Golden Rock is a 5-star , award winning, top Mortgage Broker that help simplify the complex mortgage process since 1989. We’ll partner up with you every step of the way to help you achieve your goals through comprehensive support and broad spectrum of tools and expertise. We have strong relationship with several top lenders who offer a wide variety of programs with minimal or no lender-specific requirements. This allows you to have the confidence that you are getting the BEST mortgage finance for your specific situation.

You can use our online get a quote tool to connect with a loan officer and find out approximately how much you can borrow before you start shopping for a house.

·         Once you have that number, you can provide more information and allow your loan officer to run your credit report to verify your assets and income.

·         Your loan officer can also help you obtain a complete written credit approval, subject to an appraisal, before you make an offer on a house.

Keep in mind that there’s a difference between being preapproved and prequalified.

When you’re prequalified, you’ve given your mortgage lender all the basic info they need to help you determine what loan program and what amount you may prequalify for. When you’re preapproved, your lender will have collected the necessary documents and verified your information to move the loan forward to underwriting and approval.

  • Most recent 2-year W-2’s
  •  30 day pay stubs
  • Last 2 months of most recent Bank Statements (all pages)
  • Social Security Award Letter & Pension statements (if applicable)
  • Current Mortgage Statement and Hazard Insurance Declaration Page
  • Legible copy of Driver’s License
  • Loan Application – please complete and sign Loan Application  

                Documents required for self-employment: –

  • 1099 for the last two years.
  • Form 1120S or K1.
  • Both personal and business full tax returns for the last two years.
  • Proof of self-employment.
  • Current balance sheet and profit/loss statement.

·         Apply for a new credit card, auto loan, or other types of credit.

·         Co-sign a loan with someone.

·         Change jobs, become self-employed, or quit your job.

·         Skip payments on existing credit accounts, utility bills, or loans.

·         Charge up your existing credit on big-ticket items, like furnishings for a new house.

If you must do any of the above, talk to your loan officer before you take action. They can help you figure out the best course of action without your loan become negatively affected.

·         Income ratio: Your total monthly housing expense divided by your pre-tax monthly income.

·         Debt ratio: Your total monthly housing expense plus any recurring debts, i.e., car payments, monthly minimum credit card payments, and other loan payments, divided by your monthly income.

·         Standard loan underwriting guidelines suggest a max 28 percent income ratio and 36 percent debt ratio, which may vary based on personal finances, loan program, and down payment.

While not taking on any debt and paying for everything with cash seems like a logical choice if you feel you can’t afford your lifestyle, no credit also means bad credit in the eyes of a lender. There’s bound to be a time when you can’t buy something with cash, like buying a house (in most cases). So, we recommend opening at least three credit card accounts and making occasional purchases.

To manage your debt and maintain healthy credit, keep credit card balances to less than 30 percent of your credit limit. Also, don’t close long-term credit lines, even if they’re not being used. Your longest-standing credit card account might be a huge contributor to your credit score health — and the mortgage rate you qualify for.

·         Cash reserves: The extra funds available to you after your loan closes.

·         These funds reflect your ability to make monthly mortgage payments, and different loan programs may have different cash reserve requirements.

To estimate your ability to pay your monthly mortgage, we recommend setting aside about 28 percent of your monthly income. This number factors into your debt-to-income ratio, mentioned above.

For many people, any number between 25 and 32 percent of your income is manageable. But, relying on a higher percentage of your monthly income could put you at risk if you have a big financial change, like rising insurance costs or loss of employment.

·         This insurance helps protect a lender if a borrower forecloses on their property.

·         Borrowers pay for the mortgage insurance, allowing lenders to grant loans they might not have otherwise.

·         Mortgage insurance may be required on some loans when a down payment is less than 20 percent.

Mortgage interest, insurance paid, and property taxes are normally tax-deductible for your principal residence. As confirmed by TurboTax, buying a house is an investment, but the tax deductions may be large enough to lower your tax bill “substantially.” Interest/insurance payments on a residential mortgage (as well as mortgage interest/insurance on a second home) may be fully deductible.

Likewise, selling one home and buying another means you might be able to protect the profits on the sale of your home, as long as it was used as a principal residence for any two of the last five years.

You could protect up to $500,000 in tax‐free profit when filing federal taxes jointly or $250,000 when filing single. This added bonus of tax‐sheltering the profits on the sale of your home may be available to you once every two years. Homeowners who take advantage of these deductions could save hundreds of dollars in annual taxes.

·         Also called discount points, mortgage points work as a one-time fee you can opt to pay if you’d like to get a lower interest rate.

·         One mortgage point equals one percent of your total loan amount and may drop your interest rate one-eighth to one-quarter percent lower.

You may have noticed by now that lenders charge their own fees, which can vary greatly. One lender may choose to waive a fee but add on another. Another lender might quote an interest rate before adding or subtracting discount loan points that can change the total cost of a mortgage.

·         Annual Percentage Rate: The cost of your total loan credit calculated into an annual interest rate, also called APR.

·         The APR includes loan points and other prepaid finance charges to reflect the true yield on the loan, which is why the APR is normally higher than a loan interest rate.

·         To check that you’re getting the most competitive loan, you can compare “apples to apples,” or APR to APR, on different loan programs.

After you’ve applied for a home loan, you can expect to receive a Loan Estimate (mentioned above) from your lender. If you applied for more than one type of loan, an LE will be broken down for each loan type. The APR for a loan will be listed on page 3 of the LE, in the comparison section.

Most of the time, you’ll notice the difference between your APR and your loan interest rate right away. An APR is often higher than an interest rate because of added fees.

An APR is essentially a comparison tool. Interest rates, loan fees, and points may be all over the map. But the APR can always be used to accurately compare multiple loan products. And in cases where an interest rate looks a little too attractive, the APR can tell you the real story.

You can use this handy trick to separate the good from the bad when choosing a mortgage: Compare a loan’s APR to its advertised interest rate. An APR that’s noticeably higher than the interest rate may be a red flag that added costs are attached to the loan. Your loan officer can also help you compare and better understand loan fees.

·         Having good credit helps to get a more competitive mortgage interest rate, but perfect credit isn’t required.

·         If you have a low credit score or have filed bankruptcy in the past, you can work toward improving your credit.

When in doubt, contact loan specialist. At Golden Rock, we’ll go the extra distance to help you buy a home, even with spotty credit.

Don’t let credit score intimidate or keep you away from the information you’re entitled to. Checking your free credit report yearly, available from one of the three nationwide credit reporting agencies, can help you keep tabs on your financial status — which becomes especially important when you’re buying a house.

Yearly credit checks can also help you catch any problems that pop up early on, like mistakes on your credit report or instances of fraud.

·         Yes! Get in touch with your loan officer, and they can lock in the interest rate you were quoted.

·         You’ll be provided with a written Rate and Price Determination Agreement, detailing interest rate, loan terms, and time period for the rate lock.

·         You could use a rate lock up to 60 days, with the option to float down to a lower rate if rates drop within 45 days of closing. **

You can use get a quote tap to get prequalified for a mortgage and get a rate quote based on your individual financing needs and specific loan requirements. This interest rate quote is customized. So, it’s tailored to your individual profile and financial situation. The rates reported in the media are source material. Oftentimes, those rates may be expired by the time you read about them.

Once you’re prequalified and receive your rate quote, make sure you get a full, written term sheet that shows the interest rate, loan term, total monthly payment (including insurance and taxes), total cash-to-close, and line-item list of closing costs before you lock your rate with a lender.

·         Just like it sounds, prepaid interest on a mortgage is paid in advance.

·         For most mortgages paid on the first of the month, you’re paying for interest accrued the previous month.

·         Depending on when you close, you may pay prepaid interest that has accrued for the days left in the month — the interest accumulated from May 15 to May 31, for example.

In some cases, your lender may recommend a no-cost home loan to keep upfront costs as low as possible. As a borrower, you won’t have to pay any loan points, closing costs, or fees for credit reports, appraisals, and other lender charges normally lumped in at closing. This may look like opting to add your closing costs on to the total amount of the loan.

Or, you may opt to increase the interest rate on your loan by three-eighths to seven-eighths of a percentage point, depending on the loan amount. If you have a larger loan, you’ll see a smaller increase. For example, instead of paying a 3.5 percent interest rate and $2,500 in closing costs, you’ll pay nothing at closing with an increase to a 4 percent interest rate. ***

When asking about interest, take a moment to talk to your loan officer about other out-of-pocket expenses, like down payment, closing costs, and loan-related fees. Additional expenses that come with buying a house may include: taxes, homeowners’ association dues, utilities, homeowner’s insurance, and any home improvements you intend to make.

·         The extra costs paid at closing may include attorney fees, prepaid interest, insurance fees, documentation fees, and more.

·         Closing costs may vary by borrower based on your mortgage loan type, property location, and other factors.

·         You can find your closing costs broken down in your Closing Disclosure, provided by your loan officer at least three business days before your expected closing date.

Closing costs may range from 2 to 5 percent of your purchase price. The buyer and the seller are both responsible for paying different costs at closing.


Closing costs paid by the buyer:

·         Half of title and escrow fees — such as title insurance, transfer taxes, notary fees, and more.

·         Lender fees — to cover the act of obtaining a mortgage, including the appraisal.

·         Homeowner’s insurance — normally, the first year of hazard or homeowner’s insurance is paid upfront on closing day.

·         Additional costs paid by the buyer may include the owner’s title insurance, inspection fees, earnest money, RE Brokerage admin fees (if applicable), and credit report fees.

        Closing costs paid by the seller:

·         Half of title and escrow fees — such as title insurance, transfer taxes, notary fees, and more.

·         Commissions — estimated at around 5 to 6 percent for the average real estate commission.

·         Loan payoff — to cover any outstanding mortgage balances.

·         Additional costs paid by the seller may include optional home warranty, prorated property taxes, RE Brokerage admin fees, pest or septic inspection, and prorated HOA fees, if required.

Buyers, you can also ask a seller for closing cost assistance as part of your offer on a house. It also helps to do your homework before closing day so that you don’t sit down at the table unprepared. Review your Closing Disclosure, which you should receive three days before closing. Check over the charges, compare it to your Loan Estimate, and clear up any inconsistencies with your lender.

·         At closing, which normally takes place at the title company, you and any other borrower listed on your mortgage agreement will need to bring in a valid driver’s license.

·         Any funds required at closing must be brought as a wire transfer or cashier’s check made out to the title company.

Closing is the final step in the homebuying process. A closing might also be called a settlement, where you and any other parties sign all necessary documents to complete your mortgage transaction. Sign these documents, and you take ownership of your home loan. You’ll then be the proud owner of a new house.

Talk to our Loan Officers or Leave us a message instead