• Tel: (734) 525-1234
    Email: indusfinancial@gmail.com
    NMLS #: 1465652

  • Home Buyers Guide

  • The American dream for everyone is to Own your own home. First of all, where do you start? As with any other major undertaking, it’s very important to consult with experts and seek professional advice. It’s always a good idea to discuss with a Loan Officer first regarding your ability to qualify for a home loan before you choose a Real Estate agent. On the other hand, a Real Estate agent can also guide you and direct you to the right Loan Officer to get the process started. They will work as a team to help you to reach your goal of home ownership. At Indus Financial LLC, we always have your best interest in making you comfortable at every step of this process. 

  • Pre-Approval

    The first step in the preapproval process is the choice of a loan officer with whom you can communicate easily. A good loan officer will ask questions and will care about meeting your expectations and needs. An important piece of the preapproval is gathering documentation and providing it as soon as possible. Talk to your loan officer about the best way to get your information to him or her quickly and securely. The more you provide at the beginning, the less likely you are to have any surprises along the way! With some possible changes depending upon your circumstance, here is a list of the basics you’ll want to have ready:

    • Photo ID
    • Most recent one month of paystubs
    • Most recent 2 months of bank statements, all pages
    • Most recent 2 years of w-2’s
    • Most recent 2 years of Federal tax returns, all schedules (not your state return)
    • Information about any other real estate you may own
    • A full two year history of your residence and your employment
  • 5 Things to Know When Shopping for a Home

    Credit history

    One of the criteria lenders look at when evaluating the likelihood that an applicant will repay a loan is “character”. Does this person take responsibility for debts owed? This “character” is evidenced by past history, shown on the credit report. Besides timely payments, there must also be enough credit history, typically two years’ worth and a minimum of three to four revolving accounts.

    Monthly debt

    The Lender will want to be certain that you are not over-extending yourself with total monthly expenses. Ideally, all of your monthly debt repayment added to your new housing expense won’t exceed 43% of your gross income. An experienced Loan Officer can help you with your Debt-to-Income Ration calculation’. At Indus Financial, you can rest assured that your concern on qualifying for the loan will be put to bed with no worries.

    Income

    Some borrowers are surprised to learn that not all of the money they receive from their employer is considered when being qualified for a loan. If you have been on your job for less than two years, any overtime or bonus income might not be added in; only the base salary will be used. The same may be true for commission income. Also, if you work very hard at a part-time job so that you can save up for your home, that savings is counted, but the income won’t be used in your debt-to-income ratios (remember the 43% limit we were hoping for?) unless you have had that part-time job for two years. Be sure to have a clear conversation with the loan officer about all of your income so that we don’t count on income that can’t be used in the calculations.

    Assets

    With most mortgage programs, you will need a down-payment and closing costs. Sometimes you may be asked to show reserve funds as well (money you don’t spend, but that you could access in an emergency; a retirement account may satisfy this.) Your bank statements will be reviewed not only to see how much you have available, but to see where it’s received from. If your bank account has grown as a result of saving from your paychecks, or from a legitimate and documented gift, that’s fine. But if you deposited “green cash” in the account, there could be a problem, so allow the loan officer to see those statements to be sure all is fine!

  • Home Loan Process Fees

    A home purchase requires you to budget and organize your finances very specifically. There are several different fees associated with the process, and having the funds available to pay those fees when they occur will be crucial towards your goal of owning a home.

    Down payment

    The formula here is simple: The more money you can pay up-front, the less you will need to borrow, and the less you need to borrow, the less you need to pay each month for your mortgage. Under some circumstances, you may still qualify for a mortgage with little to no money down, so make sure to discuss your options with us.

    Closing costs

    There are several individuals and organizations involved with any home purchase, and their services incur fees. You will need to prepare your budget for appraisal costs, attorney fees, lender fees, and costs related to title company services. We will help you estimate the total for these additional fees.

    Insurance

    By law, any homeowner must attain an insurance policy to safeguard against losses due to fire, flood, or storm damage. You can either pay this premium separately, or use escrow to include your premium payment along with your mortgage payment. Shop around to get the best possible price.

    Home inspections

    You will obviously want to know your new home inside and out before you make a purchase, and the best way to get a full picture is to employ the services of a professional home inspector. This cost is separate from the mortgage lending process; it is paid to the inspection company and is not refundable, even if the home purchase itself does not go through.

    Attorneys

    There are many legal matters involved with a new home purchase, and they can be confusing to navigate without the aid of an attorney. You may wish to contract this legal help to review contracts, resolve any disputes between yourself and the seller, and make sure all of your documentation is properly filled out and processed.

  • Closing

    The final and most exciting event of the home buying process is the closing. At the closing, you’ll sign a closing package containing numerous documents including your final mortgage note and settlement sheet outlining your agreement with the seller. Before you dash out the door to close the deal, make sure you have the following items and information:

    Required funds

    Bring a cashier’s check for your down payment and closing costs. Make the check out to yourself – you’ll endorse the check to the title company at the closing.

    Location

    Write down the time and address of the title company – along with the phone number. If you’re running late, call the title company and ask them to inform the closer of your situation.

    Extra time

    PERL strives to streamline the loan process – and is always on time. However, third parties can cause delays. Don’t plan any major events – especially a moving deadline – too soon after your closing, unless you’ve arranged for an alternate person to supervise your move.

    Power of attorney

    Many clients plan to sign their documents on behalf of themselves AND their co-owners. This can ONLY be done with a Power of Attorney document stating that the absent borrower gives the present borrower signatory privileges for the closing.

    Identification

    Bring at least one form of picture identification such as a driver’s license, state ID or U.S. Passport. Please ensure that this documentation has not expired.