Mortgage & Purchase Planner

FREE MORTGAGE AND PURCHASE PLANNER By educating our Buyer Clients and working with reputable lenders, we are proud that NONE of our clients have used Negative Amortization, Stated Income or No Documentation Sub-Prime Loans. Please CONTACT ME for your free Mortgage and Purchase Planner The Planner allows you to evaluate your home loan qualifications and explore a variety of home loan options. I can attach the Planner as an Excel file to an email or mail you the Planner on a CD.

TODAY'S INTEREST RATES Check out today's interest rates for home loans from HomeFirst Mortgage at mortgagefool.com.

MORTGAGE CALCULATOR Our simple mortgage calculator calculates your monthly payment based on your input.

MORTGAGE FAQ Frequently Asked Questions about Mortgages provided by the Mortgage Bankers Association of America.

PRE-QUALIFY Pre-qualify for your home loan today through HomeFirst Mortgage at mortgagefool.com. Please select Trish Richard at the "Staff Member you've been in contact with" prompt.

RECOMMENDED LENDERS Here is a list of excellent lenders I have worked with over the years. By working with reputable lenders, NONE of our Buyer Clients are stuck with Negative Amortization, Stated Income or No Documentation Sub-Prime Loans.

WHAT TO LOOK FOR IN A LENDER Provided by the Mortgage Bankers Association of Greater Washington.

MORTGAGE SHOPPING AND LENDER COMPARISON WORKSHEET A guide to shopping for a mortgage and comparing lenders provided by MortgageFool.com.

MORTGAGE FAQ Frequently Asked Questions about lenders and mortgages provided by the Mortgage Bankers Association of America.

Q. I want to own my own home, but I'm not sure I can afford it. Where do I start?

Lots of people don't even consider buying a home because they're afraid they can't afford it. But for most people, home ownership is within reach -- especially with some of the special programs for first-time homebuyers. In fact, for many, home ownership is as affordable as renting -- in some cases even more affordable.

The best place to start is with a mortgage lender affiliated with the Mortgage Bankers Association of Metropolitan Washington; a lender can help you explore all the options of home ownership.

Q.How do I know how much house I can afford?

Before you start looking at homes, you need to have some idea of what you can afford. As a general guide, you can purchase a home with a value of two or three times your annual household income, depending on your savings and debts. However, you may be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value.

If you'd like to know exactly how much you can afford, talk to a mortgage lender. If you're working with a Realtor, he or she can help you with this too.

Q. When should I talk to a mortgage lender?

You should start talking to a mortgage lender when you start thinking about buying a home. It's true you can't actually apply for a mortgage until you've chosen your home and signed a contract to buy it. But you shouldn't wait until then to start talking with a mortgage lender.

Any reputable mortgage lender will be happy to help you as you look for a home. The lender will work with you to determine how much house you can afford, help steer you to special mortgages for first time home buyers, and perhaps make suggestions that could make it easier to get the best mortgage for you.

Another advantage -- you'll already have a good relationship with a lender when it comes time to apply for your mortgage.

Q. How do I choose a mortgage lender?

When most people think about choosing a mortgage lender, they think about finding the lowest rate. Of course, financial considerations are important to every home buyer, and you certainly should consider the different rates lenders in your area offer on comparable loans. But you also want a lender you can trust, and someone you can work with effectively. So don't let rates be your only criterion. After reading this section, use our list of members of the Mortgage Bankers Association of Metropolitan Washington as your resource of mortgage lenders in the area.

Q. Are there really just two kinds of mortgages: fixed and adjustable rate?

You could say that, because all mortgages fall into one of these two categories -- that is, the interest rate you pay is either the same (fixed) for the life of the mortgage, or it can change (adjust) over the life of the mortgage.

Fixed-Rate Mortgages

With this type of mortgage your monthly payments for interest and principal never change. Property taxes and homeowners insurance may increase, but generally your monthly payments will be very stable. Fixed-rate mortgages are available for 30 years, 20 years, 15 years and even 10 years. There are also "bi-weekly" mortgages, which shorten the loan by calling for half the monthly payment every two weeks.

Adjustable-Rate Mortgages

These loans generally begin with an interest rate that is 2-3 percent below a comparable fixed rate mortgage, and could allow you to buy a more expensive home. However, the interest rate changes at specified intervals depending on changing market conditions. If interest rates go up, your monthly mortgage payment will go up too. However, if rates go down, your mortgage payment will drop also.

There are also mortgages that combine aspects of fixed and adjustable rate mortgages -- starting at a low fixed-rate for seven to ten year, for example, then adjusting to market conditions. Ask your mortgage lender about these and other special kinds of mortgages that fit your specific financial situation.

Q. How do I know which type of mortgage is best for me?

There isn't a single, simple answer to this question. The right type of mortgage for you depends on many different factors:

your current financial picture
how you expect your finances to change
how long you intend to keep your house
how comfortable you are with your mortgage payment changing from time to time.

For example, a 15-year fixed-rate mortgage can save you many thousands of dollars in interest payments over the life of the loan, but your monthly payments will be higher. And an adjustable rate mortgage may get your started with a lower monthly payment than a fixed-rate mortgage -- but your payments could get higher when the interest rate changes.

The best way to find the 'right" answer is to discuss your finances, your plans and financial prospects, an your preferences frankly with a mortgage lender.

Q. Do they really need to know everything about me for the application?

It may seem that way -- but actually all your mortgage lender needs to know about you is your employment and finances, and information about the home you're buying. However, you will need to provide quite a few details about these topics and your application process will go much more smoothly if you're prepared. Be sure to ask your mortgage lender what information you'll need to complete your application.

Q. How much will my credit history affect my ability to get a mortgage?

Many homebuyers are very worried about this issue. You can be better prepared if you get a copy of your credit report to review before you apply for your mortgage. That way, if there are any errors you can take steps to correct them before you make your application.

If you have had credit problems, be prepared to discuss them honestly with your mortgage lender -- and come to your application meeting with a written explanation. Responsible mortgage lenders know there can be legitimate reasons for credit problem such as unemployment, illness or other financial difficulties. If you had a problem that's been corrected, and your payments have been on time for a year or more, your credit will probably be considered satisfactory.

Q. How much will I need for the down payment?

It's probably less than you think. Many first-time buyers are surprised to learn there's no set answer to this question. Generally, though, your down payment can be anywhere from three to twenty percent of the home's value. Down payments can be lower for some special, first-time buyer loans and veterans or those on active military service can obtain loans with no down payment at all.

Q. What does my mortgage payment include?

For most homeowners, the monthly mortgage payments include there separate parts: a payment on the principal of the loan (that is, the amount borrowed); a payment on the interest; and payments into a special account (called an escrow account) that your lender maintains to pay for things like hazard insurance and property taxes. These elements are called PITI (Principal-Interest-Taxes-Insurance).

Q. What happens after I've applied - and how long will it take?

Your lender will begin the work of verifying all the information you've provided. The process can take anywhere from one to six weeks, depending on the type of mortgage you choose, whether you're buying a home outside your local community and other factors. Within three business days after your application, the lender must give you an estimate of your closing costs. (The closing is the actual settlement of your loan). You'll also get a statement that shows your estimated monthly payment, the cost of your finance charges, and other facts about your mortgage.

RECOMMENDED LENDERS

Here is a list of excellent lenders that I can recommend. If you contact any of them, please let them know that they were recommended by Tom Ross at Long & Foster.

Trish Richard	703-549-3400 x124 Office
HomeFirst Mortgage	703-997-8798 Fax
207 S Alfred St	Trish@MortgageFool.com
Alexandria VA 22314	MortgageFool.com (HomeFirst Mortgage)

Kris Hunnicutt	703-883-9583 Office
First Savings Mortgage	703-851-0955 Mobile
8444 Westpark Dr 4th Fl	KHunnicutt@FirstSavings.com
McLean VA 22102	First Savings Mortgage

Ellen Wilson	703-750-4039 Office
Bank of America Mortgage	703-517-0406 Mobile
7619 Little River Tpk Ste 1000	Ellen.Wilson@BankofAmerica.com
Annandale VA 22003	Bank of America Mortgage

Larry Finkelberg	240-207-2810 Office
Amerihome Lending Inc	240-606-3762 Mobile
110 N Washington St, #402	Larry@AmerihomeLending.com
Rockville, MD 20850	Amerihome Lending

WHAT TO LOOK FOR IN A LENDER Provided by the Mortgage Bankers Association of Greater Washington

A Good Lender Will:

Be Compliant. A good lender will comply with all federal & state laws governing mortgage lending. Offer a Variety of Loan Options. A good lender will offer you several loan options with different terms such as Interest Rate, Downpayment, Fees, & Term.

Provide you with a Good Faith Estimate. A good faith estimate will give you a detailed breakdown of the costs associated with the mortgage program you choose.

Review your Credit Record with you. A good lender will share your credit history with you and explain your credit score.

Refrain from Charging Excessive Fees. Be wary of any lender who will charge fees in excess of 5% of your loan amount.

Refrain from Charging Excessive Interest Rates. Published rates normally reflect "Best Credit Borrowers". If your credit is less than perfect you may be charged a slightly higher rate. Ask for an explanation of your rate.

Be an Educator. A good lender will provide you information explaining the benefits, obligations, & risks associated with buying a home obtaining a mortgage.

Be able to provide information about Credit Counseling. A good lender has a list of properly sanctioned credit counseling services if you need counseling.

Explain the difference between Credit Life Insurance & Mortgage Insurance. There is a distinct difference between the two and your lender should explain the difference to you.

Demonstrate a Commitment to Serve and Reinvest in its Customer's Communities. Ask your lender if they participate in community investment or affordable housing programs. Good mortgage lenders recognize the value in contributing to the communities they serve.

MORTGAGE SHOPPING Courtesy of MortgageFool.com

Here’s the inside scoop on how to do it right

First: Make sure you are working with an experienced, professional loan officer. For the largest financial transaction of your life you need someone who understands the mortgage market and is capable of advising you properly. But how can you tell? Here are four simple questions your lender absolutely must be able to answer correctly. If someone doesn't know the answers, find a lender who does.

What are mortgage interest rates based upon?

The only correct answer is mortgage-backed securities/bonds, not the 10 year treasury note. While the 10 year treasury note sometimes trends in the same direction as mortgage bonds, 30% of the time they are moving in opposite directions. Do not work with a lender who is watching the wrong indicator.

What is the next economic report or event that could cause interest rate movement?

A knowledgeable professional will have this information on hand. Major economic index announcements occur almost daily and some have a high impact upon mortgage interest rates while others have little impact. It's important to know events from day to day that can cause interest rates to increase or decrease.

When Chairman Bernanke and the Federal Reserve Board change rates, what does this mean, and what is the impact upon mortgage interest rates?

The answer may surprise you. When the Fed makes a decision to do a rate change, it is to the fed funds rate. This is a short-term rate that impacts things like equity lines, credit cards, and auto loans. On the day of a fed rate change, mortgage rates will usually move in the opposite direction due to dynamics of the financial markets. For more information, just give me a call.

What is happening in the market today and what do you see happening in the near future?

If a lender cannot tell you how mortgage bonds and interest rates are moving in real time, you are dealing with some one who is relying upon yesterday's newspaper and has no idea of what present mortgage market movement is and what can cause changes in the immediate future.

Be smart. Ask questions. Get answers.

More than likely this is one of the largest and most important financial transactions you will ever make. You may do this several times in your life, but I work with mortgages every single day. It's your home and your future. It's my profession and passion. I'm ready to work for your best interests.

Lender Comparison Worksheet

QUESTIONS	Mortgagefool.com	Lender B	Lender C	Lender D
Does the lender understand that rates are driven by mortgage-backed securities, not the 10 year treasury note?	Absolutely! Mortgage-backed securities are the only meaningful indicators to monitor.
Does the lender know the next economic reports and events that could cause interest rate movement?	Yes. The economic calendar for the next three weeks is examined, along with the expected impact upon mortgage rates.
Does the lender know how mortgage rates are impacted when the Federal Reserve Board changes rates?	Yes. Mortgage rates are not driven by the Fed's decision on short-term rates that they control, but by the Fed's analysis of national economic health.
Does the lender know what the mortgage bond market is doing today and what it is projected to do in the near future?	Bond market performance is monitored continuously and updated every two minutes. I get email, instant message and cell phone alerts when large market changes occur.
Once my loan is originated, who handles the loan processing and closing? Will I always know who is working on my loan?	Your loan is handled by the same person from the moment of first contact through the post-settlement follow-up.
Does the lender change an origination fee?	No. The points posted on www.mortgagefool.comare the only points charged.
What are the fees for appraisal and credit report?	Fees for the appraisal and credit report are at cost, with no mark-up to the price. Credit reports are $14.75 per person, and a standard appraisal is $350.
What are the total lender fees for underwriting, processing, tax service, document preparation, flood certification, tax service, etc.?	Lender fees are always $750, regardless of which of our 80+ lenders is used.
Is the Good Faith Estimate comprehensive, showing loan costs, prepaid items, escrows, settlement costs, and state and county transfer taxes?	Yes. All categories of purchase costs are addressed so you have a full view of the total amount due at closing.
What are today's rates and points for the loan type I want?	Rate and point combinations for every loan type for the most widely used mortgages are posted every day at www.mortgagefool.com.