Don't Do This During The Mortgage Process...

 Hello!

Mortgage tip: If you are about to get into the loan process to buy or refinance a house – don’t go out and buy things on credit.

It sounds simple, and you would think most people would know this without being told.

I have a loan right now where a borrower got himself into trouble from doing just this very thing.

There are two possible complications: 1) You have to explain the inquiries on your credit., and 2) It will raise your debt to income ratio if you take on additional credit.

So, while you are in the loan process – don’t apply for anything that would involve credit (appliances, lawn equipment, etc.).

That’s it for today.

Thanks for reading!

Brett

Get Pre Approved For A Loan Here
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How To Get A VA Loan After Foreclosure Or Bankruptcy...

 Hello!

I want to go over the VA guidelines for Foreclosure, and Bankruptcy.

VA

Short Sale
Deed-In-Lieu of Foreclosure
Foreclosure:
2 years from completion date
If extenuating circumstances exist – 12 months from completion date with re-established credit
Note: If the occurrence was on a VA loan, the veteran may not have full entitlement available for the new loan.

Bankruptcy Chapter 7 or 11:

2 years from discharge or dismissal date
Note: If bankruptcy was result of a business failure, provide evidence that;
Applicant obtained permanent position after business failure
No derogatory credit prior to self employment
No derogatory credit subsequent to bankruptcy

Bankruptcy Chapter 13:

2 years from discharge or dismissal date
A minimum of 12 months of payments have been made, all payments have been paid satisfactorily and Trustee or Bankruptcy Judge has approved

That’s it for today.

Thanks for reading!

Brett

Get Pre Approved For A Loan Here
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VOE Only To Prove Your Income...

 Hello!

Did you know we have a VOE (Verification of Employment) program that is considered full doc?

This program is for borrowers that work for a company (W-2).

You don’t need pay stubs, or w-2’s, or tax returns.

…we just send a one page form to your employer.  They fill it out and that’s all the documentation we need for your job / income.

Just wanted you to be aware of some of the different ways we can structure your loan to meet your needs.

That’s it for today!

Brett

Get Pre Approved For A Loan Here
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How To Structure A Repair Escrow On An FHA Loan...

 Hello!

You may not be aware of this but we do allow repair escrows on FHA 203b loans. (203b is the most common FHA loan)

Repair escrows are monies that are set aside (out of seller’s proceeds) to make minor repairs on the home purchased after the closing has occurred.

I wanted to let you know some of the items that are eligible for repair escrows, and some that are not allowed.
These items are eligible for repair escrows:

1) Repair roofs, gutters and downspouts
2) Repair/Replacement/upgrade of existing HVAC systems
3) Repair/Replacement/upgrade of plumbing and electrical systems
4) Repair/Replacement of flooring
5) Painting, both exterior and interior
6) Weatherization, including storm windows and doors, insulation, weather stripping, etc.
7) Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
8) Minor repair to exterior decks, patios, porches
9) Minor basement waterproofing
10) Minor mold remediation
11) Window and door replacements and exterior wall re-siding
12) Other minor repair(s) as indicated by the appraiser as being cosmetic in nature and conform to HUD’s repair escrow requirements

These items are NOT eligible for repair escrows:

1) Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall
2) New construction (including room additions)
3) Any repair that, according to the appraiser’s report, not cosmetic in nature
4) Repair of structural damage
5) Repair(s) requiring detailed drawings or architectural exhibits
6) Landscaping or similar site amenity improvements
7) Any repair or improvement requiring a work schedule longer than 60 days
8) Repair/Rehabilitation activities that require more than one (1) final disbursement

If you are buying a home and you think you may need a repair escrow. Give us a call or shoot us an email and we can discuss whether your scenario would qualify!

Have a good day today!  …and thanks for reading.

Brett

Get Pre Approved For A Loan Here
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Know This Simple Thing Before You Apply For A Mortgage...

 Hello!

One of the most important things you will have to do when you apply for a loan is to show that you have the money for the down payment.

This is called sourcing in the mortgage industry.

You can have this money in your checking account or savings account now. You can borrow it from your retirement account. …You can even get the down payment as a gift.

…but, it’s crucial that we are able to show where it’s coming from.

I can tell you that cash is a problem when it comes to sourcing your down payment. You will need to put it in the bank and leave it for 60 days before we can use it.

If you aren’t sure where your down payment is coming from – find out now. …before you apply for a loan.

That’s it for today!

Have a good day! …and thanks for reading.

Brett

Get Pre Approved For A Loan Here
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No Money Down On This Mortgage...

 Hello!

Want to buy a nice home in the country or an outlying suburb with no money down?

Here’s a program that might work for you…

It’s called USDA, and here are some details on this program…

-Up to 100% of the Appraised Value – Total LTV of 102% –
-Difference of sales price and appraised value can be used for closing cost
-No Down Payment Required
-No Cash Reserve Requirement. No cash contribution requirement
-Unlimited seller concessions
-Unrestricted gifts, not necessary to document source, no seasoning
-First time home buyers allowed, but not limited to first time home buyers
-Non-traditional credit may substitute for lack of credit history
-Repair Escrow financed in loan up to $10,000 or 10% of loan

If you or someone you know might need this program, just reach out to our office.  We are happy to help!

That’s it!

Have a good day today!  …and thanks for reading.

Brett

Get Pre Approved For A Loan Here
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How Much Money You'll Need To Get A Loan On A House...

 Good Morning!

I’ve written about this before, but it’s important, so I wanted to touch on it again.

Before you go house hunting make sure you have enough money available to get your loan approved and your house closed.

…I know it sounds simple, but many people don’t realize the number of funds they will need to get into a house.

Here is a simple breakdown of your out of the out of pocket costs you could expect from the loan program.

1) VA: 100% loan. No down payment.
2) USDA: 100% loan. No down payment
3) FHA: Minimum 3.5% down payment.
4) Conventional: 5% minimum down payment, or 3% down.

…but you can expect more out of pocket than just the down payment.

There are two other costs you can expect to pay when you purchase a home…

1) One is prepaids. This is prepaid interest, taxes, and insurance. Typically your prepaid will run 1% to 2.5% of a sales price.
2) Then there are your closing costs… Typically closing costs (from all entities – title, appraisal, mortgage, survey, etc.) will add another 1.5% to 3% to a sales price.

Be prepared for these additional costs. However, there are a couple of ways to help you lower the closing costs and prepaid expenses.

That’s it for today!

Have a good day today!  …and thanks for reading.

Brett

Get Pre Approved For A Loan Here
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Two Most Common Questions we get on Reverse Mortgages...

 Hello!

I wanted to address the two most common questions that I get regarding reverse mortgages…

Question: What happens if I die? Will the lender be taking my house?

Answer:   No. After you pass away, your heirs may pay the loan balance in full with cash or by refinancing the debt and they can keep your home.

Question: What happens if the loan balance becomes greater than the value of my home?

Answer:  No matter how large the loan balance becomes, you have the right to continue to live in the house. The lender cannot take over your home as long as it is your principal residence. Besides, you will NEVER owe the lender more than the value of your home. HUD will pay the shortage for you, if there is any.

That’s it for today!

I hope you have a great day! Thanks for reading!

Brett

Get Pre Approved For A Loan Here
My Previous Blog

Credit Tips For you...

 Hello!

A good credit strategy is important. Knowing simple things to implement to improve your credit scores is half the battle.

Here are a few easy ways to improve your credit scores…

1) Did you know a single credit card late payment can ding your score by as much as 60 points?

a) Helpful strategy – set your payments up on autopay.

2) The quickest way to increase your credit scores is to decrease your credit utilization ratio. This is the amount charged on your accounts versus their total limit.

a) Best ratio is 10%. Certainly don’t go over 50%. (If limit is $1,000 try not to carry more than $100)

b) Another strategy is to ask for a higher limit to get your ratio more in line.

3) You can gain credit score points by paying off the credit card whose balance is closest to its limit. However, don’t cancel the account after you’ve paid it down.

That’s it for today!

Have a good day!

…and thanks for reading.

Brett

Get Pre Approved For A Loan Here
My Previous Blog