MULTISOURCE MORTGAGE and RE Services
Providing Real Estate Financing Since 1986

 
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MultiSource Mortgage and RE Services

Call, text or email:

Debra G Healer

707.363.8969

 

Calculating a payment for a new home or refinance:

 

1.  Click the 'Daily Rate' tab to determine today's rates.

 

2.  Click the "Prequalify' tab to go to the online calculator.  Input loan amount, interest rate and term of loan.

 

 3.  Ready to apply?  Complete the secure online application (short or long form).

 

1. How do I know how much house I can afford? Answer
2. How much cash will I need to purchase a home? Answer
3. What does my mortgage payment include? Answer
4. How do I know which type of mortgage is best for me? Answer
5. What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
6. How is an index and margin used in an ARM? Answer
7. What do I need to provide for my mortgage loan application?  Answer

Q : How do I know how much house I can afford?
A : Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.
 
Q : How much cash will I need to purchase a home?
A : The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
  • Earnest Money: The deposit that is supplied when you make an offer on the house
  • Down Payment: A percentage of the cost of the home that is due at settlement
  • Closing Costs: Costs associated with processing paperwork to purchase or refinance a house
  •  
    Q : What does my mortgage payment include?
    A : For most homeowners, the monthly mortgage payments include three separate parts:
  • Principal: Repayment on the amount borrowed
  • Interest: Payment to the lender for the amount borrowed
  • Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
  •  
    Q : How do I know which type of mortgage is best for me?
    A : There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. MultiSource Mortgage can help you evaluate your choices and help you make the most appropriate decision.
     
    Q : What is the difference between a fixed-rate loan and an adjustable-rate loan?
    A : With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.
     
    Q : How is an index and margin used in an ARM?
    A : An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).
     
    Q : What do I need to provide for my mortgage loan application? 
    A :

    ·        Name and address of landlord(s) for the past two years (if applicable).

    ·        Proof of all income from the past 24 months (tax returns, paystubs).

    ·        Previous two years' W-2 forms.

    ·        Copy of most recent year-to-date pay stub for all applicants.

    ·        Three months most recent statements for deposit accounts, stocks, bonds, etc. <?xml:namespace prefix = "o" />

    ·        If you chose to include income from child support/alimony, copies of court records or cancelled checks showing receipt of payments.

    ·        Legible sales contract signed by buyers and sellers (if you have already purchased a home).

    ·        For all currently owned properties: copy of the mortgage statement, most recent tax bill and insurance declaration page.

    If you are self-employed or paid by commission:

    ·        Previous two years Federal Income Tax Returns with all schedules.

    ·        Year-to-date profit and loss statement and balance sheet.

    ·        Corporate tax returns and all schedules.

    If you have filed bankruptcy, had a foreclosure or short sale in the past seven years:

    ·        A copy of petition and discharge, handwritten explanation of the reason for bankruptcy, evidence of excellent credit since the bankruptcy.

     

    Additional documentation will be required for VA and FHA mortgage loan applications.  Please note, this list is not meant to be only an example of the documents normally requested and is not complete or applicable to all applicants.