• Rent vs. Buy. Buying a home is one of the biggest investments you'll ever make, so you want to be sure that you are ready to make the leap. As a homeowner, you'll benefit from the equity you keep, tax deductions, and just the pride of ownership. But make sure the time is right. Predicting future job relocation, unstability at work, or other changes to your income will help avoid common pitfalls for new homeowners. Determining your long-term ability to pay the mortgage is part of Jenny's effort to practice Ethical and Responsible Lending. Use our Rent vs. Buy calculator to help decide if buying makes financial sense for you.
• How much can you afford? Creating a budget makes you a smart and responsible homebuyer. Buying a home is a long-term commitment, so knowing how much you can afford to spend on the down payment, closing costs, and monthly payment will help you find the right-sized home. The typical range for the down payment is 3-20% of the sales price while closing costs usually are 2-5% of the loan amount. Use our Mortgage Qualifier calculator to help determine how much home you can afford. See also How much can you afford? and Debt-to-Income Ratios.

• Rate affects monthly payment. The lower the interest rate, the lower the payment. Use our mortgage loan calculator to help determine your monthly payment based on any given rate.
• Fixed Rate vs. Adjustable. A fixed interest rate gives  you a secure rate that does not change over the life of the loan. An adjustable rate can be attractive to homeowners who plan on staying in their home for a short period of time. learn more 
• Lower your rate with points. A discount point is an up-front fee that lowers your annual interest rate and total interest due over the life of your loan. Read Should you buy points?
• What is the Annual Percentage Rate (A.P.R.)? The A.P.R. is designed to represent the "true cost of a loan" to the borrower, expressed in the form of a yearly rate. This way, lenders can't "hide" fees and upfront costs behind low advertised rates. See also Rates and A.P.R.
• When to lock your rate. Did you know that interest rates fluctuate daily according to market conditions? Lock-in your interest rate to protect your rate from going up before you head to the closing table. Jenny will help you decide when the time is right. See Jenny's "Best Guess" Rate Lock Advisory Tool. 

• Fixed Rate Loans. With a fixed-rate loan, your monthly payment of principal and interest never change for the life of your loan. Your property taxes may change, and so might your homeowner's insurance premium part of your monthly payment, but generally with a fixed-rate loan your payment will be very stable. Fixed-rate loans are available with 40-year, 30-year, 20-year, 15-year, and 10-year terms. You might choose a fixed-rate loan if you want to lock in a low rate and have the security of knowing it will never go up. View our purchase loan programs. 
• Adjustable Rate Mortgages (ARM). With an ARM, the interest rate varies based on a particular index, normally the prime lending rate. Most programs have a "cap" that protects you from your monthly payment going up too much at once. In addition, almost all ARM programs have a "lifetime cap" -- your interest rate can never exceed that cap amount, no matter what. You might choose an ARM to take advantage of a lower introductory rate and count on either moving, refinancing again or simply absorbing the higher rate after the introductory rate goes up. View our purchase loan programs. 
• Hybrid Loans. Hybrid loans are an attractive loan choice for borrowers who want an ARM, but feel the need for added interest rate protection during their first years in the home. A hybrid loan gives you a fixed rate term, usually three, five, seven or ten years, with adjustable rates thereafter. These loans are typically expressed as a 3/1, 5/1, 7/1 or 10/1 ARM. The advantage of a hybrid loan is that it gives you a lower fixed rate mortgage than you’ll typically receive with a 30 year mortgage. This is often an attractive loan choice for borrowers who expect to be selling their home within the first 10 years. Learn more or view our purchase loan programs. 
• Jumbo Loans. A home mortgage for an amount greater than $417,000 is called a Jumbo or non-conforming loan. Jumbo mortgages exceed the loan limit set by Fannie Mae and Freddie Mac, two government sponsored, shareholder-owned, private companies that work to make sure mortgage money is available for people to purchase homes. Although they typically have a higher interest rate, Jumbo loans are available for homebuyers who require loan amounts up to $5 million. View our purchase loan programs. 

Step 4: Get Prepared

• Review your credit report. Getting to know your credit history before you apply for a loan will help you understand what kind of mortgage you'll qualify for. You can find out important information like your credit score and any mistakes you may wish to dispute to help improve your credit rating. Before and during the mortgage process, you should refrain from making any credit purchases that may show up on your report and adversely affect your ability to get the mortgage you want. Jenny has worked with borrowers of all credit levels and will work with you to provide a solution that fits your needs. Learn how to obtain a copy of your credit report.
• Free Mortgage Planning Review. A personal one-on-one consultation with Jenny where you can discuss your goals and find out your best options. She will order and receive a copy of your credit report within seconds, review your credit report with you, and provide you a preliminary mortgage plan, usually all done within 10 minutes over the phone. Call 972.731.0165 today for your no-charge consultation.
• Locate your financial records. Save valuable time by gathering together the loan documents that you may need to get your loan approved. Traditional loans require typical documentation to verify income, employment, and assets. Click for a list of required documentation. If you are self-employed, retired, or work on commission, you may qualify for a low-documentation loan which requires fewer documents but usually with a higher interest rate and possible penalty fees. 
• Understanding loan costs. The key to understanding loan costs is to figure out what the fees are actually for. Also known as "closing costs", these fees represent the cost of doing the loan. Closing costs you may be responsible for include loan-related costs, tax costs, and insurance costs. If you are buying a home, some costs may be negotiated with the seller, and your Real Estate Agent will help you negotiate these fees into the sales contract. Read more details about closing costs.
• Jenny's Low Fee Promise. Unlike the big banks with high overhead, Jenny's promise as Senior Vice President of BlueSky Lending LC is to keep your rates and fees as low as possible. With substantially lower overhead, Jenny is positioned to create an attractive loan program to fit your needs and earn your repeat business.

• Pre-Qualification. During the pre-qualification process, we help you determine how much of a monthly mortgage payment you can afford and how much we can loan you. We do this by considering your income and debts, your employment and residence situations, your available funds for down payment and required reserves, and some other things. It's short and to the point, and we keep the paperwork to a minimum. Learn more about pre-qualification. 
• Pre-Approval. It is important to understand that a pre-qualification is just an estimate of what you are eligible to borrow, not a commitment to lend. Getting pre-approved for a loan gives you competitive advantage when the time comes to bid on a home because you have been approved for a loan for a specified amount. Find out how to get pre-approved.
• Jenny is a Pro who knows how to get you approved. Throughout her over 12 year career, Jenny has helped hundreds become homeowners and encountered every possible loan situation.  She has worked with everyone from the first-time homebuyer to the experienced veteran. Jenny has become successful by listening to your needs and goals, understanding your individual financial situation, and customizing a mortgage solution to get you approved and into your new home quickly. Read 4 reasons to choose Jenny and Jenny's Bio.

• Target the Right Home. Consider features you would like in a home such as number of rooms, pool, fireplace, and yard size. Take into account design features like one vs. two story, modern vs. colonial, front vs. back garage, etc. Also consider your current and future needs: proximity to your job, schools, and family; do you need a yard for the dogs and a two car garage?; will you need more bedrooms if you're starting a family soon? Take the time to discuss your needs and find a home you will love for years to come. For a free wish list worksheet to print and take with you while touring homes, visit Realtor.com.
• Work with a Professional. Why work with a Real Estate Buyer's Agent? Because they know the current market, price trends, and neighborhood conditions in the area you're looking for. They also know how to negotiate your sales contract and close the deal on your new home. And they will help you shop homes, tour listings, and use all available tools like MLS, the Web, and their network of referrals to make sure you find the right one.  Best of all, there is no cost to you to use a Buyer's Agent because they are paid a commission from the seller when the home sells. A Licensed Agent is also known as a Realtor. Learn more about why you should use a Realtor from Realtor.com. Jenny has worked with hundreds of Realtors and can help you find the right Agent. Ask Jenny about referring a Realtor from her list of personally recommmended Partners.

• Get the right fit. The key to getting your loan approved is to make sure you get the right "fit" from the start. This fit will make sure you and your loan meet the Lender's Underwriting guidelines, the basis for approval. Based on the data from the loan application you provided, Jenny will develop a loan program around you and use her extensive knowledge of Lender's requirements to make sure that every loan she starts is a loan she closes.
• Get a Home Inspection. If you are buying a home, you need to know exactly what you are getting. A home inspection, performed by a professional home inspector, will reveal any hidden problems with the home so that they may be addressed BEFORE the deal is closed. You should require an inspection at the time you make a formal offer. Make sure the contract has an inspection contingency. Then, hire your own inspector and pay close attention to the inspection report. If you aren't comfortable with what he finds, you should back away from the deal. Although not typically a lender requirement, home inspections are highly recommended for your piece of mind. Typical fees range from $200-250. Ask Jenny for a list of her personally recommended Home Inspectors. If you are concerned about wood damage, most Home Inspectors can also conduct a termite inspection for an additional fee. Learn more
• Submit loan documention. During the pre-approval process, you will receive Jenny's Welcome Packet which includes your loan application, disclosures, and an initial checklist of documents we will require to process the loan. Among these documents is a copy of the sales contract. You may also be required to provide additional documentation during loan processing if more information is needed. Read documenting assets and view homebuyer's checklist.
• Order Property Appraisal. In many cases, lenders need a professional, independent appraisal of the property you want to buy to ensure that it is worth at least as much as they are being asked to lend on it. If required, Jenny will order the appraisal and schedule the date with you. Typical appraisal fees are $350-500. Learn more about appraisals.
• Order Title Search. Your loan closing will most likely occur at a Title, or Escrow company. Prior to closing, we will work with the Title company to order a title search, title insurance, a survey of your property's boundries, and a flood certificate. If a new survey is required, typical third party survey fees range from $350-500.
• Order Homeowners Insurance. A homeowner's insurance policy is a package policy that combines more than one type of insurance coverage in a single policy. There are four types of coverages that are contained in the homeowners policy: dwelling and personal property, personal liability, medical payments, and additional living expenses. Homeowner's insurance, as the name suggests, protects you from damage or loss to your home or the property in it, and is a requirement of many lenders. Learn more
• Lock-in your rate. A rate lock or a rate commitment is a lender's promise to hold a certain interest rate and a certain number of points for you for a specified period of time while your application is processed. This prevents you from going through your whole application process and at the end of it finding out the interest rate has gone up. Jenny will recommend the right time to lock-in your rate to prevent any rate changes during the processing period. Learn more about rate locks. See also Jenny's "Best Guess" Rate Lock Advisory Tool. 
• Underwriting. Once you have submitted the necessary loan documents, Jenny will review your loan file and prepare it for submission to Underwriting for loan approval. At this time the Underwriter may request any additional information they need to help the decision-making process. Once the Underwriter has granted final approval, your loan will be ready for the next step: loan closing.

• Schedule closing meeting. Your closing meeting usually takes place at the Title/Escrow company on weekdays during business hours. Jenny and the Escrow Agent will arrange the date and time with you. Learn more about closing the sale.
• What to bring to closing. Be prepared to bring a money order or certified bank check for the down payment and closing costs. Jenny will let you know ahead of time the amount you should bring. Also bring your driver's license for identification.
• Consider an Escrow Account. If you plan to include property taxes and insurance as part of your monthly payments, the Closing Agent will setup an escrow account to hold your reserves. If not, you will be responsible for making your property taxes and homeowners insurance payments every year on your own. Jenny can help you decide your best option.
• Review HUD-1 Settlement Statement. The HUD-1, also known as the settlement statement, is a prescribed form from the U.S. Department of Housing and Urban Development (HUD). This form itemizes all charges imposed on the borrower and all charges imposed on the seller in connection with the settlement of your real estate transaction. The Title company completes and provides the HUD-1 Settlement Statement usually one business day before the closing date. Jenny will help you review the HUD-1 to make sure there are no surprises. Learn more
• Receive Truth-in-Lending (TIL) Disclosure. Important information provided by the Lender disclosing details of your loan including the amount financed, total payments over the term of the loan, total finance charges, monthly payment schedule, and Annual Percentage Rate (APR).
• Receive your Mortgage or Deed of Trust. A mortgage is actually the formal document proving the legal claim or lien on a piece of property that you give to the lender who holds it as security for the money you borrowed. The lien is recorded in public records. On a mortgage, you pledge the property as security for the repayment of your loan, but you do not transfer title to the lender.
• Receive the Note. A binding legal document that obligates you to repay the mortgage loan at a stated interest rate during a specified period of time.
• Get your keys! Once your loan has funded, it's time to get the keys to your new home from the Title company. Congratulations, you're now a proud homeowner!