For many people, buying a home may be the biggest purchase they will make in their lifetime, and the right time to buy is different for everyone.  Before making the decision to buy a home, consider the following questions:

How do lenders determine who qualifies for a mortgage?

Lenders take many things into consideration: credit score, the cash you have available for a down payment and closing costs, your income, and your existing debt and financial obligations are just a few.  Two housing ratios are used:

• The housing expense-to-income ratio compares your anticipated monthly mortgage payment (principal, interest, taxes and insurance), to the total gross monthly income (pre-tax) for your household.
• The debt-to-income ratio compares total monthly expense, including the anticipated monthly mortgage payment to the total gross (pre-tax) monthly income for your household. 

How do I know how much money I can borrow to buy a home?

Your mortgage consultant will help you get a preliminary approval that lets you know the maximum loan amount you might be able to borrow.¹  With that information in hand, you can then determine a price range with which you are comfortable.

What is a credit score?

The three credit reporting agencies — Experian, TransUnion and Equifax — serve as a clearinghouse for credit information.  “Credit score” is a term often used to refer to credit bureau risk scores. It broadly refers to a number generated by a statistical model which is used to objectively evaluate information that pertains to making a credit decision (i.e. credit cards, car loans, student loans, etc) that includes:

• Your payment history
• The total amount you owe
• The amount of time you’ve had available credit
• Whether you have any judgments entered against you
• Whether you filed bankruptcy
• The number of times potential lenders have reviewed your credit

Information in the agencies’ reports is evaluated and interpreted into a “credit score,” which help lenders make loan decisions. Credit scores range from 300 to 850, and yours may determine whether you are approved for a loan, the terms of the loan, and the interest rate.

Note: Making large purchases with a consumer loan or credit card just before applying for a mortgage may impact your ability to qualify. So consider your needs and priorities carefully.

If you still have questions about the home buying process, don't worry.  We are committed to providing information that will help you make well-informed decisions about the financing process.  Our mortgage consultants will pay attention to your goals, help you understand your options, and clearly explain how different loan programs work.  So, you can take an informed, hands-on approach to achieving your goal of owning a home.

Contact your local mortgage consultant today!

1. A preliminary approval is based on our preliminary review of credit information only and is not a commitment to lend. We will be able to offer a loan commitment upon verification of application information, satisfying all underwriting requirements and conditions, and providing an acceptable property, appraisal, and title report. Preliminary approvals are subject to change or cancellation if a requested loan no longer meets applicable regulatory requirements. Preliminary approvals are not available on all products. See a mortgage consultant for details.

All first mortgage products are provided by Prosperity Home Mortgage, LLC dba FM Lending Services. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia, Florida, Georgia, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2018 Prosperity Home Mortgage, LLC dba FM Lending Services. All Rights Reserved.

House-to-Home Renovation Loans Offer Options for Agents and Home Buyers

If you’ve been house hunting—or if you’re an agent with a listing that needs work—you’ve probably been there: A home has great bones or offers a lot of space for the money, but some aspects of its condition are likely to frighten most buyers away.  With a unique financing option available for homes in need of renovation, however, the property might actually be more desirable than you think.

Our House-to-Home renovation program is designed to make mortgage financing for properties in disrepair more accessible by combining the estimated costs of repairs and the home's purchase price into a single loan.  Renovation financing can help home buyers turn a house they like into a home they love, and our loan options may help real estate agents present possibilities in a property, leading to a sale.

The House-to-Home renovation program offers a number of advantages:

• The program offers a 30-year mortgage with a fixed interest rate that will remain the same for the life of the loan.
• Purchase and rate-term refinancing options are available.
• Unsafe homes can be made habitable, which can help improve the neighborhood.
• Buyers may be able to get more house for the money and cover improvement costs.
• The square footage of homes can be increased at a lower cost.
• Agents can offer a greater inventory and close more sales.

There are two types of renovation loans: The FHA 203(k) loan programs for properties that won't need structural repairs, and a conventional loan program for properties that do need structural work.  Most types of home improvements are covered with the exception of "luxury" features such as swimming pools or landscaping.

If you choose to purchase, refinance, or market a home that may be eligible for 203k financing, having knowledgeable mortgage professionals to assist you is important.  Whether you are a first-time home buyer or an experienced real estate professional, our renovation specialists can help you find the right renovation loan program for your needs.

Reprinted with permission from RISMedia. ©2017. All rights reserved.

All first mortgage products are provided by Prosperity Home Mortgage, LLC dba FM Lending Services. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also licensed in District of Columbia, Florida, Georgia, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2018 Prosperity Home Mortgage, LLC dba FM Lending Services. All Rights Reserved.

Want instant access to home financing tools and information? We have a mobile app with several features designed to help make the home loan process simpler and more convenient for our clients. From the moment you submit your home loan application to the moment you reach settlement, this app is on your time!

To download our app, you can ask your mortgage consultant to share it with you directly, or you can find it on the Apple App Store and on the Android App Store.  You can also search for “FM Lending Services App” on your mobile device, choose your local mortgage consultant from the list presented to you, and download for instant access to our home financing tools:

• Securely pre-qualify for mortgage financing right on their mobile device.
• Utilize mortgage calculators to instantly calculate monthly mortgage payments, affordability, and refinance options.
• Scan and upload documents to Encompass, our loan originating system, using your smartphone camera feature.
• Track a loan from start to finish in real time and receive loan milestone notifications.
• Get contact information for your local mortgage consultant with the touch of a button.
• Access our blog, helpful articles, and a glossary of real estate/mortgage terms.

Need to find a local mortgage consultant?  Click here to find a location near you!

All first mortgage products are provided by Prosperity Home Mortgage, LLC dba FM Lending Services. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia, Florida, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.
NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)
©2018 Prosperity Home Mortgage, LLC dba FM Lending Services. All Rights Reserved.

If you’re in the market for a home, probably the very first step you’re going to take is determining your price range. And unless you’ve got a nice nest egg in the bank, that amount is going to come down to the monthly mortgage payment you can afford to make.

Or is it?

The mistake many homebuyers make - especially first-time buyers - is only taking the mortgage payment into consideration when deciding the price of the home they can afford. In reality, however, a lot of other expenses need to be factored into your monthly costs as a homeowner before you settle on the price range. So in addition to your monthly mortgage payment, make sure to calculate these other costs and add them into your budget before you start shopping for your dream home:

Utilities: The bigger the house, the more you will spend on electric, heat, internet, etc; make sure you have an idea of these costs based on square footage. Your real estate agent should be able to provide you with these estimates

Taxes: Property taxes vary among cities, counties and states, so hone up on these differences and factor them into how much home you can afford based on where you want to live.

Insurance: Do some research and get a realistic price range on what homeowners insurance is going to cost you for the type of home and properties you’re looking at.

Repairs and maintenance: Are you looking at older homes or new construction? The former may save you money on the purchase price, but you’ll need to increase your budget for repairs and maintenance in the short and long term.

Landscaping: If a big yard is one of your must-haves, make sure you’re budgeting for landscaping costs, or are ready, willing and able to do the work yourself.

Furniture and design: Is your heart set on furnishing and designing the interior of your home to perfection? Or are you willing to live with a slightly outdated kitchen and your old apartment furniture for a few years while you slowly chip away at improvements? Make this decision up front as it will factor into how much you can afford on the purchase price.

While taking the above into consideration may mean looking for a home in a lower price range, you’ll be better off in the long-run - living in a home you can comfortably afford and enjoy.

To help you determine a comfortable price range, check out our Affordability Mortgage Calculator or contact a local mortgage consultant.

Reprinted with permission from RISMedia. ©2018. All rights reserved.

All first mortgage products are provided by Prosperity Home Mortgage, LLC dba FM Lending Services. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia, Florida, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2018 Prosperity Home Mortgage, LLC dba FM Lending Services. All Rights Reserved.

New Home Loan Option Offering No Income Restrictions

So you have decided to buy a home, but you are looking for a mortgage option with a low down payment, flexible sources of funds, and no income restrictions.  Good news!  FM Lending Services now offers HomeSense, a program that may make sense for home buyers in North Carolina.¹  HomeSense presents a responsible path to homeownership for first-time home buyers and low-to-moderate income borrowers that includes stable fixed-rate options.

Here are some advantages of HomeSense:

• No income restrictions
• Flexible down payment sources with as little as 3% down
• Down payment does not need to be from borrower’s own funds
• Reduced, cancelable Mortgage Insurance (MI)
• No credit score required with a 5% down payment
• Boarder/Rental income allowed
• Up to 6% interested party contributions allowed

“As a mortgage company, we are committed to offering stable, responsible financing options to our customers,” said Tim Wilson, CEO of Prosperity Home Mortgage (Prosperity), parent company of FM Lending Services.  “That’s why we are pleased to offer HomeSense—a competitive, fixed-rate loan that matches a variety of clients’ needs and helps prospective home buyers become more confident about jumping into the housing market.”

In addition to a low down payment and fixed interest rate, qualified buyers who choose HomeSense financing will also have an opportunity to receive homeownership education and counseling to help them prepare for the responsibility of owning a home.

Randy Krout, president of sales at Prosperity, expanded on Wilson’s thoughts. “For customers who have limited credit or funds, making sure they are comfortable with their monthly mortgage payment is our top priority,” said Krout.  “HomeSense may be a great opportunity for certain customers to obtain financing and enjoy homeownership for years to come.”

To learn more about HomeSense, contact your local mortgage consultant.

HomeSense may not be the best mortgage product for all borrowers. Please consult your mortgage consultant to discuss your financing options.

1. HomeSense is available in Florida, Georgia, Maryland, North Carolina, Pennsylvania, and Virginia only. Ask a mortgage consultant for the maximum loan amount in your area.

All first mortgage products are provided by Prosperity Home Mortgage, LLC dba FM Lending Services. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia, Florida, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2018 Prosperity Home Mortgage, LLC dba FM Lending Services. All Rights Reserved.