Do you know the difference between Gross and Net Income for Mortgage Borrowers?

It is important to understand the difference between gross and net income and how both figures factor into the mortgage process.  Most borrowers think about how much of their net income they should spend on their monthly mortgage payment when determining what size mortgage they can afford. Most lender mortgage qualification guidelines look at a borrower's monthly gross income (and debt) to determine what size mortgage they qualify for.

Gross Income

                      -Monthly gross income is the amount of money you make before any

Are you aware of the basic FHA Condominium Requirements?

Here are some basic requirements HUD looks for when approving a condominium complex:

-  The units must be at least 50% owner occupied. In other words, if there are 100 units in the complex, at least 50 of them need to be owned by the person who lives there. No more than 50 can be owned by a landlord and rented out.

-  No more than 15 percent of the owners can be more than 60 days delinquent on homeowner dues

-  There can be no pending litigation against the condo. This means no one is trying to sue the condo complex, and the complex is not trying to sue anyone.

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There are lots of types of mortgages- how do you know which one is best for you?

You're right - there are many types of mortgages, and the more you know about them before you start, the better. Most people use a fixed-rate mortgage. In a fixed rate mortgage, your interest rate stays the same for the term of the mortgage, which normally is 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your mortgage payment will be, and you can plan for it. Another kind of mortgage is an Adjustable Rate Mortgage (ARM). With this kind of mortgage, your interest rate and monthly payments usually start lower than a fixed rate mortgage.

What do you need to take with you when you apply for a mortgage?

If you have everything with you when you visit your lender, you'll save a good deal of time.

Curious as to what your mortgage will cover? Take a look

Most loans have 4 parts: principal: the repayment of the amount you actually borrowed; interest: payment to the lender for the money you've borrowed; homeowners insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders; and property taxes: the annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year. Most loans are for 30 years, although 15 year loans are available, too.

In addition to the mortgage payment, what other costs do you need to consider?

Well, of course you'll have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. A broker here at Miller Mortgage will be able to help you get information from the seller on how much utilities normally cost. In addition, you might have homeowner association or condo association dues. You'll definitely have property taxes, and you also may have city or county taxes. Taxes normally are rolled into your mortgage payment. Again, we will be able to help you anticipate these costs.

If you have any questions give us a call 

Upcoming seminar

Housing: Creative Solutions, Options and Challenges


This seminar is intended for special needs persons, and/or their families, who are about to need housing or are having difficulties with current housing arrangements.
We will start with a lecture format that will provide practical tools you can use, and an overview of benefits programs, including:

How do you know if you can get a loan? Take a look here

First off, you could start by using our simple mortgage calculator to see how much mortgage you could pay. If the amount you can afford is significantly less than the cost of homes that interest you, then you might want to wait awhile longer. But before you give up, why don't you contact us. We will help you evaluate your loan potential. Another good idea is to get pre-qualified over the phone by talking to one of our loan officers, it is free. Then you'll know exactly how much you can afford to spend, and it will speed up the process once you do find the home of your dreams.


"NO DOC" loans are back!


The term “No Doc” is usually defined as no income, no asset, and no employment verification. Typically, self-employed, unemployed, seasonal workers, and new immigrates generally struggle to meet strict requirements to qualify for loans. A loan with few to no documentation is easier to qualify for, but generally carries a significantly higher interest rate. Essentially, all the borrower must document is their credit history (in the form of a credit report), and the lender will use this alone to determine if they are suitable for home loan financing. 



How much money will you have to come up with to buy a home? Read below to find out

Well, that depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house.


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