Moving is Challenging. Here is a Quick Checklist to Get Your Rolling.

Private Mortgage Insurance (PMI) provides your lender with a way to recoup its investment if you are unable to repay your loan. PMI is usually required when the mortgage amount is higher than 80% of the home’s value. That means that if you buy a home with a down payment of less than 20%, you will probably have to pay for PMI.

Most mortgage loans have either a fixed interest rate or an adjustable interest rate (click here to view mortgage products from Efinity Mortgage). With a fixed-rate mortgage, the interest rate never changes and your payments remain stable throughout the life of your loan. With an adjustable-rate mortgage (ARM), the interest rate changes at regular intervals — usually once every year — based on a formula that uses a market index. For most ARM options, rate adjustments begin after an initial period — usually between three months and ten years — during which the rate is fixed. A fixed rate is usually recommended if you plan to stay in your home for the long term and are buying at a time when rates are relatively low. An ARM is usually recommended if you plan to move before the rate adjustments begin, or if you are buying when rates are relatively high.

Closing costs vary based on a number of factors — including the lender, mortgage type, purchase contract, and location — but they usually include the following: Lender fees. Your mortgage company may charge for expenses related to making the loan, including an appraisal fee, a credit report fee, origination points, and discount points. Third party fees. Charges for services not provided by your lender often include the settlement fee, title insurance, and attorney’s fees. Prepaid items. Certain mortgage costs must be paid to your lender in advance. The most common of these are pre-paid interest, hazard insurance, and deposits to set up an escrow account.

Lenders consider many factors in evaluating your loan application, but they usually focus on four areas: Income and debt - How much money you make and what other bills you have to pay help the lender determine whether you can afford to make mortgage payments. Employment - Length and job stability is important in determining a client’s willingness to pay. Assets - The lender needs to make sure you have enough money to cover the costs of buying a home. Credit - Whether you’ve met other financial obligations helps the lender predict whether you will repay your mortgage. Property - The home you want to buy has to be worth enough to act as collateral for the mortgage.

There is generally no minimum down payment required for buying a home. Many first-time home buyers believe they must be able to put down as much as 20% of a home’s purchase price in cash. That may have been true in the past, but many of the mortgage options available to today’s home buyers require little down payment.

Your credit history is only one factor in qualifying for a loan, and having made some late payments doesn’t have to keep you from buying a home. Someone who has consistently made payments on time in the past may have more financing options than someone who has not, but that doesn’t mean a mortgage is off-limits if you’ve had credit problems.

Locking your interest rate means your Efinity Mortgage Licensed Financial Professional guarantees the rate on your loan even if market rates changes for a set period of time. So how do you know whether to lock your interest rate? It depends on whether you expect rates to rise or fall before you close on your home. No one knows for sure which direction rates will go at a given time, so it’s difficult to make a reliable prediction. While some keep track of announcements from the Federal Reserve Board, it’s important to stay in touch with your Licensed Financial Professional who will keep you abreast of the changing market landscape.

Discount points are prepaid interest, which you can pay to your lender at closing in exchange for a lower interest rate on your mortgage. So does paying points make sense for you? The answer depends primarily on how long you plan to stay in your home. First, find out how much lower your monthly payments will be if you pay points. Then, calculate how long it will take for those monthly savings to add up to the cost of the points. If it would take five years to break even and you’re planning to live in your home for 10, paying discount points may be a smart move.

Getting pre-approved means you receive a loan commitment from Efinity Mortgage before you have found a home, based on a review of your credit and finances. Having your credit pre-approved shows sellers that you’re a qualified buyer and helps you establish a clear price range. The process is the same as a typical mortgage application, except that your application doesn’t include property information.

For most borrowers, each monthly mortgage payment goes toward the following: Principal, which is the total outstanding balance of the loan Interest, which is the cost of borrowing money Taxes, which are levied on the property by the local government Insurance, which protects the owner and the lender from losses caused by fire and natural hazards

Credit scores are developed by comparing credit reports from millions of consumers over time, and identifying factors that tend to predict how well people manage credit later on. Those factors include: Payment history. Whether you’ve made payments on time in the past is used to predict how likely you are to pay in the future. Outstanding balances. Being over-extended on your credit accounts tends to lower your score. Length of your credit history. Credit scores reflect payment patterns over time, so having a longer history gives lenders a more reliable picture of your credit. Types of credit in use. Having a diverse mix of account types usually has a positive affect on your score. New credit. A series of requests for new credit may suggest to lenders that you are looking to take on new debt. Because people tend to shop around for mortgages and other loans, all credit applications within a 14-day period are counted as a single request. Credit scores are considered unbiased because they are based only on your past credit history. Your score cannot be based on race, religion, national origin, age, sex, marital status, or income. Equifax P.O. Box 740241 Atlanta, GA 30374 1-800-685-1111 Experian P.O. Box 2002 Allen, TX 75013 1 888 397 3742 TransUnion P.O. Box 1000 Chester, PA 19022 1-800-888-4213

Although each credit reporting agency may report information differently, all credit reports contain the following: Identifying information. This includes your name, address, date of birth, and social security number. Credit accounts. Your report lists information on each of your accounts, including the account type, date it was opened, credit limit, balance, and payment history. Inquiries. When a lender requests your credit report, either to process an application you submitted or to qualify you for pre-approved offers, the inquiry is recorded. When you request your own report, however, the inquiry is not listed. Public records. These include information on bankruptcies, foreclosures, and any other liens.

Credit scoring translates the information on your credit report into a numeric score, which makes it easier for a lender to evaluate your credit. Scores generally range from 300 to 900, with a higher score indicating a greater likelihood that you will make payments on time.

Yes – Efinity Mortgage offers ongoing educational opportunities for our mortgage bankers: U-Stream serves up an extensive library of training videos you can stream any time over the Internet. Choose one of our newest videos or binge watch from one of our popular playlists. Our UM Professional Network meets regularly for workshops and company events

Absolutely! Loan officers at United Mortgage have access to our full company benefits, including Medical, Dental, Vision, Life, Retirement and Employee Assistance plans.

No! We believe you should be out getting the next deal, not working on paperwork. Leave that to the processing team that specializes in that at Efinity Mortgage.

No! We don’t nickel and dime you as an employee of Efinity Mortgage.

Change address Driver’s license Auto registration Voter registration Re-establish safety deposit box Enjoy new home!

Disassemble beds Double-check that all cupboards, closets, dishwasher and other appliances are empty Give movers tour and instructions for what is being moved

Get packing supplies: boxes, packing paper, tape, markers Use up or dispose of food, cleaning supplies, and hazardous materials Have garage sale/donate unwanted items Arrange for carpet and drapery cleaning Arrange for house cleaning Arrange for move of pets Arrange for move of plants Arrange for utilities (cancel old; start new): Electricity Gas Water / Sewer Telephone / DSL Garbage / recycling Cable / satellite Arrange for transfer of homeowner’s/renter’s insurance Begin packing Make travel arrangements Request relocation package from chamber of commerce of new town

Get estimates for movers or rental truck Schedule movers or rental truck Determine furniture layout for new home Make inventory of household items Arrange for school transfer Ask for doctor and dental referrals; arrange for transfer of medical and dental records Fill out change-of-address card with post office Clean out all closets and drawers

Set aside critical documents and items you will keep with you Transfer prescriptions Change address Family and friends Newspaper Magazines Bank accounts Health, life, and auto insurance policies Credit card bills Employer

Defrost freezer Empty ice maker and ice cube trays in case of power shutdown Clean refrigerator, stove, and oven Disconnect and drain appliances for move Drain fuel from power equipment Close out safe deposit box Confirm travel arrangements Confirm arrival time of movers / pick-up time of rental truck Have payment and snacks ready for movers Gather and clean outdoor furniture Return cable box, cable modem, DSL modem if necessary Organize keys Clean house Finish packing Prepare food for moving day

During the underwriting phase of the loan process, an underwriter reviews the loan package and documentation provided by the RMLO to determine whether the information provided is acceptable to offer the loan to the applicant. The underwriter analyzes the applicant’s credit history, calculates housing and debt ratios, evaluates the value of the home as well as the applicant’s assets and/or funds available to pay a down payment. Once the underwriter has evaluated the loan applicant’s information and calculated the risk in making the mortgage loan, they decide whether or not the application fulfills all of the requirements necessary for loan approval. At this point the underwriter will approve the loan with conditions, suspend the loan or deny the loan as it stands. The following also occurs during the underwriting process; Updated pay stubs are obtained from the homebuyer along with updated financial statements to make sure they are all dated within 30 days of closing. A new credit report is typically run if the original is over 30 days old. Any gift funds for down payment are to be verified by the donor from the account of origin. A 4506 (IRS form) is ordered to verify if the tax returns supplied have actually been sent to the IRS. A background check is done to verify the actual owner of the landlord property listed on the VOR. (Verification of Rent) A fraud check is performed to verify if paystubs/W-2s are real. The earnest money check is verified to have cleared the bank account of the homebuyer. Any updates to the title, appraisal, survey, bank statements, etc. required by the underwriter are translated to the appropriate parties. Proper names, addresses and mortgagee clauses are added to the title. Insurance is verified to be appropriate to the lender and program. A flood certificate is ordered to characterize the flood zone status. An appraisal review is performed to validate the appraisal is within acceptable limits. A certificate of occupancy is obtained for any new home construction. A final appraisal is ordered for any subject-to conditions. The processor obtains the title fees, lender fees, HOA dues, and all other fees they can think of from the appropriate parties. The processor figures the appropriate prorating of taxes that will come from the seller. The processor determines if the taxes are on improved or unimproved property. Seasoned funds (available reserves as reported on application) are again checked to be sure there are sufficient funds to close. The rate lock is extended if necessary due to delays in the time to build the home. Delays may require you to pay an additional fee to the lender to extend the lock. After all conditions under the sun are cleared, the loan is cleared to close.

Shopping for a home can be an exciting but overwhelming time. Efinity Mortgage is here to help make the home buying process as seamless as possible. Here are some tips that you need to consider. Hire a Reliable Realtor You need to hire a realtor who can help you find the house that is best for you. Efinity Mortgage can recommend a trusted, knowledgeable realtor. The realtor will check out comparable homes before they’re shown to you, and suggest properties for you to consider. A realtor also will provide community information regarding schools and property tax rates. A realtor will handle the negotiations and present your offer. You don’t have to compensate a realtor for his or her services. They’re compensated from commission by the seller of the house. Review your budget You should consider how much you can afford as you start to think about purchasing a home. Make a list of your obligations such as credit card payments, student loan debt and other expenses. You also need to consider additional expenses such as school taxes, potential HOA fees, unexpected home repairs, and more. Perform a home inspection A home inspection should be performed of the house you want to buy. A home inspection will pinpoint any issues with the house and ultimately, help protect you in the event any unforeseen issues that may arise in the future. You should make sure the inspector has experience inspecting homes. You can be present for the inspection. Here is a sampling of items that the home inspection will generally cover: structural elements such as ceilings, roof and foundation exterior such as landscape, fences, doors and windows attic and roof plumbing electrical such as main panel, ceiling fans, light fixtures, wiring appliances such as dishwashers, built-in microwaves and more water heaters, A/C units, fireplace, sprinkler systems and more You and the seller will get an inspection report that details the findings. It is up to you to decide if you want to request the seller to repair anything before closing the sale.

Today, home loans are being acquired with lower credit scores and smaller down payments. In recent years, a down payment on a home has become more of a personal decision rather than a financial necessity. Most home loans do require a down payment. The amount of a down payment on a home loan varies based on factors such as loan type, credit score, type of property being purchased, income and asset documentation, and the debt ratio as related to income.

Following the closing, the documents are sent to the funder who reviews them to ensure all closing and funding conditions have been met. After the documents have been reviewed by the finder and all conditions have been met, the funds are released. If funding is withheld the client is called back to the title company to make any changes to the paperwork that may be necessary.

Stretch Your Writing Hand – You’ve got a Lot of Closing Documents to Sign At this point, you are so close to grabbing the keys to your new home! All you have left to do is sign your name or initials on what will seem like a million documents – in reality it’s just a few dozen, though. You will travel to the designated title company to complete the closing process. It’s the last active step for you to buy a home, because the only remaining step is funding – and that just depends on all the closing documents having been executed properly. You will have a closing agent from the title company who will walk you through the whole process, and often your real estate agent will meet you just in case you have questions or they need to communicate quickly with anybody else involved in the home sale or loan process. The title company will have all the papers reviewed by your mortgage RMLO here at Texas Lending to make sure all the numbers are accurate. You will hear from the title company before closing so that you know exactly how much money you need to bring to closing in the form of a cashier’s check. Sometimes, if you’ve also just sold a home, your closing may be funded from the home sale. You may also need to bring proof of homeowner’s insurance with you, unless that has been provided to the title company previously. Some real estate agents will help with that prior to closing. And, finally, you will need to provide photographic proof of identification for each person signing the closing documents. Then you’ll start signing your closing papers, which include: Settlement Statement (HUD-1 Form) – This form has all the information detailed about the purchase of your new home including the price you pay, finance rate for the loan, fees for all the parties involved, property taxes, and the cash requirements for you and the seller. Truth in Lending (TILA) Document – This includes information on your monthly mortgage payments including principle, interest and taxes. It also clarifies all the finance charges. You will have seen this earlier in the process, but this is the final document. Mortgage Document, Title & Deed – This is the legal paperwork that provides your assurance that you will pay the debt you owe to the lender. It has lots of information about your payments and terms & penalties if you miss payments. The title and deed say who owns the property, you, and conveys ownership of the property. Title Insurance: This is what the title company really does – makes sure that it’s legal for you to own the property, and that there are no other claims against it. IRS 1099 Form: Real estate transactions must be reported to the federal government, the IRS. The title company will notarize the proper forms and makes sure all documents are properly executed. On the day of closing, Texas Lending will wire the purchase funds to the title company, and the title company will distribute the money to the seller, the real estate agents, and any other parties who are owed a portion of the money. If the wire transfer is completed and the forms are all verified as valid, sometimes you can pick up your keys and garage door openers immediately after closing and go enjoy your new house right away! The process sounds more intimidating than it really is. Your real estate agent and Texas Lending RMLO will make sure the title company has everything it needs prior to closing, will ensure you bring the proper things to closing, and all you have to do is sign, sign, sign! You’ll be done in less than an hour and on your way to moving into your new home.

Mortgage Lending has changed as much as any other industry over the last 10 years. To educate our clients on the home loan process, we have created a step by step guide for your review and consideration. Please note, no two home loans are alike. There are many factors centered on the property, employment and assets which play a role in what we require documentation wise. The key take away here is to obtain your financing first! This eliminates stress and makes the overall purchase process much easier on everybody.

After you’ve found a home and are ready to make a move, an appraisal of the home is ordered by Efinity Mortgage. A professional appraiser will visit your prospective home and inspect the size, condition, function and quality of the home. The appraiser will then compare the home to similar homes in the area that have recently been sold to determine a fair market value. An opinion of value will be included in the final appraisal report along with other data and research used to estimate the value of the home. During the loan processing stage of the loan process, the following items are ordered to get you one step closer to purchasing your new home: Title to the property A survey Wiring instructions for when the loan has closed An insured closing letter A termite inspection Verification of employment, funds to close on the home and the rent/mortgage are ordered. Verifications of any paid credit items are then sent to the credit bureaus to ensure your credit is accurate and up to date. At this time, further documentation is received from the client to update any pending questions (divorce decrees, etc.), while taxes are certified for the proper amount for the property with the title company. During this phase of loan processing, you, the homebuyer, obtains insurance quote that is typically paid at closing of the loan. The Mortgagee clause is then sent to the insurance company and a declaration page is produced and the realtor/title company/builder should transfer information about any homeowners association or condo dues to the mortgage company. After the information has been gathered, the title, appraisal, survey, termite inspection, Verification of Employment (VOE), rent, and funds to close are then sent to loan processing at Efinity Mortgage. The information is then reviewed by both processing and the RMLO to confirm it matches the loan application, to confirm it will meet the guidelines of the loan program, and to determine if more documentation is required. Any necessary changes to the documentation that require attention are relayed to the homebuyer, buyer’s agent, builder, seller’s agent, client, landlord, title company, employer, surveyor, termite company, bank, etc. Once these conditions are cleared, the loan is sent to underwriting for approval, usually by scanned email, fax, overnight mail, or by same day courier.

The first step in the loan process is to make contact with one of Efinity’s licensed mortgage loan officer (RMLO) and begin the application process. At this time the RMLO will begin gathering all pertinent loan application information from you. The mortgage advisor will let you know exactly what documents you will need to provide and address important questions during your initial meeting so they can design the proper loan scenario for you. RMLOs at Efinity Mortgage will guide you through the entire loan process at this time. RMLOs are qualified to answer any questions you may have about loan process, so don’t hesitate to ask. After your initial meeting or discussion, the following steps are taken to complete the application process: A credit report is pulled. An application is signed. Disclosures are signed. Explanation letters are written to explain specific situations that affect your financial ability to repay a mortgage loan. Supporting documentation is presented by you to the mortgage company to validate the information provided for the loan application An underwriting pre-approval is performed by an automated underwriting service or a manual underwriter. A commitment fee, application fee, or good faith deposit is paid by the homebuyer to the mortgage company. A pre-approval letter with conditions is presented to you. House hunting begins

Once the loan has been cleared to close by the underwriter, a closing date is set after consulting with you and your title company. When an agreed upon closing date has been set, a fee sheet is sent to our loan closing department. The closing department will then draw the closing documents and sent them to the Attorney for review. When the documents have been reviewed, the closing department orders the wire amount for the loan. The closing department then sends closing and funding conditions to the title compan