Mortgage Process Easy As 1-2-3

Step 1: Pre-Qualifying Interview

Our initial conversation is an opportunity for you to describe exactly what your financial needs are and what you want to accomplish with your mortgage financing. This will take 15 to 20 minutes and can be done by telephone.

During this step we will determine:

• Purchase a new home
  
• Home improvements or renovations
  
• Obtain a better rate and/or term
  
• Payoff high interest credit cards
  
• Your preferred terms and conditions
  (Fixed/Adjustable/15yr/30yr/Interest Only Option Arm)
  

Step 2 : Structure Your Loan

We begin to structure a loan for you based on the following:
CREDIT REVIEW / FICO SCORE
Your Credit Rating is the single most important criteria used to determine your credit worthiness and what mortgage programs and rates are available to you.

The three independent credit rating agencies compile and report the records of your debts and history of repayments. They also show any minor blemishes with credit history in your past. The result of the analysis is a score between 400 and 850.

Your score must be 700 or higher from at least two of three agencies to qualify for the lowest rate and the majority of programs.

Scores of 620 to 699 are average. There are many funding opportunities in this category, but you may not have as many choices of rates & terms as with a higher score.

Scores of 500 to 619 means mortgage financing is available, but the rate is generally higher.

LOAN TO VALUE (LTV) RATIO
LTV is a ratio between the amount you want to borrow and the actual value of the property. Most Lenders allow you to borrow up to 95% LTV. In some instances, you can borrow up to 107% of the value of the property. The property appraisal determines the value of the property.

DEBT TO INCOME (DTI) RATIO
DTI is a ratio between your monthly gross income (before tax income) and your estimated monthly debts. Your DTI should not exceed 36%, however some Lenders will allow a DTI as high as 55%.

SELECT THE MORTGAGE
With these numbers, together we have a picture of your financial situation and what loan programs are available to you. Keeping in mind your needs and objectives, we can then evaluate and determine which loan programs are the best fit. Then you choose the program.

• ORDER APPRAISAL The appraisal determines the value of the home.
• TITLE SEARCH The Title clears the property from any liens or encumbrances.

Step 3 : CLOSE and FUND

Your Mortgage Consultant is with you every step of the way. You'll be prepared for your closing with everything you need, including a full understanding of the benefits and requirements of your mortgage. You'll also have the knowledge that, with North American Funding Corp's help and guidance, you've selected the right funding option for your present and future financial goals.