Creating a Big Picture Strategy for each individual, couple or family takes time and effort to build -- especially on a solid foundation. Some that foundation comes from my initial information gathering -- about your past and present financial situation, finacial preferences, aspirations and plans for the future. So I'm not shy about jumping into a lot of questions -- because the answers to these questions form the platform on which we can build a real plan..
Here are the questions I'm going to ask you:
1 a) What is your home address?
b) What do you think it's worth if you were to sell it?
c) How long do you think you will stay at this address?
(Of course this question may not be easy or even possible to answer).
2 a) Is your home a Condo or a PUD (Planned Unit Development)? Y__ N__
b) If condo, what are your HOA dues?
c) Do you know if there is any litigation going on?
d) Given another important factor is "owner occupancy percentage (needs to be
>60% to have no issues)" . . . Are most of the units being lived in by owners
or are they being rented out?
(Note, not now, but for the application I will need
the HOA contact info (name and phone number).)
3) Current loan info on 1st Mortgage(a statement should have all the info we need):
b) Loan balance?
c) Interest Rate?
d) Principal & Interest Payment?
e) Is your loan a 30, 20, 15 or 10 year fixed or is it an ARM?
f) Is your loan impounded?
(impounds mean that your property taxes and home insurance are built into
g) Is there a prepay penalty on the loan if we were to pay it off?
4) If you have a 2nd Loan or Home Equity Line, the same questions above apply:
b) Loan balance?
c) If HELOC, what is line limit?
d) Interest Rate?
e) Minimum Required Payment?
f) Is there a prepay penalty or early closure fee on the loan/line if we were to
pay it off and close?
5) What debts do you have that would show up on a credit report:
a) Car -- total balance ________ monthly payments________
b) Credit Cards -- total balance ________ monthly payments________
c) Other (student loans, etc.) -- total bal ________ monthly pymnts________
Ideally you let me know the interest rates associated with each debt which will help me determine if we will want to pay them off in a refinance.
6) Do you need or want any cash out to payoff some debts or for home improvement, vacation, investment, or just to increase available cash on hand?
7) What is your property tax payment TOTAL for the year?
(If not impounded you will pay this in 2 equal installments (Nov/Dec and Feb/April).
8) Who is your homeowner insurance with (fire/theft)?
(If condo, do you have separate policy for fire or theft? Y___ N ___).
a) Name of company?
b) Annual Premium?
c) Expiration Date?
d) Date next payment is due?
9) Approximately what kind of Assets
do you have and what amounts?
For here, just summarize balances in all (no exact amounts):
a) Bank/Investment accounts
b) Retirement accounts (IRA, 401k etc)
10) Income and employment info
– if married, need info for both of you.
In 2004 and 2005:
a) What is your vocation (job)?
b) Are you paid as a W2 employee or are you self employed?