How do I know if I qualify for a home loan?

Your best option is a home loan pre-qualification - an evaluation of your credit worthiness based on your income, assets, debts and past credit use. By evaluating these factors, we're able to approve you for the maximum home loan amount for which you qualify. To obtain your home loan pre-qualification today, apply now with our quick and easy online application or contact a Euro International Mortgage consultant at our toll free number 1-877-251-EURO (3876).

What is a credit report and why is it important?

Along with your income, assets and debts, your history of credit management is an important factor when applying for a home loan. Three national credit reporting agencies continuously monitor your use and re-payment of credit, including credit cards, car loans, student loans and any other short- or long-term loan.

All three agencies report information in five distinct categories:

• Identification - Your name, address, Social Security number, employer, date of birth and spouse's name (if applicable).
• Credit History - current and past payment history of all open and paid accounts.
• Negative information, such as late payments, can remain here for seven years, while bankruptcies can linger for up to 10 years. If you feel information reported is untrue or inaccurate, you should contact the appropriate credit agency immediately and file a dispute for any information you feel is not true.
• Collection - Any creditor who has turned over an account to a collection agency is listed.
• Public records - Items of public record that affect your finances (bankruptcies, divorce decrees, child support and other judgments) are listed here.
• Inquiries - Anyone who has checked your credit in the past 18-24 months will be listed.

Because each credit agency has different reporting techniques, and because two or more credit reports will be compared when evaluating your home loan application, you should know what each report contains and correct any errors. You can and should dispute any mistakes.

How do I order a credit report?

How do I order a credit report?

You can order your credit report (usually for free) or dispute information that it contains by contacting the agencies listed below:

• Equifax
  Box 740241
  Atlanta, GA 30374
  (800) 685-1111
• Trans Union
  Box 390
  Springfield, PA 19064-0390
  (800) 888-4213
• Experian
  Box 949
  Allen, TX 75013
  (800) 422-4879

What is a credit report and why is it important?

What types of loans does Euro International Mortgage offer?

Euro International Mortgage offers a wide array of great loan programs tailored to fit your individual needs in either a fixed-rate mortgage or an adjustable-rate mortgage (ARM) option. Some of the home loan products we offer include:

• 10-, 15-, 20-, 25-, 30- or 40-year fixed-rate loan terms
• 1-, 3-, 5-, 7- or 10-year adjustable-rate loan terms (up to $417,000)
• 2-, 3- or 5-year jumbo adjustable-rate loan terms (over $417,000)
• First-time homebuyer home loan programs – FHA/VA
• Jumbo/Super Jumbo Loans (over $417,000)
• Commercial Loans
• Imperfect Credit - B/C Loans
• Reverse Mortgages
• Joint-Venture Equity Financing

What is a combo loan?

Which loan is best for me?

What is a combo loan?

A combo loan refers to the combination of a first and second mortgage. It is ideal for borrowers who want to avoid paying private mortgage insurance (PMI) or avoid a minimum down payment. For example, an 80/20 combo reflects two mortgages, the first one at 80% of the acquisition cost and the other at 20%.

What types of loans does Euro International Mortgage offer?

Which loan is best for me?

Which loan is best for me?

We'll help you choose the best home loan for your needs based upon three key factors.

• How long you plan to keep your home
• How much you need to borrow
• How much financial risk you're willing to accept

To learn more about the wide variety of home loan products that Euro International Mortgage offers, you can request information online or speak directly with a mortgage loan consultant by calling our toll free number 1-877-251-EURO (3876).

What types of loans does Euro International Mortgage offer?

What is a combo loan?

How do I determine the amount of my down payment?

The most important factor in determining the size of your down payment is the amount of cash immediately available to you:

• Most home loan programs have minimum down payment requirements based on the amount you need to borrow compared to the actual value of the home. This amount is commonly known as the loan-to-value ratio or LTV for short.
• You can calculate the LTV by dividing the loan amount by the appraised value. The bigger your down payment, the lower your LTV. For example if you bought your home for $100,000 and put $25,000 down, your LTV would be 75% (75,000/100,000).
• A low LTV not only gives you a better chance of a home loan approval, it can also affect the interest rate of your home loan - that means a lower monthly mortgage payment!

Use our Payment Calculator to compute monthly payments and see how different down payment amounts impact your payment.

What is the difference between an interest rate and an annual percentage rate (APR)

An Interest rate is the monthly cost you pay on the unpaid balance of your home loan.

An annual percentage rate (APR) includes both your interest rate and any additional cost or prepaid finance charges such as points, the origination fee, the initial private mortgage insurance and underwriting and processing fees (Your actual fees may not include all of the items above.) The APR is a universal measurement that will help you compare the cost of mortgage loans offered by different mortgage lenders.

What is the difference between fixed-rate and adjustable-rate mortgages?

What is the difference between fixed-rate and adjustable-rate mortgages?

• A fixed-rate mortgage is a loan in which the principal and interest payments never change during the life of the loan. Fixed-rate mortgages are beneficial to those who are on a fixed income, (adverse to interest rate change) and those who prefer fixed payment schedules.
• Adjustable-rate mortgages are advantageous for those who do not plan to stay in their home for a long time, for those borrowers who do not qualify at higher fixed interest rates and those who can financially handle fluctuating payments. There are numerous adjustable-rate mortgage programs. The rate may fluctuate and increase throughout the life of the loan.

What is the difference between an interest rate and an annual percentage rate (APR)

What is title insurance?

Title insurance is a one-time expense designed to guarantee that the seller legally owns the property and that there are no outstanding legal or financial claims against it. For you to obtain a home loan, a title insurance company must research the property deed to confirm that there are no liens against it.

What is title insurance?
What is homeowner’s insurance?
What is Windstorm/Hail or Hurricane Insurance? When is it required?
What is Flood Insurance? When is it required?
What is private mortgage insurance (PMI) and how does it work?
When is PMI required?
Is it better to get PMI or a piggyback (combo) loan?

What is homeowner’s insurance?

Homeowner's insurance protects your property against disaster and liability. This insurance protects you and the lender's investment in your property. You are required to be insured against unexpected hazards (such as fire) and expensive personal liability claims (injury to others while on your property). Prepayment of the first year's homeowner's insurance will be part of your closings costs. Your ongoing insurance premiums will become part of your monthly mortgage payment.

What is title insurance?
What is homeowner’s insurance?
What is Windstorm/Hail or Hurricane Insurance? When is it required?
What is Flood Insurance? When is it required?
What is private mortgage insurance (PMI) and how does it work?
When is PMI required?
Is it better to get PMI or a piggyback (combo) loan?

What is Windstorm/Hail or Hurricane Insurance? When is it required?

There are other hazards for which an Investor or Bank may require coverage for which are not included on homeowners policies or fire polices. These hazards include but are not limited to Windstorm/Hail or Hurricane perils. There are coastal areas, primarily the Eastern Seaboard and Gulf Coast, where this peril is excluded as standard coverage.

If the homeowner’s insurance policy limits or excludes any required perils such as windstorm/hail or hurricane, then a separate policy covering these perils must be provided covering the items excluded from the homeowner’s policy.

What is title insurance?
What is homeowner’s insurance?
What is Windstorm/Hail or Hurricane Insurance? When is it required?
What is Flood Insurance? When is it required?
What is private mortgage insurance (PMI) and how does it work?
When is PMI required?
Is it better to get PMI or a piggyback (combo) loan?

What is Flood Insurance? When is it required?

Flood insurance is the specific insurance coverage against property loss from flooding. A flood certificate is obtained during the loan approval process to determine whether or not the property being purchased or refinanced is located in a special flood hazard area.

If it is determined that the property is located in a flood hazard area, flood insurance will be required on the loan. If flood insurance is required on a property under the FEMA (Federal Emergency Management Agency) guidelines, the policy must be equal to the hazard coverage. The maximum coverage available is $250,000 on a residential flood dwelling policy.

What is title insurance?
What is homeowner’s insurance?
What is Windstorm/Hail or Hurricane Insurance? When is it required?
What is Flood Insurance? When is it required?
What is private mortgage insurance (PMI) and how does it work?
When is PMI required?
Is it better to get PMI or a piggyback (combo) loan?

What is private mortgage insurance (PMI) and how does it work?

Private Mortgage Insurance (PMI), also known as Mortgage Insurance Premium (MIP), protects lenders against the possibility of default. Private mortgage insurance, underwritten by one of eight companies in the United States today, makes homeownership possible for millions of first-time buyers. You may be billed monthly, annually, by an initial lump sum or some combination of these practices for your mortgage insurance premium. Ask your Euro International Mortgage loan professional if mortgage insurance is required and how much it will cost. Mortgage insurance should not be confused with mortgage life, credit life or disability insurance, which is designed to pay off a mortgage in the event of the borrower's death or disability.

What is title insurance?
What is homeowner’s insurance?
What is Windstorm/Hail or Hurricane Insurance? When is it required?
What is Flood Insurance? When is it required?
What is private mortgage insurance (PMI) and how does it work?
When is PMI required?
Is it better to get PMI or a piggyback (combo) loan?

When is PMI required?

Lenders often require mortgage insurance for loans when the down payment is less than 20% of the sales price.

If I have an existing mortgage is my PMI now tax deductible?

The answer is unfortunately no. At this time, the government is only allowing tax deductible PMI for purchases and refinances that are closed in the 2007 tax year.

Is it better to get PMI or a piggyback (combo) loan?

Every situation is different. A Euro International Mortgage loan professional can provide different loan scenarios that will help you decide what is best for you.

What is title insurance?
What is homeowner’s insurance?
What is Windstorm/Hail or Hurricane Insurance? When is it required?
What is Flood Insurance? When is it required?
What is private mortgage insurance (PMI) and how does it work?
When is PMI required?
Is it better to get PMI or a piggyback (combo) loan?

What is a home inspection? Do I need one?

A home inspection is not an appraisal. It is an evaluation of the general quality of the home with details about the structural condition of the house and the life expectancy of its major systems, such as plumbing, heating and electrical.

The inspection will tell you whether or not your new home is free from obvious - and hidden -defects that can cause significant emotional and financial stress both now and in the future.

You will want - and your home loan may require - a home inspection by a qualified professional.

By making a home inspection a contingency in the purchase contract, you'll have a set amount of time to inspect the home after your offer is accepted. You may also use the inspection checklist as a basis for final price negotiation.

What is the total amount I will pay for closing costs? What do these costs include?

Closing costs typically total between 2% and 5% of the purchase price of the home. These mostly one-time fees include:

• Appraisal
• Title insurance
• Closing transaction fee
• Loan origination fee
• Discount points
• Recording fee
• Underwriting fee
• Processing fee

What are prepaids?
What happens at closing?

What are prepaids?

Prepaids refer to fees you will owe to cover costs such as property tax, homeowner's insurance and pro-rated interest. The lender collects these fees to insure that your taxes and insurance are paid on time.

What happens at closing?

The closing will take place at a title company or attorney's office, depending on your state and local laws.

To close the loan, you'll need to:

• Bring certified funds totaling the down payment, closing costs and prepaid items. The total amount of funds that you'll need will be provided to you the day before in the form of a settlement statement, commonly known as a Housing and Urban Development (HUD) statement. The settlement statement is a key part of the closing and identifies the different fees and charges associated with the loan. The HUD statement will be included in the final closing documents.
• Sign all the applicable documents. After you sign these documents, you'll receive a copy of every document and the keys to your new home!

What is the total amount I will pay for closing costs? What do these costs include?

If I am refinancing, do I need to make my existing mortgage payment when it is due?

Yes. If your mortgage payment is due before your new mortgage loan closes, you should still make any mortgage payment that incurs. The worst-case scenario would be for your old mortgage company to credit you the additional money that you paid on your old mortgage.

Is my Loan-To-Value (LTV) based on the purchase price or appraised value?

When refinancing your home, the LTV is the appraised value compared to the loan amount. For example, if your home appraises for $100,000 and your loan amount is $80,000, your LTV would be 80% (80,000/100,000).

What are escrow accounts and how much do I need in my escrow account?

Escrows are payments you make to the mortgage company for the purpose of paying your taxes, insurance and other costs associated with home ownership. The escrows are included in your monthly mortgage payment, making budgeting easier for these types of expenses. The mortgage company is responsible for the timely disbursement of escrow funds to pay your escrow bills as they come due.

What is an Escrow Waiver?

Borrowers with an escrow waiver are responsible for paying all taxes and homeowner insurance premiums when they are due.