Finance

Standard Loan Options

A mortgage broker compared to a standard bank, has greater flexibility in choosing from a multitude of banks that are associated with in order to get you exactly the loan terms you want. For this reason we have a broker available for our clients in Florida. The first thing to realize about the loan programs available are they can be adjusted to suit you - just tell us what you need.

Of course, we will be happy to send you out a good faith estimate (quote) as soon as you like for a specific loan program, but that does not mean we cannot alter things to better suit your needs afterward. It is your responsibility, however, to communicate to us what we need to change in order to make your loan acceptable (ex: less documentation, lower rate, lower closing costs, longer or shorter term, waiving tie-ins and pre-payment penalties) —anything within reason we will often be able to do (please remember that additional fees or changes to terms may apply).

The standard programs listed below, however, will give you examples of our most popular loans. You can have great confidence that these programs, as described, are available to you (a// loans are only approved on an individual basis, after reviewing the client's information):

A. No Document Loan

We called this "no document" because it truly does require the least personal documentation from you of any loan we know of (basically just a copy of your passport). This is, by far, the easiest loan for your efforts.

Attributes:

30 Year Term (Options Available)
Low Monthly Variable Rate (Fixed Options Available)
Minimum 1.5 Cash Flow Payment Option For 10 years
Completely Self Cert (Stated Income and Assets), hence "no documents" required
on your part
3 Year Pro-Payment Penalty (Options for Waiving)
30% Down Payment Required
Fixed Rate Conversion Option Available
Also available with different rates and term lengths (See Website)

B. Low Documentation Loan

Just like the name implies, this loan requires only a little, or "low", documentation from you. Basically, you will be asked to provide two more letters than the "no document" option, but you will also receive a correspondingly, even lower interest rate (expect from a .25 to .5 rate deduction). Still no tax returns or credit reports needed.

Attributes:

30 Year Term Standard (15 to 40 Year Terms Available)
Lower Monthly Variable Rate (Fixed for Various Years Allowed)
Lower 1.20% Cash Flow Minimum Payment Option (For 5 Years)
Easy Documentation Requirements
3 Year Pre-Payment (Waiving and Modifications Available)
Only 20% Down Payment Required
Available with Different Rates and Term Lengths (See Website)

C. Premier Loan

Called "premier" because it offers you the absolute lowest rates we have available. For getting these rates please keep in mind you will need to provide the some documentation on your part to verify income, assets and credit (still not that bad, please see explanatory sheet), but this does result in a rate of usually a .5 to .75 lower than the no document programs.

Attributes:

30 Year Term Standard (From 15 to 40 Year Terms Available)
Lowest Monthly Variable Rate (Fixed for Various Years Allowed)
Lowest 1% Cash Flow Minimum Payment Option (For 5 Years)
Several Documents Required
3 Year Pre-Payment (Waiving and Modifications Available)
Only 20% Down Payment Required
Available with different Rates and Term Lengths (See Website)

Notes For All Loans:

Some of the lenders will allow you to carry a second mortgage of an additional 10% from a private source (reducing your down payment requirements). Please ask loan advisor for more details.
Loans cited above are for foreign citizens with no U. S. immigration or credit status. Please speak with your loan advisor to discuss options if you have any VISA status, U.S. credit, or social security number (this could mean up to a 100 loan option).
All loans cited above are for single, 2"°' Home, property purchases, please speak with your loan advisor about cash out remortgages/refinances and investment property purchases.
No loan approval will be granted until appropriate review of individuals situation

Standard Document Descriptions

Please be aware that all of these documents are NOT needed for most loan programs. The entire list would be the standard documents required only if you wished to qualify for the Premier class of loan programs (C). For those standard documents required for the Low Document programs you will see a (B) and for those documents required for the No Document program you will see an (A). Please also realize that certain substitutions are allowed for many of these documents, but the list is given as a resource for you if you would like to begin immediately compiling what will definitely fulfill your loan application's requirements. If you do attempt to compile these documents on your own, prior to speaking with us, please make sure all details for required letters are adhered to (these can be just a couple of sentences long if written properly, see example in package). Do not hesitate to contact us for substitutions if any of these present the slightest problem for you (often bank statements, pay statements, credit reports, etc... can be substituted).

Copy of the Sales/Purchase Contract. (A B C)
- Signed by all parties
- Not needed with refinances/remortgages
Copy of Your Passport (A B C)
- Needed for all individuals applying for loan
Bank Credit Reference Letter (B C)
- Must come from home country primary bank account
- Must be on bank letterhead, with author's name and signature and phone
- Must be dated and state current bank balance (listing account number)
- Ideally is account any funds coming into the U.S. will come from
- Must state how long you have had the account open (must be longer than 2 years) and the equivalent of "you manage it in good standing" or "have excellent credit" with them.
Income Reference Letter (B C)
- Must come from your current employer or legal independent accountant (self-
  employed)
- Must be on letterhead, including author's name and signature and phone
- Must be dated and state your last two year's salary (and percentage of ownership if self-employed) before taxes (state each year separately)
- Must state how long you have worked/owned, which must be over two years
Primary Home Country Mortgage Letter (C)
- Must come from your primary home (in your home country) mortgage company
- Must be on letterhead, including author's name, signature and phone
- Must be dated and state how long you have had an account, and that you have not been late, at all, on at least the past two years of payments
- Ideally states you are a "good credit risk in their opinion
Additional Credit Reference Letter (C)
- Can come from anyone you have owed and/or regularly paid money to (Ex: Utility Company, Business Distributor, Auto Loan, Personal Loan, etc...)
- Ideally on letterhead, including author's name, signature and phone
- Must be dated and state how long you had account (must be at least two years) and that you were never late on payments
- Ideally states you are a "good credit" risk in their opinion

Example of Bank Reference Letter

Lloyds TSB (letterhead)
IH.AbbySt.
London, England
(date)

Dear Sirs,

After reviewing Mr. and Mrs. John Q. Client's account #111-11111, we have found them to be excellent customers who have operated their account in a superb manner since its inception. This account was opened in 19xx (at least two years). As of today's date, they have $xxx calculated at an exchange rate of xxxx U.S. Dollars to the British Pound. Please contact me if you have any ftirther questions, (body of the letter states three things, if you are the equivalent of a good credit risk, how long you have had the account, and how much money is currently in it)

Sincerely,

Jerome X. BankOfficer
Account Manager
Phone:111-1111-111
(signature)

Loan Process Overview

Please always remember, we love assisting clients and doing as much for them as they would like. Personalized assistance is our strength. By supplying you with the following information, we are not suggesting in any way that we will not assist you with any of these items or even do them for you whenever possible. We only wish to provide you with as much information about the loan process as we can, to empower those clients who wish to move the loan process ahead as quickly as possible, and give everyone a good idea of what to expect going forward.

Information Gathering Step:
- You have just begun to determine if you can purchase a U.S. property and how to go about it.
- You can use our website, and call or email us with any questions
- You should probably get PreQualified (on website or by answering and returning included questions) and contact one of our
- Preferred Real Estate Agents (or any other agent or builder/seller your choose) to start looking for possible properties for you
Locating Property Step:

Working with realtor in the U.S. while still in your home country—- they send you listings, eventually you find your dream property
You most likely come over to the U.S. to inspect property and negotiate sales contract (not absolutely necessary to come at this time)—IF IN THE U.S. AT ANYTIME PLEASE OPEN U.S. BANK CHECKING ACCOUNT (This is about the only part of the entire process that you must absolutely do in person in the U.S.)
Once you have your purchase contract signed, you must notify us immediately to start your loan approval process.

Compiling/Submitting Complete Loan Application Package Step:
Complete Loan Application must be compiled with your loan advisor, which will then be submitted to our underwriter for firm loan approval. The Complete Loan Application Package consists of:
i. Your Required Personal Documents (see prior page)
ii. Official Application Form (can fill out on website or with your loan advisor over the phone)
iii. Disclosure Documents (can be electronically reviewed and signed on website, or we will overnight them to you)
iv. Appraisal/ Valuation (we will order this for you, but you must provide us with a credit card for the appraisal company to charge at the time of inspection, normally
$300)
Waiting For Loan Approval Step:
- Once we have successfully compiled your Complete Loan Application Package, we submit it to our underwriter who will normally come back with a firm loan approval within 3- 4 days.
- As we are waiting on approval, we will be coordinating with the title, appraisal, real estate, and developers/seller's company's to make sure needed items are attended to
- You should primarily shift your concern to two items; a) making sure you have a U.S. bank account open and transferring all funds needed for closing over, while property documenting the transfer— b) setting up Home Owner's Hazard Insurance in at
  least the amount needed to cover your mortgage—please see
  website or ask your loan advisor for more details
After Approval Step:
- Once the underwriter says you are approved it means the loan is a certainty, as long as we meet their requests. The request will definitely include the aforementioned bank account and funds transfer, insurance, title work (we are making sure gets done) and any other documents or things the lender might ask for.
- Included in this list are things such as making sure your transferred funds are documented property for the lender once you have transferred all the funds needed, and making sure your insurance policy is set up properly. It is especially important you speak with your loan advisor about how to properly transfer and document funds.
- This is the stage where we do a lot of behind the scenes work on making sure all the different parties involved are doing their part to make sure your closing date is met.
Closing Your Loan/Buying Your Home Step:
- Typically occurring three to four weeks after your Complete Loan Application Package was first turned in, your loan dosing can happen in the U.S., if it is easier for you, or in your home country if you cannot make it here.
- If closing in your home country, we will need to have the title company overnight the final dosing documents to you. Things you should be aware of if participating in a 'mail-away* dosing, are that you will definitely need to a have legal notary schedule on the day you sign the dosing papers. You will need to be in contact with the title company, as they will be the legal "last word" on proper signing of the documents and transferring/receiving of your settlement funds. And, always remember that your documents need to be notarized on or before the date they are dated when the title company sends them out (good reason to be in contact with them prior to their putting them in the mail).

Note: There is no strict adherence to the above framework. Oftentimes certain items happen before
or after the stated sequence, depending on uncontrollable circumstances, what your financing goals
are, and where you are in the process. It is always a good idea to contact your loan advisor to
coordinate a teamwork approach to obtaining these needed goals.

Summary of Typical Client Action Items:

Finding home/getting purchase contract (contact a Preferred Realtor to begin)
Opening U.S. bank account (must be done in person)
Getting required personal documents compiled (see Standard Loan Docs Page)
Filling out application form and reviewing/signing Our disclosure documents (Overwebsite, or over the phone with us—whichever you prefer)
Giving us credit card number or check to order appraisal (Over the phone or by secure fax)
Getting Home Owner's Hazard Insurance (See Contact Sheet)
Transferring (and properly documenting transfer) all settlement funds needed into U.S. bank account prior tO Closing (Make sure to speak with your loan advisor prior to beginning process)
Coming to the U.S. for closing, or scheduling notary in home country if having closing documents express mailed to you (Make sure you speak with the title company over any questions regarding procedure)

Settlement Costs Explanation

Settlement costs often represent a large amount of funds for the buyer and need to be understood completely. With a foreign national borrower, your total settlement costs can be broken down into four main areas. The important thing to remember, is prior to the lender releasing your loan for closing, we must be able to verify the total amount represented in these four areas is available in your U.S. bank account.

Down payment: For foreign nationals, the minimum down payment you should normally expect to make is 20 of the sales price of your home. You normally deposit a portion of this to the seller of the property or to an escrow/title agent at the time of your purchase contract acceptance. Prior to closing, your total down payment requirement (depending upon your chosen loan program) will need to be in your U.S. bank account. Any funds already deposited or paid to the seller or title agent will be counted toward your total down payment amount upon our receiving proof of the transaction. (Ex: if your seller/developer only requires a 10 down payment through construction, you should expect to need the additional 10 at the time you close on your loan/buy the property). All down payment requirements are calculated based on the final purchase price and are distributed to the seller of the property, by the title company at the time of closing.
Payment Reserves: Most lenders will require you to show approximately 6 months of full principle and interest repayment reserves in a U.S. bank account prior to closing on the loan (some loan options do not, please ask your loan advisor about this). These funds, like the down payment above, will be verified by your loan advisor as being in the U.S. bank. An important thing to remember: payment reserves are never taken from you. They are verified as being in your U.S. bank account before the closing, but you are not required to hand them over to the lender, nor are you required by law to use them strictly for your mortgage after closing. These are still your funds.
Escrow Ins/Taxes: The lender will normally require you (although some programs do not require it, so please ask your loan advisor for details) to turn over a certain number of months (we normally estimate 6 months although this can vary by lender and time of year) equivalent of your expected state real estate taxes and home owner's insurance premium. As both taxes and insurance vary greatly by the area you are in and the home price, it is difficult making many assumptions about this amount. You may get an estimate of your property's last year taxes from the seller/developer, and should find an insurance agent to get a home owner's quote as well if you would like to get a general idea of the possibilities involved with this amount. An important thing to remember: your insurance and tax escrow account is collected from you at the time of closing, but will have its balance refunded to you upon your refinancing/remortgage, selling your property, or in any other way paying off your loan.
Closing Costs: Closing costs are the actual fees you pay to various parties involved with your transaction at the closing of your loan/purchasing of your home. We typically estimate that your total closing costs will come to between 2.5 and 3.5 of the loan amount for resales and 3.5 to 4.5 on new builds. These fees are typically made up by seller/developer fees (which can vary substantially depending on how you negotiate your purchase contract— another reason you should have a real estate agent), title company associated fees (these can include state filing fees, attorney fees, home owner's insurance fees, deed and mortgage stamp tax fees, and others), and our company's borrower paid fees (typically 1 on most loan programs) with any additional lender's fees.Please speak with us about possible reduction options on any of our fees, although do keep in mind we have no control over seller fees or their chosen title company's fees.

For the lowest foreign national down payment programs, a good rule to remember is that you will basically need to have funds equal to 25 of the purchase in the U.S. prior to closing to cover all the items listed above. Again, not all of these funds are taken from you, but they will
need to be verified in the U.S.

Additional Fees:

You can also expect to pay for an appraisal of your property at the time of your application.
This is typically $300, and charged to your credit card by the company doing the valuation
inspection. It normally represents the one out of pocket expense to you prior to closing.
Important Notes:

You will need to have a U.S. bank account set up in person while you are in the U.S.
As mentioned above, you will also need to set up a Home Owner's Insurance policy and most likely, especially in hurricane season in Florida, pay for the first year's premium up-front, prior to closing. (Please ask your loan advisor if you need help setting this up).
Properly documenting the transfer of all your funds into the U.S. can save you many problems. Please ask your loan advisor for specifics of the three step process before beginning to transfer funds. Basically, you will need to first document the funds as being in your primary home country bank account (often done with the bank credit reference letter you are already getting), document the actual wire transfer with receipts from the transferring agent (the step most people overlook), and verify the funds as cleared and usable in the U.S. (we will verify for you).

An advantage of using a boutique mortgage brokerage, skilled in helping foreign citizens finance U.S. real estate, is they know how to provide the special assistance you might require. From much experience, we understand that extra time and attention to your individual situation may be required, especially if you expect to conduct most of your affairs from your home country. You need someone on the ground within the U.S. whom you can trust to return your calls, navigate and coordinate the multiple aspects to U.S. property transactions on your behalf, and still provide you with the best financing options tailored to your specific needs.

“Please use this link for further information and to contact JRD Global Mortgage www.floridafinancing.net quoting the code IPS002 to have your property valuation fee refunded if you purchase a property through to closing”

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