Chapter 5: Borrowing To Buy Your Home

Borrowing To Buy Your Home

The introduction to Chapter 5 talks about significant recent regulatory changes in response to the financial crisis in the 2007- 2011 time-frame.  These changes are designed to protect mortgage loan borrowers.

5-0      It Is a Brave New World in Lending since the 2007 to 2011 Crisis.

5-0-1 New Mortgage Loan Disclosure Requirements.

Chapter 5 – Part 1
Getting Pre-Approved and Pre-Qualified for a Mortgage Loan
Part 1 of Chapter 5 teaches you about getting pre-approved and pre-qualified for a mortgage loan so you can demonstrate to sellers that you are a serious buyer.  It provides a template for comparing lenders.

5-1      Getting Started.

5-1-1 Lender Comparison Shopping.

5-1-2 Where to Begin?

5-2      Pre-Qualification versus Pre-Approval.

5-2-1 Hints about the Pre-Qualification and Pre-Approval Process.

Chapter 5 – Part 2
Determining the Right Kind of Mortgage Loan for You
Part 2 of Chapter 5 walks you through the different types and features of mortgage loans so you can better understand your options and find a loan bested suited to your needs and circumstances.

5-3 Financing the Purchase of Your Home.

5-3-1       Understanding Home Financing.

5-3-2       Loan Features and Costs.

5-3-3       Matching the Proper Loan Type to Your Situation and Needs.

5-4      Other Important Loan Vocabulary.

5-4-1 Government Agencies and Government-Sponsored Entities.

5-4-2 Terms Used to Categorize Loans.

Chapter 5 – Part 3
Applying for a Mortgage Loan to Finance the Purchase of a Specific Property
Part 3 of Chapter 5 walks you through the complete process of applying for a mortgage loan for a specific property.  It discusses information and document requirements.

5-5     Apply for the Loan.

5-5-1 Obtain a Loan Estimate (LE) from at Least Three Lenders.

5-5-2 Complete the Application.

5-5-2 Do Not Facilitate or Become a Victim of Fraud or Identity Theft.

5-5-3 Do Not Facilitate or Become a Victim of Fraud or Identity Theft.

5-5-4 Assemble the Documents You Need.

5-5-5 Some Lenders Require an Application Fee.

5-5-6 Be Proactive.

5-5-7 Respond to All Inquiries.

5-5-8 Read the Loan Estimate (LE) Disclosure Document the Lender Sends You.

5-6      Additional Documents Obtained by Third Parties.

5-6-1 Credit Report.

5-6-2 Home Appraisal.

5-6-3 Preliminary Title Report.

5-6-4 Verification of Income (VOI).

5-6-5 Verification of Employment (VOE).

5-6-6 Verification of Rental Payments (VOR).

5-6-7 Insurance Certification – (A Binder from Insurance Company).

5-6-8 Verification of Deposit (VOD).

5-7      Lock Your Rate.