Nashville home loan info


THE FIRST STEP (before shopping for a home) is to PRE-QUALIFY.
  • Lenders can pre-qualify you over the phone. Based on verbal information, they can TENTATIVELY quote your 1) maximum PURCHASE PRICE OF A HOME; and 2) lowest interest rate.

  • Have ready gross income, monthly payments, AND account balances (such as car, child support, credit cards, school loans, etc.) READY to give them. Have your last 2 years income tax statements ready to refer to.

  • You can shop for best interest rates over the phone BEFORE sitting down with the lender who quotes the best rates. Disclose to each lender what you are doing. You might start with the bank that handles your checking account. They have good reason to work with you competitively. When talking with lenders be sure to ask each the same questions:
    1. What are the fixed annual INTEREST RATE options you can offer me?
    2. HOW MANY POINTS will I have to pay with EACH interest rate option? NOTE: 1 point = 1% of loan amount. (Usually an out-of pocket expense paid at closing).
    3. What is ORIGINATION FEE with EACH interest rate option? (Usually out-of-pocket expense paid at closing).
    4. Would an Adjustable Rate Mortgage (ARM) be a better option for me? NOTE: This mortgage typically starts at a MUCH lower interest rate, which means a lower house payment. The interest rate then goes up every 1 to 3 yearswith a CAP interest rate for the life of the loan. If you plan to resell in 1 to 3 years this might be best.
    5. For what period of time can I lock in a rate while I shop for a home? Will a lock (or re-lock) cost me anything? If interest rates go down, will my lock rate go down in direct proportion?
    6. What loan-to-value (LTV) options do you offer: 100%, 97%, 95%, 90%, etc. (for instance at 97% LTV you put down 3%).
    7. Will MORTGAGE INSURANCE be required (usually Yeswith less than 20% down)? If so, how much will it raise my monthly payment?
    8. What would be my EXACT PI (principal and interest) monthly house payment at my maximum loan allowed?
THE SECOND STEP is to choose the ONE lender you feel best about and start the PRE-APPROVAL LETTER process by meeting in their office. Once you provide verifying documents your pre-approval letter takes about a week.
THE THIRD STEP is to include your pre-approval letter (or that it is in process) with offers.It is not uncommon for seller to have SEVERAL offers on the table SIMULTANEOUSLY. If you have a pre-approval letter, yours will be considered ABOVE those who dont.

IF YOU ARE A FIRST-TIME or LOW INCOME HOME BUYER, let the lender know this. Ask about government incentive loans (FHA, THDA, etc.). With good credit and/or a co-signer, you might get a 95% to 103% loan and/or have your closing costs (about 3% of mortgage amount) included in your loan or paid by the government. If you are especially interested in the LOW INTEREST RATES and LITTLE OR NO DOWN PAYMENT of a 1st home loanand if the Lenders on the Lenders page do NOT specialize in that type loanask them to refer you to someone who does.

OVER THE PHONE disclose ACCURATE, COMPLETE income information about you and your spouse. Mention RENTAL INCOME property. Typically 75% of gross rents can be added to your BASE employment income. Disclose any questionable financial or credit facts about yourself and/or your spouse. With this, the lender can give you QUICK pre-approval AS WELL AS the maximum mortgage amount they can finance for you. They will also let you know if a loan will NOT be possible through them. Sometimes a few negatives (even bankruptcy, etc.) can be solved with some creative thinking, resulting in loan approval.


"Buying or Selling a home? Let Moses show you the way!"
Moses Carlota
Reliant Realty