Pre-Qualification – Houston's #1 Mortgage Broker

With positive news coming from the housing market, lenders are feeling more comfortable offering new loan programs to buyers. Right now, you have the ability to purchase with NO MONTHLY MORTGAGE INSURANCE and only 5% down.

Would you like to know how you can avoid the costly FHA monthly mortgage insurance? You would be surprised on how much money you pay towards the mortgage insurance premium on your FHA and Convention loans.

We have a great new option for you. Here is an example for you to view how big your savings can really be.

We are comparing the monthly savings of conventional 5% down with no PMI vs. 3.5% down FHA loan with monthly PMI and UFMIP (Up Front Monthly Mortgage Insurance Premium):

Example:

On a $200,000 purchase, a buyer using the 5% down conventional option with no monthly PMI versus a standard FHA loan, will save between $350 to $400 a month over a buyer using FHA and its expensive mortgage insurance.

Using 720 Middle FICO SCORE.

FHA with 1.75% UFMIP and 1.35% Monthly PMI

Interest rate: 3.875%

UFPMI: $3,377.50

Loan Amount: $196,376

Principle & Interest payment: $995.01

Mortgage Insurance: $215.53

Principle, Interest and monthly PMI payment: $1210.54

Using 720 Middle FICO SCORE.

Conventional With NO Mortgage Insurance or NO Up Front Mortgage Insurance Premium

Interest Rate: 4.75

Loan Amount: $190,000

Monthly Mortgage Insurance: ZERO

Principle & Interest payment: $991.13

This is a difference of $219.41 which is not a whole lot apparently but over the 360 Months its substantial. $78,987 over 360 monthly payments. That is truly amazing how much you can save.

Don’t hesitate call us now for your loan application today.

For more information about this subject or about loans please contact Frank Marta (NMLS:# 245813/835196) at (713) 373-0345 or email us at info@nuhomegroup.com

If you choose to finance the home purchase with a mortgage, you’ll need to get pre-qualified first. A “pre-qualification” isn’t as robust as a pre-approval, but it’s a good first step to ensure you can purchase the home you desire (or any one at all).

A pre-qualification is a pretty straightforward, simple check to see what you can afford based on your income/debt levels (debt-to-income ratio), assets, down payment, employment history, perceived credit score, and so on.

You can get pre-qualified very quickly and easily with a bank or mortgage broker, but it won’t carry much weight in the eyes of the agent or the seller.

After all, with a pre-qualification you’re simply supplying estimates and your credit report probably hasn’t yet been run (though it should be pulled early on in the process). That said, a pre-qualification, or pre-qual, is just a determination of what you’d likely qualify for if you made an offer and applied for a home loan.

It’s not necessarily a waste of time, but it’s not going to get you very far. You can liken it to running a few numbers to see where you stand, but it cannot be used in place of a pre-approval.

For more information about this subject and about loan questions please contact Frank Marta Texas Home Loan Specialist. Info@nuhomegroup.com or give us a call (713) 373-0345