This Deduction Can Kill Your Loan…

If you have a W-2 job, and you are considering getting a mortgage here’s something to keep in mind as tax season approaches…

The deductions you take on Schedule A for “unreimbursed job expenses” will come out of your adjusted gross income as a direct deduction off your income.

This deduction would be things like job travel expenses, union dues, job education, etc.

I’ve seen some rather large deductions in this category over the years – and sometimes it’s meant the difference between loan approval and denial.

So, if you know you will be applying for a loan in the next couple of years – be aware of how this “unreimbursed job expenses” deduction will impact your overall income.

That’s it for today!

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

Brett

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Fannie Mae Re-Introduces A 3% Down Product…

Fannie Mae used to have a 97% loan product.

Then they got rid of it.

Now they have brought it back. Effective December 13, 2014 Fannie Mae re-introduced the 97% loan product.

This is a lown down payment alternative to FHA.

Just wanted ya to know…

That’s it for today!

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

Brett

Get Pre Approved For A Loan Here.

Get A Rate Quote Here.

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What You Need To Know About Money To Close When Buying A House…

I’ve touched on this before, but I think it’s worth repeating…

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

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

Here is a simple breakdown of your out of the out of pocket costs you could expect by 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. (There is also a 97% conventional if you have good credit).

…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 pre paid interest, taxes, and insurance. Typically your prepaids will run 1% to 1.5% of a sales price.

2) Then there’s your closing costs… Typically closing costs (from all entities – title, appraisal, mortgage, survey, etc.) will add another 1% to 1.5% 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.

The best way is to ask the seller to help you. 

If the seller refuses to help you pay your closing costs and pre paids – there are other ways to get this done. Contact me and we can discuss some options for you.    

That’s it for today!

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

Brett

Get Pre Approved For A Loan Here.

Get A Rate Quote Here.

Need A Mortgage Calculator?

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