BUYING
A HOUSE
MORTGAGES FOR
BEGINNERS
Why learn about the Mortgage
Process?
It can be easy to get overwhelmed with all of the information out there
when you’re planning to buy a home. We want you to feel informed and
confident during each step of the process. Part of that means automated
updates and digital signing for convenience, but we also want you to
know that the personal element of picking up a phone and getting your
questions answered by is always available to you.
With such a huge financial investment on the line, speaking to a mortgage
specialist is more important than ever. At Christensen Financial, Inc., you
get the peace of mind of knowing you’re in good hands of a person who’s
invested in your success.
If you haven’t spoken with a Mortgage
Specialist yet, we’re happy to connect you
with a Christensen Financial, Inc. Specialist
in your area who can help.
Call us: (407) 986-4036
Your Personal Guide to
Buying a home
Buying a home is a big deal! We take the guesswork out of mortgages, and
help you get a stress-free experience you won’t regret. We make sure you
know what to expect from start to finish.
Your experienced Loan Specialist will be there to guide you from your first
meeting to moving day - and beyond. This guide will help keep track of
your homebuying journey. We’ll walk you through typical milestones and
clear up confusing mortgage terms and processes along the way.
Your Path to Homeownership
Talk to a home
Become a Next Step
Introduction to a
loan specialist
Approved Buyer
Realtor
Or Get Pre-Approved
MobilityRE App
Find
Make
(Set Alert Criteria)
Dream Home
An Offer
Negotiate
Contract
Home
Appraisal
offer
Acceptance
Inspection
Title Search
Full
Closing
& Commitment
Loan Approval
Disclosure
Celebrate! It’s
Move in
closing day!
Many Loan Programs are out there -
which is Right for You?
If you’re looking to purchase a home this year, then it’s important to know
your loan options and understand what best fits your situation.
We’ve narrowed it down to the 5 most common mortgages in the U.S.
Conventional: This is the most common loan option and meets the
needs of most people. Due to lack of government backing for these, they
do require better credit to qualify, but the cost is considerably lower than
most comparable government-backed loans.
FHA: If you don’t qualify for a conventional loan, FHA loans may be for
you. FHA loans are backed by the government and have a lower down
payment, credit score, and income requirement.
VA: Have you served in the U.S. military, or are you currently in the military?
If so, you may want to look at VA loans. VA loans are earned benefits
offered to all active duty and retired military personnel. VA loans have
highly competitive pricing, no mortgage insurance requirement, and the
option to wrap the down payment into the loan principal. There are even
more benefits for disabled vets.
USDA: This type of loan is designed for rural borrowers, and is ideal for
those who can’t get conventional financing. USDA loans are managed by
the Rural Housing Service and offers flexible credit criteria.
Non-traditional: Several types of loans fit into the non-traditional category:
Jumbo, Zero Score, Interest Only, Adjustable Rate, etc. These loans offer
versatile methods of financing for select borrowers. If conventional
methods of homeownership are not an option for you, then a
non-traditional loan might be a great alternative.
Many states have local mortgage
programs that may fit your
needs as well. Talk to your CFI Loan
Officer to explore options in your area.
Call us at: (407) 986-4036
A
of concerns. On any given day, different things can impact interest rates.
Here are six variables that may affect your rate:
Home price and loan amount: the price of your home minus your
1
down payment will determine how much you borrow which
determines how much your interest rate will be.
Down payment: Most of the time, a higher percentage down payment
2
means a lower interest rate.
Loan term: 15-year or 20-year term loans generally have lower interest
3
rates than a 30-year loan.
Interest rate type: Interest rates cen be fixed or adjustable. Fixed rates
4
do not change over time. Adjustable rate mortgages (ARMs) starts with
a fixed periodm and then fluctuates based on the market.
Loan type: Different types of loans have different rates (see page 4 for
5
details).
Credit score: : Your credit scores is based information collected from
6
credit bureaus. Typically, this is called your FICO score and is based
upon your credit history.
Interest is the percentage of your loan that’s charged for borrowing
money. APR shows how the interest rate will affect your payments over the
course of a year, and includes any additional fees and potential mortgage
insurance associated with the loan. The APR helps you compare the cost
of one loan to another. The APR is the only way you’ll know the true cost
of your loan.
QUICK TIP: Don’t solely focus on
interest rates. Interest rate may be
the same from loan to loan but fees
can vary. Make sure you know what’s
included in calculating the Annual
Percentage Rate (APR) to properly
compare your loan options.
Get CFI’s Next Step Approval
When you’ve decided what type of loan fits your situation best, you’re
ready to become a Next Step Approved Buyer.
Pre-qualified, pre-approved, and Next Step Approved—is there a difference?
The type of approval you choose can make all the difference when you’re
ready to make an offer on a new home. It’s important to know the power
behind the types of approval.
BEST
BETTER
Next Step
GOOD
Certified Buyer
Pre-Qualification
Pre-Approval
Pre-Qualification
Any loan officer can tell you’re “pre-qualified.” Pre-qualification is based
on information you provide, it doesn’t verify your income or assets. With
pre-qualification, you’re not actually approved for financing. This can be a
big problem if you’ve invested months of time and effort finding the right
home, only to have it sold from underneath you while you’re trying to get
your loan approved.
Pre-Approval
Standard Pre-Approval takes option takes more time than a pre-
qualification since you’ll need to submit financial documents for your
lender to review. With standard pre-approval, you can see how much
house you can afford before you start looking. However, a standard pre-
approval doesn’t mean a mortgage underwriter has reviewed your file,
resulting in a less reliable approval.
Next Step Certified Buyer
Your financial documents have been reviewed by an actual underwriter
and you’ve been approved for financing on a new home, subject to the
approval of your desired property. You’ve done a lot of work up front,
making the homebuying process quick and smooth preparing for that
moment when you find the right home. As a Next Step Approved Buyer
you have peace of mind that your funds will be approved when it’s time to
sign on your new home.
Going through the Next Step Approved Buyer process up front helps catch
many of the hiccups early on and prevents any issues from coming up last
minute. Being a Next Step Approved Buyer is the best option, especially
when there is a lot of competition. Make sure your offer stands out!
Let the #HouseHunting Begin!
Once you’ve made it to Next Step Approved status, you will have a solid
idea of what you can spend on a new home. It’s time to start shopping for
your dream home! You’ll need a team, and your real estate agent is a key
player. Your agent will work with you every step of the way to help you find
the best home.
When looking for a Realtor® it’s best to work with someone who has been
referred to you by a trusted source and is good at negotiation. A good
Realtor® will be able to tell you the future marketability of homes within
different neighborhoods.
You can get a competitive advantage in the market by getting direct access
to the home property database Realtors® use. The MobilityRE® app is the
most up-to-date and complete home search tool on the market. You can
even get alerts of new properties or price changes on your favorite homes.
Shop for a Hom
Here is how to get it:
1. Download the MobilityRE® app from the App Store or Google Play
2. Or text HOUSEHUNT to 32323
3. Start searching with no obligation. You only have to create an
account to tag favorites, and get alerts for specific criteria
If you’re looking for a real estate agent who complements your home
search objectives, let us know. We have access to amazing Realtors®,
and we’d love to introduce you!
VIP CODE
HOUSEHUNT
5 Steps to Your New Home
Some parts of the home loan process you will need to take care of now,
others will occur after you have selected a home.
Here’s a simplified overview of the home loan process:
NEXT STEP APPROVED BUYER
Every successful loan process starts here. You’ll get a pre-approval with
upfront underwriting. Becoming a Next Step Approved Buyer will save you
time and help you start looking for your dream home sooner.
APPLICATION
You’ll complete a loan application, discuss down payments, closing costs,
and interest rates.
PROCESSING
Third-party services (i.e. appraisal), surveys, inspections, gathering
documents, asset verification, employment verification.
UNDERWRITING
Your loan goes through underwriting for final approval. Once all conditions
are approved, the underwriter issues the clear to close.
CLOSING
The underwriter issues final approval, processes closing disclosures,
schedules closing, completes closing, and funds the loan.
The Do’s and Don’ts of the Loan
Process
DO
DON’T
Become a Next Step Approved
Do not add any new credit during
Buyer.
the loan process.
Respond to your Home Loan
Do not make any late payments.
Specialist within 24-hours when
information is requested.
Do not alter or annotate any of the
documents you send to
Be transparent on your home loan
underwriting.
application and include all income
sources.
Do not change employment until
after your loan has funded.
Tell us about all your outstanding
loans and debts and do not co-sign
Do not make any major purchases,
for any additional loan until after
sales or other financial decisions
funding.
until after closing. This includes
home appliances and furniture.
Make your Home Loan Specialist
aware of any major financial
transactions going in or out of your
bank accounts.
It’s closing day! You’ll have a lot of documents to sign—mortgage
documents, tax records, legal disclosures, among other things but in the
end you’ll have the keys to your new home.
Just because your loan closes with Christensen Financial, Inc. doesn’t
mean your service stops there. Your Loan Officer will continue to be
available to you to answer any questions regarding your mortgage.
WE ALSO PROVIDE:
A regular review of your interest rate and market position.
Continued education for you, your family, and friends with regular
market updates and potential opportunities to refinance or move up.
Who Understands You & Your Goals
The most important part of understanding the mortgage process is finding
a lender who understands you and your goals for your new home.
At Christensen Financial, Inc. we believe you can achieve the dream of
owning a home no matter your starting point. We take extra care to get
you a mortgage that won’t leave you feeling confused or regretful.
For nearly two decades, we’ve helped thousands of people buy or
refinance their homes and we’ve realized it’s not just about a smooth
loan process, it’s about stability, a place you can call your own that will
empower you to find financial freedom and peace of mind.
Owning a home doesn’t have to stay a dream. When you’re ready, we’d
love to help set you up for success and prepare you for bigger dreams.
860 N SR 434, Altamonte Springs, FL 32714
NMLS ID # 112516 (www.nmlsconsumeraccess.org)
(407) 986-4036
License(s): Alabama Consumer Credit License 21433 | Colorado Mortgage Company Registrant | DC Mort-
gage Dual Authority License MLB112516 | Arkansas Combination Mortgage Banker/Broker/Servicer License
101560 | Florida Lender License MLD129 | Florida Mortgage Lender Servicer License MLD1715 | Georgia Res-
idential Mortgage Licensee 21045 | Illinois Department of Financial & Professional Regulations MB.6761311 |
Kansas Mortgage Company License MC.0025032 | Louisiana Residential Mortgage Lending Licensee | Mary-
land Mortgage Lender License 18626 | Michigan 1st Mortgage Broker/Lender FL0017515 | Mississippi Mort-
gage Lender 112516 | Missouri Residential Mortgage Broker License 19-2051 | New Mexico Mortgage Loan
Company | North Carolina Commissioner of Banks L-181551 | Pennsylvania Mortgage Lender License 32852
| Oklahoma Mortgage Lender License ML010110 | South Carolina BFI Mortgage Lender/Servicer MLS-112516 |
Tennessee 109381 | Texas SML Mortgage Banker Registrant | Virginia Mortgage Lender/Broker MC-5371
TEXAS COMPLAINTS: CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A COMPANY OR A RESIDEN-
TIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS
DEPARTMENT OF SAVINGS AND ORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS
78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE
AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550.
THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF
POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED RESIDENTIAL MORT-
GAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND
MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM.
FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE