The Loan Process
1. Gather required documents
2. Pre-qualify for a loan
3. Determine which type of loan is right for you
4. Apply for the loan
5. Receive approval
6. Close the loan
7. Rely on Helpbringer Mortgage professionals to guide you every step of the way!
 Application Checklist
- The past year’s W-2 statements and one month of pay stubs. If you are self-employed, please provide the last year’s tax returns and a profit and loss statement.
- Past two months complete bank statements for each bank, stock or mutual fund account – if you wish to speed up the process.
- A recent copy of any retirement,
or 401(k) accounts in your name.
- If applicable, a copy of divorce decree and separation agreement.
Property Taxes
To learn more about property taxes for a particular property in Central Ohio, you may check the Franklin or Delaware County Auditor Sites.
Tax Information in Franklin County Ohio www.co.franklin.oh.us/auditor/
Tax Information in Delaware County Ohio. www.delawarecountyauditor.org
Credit Ratings
Your credit score is used to determine the risk of an individual not repaying a loan. The lower your score, the higher that risk has been determined to be. A company called the Fair Isaac Corporation is responsible for these scores, also known as FICO scores. Credit scores are derived from reports kept by major credit agencies. These agencies track the amount of debt consumers have taken on and whether they pay their bills on time.
Credit scores have a direct impact on your chances of qualifying when you apply for a mortgage. Credit scores range from 350-850. Consumers with scores below 600 may be charged higher loan rates, while those with scores above 600 are generally charged lower rates.
If you are interested in purchasing a home, contact Helpbringer Mortgage now to get information on your credit score and the amount of loan you qualify for.
FAQs
Q. What costs are involved in getting a mortgage?
A. When you close on a mortgage you will pay:
- Downpayment
- PMI: (Private Mortgage Insurance) The amount of your down payment will determine if you will have to pay PMI.
- Closing costs: This includes fixed costs such as loan origination fee, document preparation, credit report, appraisals, inspections, etc.)
- Prepaid interest: This is interest on your loan from the day you close until the last day of the month.
- Title insurance: An insurance policy that protects the buyer or other parties from financial loss resulting from defects with the property’s title.
- Points: A one-time charge you may choose to pay to lower your interest rate.
- Tax Reserve: Real estate taxes may be collected with your mortgage payment.
Q. How can I apply?
A. You may apply now online or contact us today and we will provide personal service.
Q. Can you explain rates and points?
A. In addition to comparing interest rates, you also have the option to pay points to lower your rate. For example, one point is equal to 1 percent of the total amount you are borrowing. If you are borrowing $90,000, then one point is $900; two points would cost $1,800. The points are paid up front, to reduce your interest rate. A Helpbringer professional can help you determine which option is right for you.
Q. What types of loans are available?
A. There are many types of loans available. Click here to get a list and explanation of various types of loans. Your Helpbringer loan officer can help you decide what makes sense for you.
Glossary of Frequently Used Terms
Acceleration Clause
A provision in a mortgage that gives the lender the right to demand payment of the entire outstanding balance if a monthly payment is missed.
Adjustable Rate Mortgage (ARM)
A mortgage whose interest rate changes over time based on an index and a margin. Rate changes are made at prescribed times and within prescribed limits (caps) as defined in the mortgage contract.
Adjustment Interval
On an adjustable rate mortgage, the time between changes in the interest rate and/or monthly payment, typically one, three or five years, depending on the index.
Annual Percentage Rate (A.P.R.)
The interest rate reflecting the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated rate on the mortgage because it takes into account points and other credit costs.
Balloon Mortgage
Usually, a short-term fixed-rate loan which involves small payments for a certain period of time and one large payment for the remaining amount of the principal at a time specified in the contract.
Buy-Down
When the lender and/or the home builder subsidized the mortgage by lowering the interest rate during the first few years of the loan. While the payments are initially low, they will increase when the subsidy expires.
Cap
A provision of an ARM limiting the interest rate or mortgage payment's increase.
Convertible ARM
An adjustable-rate mortgage that can be converted to a fixed-rate mortgage under specified conditions.
Earnest Money
Given by buyer to seller as part of the purchase price to bind the transaction.
Equity
The value an owner has in real estate over and above the loans against the property.
Escrow
Refers to a neutral third party who carries out the instruction of both the buyer and seller to handle all the paperwork of settlement or closing. Escrow may also refer to an account held by the lender into which the home buyer pays money for tax or insurance payments.
Fixed-Rated Mortgage
A mortgage on which the interest rate is set for the term of the loan.
Lock-In
A written agreement guaranteeing the home buyer a specified interest rate provided the loan is closed with that buyer within a set period of time. The lock-in also usually specifies the number of points to be paid at closing.
Mortgage Insurance (Private Mortgage Insurance - PMI)
Money paid to insure the mortgage when the down payment is less than 20 percent. Insurance provided by a non-governmental insurer that protects lenders against a loss if a borrower defaults.
PITI
Principal, Interest, Taxes and Insurance. Also called monthly housing expense.
Points (loan discount points)
Paying points will lower your interest rate for the life of the loan. Each point is equal to 1 percent of the loan amount.
Principal
The amount of debt, not counting interest, left on a loan.
Qualifying Ratios
Guidelines applied by lenders to determine how large a loan to grant the home buyer. The debt-to-income ratio is your current monthly debt on loans and credit cards divided by your gross income. The housing-to-income ratio is your new housing payments divided by your gross income.
Refinancing
The process of paying off one loan with the proceeds from a new loan secured by the same property. This is most often done to get the better interest rates offered by the new loan.
Title
A document that gives evidence of an individual's ownership of property.
Title Insurance
A policy, usually issued by a title insurance company, which insures a home buyer against errors in the title search. The cost of the policy is usually a function of the value of the property, and is often borne by the purchaser and/or seller.
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