What is a “private money” loan?
Private money refers to the source of the funds from which the loan will be made. Our funds come from individuals who desire passive real estate investments with reasonable returns. Gallic & Johnson Financial provides the due-diligence and expertise to pair the investors with appropriate loans for their portfolios. We give the borrower exposure to several millions of dollars in financing for their unconventional lending needs.
How do you determine the rate and fees I will pay?
Unlike conventional lenders whose rates and fees are market-driven, Gallic & Johnson Financial look at each loan on its merits when quoting an interest rate and loan fee. We will analyze the collateral, the borrower (credit, payment history, etc), perceived risk and exit strategy. All of these issues will factor into the rate and fee structure for a particular loan.
How do I know which type of mortgage is best for me?
There is no simple formula to determine the type of mortgage that’s best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your property. Part of what we like to do is help you evaluate your choices and make the most appropriate decision.
What does my mortgage payment include?
For most homeowners, the monthly mortgage payments include three separate parts:
- Principal: Repayment on the amount borrowed
- Interest: Payment to the lender for the amount borrowed
- Taxes & Insurance: Monthly payments are normally made into a special escrow account for items such as hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
How much cash will I need to purchase a home?
It depends, but generally speaking, you will need to supply:
- Earnest Money: The deposit that is supplied when you make an offer on the house
- Down Payment: A percentage of the cost of the home that is due at settlement
- Closing Costs: Costs associated with processing paperwork to purchase or refinance a house
How do I know how much house I can afford?
A rough guideline is that you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make.
You may also be able to take advantage of special loan programs for first-time buyers to purchase a home with a higher value. Give us a call, we will help you determine exactly how much you can afford.