What would be worth to know about mortgage?
Please be advised that variable interest rates (ARM) are lower than the fixed rates, however, so if the client is not planning to hold the property for more than 1-5 years, it is advisable to choose one of the ARM rates mentioned above
Purchasing an owner occupied property will get the “ best terms”, and the investment property will cost a bit more on the mortgage side.
Property can be purchased with different ownership rights, but will not affect the mortgage terms.
May be used when evidence shows Borrower owns 100% of the business and has access to funds.
Gifts: not permitted
All documentation must be translated to English and all currency converted to U. S. Dollars:
Salaried: Letter from employer on company letterhead (including company’s name, address and phone number), stating number of years employed (minimum of 2 years), position, annual income in U. S. Dollars.
Self Employed: Letter from Independent Certified Public Accountant, on CPA’s letterhead, stating borrower’s company’s name and address, annual income U.S. Dollars.
Please be advised that some loans will have a pre-payment penalty for 1- 3 years, which means that if the buyer pays off the loan during the first 3 years, prepayment penalties my apply.
However, it is also important that some lenders have a “soft prepayment penalty”, which means that if the buyer sells the property, he/she does not have to pay a penalty, (there is only a penalty if he/she just pays off the loan but keeps the property.)
Nevertheless, it is important for us to know in advance if the client is likely to sell the property before 3 years, so that we can provide a loan without a prepayment penalty if and when it is possible to do so.