mortgage: FHA Changes 9/14/15 - are you still approved?
- 09/23/15 11:13 PM
FHA made some substantial changes to the underwriting guidelines that went into effect with FHA Case Numbers assigned after 9/14/15. If you are a buyer that is "pre-qualified or pre-approved", now is the time to confirm with your Mortgage Loan Originator that you are still pre-qualified or pre-approved if you have not yet made your purchase. The biggest change that will impact these pre-qualification for most first time home buyers is the position regarding student loans. Now, regardless of deferment, the payment must be included in the debt to income ratio (DTI). If no payment is listed on the credit report, an estimated payment … (3 comments)
mortgage: Cash Isn't King, Credit Is!
- 09/24/13 12:29 PM
Cash isn't king, credit is! Many Americans have struggled during this last economic crisis and many have opted to not make the same mistakes they have made before. In doing so, they have stopped using credit cards, Instead they have paid cash for all of their purchases. While I understand the desire to be debt free, this philosophy of cash only payment system creates a problem when they want to purchase a home. Are you paying cash for your rent? If so, this is a HUGE issue, let me say that again, this is a HUGE issue. Cash payments cannot … (28 comments)
Buying a new home... don't wait too long to begin shopping for your homeowner's insurance. As most loan officers do, when a client calls to "get pre-qualified" we estimate the payment amount for their homeowner's insurance. In most cases, my clients find coverage at or less than my estimates, until recently! I have had two clients that have had premium more than double the estimate. This can have a huge impact on the borrowers total housing payment and ultimately the debt to income ratio. Clients that are pushing the limits on the debt to income (DTI) ratio might find … (11 comments)
mortgage: Verification of Rent - Do's and Don'ts
- 06/23/13 11:11 AM
The verification of rent is a vital piece of the mortgage qualification procedure. There have been many changes in the underwriting process for a mortgage. If you want to borrow money, you have to prove you have a satisfactory payment history. This applies to more than an application for a mortgage. It applies to applications for car loan, or credit cards. In the mortgage process, it doesn't matter if it is a conventional mortgage, FHA mortgage, VA mortgage or USDA mortgage, it is most important to show on time payments for your housing. If you rent from an apartment complex, it can be … (45 comments)
mortgage: Verification of Employment Required
- 06/23/13 10:47 AM
A Verification of Employment is required when you are applying for a mortgage. It does not matter if it is a conventional mortgage, FHA mortgage, VA mortgage or USDA mortgage. What most buyers don't know as that this may be checked more than once during the process. It may checked before the underwriter reviews the file and again just before closing. I like to make buyers aware of this since their assistance may be required to expedite the information. In the last 30 days I have had two closing that were almost delayed because the buyer's employer would not respond to … (4 comments)
mortgage: Let me double check that...
- 05/19/13 06:17 AM
"Let me double check", that should probably be one of my tag lines for my business. Why do I say that? Well, everything that we do is double checked at least once, and sometimes even more. For example, a borrower sends us a copy of their Federal tax returns then we request a copy of their transcript directly from the IRS. Do they match? If yes, great, if not time to ask for more questions. A borrower sends in bank statements, we may ask for a verification of deposit. A borrower provides us with their employment information by sending a copy … (6 comments)
mortgage: FHA Renovation Loans - Consultant vs. Streamline
- 05/13/13 10:06 AM
FHA Renovation loans are available in two different formats, streamline and consultant. The consultant loan allows for more extensive repairs. The streamline program caps the repairs at $35,000.
The advantage of the FHA renovation loan, is that the underwriting criteria including credit, down payment, income and reserves are the same for the standard FHA 203(b) loan. Please remember that in order to use the FHA program, the borrower must intend to occupy the home as their primary residence.
Here is the list of eligible and ineligible repairs for the Consultant Loans:
… (6 comments)
mortgage: High Credit Score Doesn't Guarantee Mortgage Approval
- 11/05/12 10:40 AM
A high credit score doesn't guarantee mortgage approval, but having a good score will at least get you past the first hurdle. Lately, that is how I have been viewing the mortgage process, a series of hurdles on the way to finish line (closing table).
Depending on the financing program, a high credit score may be more closely scrutinized if there aren't many trade lines. A trade line is the number of open and active accounts that are shown on the credit report. It may be necessary to supplement the credit report by showing other types of accounts being … (10 comments)
mortgage: Are you afraid to speak in public?
- 10/28/12 03:07 AM
Are you afraid to speak in public? A large group or even a small group can bring on an anxiety attack for some people. It has been reported that people that have a fear of speaking in front of a group would rather walk into a burning building! Personally, I would rather not get that close to a fire! For me, I actually overcame any fear of public speaking at a fairly early age. I was President of our local council's Explorer Association. (The Explorer program is the high school group of the Boy Scouts of America, yes I was a … (18 comments)
When you are buying a home that dollar amount will consist of your down payment, closing costs and pre-paid expenses. Let's break those down individually. Your down payment will be dictated by the type of financing you select. For example, if you are using the FHA mortgage, your down payment will be 3.5% of the purchase price. For example, if you are making a purchase for $200,000, the down payment will be $7000.
Closing costs are those fees associated with the transaction. These include an origination … (4 comments)
mortgage: But I have good credit!
- 09/23/12 09:42 AM
"But I have good credit" has been said by many prospective clients. I almost wish I had a nickel for every time I have heard it. This week there were three clients that made that statement and right now, not one of them will credit qualify for a mortgage.
Understanding your finances and credit is critical if you wish to purchase a new home. To start, DO NOT guess at what your credit score might be. You are entitled to a copy from each of the credit bureaus every year. Start with one, find out if everthing that is on … (15 comments)
mortgage: Severe Storms and Buying a Home
- 08/26/12 12:21 PM
Severe storms and buying a home may seem like an unusual title for a blog, but the number and severity of a storm are going to impact many home purchases in the pipeline. Did you know that if threatening storms are predicted insurance companies will suspend issuing any new policies until after the storm has passed? Home purchase transactions where the appraisal has already been completed, but not yet closed, must be re-inpsected by the appraiser. This is to confirm that the home is in the same condition as the date of the appraisal prior to the storm. This policy … (4 comments)
mortgage: Atlanta Home Buyers need to know...Part 5
- 07/06/12 02:42 PM
Atlanta home buyers need to know that there is hope for making a purchase after a short sale or a foreclosure. If you were one of the many Georgians lost their homes through foreclosure in 2008 and 2009, now may be the time to start thinking about purchasing a home again. For an FHA mortgage, you can qualify for a new mortgage 3 years after a short sale or foreclosure. For a conventional mortgage you can qualify for a new mortgage after 2 years with a 20% down payment.
Now, you will need to show that you have a satisfactory … (24 comments)
mortgage: Atlanta Home Buyers need to know...Part 4
- 07/06/12 01:26 PM
Atlanta home buyers that will be financing a home need to understand the mortgage underwriting process. For all financing programs, FHA,VA, USDA, Jumbo and Conventional loans, will all follow the same basic process. Once you have completed the application, a package will be sent that includes the 1003 mortgage application and the disclosures. You will need to return these forms with your supporting documentation. Supporting documentation will be: · Last 2 year’s FEDERAL tax returns · Last 2 year’s W-2 · Last 30 days pay stubs showing year to date income · Last 2 month’s bank statements (all … (0 comments)
mortgage: Atlanta Home Buyers need to know...Part 3
- 07/06/12 12:56 PM
Atlanta home buyers need to know just how important it is to maintain your financial status during the home buying process. Atlanta home buyers will be asked to disclose their assets on the mortgage application. An asset can be a checking account, savings account, a 401(k), IRA, pension, stocks or bonds. In essence, any account that is currently held in cash or can easily be converted to cash.
As part of your mortgage application and documentation, we are going to ask you for the last two statements for all of your asset accounts. This is the same for … (0 comments)
mortgage: Atlanta Home Buyers need to know...Part 1
- 07/06/12 11:47 AM
Atlanta home buyers need to know the basics. This is a short series of blogs that will help navigate the home buying process. If you are a first time home buyer, you are going feel as though you have been dropped into the deep end of the swimming pool. There is a "language" that you will need to learn. It is best to do your homework upfront so you are prepared as you go into the process.
Atlanta home buyers will generally be asked for $500-$2000 earnest money to accompany the purchase agreement. Earnest money is your pledge of … (0 comments)
This really isn’t a yes or no question. It depends on the type of bankruptcy and the type of financing you are applying for in the purchase.
Here is a quick overview that gives you the length of time you must wait before making that next purchase.
FHA financing requires 2 year after discharge on Chapter 7 bankruptcy, 12 months of payment and trustee approval on a Chapter 13, 3 years on a foreclosure, short sale or deed in lieu of foreclosure. … (11 comments)
Can I finance a house that needs repairs? This is probably the second most asked question by many home buyers. Why? Many of the homes available in the marketplace are in need of substantial repairs.
There are many cases homes where the HVAC units may need to be replaced because they have been removed, kitchens have been stripped of cabinets and appliances and even electrical fixtures are also missing.
The options for financing a home in need of repairs will depend if the property is for a … (6 comments)
mortgage: FAQ #8 Where can I get help with my down payment?
- 06/08/12 12:04 PM
The GA Dream Homeownership Program is a government-sponsored down payment assistance program. It offers either $5000 or $7500 depending on the buyer's qualifications in the form of a silent second mortgage for first-time homebuyers. The silent second mortgage is a recorded document, however unlike the first mortgage, the second it at zero percent interest with no monthly payments. The only time it would be repaid is if the loan is refinanced or the home is sold.
On February 24, it was announced that there would be changes to the GA Dream Homeownership Program as outlined below. … (3 comments)
There are two types of title insurance, one is Lender’s title insurance the other is Owner’s title insurance. Why are they necessary in closing your mortgage transaction? The lender’s title policy protects the lender in the event of a later discovered defect in the title. The owner’s title policy will protect your interest in the same event.
The fee associated with the Lender’s title insurance is tied to the loan amount and do vary by state.
The owner’s title policy is calculated based on the purchase price of the home. … (0 comments)
FHA made some substantial changes to the underwriting guidelines that went into effect with FHA Case Numbers assigned after 9/14/15. If you are a buyer that is "pre-qualified or pre-approved", now is the time to confirm with your Mortgage Loan Originator that you are still pre-qualified or pre-approved if you have not yet made your purchase.
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