A better way to buy a home.
Company NMLS : 227262
ABOUT
USA MORTGAGE
At USA Mortgage, a subsidiary of DAS Acquisition
Company, LLC., our mission is the unrelenting pursuit
of perfection, and we pride ourselves on the lending
excellence and the superior level of service that our
status as a mortgage bank enables us to provide.
This
means
that
USA
Mortgage will see you through
all aspects of the loan process
from the time you meet one of
our mortgage professionals to
the day you sit at the closing
table, and ultimately fund your
loan with its own money—no waiting for the corporate bigwigs halfway
across the country to cut your check! To borrowers and Realtors ©,
being a mortgage bank means you can expect a home financing
experience free of hassles and headaches. Complete control means
having in-house operations such as processing, underwriting, closing
and funding.
USA MORTGAGE IS A
FULL SERVICE
MORTGAGE BANK.
Here at USA Mortgage we follow a very organized and stable system
to achieve the best results for you. We have created a routine on
every file to be very efficient and accurate for your benefit.
As our underwriters are reviewing the files, they may require additional
information. The housing market is changing quickly and this will add
more guidelines and new documents to our
lending department.
We will be in touch with you regarding these conditions required. The
goal is to get these back to the underwriting ASAP.
Reza Abadi
| Branch Manager
NMLS: 156613 | MO: 1192- MLO
I have been calling Columbia, Mo my
home for the past 17 years. I am
proud graduate from Hickman High
School. I pursued a major degree
in computer science and a minor
in math. In 2006 my brothers
and I opened Southside Pizza
and Pub, which I am proud
to say is still open and doing
well. I am happily married to
my beautiful wife, Rebecca and
we have two wonderful children;
Ethan and Leyla. In my spare
time I enjoy spending time with my
family and socializing with friends. I
believe to establish a good relationship
in any transaction, knowing one another is
the key. It helps create trust and a sense of security.
My clients are like friends and family to me. I make a conscious
effort to stay in touch on a more personal level. I have come to
realize it’s all about the relationships we create and develop. I truly
cherish all my clients and my colleagues.
10STEPS
to become a homeowner.
1
2
3
4
Loan Application and Pre-Qualification
The first step in the process is to complete a full loan application. Once your application
is received, an experienced mortgage professional will guide you help determine which
financing options are best for you!
Documentation
Paperwork supporting the loan application must be submitted and verified. Information
commonly sought includes pay stubs, two years’ tax returns, W2 and 1099 forms, copies of
photo ID’s, and bank account statements verifying the source of the down payment, funds
to close, and reserves.
Home Shopping
Begin shopping for you’re your new place to call home! A licensed real-estate professional
will help you determine your needs and desires, and present many options to you. Once
you find the right place, the terms of the sale will be negotiated, including the price and
potentially the terms of the loan being sought.
Begin the Loan Process
After going under contract your mortgage professional will put together the best loan deal
for you. The next step is to meet with your mortgage professional and their team to review
the loan terms and sign the initial paperwork. Then your mortgage professional’s team
begins processing all your documentation. At this time they package your application and
documentation together as best as possible to present your credit worthiness to a licensed
mortgage underwriter.
5
Underwriting
A mortgage underwriters job is to asses the risk of lending you, the applicant, money
to purchase your home. They will consider factors such as credit history, employment
history & income, and your ability to repay when determining if they will approve your
file or not.
6
Inspection & Appraisal
7
Conditional Approval
8
9
10
It is in your best interest to conduct an inspection of the property your are purchasing
with you real-estate professional and a licensed home inspector. The home inspection
will check for any possible structural and material defects in the property and then you
can decide if you want to ask the sellers to have any of these items fixed before you
close on the home. Lenders do not require a home inspection, but they do require
an appraisal on all home sales. The appraiser job is to assess the true “market value”
of the property to make sure the sales price and loan amount support the negotiated
terms.
After the underwriter reviews a loan applicant’s file, a conditional approval is issued.
This means we are approving your loan application but may need some additional
documentation before final approval is issued. This is also our loan commitment,
or commitment to lend the money as long as you are able to supply the extra
documentation.
Final Approval
After you supply the requested documentation to clear the conditions the underwriter
placed on the file, they will review again and issue their final approval. This means
we are clear to close and its time to begin finalizing settlement figures with the title
company.
Closing
Closing usually takes place at the title company. At this time all of the final loan
documents are signed and the documents transferring title to your name will
be recorded with the county.
Congratulations
You are now a new homeowner.
LoanTypes
FHA
This is a government loan which has
been around for years and it has been
taking a much bigger portion of market
these days.
• 96.5% financing, need only 3.5% downpayment.
• Loan will have 1.75% up-front MI (Mortgage
insurance) and this can be financed into the loan.
So, the total financing would be 98.25%.
• Monthly MI will be charged regardless
of amount of down-payment. Here is the
breakdown of Monthly MI.
30 Years
LTV>90%
LTV<90%
15 Years
LTV>90%
LTV<90%
Monthly MI
Monthly MI
1.35%
.70%
1.3%
.45%
USDA
USDA (United States Department of Agriculture) loans are very
aggressive loans for rural areas. Visit eligibility.sc.egov.usda.gov
to determine if a property is in an eligible location.
• 100% financing with no down-payment is one of the top options USDA offers.
• There is an up-front fee which gets financed to the loan (similar to FHA). The upfront fee for USDA is at 2.00%.
• USDA didn’t use to have any monthly MI which made it one of the best loans in
nation, but as of October 2011 there is .5% monthly MI and this amount will never
go away regardless of the equity in property.
“Ranked #1 for USDA Loans in Missouri”
-USDA
• USDA will allow closing cost and fees to be financed to the loan as long as the
appraisal value does support the addition.
• There is income eligibility for USDA loans which varies by county and numbers of
family members. Refer to the site above for income eligibility.
• USDA’s credit criteria is more relaxed compared to conventional loans and offer
very aggressive interest rates.
VA
This loan was designed to offer long-term financing to eligible
veterans. VA loans are another government loan which offers a
lot of unique benefits.
• 100%
payment.
financing
with
no
down
• Up-front fee for VA varies on the status
of veteran, the number of usage of VA
loan in past and the purpose of loan.
Typically a first time home buyer using
VA will pay 2.15% up front fee which will
get financed to the loan.
• If a veteran is disabled and the
percentage of disability is within the
guidelines they are not required to pay
the up-front MI.
• There NO MONTHLY MI for VA loans,
this makes the loan one of the most
powerful and beneficial financings in our
industry.
• Credit criteria are easier compare to
conventional loans.
Call us today to
determine your eligibility!
We will order the documents you need to
get certification.
Conventional
This loan is offered by private investors
and it’s not a government loan.
• 95% financing requires minimum of 5% down-payment.
• Interest rates in conventional loans are determined by
down-payment, credit scores, debt to income (DTI) and
the loan amount.
• There is no up-front MI required for these loans.
“More loans closed
than any other privately
owned mortgage bank in
Missouri (2013)”
• There will be monthly MI if the down-payment is less
than 20% but USA Mortgage does offer alternatives for
this and we can compare the different options.
JUMBO
This is another private investor loan, designed for loan amounts
above the conforming limit, which is $417,000 in most area.
•
Options with as little as 10%
down-payment for 90% financing
•
Like conventional loans, interest
rates are determined by downpayment, credit scores, debt to
income (DTI), and the loan amount
•
No up-front financed MI
•
Same as conventional loans,
there will be monthly MI if the
down-payment is less than 20%,
but USA Mortgage has many
alternatives and we can compare
the many different options
MHDC
First time home buyer program offered by the states.
• MHDC down-payment assistance can be useful for Conventional and FHA
products.
• MHDC will allow borrowers to use 3% down-payment assistance.
• There are income limits in this program.
• The interest rate for MHDC loans are set by the MHDC office and clients can
check that online.
“2013 Lender of the Year”
-MHDC
RENOVATION
Renovation Loans are offered by FHA with their 203k
program or with conventional loans. This program is called
Home Style Renovations. Allowing for refinance or purchase,
these loans have all FHA features plus allowing home buyers
and owners to use the future value of their home to get money
for renovation.
• Minimum loan amount: $50,000
(Including improvements)
• Maximum Loan Amount $271,500
(Including improvements) or FHA
Maximum loan amounts by counties
for home style renovations.
• Loan Types: 15 years or 30 years
fixed purchase or refinance loans.
• Conventional: For 203k renovations
• House must be currently be (or soon
be) owner occupied.
• House must be at least 1 year old.
Home improvement costs must be
completed by approved, licensed and
insured contractors.
Other loan options with USA Mortgage
• FHA one time close construction
loans.
• Manufacture loans (must follow all
rules and guidelines).
• NO PMI loans with 5% down.
• Cash-out refinances.
FAQ’S
FREQUENTLY ASKED QUESTIONS
Q: What are fixed and adjustable rate mortgages?
FIXED RATE MORTGAGES
These programs are typically either on a 15 year or 30 year amortization or repayment schedule.
These programs provide the most security in the sense that the required monthly principal and
interest payments will not change for the life of the loan. This is because the interest rate is fixed
for the entire life of the loan, thus it is called a 15 or 30 year fixed program.
ADJUSTABLE RATE MORTGAGE
These loans are referred to as adjustable rate mortgages (ARM’s), because the interest rate
will change or adjust on a predetermined schedule. ARM’s have an initial fixed period that the
interest rate will not change or adjust. After this initial period the interest rate will change or adjust
based on a market index plus a margin. The market index for ARMS may be an average one
year treasury bill index as published in the Wall Street Journal or in our Hourly Market Update
Section. The margin is predetermined and is
typically between 2.75% and 3%. So, if the one
year treasury bill index is 5.5% and your margin is 2.75% on the date of your first adjustment,
your new rate would be 8.25%. There are limits to how much your interest rate can adjust in any
given adjustment and over the life of your loan. A periodic rate cap, would limit the amount of
any single adjustment which is 2% in rate on USA-Mortgage loan programs.
Q. What is a Good Faith
Estimate?
Q. What is a “Truth-In-Lending” disclosure
and what does it mean for you?
This is a disclosure, required
by law, that every lender must
provide to the borrower within
3 days of application. This is a
“best” estimate of all the figures
associated with acquiring your
property loan. USA-Mortgage.
com will send this with your initial
application.
This disclosure shows you your Annual Percentage Rate
(APR), Finance Charge, Amount Financed and Total Of
Payments.
The APR was discussed above.
The Finance Charge is the total amount of interest
calculated at the interest rate over the life of the loan, plus
Prepaid Finance Charges and the total amount of any
required mortgage insurance over the life of the loan.
Q. How does an interest rate lock work?
At USA-Mortgage an interest rate lock
guarantees your interest rate for 30 days from
the date your application is received (unless
you have specifically asked your loan officer for
a 15 day lock). A lock does not obligate you to
a loan, as technically you are not obligated to
any loan until it closes. It just eliminates the risk
of interest rates increasing. If interest rates fall,
we can not re-lock with the lender at the lower
rate, so if you are comfortable with an interest
rate you can be assured that the interest rate
will be available when you close. The purpose
of a lock is to provide an opportunity for you to
arrange to complete your mortgage and real
estate transaction before the lock expires. This
allows you to budget, plan your affordability,
and purchase a home without having to worry
about it changing before you actually close
on your loan. Otherwise, interest rates may
increase and by the time you close on your
home, you may not be able to afford or qualify
for the loan on your home. Interest rate locks
provide needed security. Since lenders are
absorbing interest rate risk they charge for
taking on this risk. For instance, typically a 60
day lock interest rate is slightly higher than a
30 day lock interest rate. Therefore, when you
shop for mortgages, a 7% interest rate with a
60 day lock is a better deal than a 7% interest
rate with a 30 day lock.
“Always stand on principle...
Even if you stand alone.”
-John Adams
Mortgage
Terms.
These are the key terms you should know.
Adjustable Rate Mortgage (ARM)
A mortgage in which the interest rate is adjusted periodically
based on a pre-selected index and margin.
Amortization
Means of loan payment by equal periodic payments calculated
to pay off the debt at the end of a fixed period, including accrued
interest on the outstanding balance.
Annual Percentage Rate (APR)
The interest rate that reflects the cost of a mortgage as a yearly
rate on the mortgage, because it takes into account points and
other credit costs. The APR allows home buyers to compare
different types of mortgages based on the annual cost for each
loan, however not all lenders calculate APR the same way.
Buydown
The lender or/and home builder subsidize the mortgage by
lowering the interest rate during the first few years of the loan.
While the payments are initially low, they increase when subsidy
expires.
Discount points
Prepaid interest assessed at closing by the lender. Each point is
equal to 1% of the loan amount, i.e, two points on a $100,000
mortgage would equal $2,000. Discount points are charged to
reduce the interest rate or can be assessed as additional risk
based loan level price adjustments. (LLPAs)
Earnest money or Escrow Deposit
Money given by a buyer to seller as part of purchase price to bind
a transaction or assure payment.
Mortgage Insurance (MI)
Money paid to insure the mortgage when the down payment is
less than 20%.
PITI
Also know as total monthly housing expense, this is acronym for
principle , interest, taxes and insurance.
Title Insurance
Title insurance protects a real estate owner or lender against
any loss or damage they might experience because of liens,
encumbrances, or defects in the title to the property, or the
incorrectness of the related search.
573-397-6090
33 E. Broadway St. 290
Columbia, Mo 65203
www.missourimortgagesource.com
Company NMLS: 227262 Missouri, Tennesee, Iowa, Illinois and Texas Resideial Mortgage Licensee