Finding a Mortgage

The mortgage company and professional on this page (Ricardo Cobos and AES Lending) have been selected because in our opinion, you cannot find a better person and company to assist you in your financing.  We cannot guarantee that Ricardo is able to accept additional clients at this time, however, if he cannot help you he may be able to refer you to someone he feels will do a good job.  Should you choose to contact Ricardo, please be sure and mention that we sent you.  He has historically taken special care of our clients.

How much house can I afford? When evaluating how much you can afford for your home and mortgage, lenders usually use two rules of thumb:

  1. Your maximum monthly mortgage payment should not exceed 28 percent of your gross (pre-tax) income.
  2. Your maximum debt load, including your mortgage payment, should not exceed 30 percent of your gross income.

These ratios are typical of those required to secure a conventional mortgage. Lenders will be able to supply details about other types of mortgages, such as FHA or VA loans, which offer more flexible qualification standards. There are many types of mortgages and financial tools available that provide flexibility in interest rates, terms, and down payment requirements.

What’s the difference between being pre-qualified and pre-approved for a mortgage? Typically you will first pre-qualify for a mortgage, then get pre-approved before you have found the specific home you wish to purchase. What is the difference?

  • Pre-qualification: An informal determination by a lender or mortgage broker stating how much mortgage you can afford.
  • Pre-approval: A guarantee in writing by a lender to grant you a loan up to a specified amount. This is different than a mortgage commitment letter in that it is solely based on your being approved for a loan for amount specified and does not approve you for a specific property.
  • Mortgage Commitment : This is your final "Loan Approval Letter".  This must be obtained by the date specified in a Financing Contingency clause in the sales contract.  There may be additional conditions to the mortgage commitment that must be satisfied, i.e. ; proof of insurance, title insurance policy, and other conditions the bank/lender may require. 

What are the advantages of being pre-approved? There are two advantages of being pre-approved for a loan as early as possible in your home-buying process:

  1. Sellers will find any offer you make more attractive if you are pre-approved for a mortgage.
  2. The length of time before closing can be shorter if you’ve completed the steps to securing mortgage approval prior to signing a contract on a property.

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IMPORTANT NOTICE:  SECTION 8 OF THE REAL ESTATE SETTLEMENT PROCEDURES ACT (“RESPA”) AND THE FEDERAL REGULATIONS ISSUED THEREUNDER PROHIBIT THE PAYMENT OF REFERRAL FEES OR KICKBACKS TO ANY PERSON OR ENTITY THAT MERELY REFERS THE LOAN TO THE ACTUAL LENDING INSTITUTION.