Balancing Your Total Scorecard

Balancing Your Total Scorecard

There are many factors that are needed for a full loan approval. It’s not that easy to say “Hey, I make over 100 grand a year, my credit score is in the high 700’s, why are you asking for all this stuff?”

In general, it’s easy to say the person with the 800-credit score, no debt and a large retirement income will be one of the simplest and fastest loans to approve. The system can easily throw a monkey wrench into the mix once a lender finds out the same person owns ten rental properties.

It’s not much different at Continue reading

Things Not To Miss

Things Not To Miss

I am sure you all can relate to having planned a business trip, vacation or simply just trying to head off to school or work only to find you missed or left something behind.  No matter how minor an item may have seemed at the time, later on it turned out to be a devastating thing to have forgotten or missed when getting ready.

I have seen very well-established business people, attorneys, doctors, engineers and others, overthink or feel something so little is so insignificant that it doesn’t apply to them. I have seen the most disciplined and the not so disciplined miss or forget the do’s and don’ts when going through the mortgage loan process.

All the same rules apply to everyone, no matter what your background or financial position is. Everyone is treated fairly and equally, whether you’re a financially strong or a millennium thinking you’re just entitled to it.

Here are some of the basics:

Do be accountable and responsive to your lenders request

Do pay the IRS and your student loans

Do pay your bills on time

 

Do not put cash in to your accounts, unless you are a very well documented cash business

Do not open or close any credit lines

Do not bounce checks

 

Do not spend money, rather save money

Do not go out and spend $400 a month on fast food, make your own coffee and bag a lunch

Do not move money throughout all your accounts without first asking

Do not hide that you own other properties

Do not lie on your application

Do not withhold information about alimony or child support

Do not lie about being married or not, no you cannot buy a house for your girlfriend without your wife knowing

Do not buy your new furniture before you buy the house

Do not buy a new car, put band aids on the old one instead

Do not schedule days off from work without a clear to close on your mortgage loan

Do not call your landlord bad names, I need them to fill out your verification of rent

Do not be afraid to ask questions.

 

Asking questions could save you thousands of dollars. Remember attaining home ownership is something you work for and earn, it’s not an entitlement.

Think about and plan everything you do and we will see you at a happy closing table

 

Why Inspections

Why Inspections

Purchasing real estate is a big move for most people. Most buyers are slammed fast with all the to do’s by Realtors, Title Companies, and Lenders. The process is works best when spread out over the first 15 to 20 days to reach that closing time frame of under 30 days.

Can the process be completed in under 15 days and closed? There is that possibility and in fact it does happen more than you would think, especially when everyone is on top of their game including the buyer.

Most home purchases include these following standard inspections:

Continue reading

Am I Ready to Buy

Am I Ready to Buy

Many people wonder when is a good time to get married or have kids. That’s a bit different to asking “am I ready to buyer a home? The fact is we all need a place to live, whether you’re are still home with mom or she’s now living with you.

The main drivers behind buying a home is need and desire. The combination of these do go hand in hand. You can have need but without the desire to purchase one you not going to get yourself ready.

How do you know when you are ready. Continue reading

About Property Surveys

Property surveys for your new home purchase provides much need information about the property you are about to close on. There are many good reasons to have a survey completed which include but not limited to:

  • boundary lines
  • easements
  • encroachments
  • zoning
  • and well location.

 

Additional Continue reading

Credit Success

Credit Success

I have worked with a lot of people in the mortgage industry with different credit scores. I have worked to help many people from all different walks of life to get into a new home. Some have been extremely grateful while others complained through every step of the process. While we are all different in nature, we are supposed to treat everyone the same.

So why are some people happy while others seem to always be upset. I have thought about this many times and it’s very easy to think it’s about the money. Whoever has more is happier, right? Not really, Continue reading

Prepared VS the Not

Every week we hear the same thing, “I want to get prequalified but I do not want you to pull my credit because it will lower my credit score.” This is most often followed by “What are your rates?”
Let’s first of all, get the rate question out of the way. Continue reading

Out of control

Out of control

What are you talking about? Who are they? Where did they get my information? How can they do that? This is all out of control!

We still hear this all too often how many people’s information miraculously appears in the hands of collection companies without their knowledge.

The worst offender is the Continue reading

But it’s my money

But, It’s My Money

There is no doubt that most of us work hard for every dollar we earn. Not everyone has inherited a million dollars. But no matter how we get our money, we must prove that it’s yours if you want to use it purchase a home with a mortgage loan.

There are a few major rules when it comes to mortgage loans when purchasing real estate for residential use. Continue reading

Understanding Your Position

Understanding Your Position

Hearing bits and pieces from different people about mortgage loans doesn’t make you an expert or entitle you to obtain a loan. No one likes or wants to be denied and being denied could cost you thousands for dollars.

Getting a clean and detailed pre-qualification is extremely important, prior to entering into a purchase and sales agreement. Under RESPA a Realtor has no right to demand or force you to get pre-qualified by one of their preferred lenders. Unfortunately, there is really no-one going to enforce those laws. The CFPB will only go after the big companies and those creating multiple infractions. Understand that no lender wants to mess with the CFPB however there are a lot of Realtors who believe it won’t happen to them; they believe no-one will ever know.

Getting pre-qualified is actually for your benefit

  1. It will first help guide you to stay within your budget.
  2. It helps give the Realtor more negotiating power on your behalf.

Your choice of lender should always be yours just as work to find the right Realtor to handle your best interest. Most often buyers make the mistake in going directly to the listing Realtor. You need to think about who’s best interest the Realtor has in mind before proceeding with an offer. Remember the Realtor is a sales person not your attorney.

With your pre-qualification in hand, ask your loan originator what will be all of the expectations and process for you to get your loan fully approved and funded. Make sure you understand the process and the conditions you could be facing prior to putting down a large earnest deposit. Today’s real estate contracts can be slated and if not handled correctly with proper communication your earnest deposit money could become that of the sellers and Realtors very fast.

Generally, in most real estate listing agreements, the listing agent has a clause that allows them to keep 50% of the earnest deposit money. This money is then split with the selling Realtor, yes your Realtor. So be cautious about how much money you really want to secure the property with when signing the purchase and sales agreement. One mistake or unforeseen condition with your loan process could have you losing thousands of dollars and while the Realtors still get paid.

Contact us, get your facts, know the whole truth, understand the process and the conditions you will face and we will see you at a happy closing table.