending on the loan program you choose, you may able to buy a home with a very low down payment (three percent or less), or no down payment at all. Your BayOne Mortgage Consultant can give you further details. 
 
What About Closing Costs?
Generally, closing costs (including prepaid) amount to between 3% and 7% of home purchase price.
Prepaid must be collected at closing to cover the future month's taxes, interest and insurance. But the good news is most loan programs allow you to finance your other closing costs in the form of a slightly higher interest rate, reducing the amount of cash you will need at closing.
Your BayOne Mortgage consultant can give you information on closing-cost for specific areas and loan programs.  
 
What does My Mortgage Payment Include?
Usually, your monthly mortgage payments is made up of four parts: principal, interest, taxes and insurance
PITI but it can also include maintenance expenses, such as condominium homeowners' association dues.
Principal + Interest + Taxes + Insurance = PITI  
 
FINANCING CHOICES
 
Conforming V.S. Jumbo
• Conforming Loans - Conforming loans have standard lending industry guidelines set by Fannie Mae and Freddie Mac. The current conforming loan limits is $400,000.00
• Jumbo Loans – Conventional loans of larger than conforming amounts are called jumbo or nonconforming loans. In the most cases, jumbo loans have slightly higher interest rates than conforming loans.  
 
Mortgage Type
Sub-prime is lending industry terminology for home financing programs that accommodate borrowers with special qualifying factors, including poor credit histories. 
• 30- Year Fixed Rate 
Interest rate remains the same for the life of the loan.
Provides protection against rising interest payments.
Predictable payments make budgeting for the future easy.  
• 15- Years Fixed Rate 
Same as 30-Year, but with slightly lower interest rates.
Principal is paid off sooner, saving substantial money in interest payments.  
• Intermediate ARMs  
Offers a fixed interest rate for a designated period (3,5,7 or 10 years) then adjusts annually.
Often referred to as 3/1, 5/1, 7/1, and 10/1 ARMs
Initial interest rate and monthly payments is lower than that of a fixed rate, so payments are more manageable on the introductory period
• Balloon loan 
Offers fixed payments for a period of time, (usually 5 to 7 years); followed by one balloon payment of the remaining loan balance.
Interest rate is lower than that of a fixed rate loan.
A popular choice of homebuyers who are certain they will move or refinance in 5 to 7 years. 
 
Points
Many loan program s allow you to receive a discounted interest rate by paying a fee in points.
One point equals 1% of the loan amount, and the more points you can or wish to pay, the more you can discount your rate. Paying points is not a requirement, its just an option lenders offer to accommodate the immediate or long- term cost concerns of home mortgage customers.  
 
Annual Percentage Rate
APR is the total finance charge to the amount of your loan, spread over the term of the loan, expressed as a percentage. So the APR is always higher than the quoted daily interest rate. 
 
Place Your Home Mortgage Needs in Experienced Hands 
Feel confident and comfortable knowing you are working with an established lending leader. When you know the facts, the choice is clear.
We have access to over hundreds of quality lenders. Our loan consultants are all seasoned professional and have dealt with countless mortgage situations. Regardless of your credit or other situation, our diverse choices of lender enable us to deliver multiple, flexible and creative financing for anyone. 

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