Affordable Home Loans - Home Mortgage

Affordable Home Loans
9109 Wood Ibis Court, Spotsylvania, VA
(540) 424-5700

The most comprehensive website for ALL your Mortgage and Real Estate needs!

We know that each customer has specific needs, so we strive to meet those specific needs with a wide array of products, investment tools, mortgages and best of all quality service and individual attention.

Looking for a low rate mortgage without the hassle or high- pressure tactics of other online sites? Affiliated with both direct lenders as well as positioning ourselves as competitive brokers, Affordable Home Loans is able offer you the lowest mortgage rates available today, with or without origination or discount points, it's up to you! As Certified Mortgage Planning Specialists, we tailor your mortgage to meet your long and short term financial goals.

We designed this user-friendly mortgage and real estate site to give you all the information you need to assist you in finding a primary residence, second home, investment property, obtaining mortgage loans for your purchase or refinance, and getting you to the closing table with a level of expertise and professionalism unsurpassed in the industry today. We guarantee it!

How Much Can I Borrow?
Picture
The first step in obtaining a loan is to determine how much money you can borrow. In case of buying a home, you should determine how much home you can afford even before you begin looking. By answering a few simple questions, we will calculate your buying power, based on standard lender guidelines.

Click here to Pre-Qualify.

You may also elect to get pre-approved for a loan which requires verification of your income, credit, assets and liabilities. It is recommended that you get pre-approved before you start looking for your new house so you:

1. Look for properties within your range.
2. Be in a better position when negotiating with the seller (seller knows your loan is already approved).
3. Close your loan quicker

LTV and Debt-to-Income Ratios
LTV or Loan-To-Value ratio is the maximum amount of exposure that a lender is willing to accept in financing your purchase. Lenders are usually prepared to lend a higher percentage of the value, even up to 100%, to creditworthy borrowers. Another consideration in approving the maximum amount of loan for a particular borrower is the ratio of monthly debt payments (such as auto and personal loans) to income. Rule of thumb states that your monthly mortgage payments should not exceed 1/3 of your gross monthly income. Therefore, borrowers with high debt-to-income ratio need to pay a higher down payment in order to qualify for a lower LTV ratio.

FICO Credit Score
FICO Credit Scores are widely used by almost all types of lenders in their credit decision. It is a quantified measure of creditworthiness of an individual, which is derived from mathematical models developed by Fair Isaac and Company in San Rafael, California. FICO scores reflect credit risk of the individual in comparison with that of general population. It is based on a number of factors including past payment history, total amount of borrowing, length of credit history, search for new credit, and type of credit established. When you begin shopping around for a new credit card or a loan, every time a lender runs your credit report it adversely effects your credit score. It is, therefore, advisable that you authorize the lender/broker to run your credit report only after you have chosen to apply for a loan through them. For more information on ways to improve your credit score...

Self Employed Borrowers
Self-employed individuals often find that there are greater hurdles to borrowing for them than an employed person. For many conventional lenders the problem with lending to the self-employed is documenting an applicant's income. Applicants with jobs can provide lenders with pay stubs, and lenders can verify the information through their employer. In the absence of such verifiable employment records, lenders rely on income tax returns, which they typically require for 2 years.

Source of Down Payment
Lenders expect borrowers to come up with sufficient cash for the down payment and other fees payable by the borrower at the time of funding the loan. It is generally expected that these funds be borrower's own saving, although a borrower may receive non-returnable gifts towards down payment and other loan fees.