The first step in obtaining a loan is to determine how much money you can borrow. In case of buying a home, you should determine how much home you can afford even before you begin looking. By answering a few simple questions, we will calculate your buying power, based on standard lender guidelines.
Click here to Pre-Qualify.
You may also elect to get pre-approved for a loan which requires verification of your income, credit, assets and liabilities. It is recommended that you get pre-approved before you start looking for your new house so you:
- Look for properties within your range.
- Be in a better position when negotiating with the seller (seller knows your loan is already approved).
- Close your loan quicker
LTV and Debt-to-Income Ratios
Understanding your Loan-to-Value (LTV) and Debt to Income (DTI) ratios is crucial in the Arizona mortgage landscape. These ratios not only guide the amount you can borrow but also determine your loan's terms. At Brick Mortgage, we help you decipher these numbers, ensuring you get the most advantageous deal tailored to your financial profile.
FICO™ Credit Score
Your credit score plays a pivotal role in the mortgage process. For residents in Queen Creek and across Arizona, a solid FICO score can unlock better interest rates and terms. Unsure about your score? Our experts are here to guide and offer insights on boosting it for optimal mortgage outcomes.
Self Employed Borrowers
The path to homeownership for self-employed individuals can seem challenging, but with Brick Mortgage, it's straightforward. We have specialized programs and understanding tailored to the unique needs and financial structures of self-employed Arizonians, ensuring a smooth journey from application to approval.
Source of Down Payment
Your down payment's source can influence your mortgage application. Whether it's from savings, gifts, or other avenues, we guide you through the best practices for documentation and presentation. Let's make sure your down payment aligns with Arizona's lending criteria, positioning you for a successful mortgage application.
Choosing the right mortgage is pivotal to your financial health and long-term comfort. At Brick Mortgage, we're dedicated to guiding you through the variety of loan programs available in Arizona. Let's break down your options:
1) Fixed Rate Mortgage
A popular choice for many homeowners, fixed rate mortgages guarantee the same interest rate for the entire loan term. This stability ensures predictable monthly payments, making it easier for you to budget and plan your future in Queen Creek and beyond. Fixed rate mortgages usually have terms lasting 15 or 30 years. Throughout those years, the interest rate and monthly payments remain the same. You would select this type of loan when you:
- Plan to live in home more than 7 years
- Like the stability of a fixed principal/interest payment
- Don't want to run the risk of future monthly payment increases
- Think your income and spending will stay the same
2) Adjustable Rate Mortgage
Adjustable Rate Mortgages (often called ARMs) typically last for 15 or 30 years, just like fixed rate mortgages. But during those years, the interest rate on the loan may go up or down. Monthly payments increase or decrease. ARMs come with interest rates that adjust periodically based on specific benchmarks. Ideal for those anticipating future income hikes or planning to move in a few years, these loans can offer initial lower rates compared to fixed-rate mortgages. You would select this type of loan when you:
- Plan to stay in your home less than 5 years
- Don't mind having your monthly payment periodically change (up or down)
- Comfortable with the risk of possible payment increases in future
- Think your income will probably increase in the future
By carefully considering the above factors and seeking our professional advice, you should be able to select the one loan that matches your present condition as well as your future financial goals.
3. Conventional Loans:
Typically requiring a higher down payment and strong credit score, conventional loans aren't insured by the federal government. They often have fewer restrictions and can be a great fit for financially stable borrowers.
4. FHA Loans
Insured by the Federal Housing Administration, FHA loans cater to first-time homebuyers and those with lower credit scores. They generally require a smaller down payment, opening doors for many to enter the Arizona housing market.
5. VA Loans
Exclusive to veterans, active-duty military, and certain military families, VA loans are backed by the U.S. Department of Veterans Affairs. They offer benefits like zero down payment and competitive interest rates. For some reason, people think only banks like USAA and the like can do these loans. Brick Mortgage is great at closing VA loans with speed and precision. These are some of Brick Mortgage's favorite loans to do for our veterans.
6. USDA Loans
Aimed at rural and suburban homebuyers, USDA loans are backed by the U.S. Department of Agriculture. They offer low interest rates and the possibility of zero down payment for qualifying areas and borrowers.
7. Jumbo Loans
For luxury properties and high-priced homes in Arizona that exceed conforming loan limits, jumbo loans are the go-to. And actually more and more homes are fitting the Jumbo Loan criteria as the prices of homes in Arizona have soared. They typically require a larger down payment and come with stringent credit requirements.
8. Reverse Mortgage
Available to seniors aged 62 and older, reverse mortgages allow homeowners to convert part of their home's equity into cash. It's a strategic way to supplement retirement income, ensuring comfortable golden years in the Grand Canyon State.
Embarking on the loan processing stage is an exciting progression in your mortgage journey. At Brick Mortgage, we ensure a streamlined experience, guiding you through the crucial checks and evaluations required in Arizona's lending landscape. Here’s what to expect:
- 1. Income/Employment Check:
- Your income and employment status provide lenders with an assurance of your repayment capability. You'll need to furnish documents like recent pay stubs, tax returns, or employment verification letters. For self-employed individuals, profit and loss statements or business tax returns might be required.
- 2. Credit Check: Your credit history gives lenders insight into your borrowing habits and reliability. A credit report will be pulled to review your payment history, credit utilization, and overall credit score. Any discrepancies or concerns will be addressed at this stage, ensuring clarity for both parties.
- 3. Asset Evaluation: A comprehensive view of your assets helps lenders gauge your financial stability. This includes bank statements, retirement accounts, other real estate or valuable possessions. Demonstrating strong assets can also influence your loan terms favorably.
- 4. Property Appraisal:
- An independent appraisal is conducted to determine the property's current market value. This ensures that the loan amount requested aligns with the home's worth, safeguarding both the borrower and lender's interests. It's a pivotal step, especially in the dynamic Arizona property market.
- 5. Other Documentation:
- Depending on your specific situation and the type of loan you're pursuing, additional documents might be required. This can range from divorce decrees to gift letters for down payments. Rest assured, our team at Brick Mortgage will guide you through any additional requirements, ensuring a transparent and smooth process.
In order to improve your chances of getting a loan approval:
- Fill out your loan application completely. You may use our online forms to expedite the process.
- Respond promptly to any requests for additional documentation especially if your rate is locked or if your loan is to close by a certain date.
- Do not move money into or from your bank accounts without a paper trail. If you are receiving money from friends, family or other relatives, please prepare a gift letter and contact us.
- Do not make any major purchases until your loan is closed. Purchases cause your debts to increase and might have an adverse affect on your current application.
- Do not go out of town around your loan's closing date. If you plan to be out of town, you may want to sign a Power of Attorney.
Reaching the closing phase is the pinnacle of your journey with Brick Mortgage. As a leading mortgage lender in Arizona, our goal is to ensure that whether you're looking to purchase a home or refinance a home, the process remains transparent and seamless. Interest rates, loan terms, and fees – every detail is meticulously scrutinized for your benefit.
Navigating the real estate market requires expertise and a trusted partner. That's where Brick Mortgage and our seasoned mortgage broker team come in. Our commitment is unwavering: to provide you with the best guidance, ensuring your mortgage aligns perfectly with your financial aspirations.
Your dream of homeownership or refinancing becomes a reality under the watchful eye of Jared Halbert and the Brick Mortgage team. We pride ourselves on forging lasting relationships, cemented by trust and a mutual goal: turning real estate aspirations into tangible achievements.