Mortgage Basics 101

I just found the house of my dreams…now I need a mortgage. Where do I go? Who do I talk to? What do they need?

You might be surprised to find that these are very common questions. The best answer to all of them is do your research, be accountable, and be INFORMED. Applying for a mortgage is a little more involved than shopping for a car, but not much (and some might say it’s a little easier).

In general there are 2 basic types of mortgages, fixed and adjustable rate. Underneath the umbrella of these two categories are a wide variety of programs and variations. Fixed rates are the most common, and give you a definite payment and timeline of amortization. Adjustable rates offer you a lower initial payment, but the structure allows your rate to increase according to market factors and you may end paying a significantly higher rate than when the mortgage began.

When speaking with a loan officer or mortgage lender, you will need the following from each individual who will be listed on the loan:

• 2 years of W-2’s and federal returns
• 1 month most recent pay stubs
• 2 months bank statements

Most importantly, be open, honest, and partner with your mortgage lender and loan officer.

Advanced Mortgage Services is conveniently located on the South Shore in Braintree, Norwell, & Plymouth.

For additional information on services offered by Advanced Mortgage Services please call 781-659-6555, 508-747-9520, 888-665-6345, or visit www.ams-loan.com. A Fair Housing and Equal Opportunity Lender, Advanced Mortgage Services is a fully insured and licensed Massachusetts Mortgage Lender and Mortgage Broker (license #MC3702.)

0 Down Loans

While it seems that we have all heard about the subprime mortgage disaster there are still reputable programs available to help acquire a mortgage and become a home owner for little money up front.

Fannie Mae has a pilot program called ‘Affordable Advantage’. This program is available in 3 states (Massachusetts, Wisconsin, & Idaho) to a limited number of borrowers, and can help you to purchase a home for as little as $1,000 down. The criteria include:

• First time home buyer
• 30 year fixed rate mortgage
• Documentable employment history
• Good credit (scores of 680 – 720)
• Participated or undergone credit/housing counseling

There is a fair amount of controversy and concern with this program. One of the biggest concerns is that in a time of declining home values, it is quite possible that the new home owner could immediately be ‘underwater’ when putting such a small amount of equity into the initial purchase of a home.

The important thing to note is there are options out there. Mortgages and home ownership are complex and significant matters. Fortunately, we have an amazing staff of loan officers at Advanced Mortgage Services who can guide you through your options and educate you to the proper choice.

Advanced Mortgage Services is conveniently located on the South Shore in Braintree, Norwell, & Plymouth.

For additional information on services offered by Advanced Mortgage Services please call 781-659-6555, 508-747-9520, 888-665-6345, or visit www.ams-loan.com. A Fair Housing and Equal Opportunity Lender, Advanced Mortgage Services is a fully insured and licensed Massachusetts Mortgage Lender and Mortgage Broker (license #MC3702.)