OBTAINING A MORTGAGE ON A RESIDENTIAL UNIT

Obtaining a loan on your new home is not a very difficult process - if you do it correctly, that is .

Here are some tips. It's important to:

- BE ORGANIZED. The more organized you are, the easier and quicker the process. Below is a list of the information you will need when you contact a lender.

- SHOP AROUND. Different lenders have different rates and fee structures. Don't accept the first lender you contact. Ask the lenders to provide you with a list of ALL associated fees, not just the interest rate or the origination fee. There are many additional fees that are associated with obtaining a loan, make sure your lender provides you that information. Armed with this information, you will be able to shop around and make an educated decision. You do not want to have surprises at the closing table.

- HAVE SUFFICIENT CASH. When you contact lenders, make sure you ask them how much financing they will provide. Typically lenders will provide between 80%-90% of the purchase price, but there are more conservative lenders who will allow only a smaller percentage (some even as low as 60%). If your loan is more than 80% of the purchase price, you will be required to purchase Private Mortgage Insurance (PMI) on any amount above 80%. Make sure your lender clarifies to you what the PMI will cost you, and what are its cancellation or termination policies. Not all banks will provide more than 80%, and not all properties fit the PMI companies' requirements. There are situations in which you would qualify for a given amount, but PMI companies will not insure that property. In addition to having 10-20% of the purchase price, you will need sufficient cash to cover closing costs. Will get to that shortly.

Here's a Loan Application Checklist. Make sure you have ALL the information before you contact a lender. This will help speed up the process and will save you unnecessary headaches down the road.

1. Driver's License, State ID, or Passport.

2. Current address and Social Security Number.

3. Previous address if you have been in your current residence for less than two years.

4. W2's/1099s and tax returns for the past two years, all pages including blanks.

5. Paycheck stubs for the last 30 days (2 paystubs if paid bi-weekly, 4 if paid weekly).

6. Name and address of your employer and supervisor, if applicable, and of your previous employer if you've been at your current job for less than two years.

7. If applicable: proof of secondary sources of income (such as pension, child support, annuity, etc.).

8. Last two monthly bank statements or other financial institutions. Include bank name, address and account number, plus the balance for each checking, savings, retirement, and assets account (such as stocks and bonds), all pages including blanks.

9. Current expenses, including housing, credit card and loan payments, child support, and other obligations.

A complete application would require, in addition to all the above:

1. A completed lender's application.

2. A fully executed copy of the sale contract, all pages, addendum and exhibits, including any disclosures if any.

3. Proof of payment of the good-faith deposit (this is due when you enter into contract to purchase, it is typically 10% of the purchase price, and is held in escrow usually by the seller's attorney), such as cancelled check front and back, or escrow letter.

4. Payment for application, appraisal, and other items. The lender will inform you of those charges.

Note:

• The above information is usually required by your lender for each borrower listed on the loan application. This is a general list and is meant as a guideline, not a definitive list. Additional information might be required by your lender.

• Your lender might require you to sign a letter of consent to check your credit.

Below you will find a list of lender I have worked with.

RESIDENTIAL CLOSING COSTS

It is very important to realize that in addition to the actual purchase price, you will be responsible to pay closing costs. There are three categories of closing costs:

1) Fixed fees. Fixed fees are paid irrespective of purchase price or mortgage amount. Condo or co-op association fees are typically fixed. For example: initial contribution to the building's Reserve Fund, Move-In/Out fees, and the like. The broker or owner representative should be able to inform you of all those fees in advance.

Legal fees are typically fixed too. When you retain an attorney, make sure that he or she does not charge by the hours. Use only attorneys that charge a fixed rate. More on that later.

2) Fees that are based on a fixed percentage of either the purchase price or the mortgage amount, such as transfer taxes, mortgage tax, and title insurance. Your lawyer should be able to inform you of those fees.

3) Bank fees. These fees vary from bank to bank. These fees include a large number of items, such as application fee, credit check, document preparation, appraisal, bank attorney's fee, courier and various servicing fee, and the like. Your banker should be able to inform you of all those fees.

Here is an approximate breakdown of those fees. While it is impossible to outline a precise breakdown, the following is close enough to the actual amount and will give you a good idea what to expect.

NYC & NYS Transfer Taxes	Purchase price equal or less than 500K: 1.4% of purchase price Purchase price over 500K: 1.825% of purchase price
Mansion tax (for purchase price of over one million dollars)	1% of purchase price
Mortgage tax	For Condos and 1-2 family house: Loan amount is less than 500K: 1.80% Loan amount equal or greater than 500K: 1.925% Loan amount greater than 500K and NOT a Condo or 1-2 family house: 2.80%
Fee Title Insurance	Approx. $450 per $100,000
Mortgage Title Insurance	Approx. $200 per $100,000
Recording Fees	$200-300
Title closer
Sponsor's attorney's fee	$1000-1500
Lender's attorney's fee	$500-750
Buyer's attorney's fee	Around $1500
Working capital fund contribution	$750
Appraisal
Loan application
Credit report fee	$75-150
Courier fee
Escrow service fee
Management application fee	Varies, some condos don't charge
Move in fee	Varies, some condos don't charge
Move in refundable deposit	Varies, some condos don't charge
Miscellaneous

In addition, at the closing you might be required to prorate the seller for real estate taxes and/or common charges, and/or pay the common charges for the month following the closing.

HOW TO CHOOSE A REAL ESTATE ATTORNEY

There are two types of attorneys: those who close deals and those who break deals. The first, help you get what you want, the latter you should avoid like the plague. The role of a real estate attorney is to assist you in the process, help explain to you what to do at various points in the transaction and prepare you for decisions you'll need to make, act as your advocate, scrutinize legal paperwork involved in the transaction to make sure it's in your best interest, and accompany you to the closing.

Here are some tips on finding an attorney, and what you should expect:

1. Start with collecting some recommendations. Ask friends, family and co-workers, check with an attorney you trust in other matters, and speak with your real estate agent for referrals (although you will want to ask about the lawyer's independence from the realtor).

2. You want an attorney who regularly handles residential real estate transactions, not attorneys who dabble in it. If you are purchasing a condo or a coop, make sure the attorney specifically handles condos and coops. The laws and procedures for condos and coops are not always the same as for other real estate transactions.

3. Search for a local attorney. An experienced local attorney will be familiar with local procedures, will likely to know others in the business and will be able to refer you to home inspectors, mortgage brokers, and other peripherals to the transaction. He or she is likely to have good relations with other attorneys in the area who might be representing the seller, making for a smoother and more amicable transaction overall.

4. Only hire an attorney that charges a flat rate. Avoid attorneys who bill by the hour. They might find frivolous ways to increase the workload, thus increasing the final charge.

5. On a typical condo or coop transaction in the Brooklyn area, expect to pay around $1500. If you are paying significantly more, you are overpaying. Do not haggle with the attorney over legal fees, since is one sure way to get your file placed at the bottom of the pile.

6. Call a few attorneys, talk to them on the phone or schedule an initial consultation (better to meet in person). Ask if they charge for such meetings. Trust your instincts. If you're not comfortable with a lawyer, move on.

FIRST TIME HOME OWNERS CREDIT

Important! This program expires December 1, 2009.

The “stimulus package” authorizes a tax credit of 10% of the home’s purchase price, up to a maximum of $8,000, for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. This is not a tax deduction, but an actual credit, dollar-for-dollar, and it does not have to be repaid. If you are purchasing a home for the first time, please click here for all the information.

http://www.federalhousingtaxcredit.com/2009/faq.php

LIST OF LOCAL LENDERS AND MORTGAGE BROKERS

Luis E. Cano
Loan Officer
Stanley Capital
1200 Avenue of the Americas
5th Floor
New York, NY 10036
(212) 352-2900 x 327
c (646) 260-3855
f (206) 203-1589
luis.cano@stanleycapital.com

Alan N. Trachtman
President
TRACHTMAN & BACH, INC
Mortgage Broker NY, NJ, CT
(718) 623 1400 x 206
(212) 448 0100 x 469
(646) 775 7540 Fax
alan@tbmortgage.com

Phil Greenberg
Director of Lending
Home Bank
80 Maiden Lane
Suite 701
New York, NY 10038
Tel 646-421-2244
phil@home-mortgage-express.com

Norman Calvo
President and CEO
Universal Mortgage Inc.
455 1st Street 2nd Floor
Brooklyn, NY 11215
Phone: 718-210-1140
Fax: 646-808-3506
Norman@universalmortgageinc.com
Normancalvo.blogspot.com
 
Mark Kahn
Director Business Development
First Meridian Mortgage
2607 Nostrand Avenue
Brooklyn, NY 11210
Tel. 718-377-7900 #219
Fax. 718-906-5019
mkahn@greatrate.com
75% financing only

Yves-Marc Courtines
Private Mortgage Banker / President's Club
Ask for 'THE COURTINES SOLUTION' at
Metrocities Mortgage, LLC, an affiliate of Prospect Mortgage
347-744-9252 direct (and SMS)
917-774-0060 mobile (no SMS, plz)
866-404-2432 fax (direct to desktop/no coversheet required)
yves-marc.courtines@prospectmtg.com
myprospectmortgage.com/ymcourtines

Marlon Dean
Senior Vice President
Hawthorne Capital Bank
225 Broadway Suite 910
New York, NY 10007
W.  212-231-0063x5134
EFax. 718-504-3805
mdean@hccbank.com

Edith O'Donnell
Chief Executive Officer
Lyons Mortgage Services, Inc.
42-16 28th Avenue
Astoria, New York 11103
Tel 718.267.2000
Fax 718.956.6350
http://www.lyonsonline.com

Scott van der Marck
Mortgage Consultant
Wells Fargo & Co.
M6533-011
1393 Veterans Memorial Hwy
Hauppauge, NY 11788
&
245 East 50th Street
New York, NY 10022
Suite 4A
631 382-2289 Direct
631 836-1800 Cell
866-358-0275 EFax
scott.vandermarck@wellsfargo.com
Online Applications: http://www.wfhm.com/scott-vandermarck

Chavi Miller
Private Mortgage Banker, Mortgage
Wells Fargo Home Mortgage
N2652-151
530 5th Ave
New York, NY 10036
Tel 212-805-1654
c646-641-8120
chavi.Miller@wellsfargo.com

Tony DeMarco
ISB Mortgage
888.256.4447 x 44
c 732.539.5155
efax 973.969.9244
ademarco@isbnj.com