Purchase

New Home Purchase

So you want to buy a house?  OK.  So, either you call up a real estate agent or you look through the paper or online and you get out there and you go to some open houses.  You see a few things you like: right neighborhood, plenty of back-yard space, just the right design and so you put in an offer.  The contract is for 30 days.  Plenty of time you think, so then you go apply for a loan.  You then find out that those few late payments and old bills popped up on your credit or maybe an account that you could have sworn you paid off.  Or maybe you didn't know that your income was just a tad bit shy of what the lender would consider safe enough for them to loan you a few hundred thousand dollars.  Now three weeks have gone by and you're pulling your hair out trynna beat the deadline...  Unfortunately, most people go about the process in exactly this reverse pattern.  Before you go out and look at a house, wouldn’t it be nice to know how much house you could afford?  In most cases, sellers will leave themselves a little room for negotiation, you should too.  You might find that you can afford a lot more home than you thought - now wouldn’t that be a pleasant surprise?

·          Know your costs upfront.  Who will pay the closing costs for your loan?  In most instances the seller will pay, at least up to 3 - 6% depending on the type of loan.  This must be negotiated into your purchase contract.

·          It may take up to 3 weeks (on average) to process your loan.  It would be a great idea to have all of the preliminaries out of the way to ensure a faster closing.  You'll be happier and your seller will appreciate it.

Getting pre-approved for a mortgage will give you a number of important benefits including emotional security in the house-hunting process and insurance against rising interest rates in the market place.  Pre-approval is easy and can give you complete peace-of-mind when shopping for your home.  Mortgage brokers can obtain written pre-approval for you at no cost and no obligation.

Basic Qualifications

Conforming Basic Qualifications (although there are acceptations):

·          2 Years employment with the same employer or same profession (last 2 years W-2's or tax returns)

·          2 Years Verifiable Residence

·          Verifiable income: 2 check-stubs, 3 months bank statements, or letter from CPA (self-employed)

·          Reserves: 3 months worth mortgage payments either in a bank account or other security such as 401K, stock, etc.

·          3 Trade-Lines: that means that you've made monthly payments on time for at least 24 months on three separate accounts (car, credit card, etc.)

·          Credit Score: 640 fico

This is a conforming loan, and because it meets basic requirements it will offer the best rates and terms.

Loans that do not fit perfectly into the above criteria are considered riskier by lenders and therefore they charge more.  Most borrowers are lacking in at least one of these categories which created the need for non-conforming loan products

Non-Conforming Basic Qualifications:

·          2 Years employment with the same employer or same profession (last 2 years W-2's or tax returns)

·          2 Years Verifiable Residence

·          Verifiable income: 2 check-stubs, 3 months bank statements, or letter from CPA (self-employed)

·          Reserves: may not be required, but will improve pricing

·          3 Trade-Lines: that means that you've made monthly payments usually on time for at least 12 months on three separate accounts (car, credit card, etc.)

·          Credit Score: 580 fico (low as 500 fico)

If you do not meet the above criteria but wonder if may still qualify or if you have any questions contact us for a confidential loan evaluation.  You may also apply online by clicking here.

In the meantime, while your loan is being processed you will need to gather together a few items:

·          Proof of all monthly income: (check-stubs, statements, social security, pension, etc.)

·          3 months bank statements (savings and checking)

·          W2’s or tax returns for last 2 years

·          Most recent statement on all asset accounts (401k, stocks, etc.)

·          If self employed, complete personal and business tax returns (all schedules) from previous 2 years

·          Purchases Only: copy of fully executed sales contract (if you have already made the offer), be sure to have your agent include that the seller will be paying up to 3% closing costs; prior to closing you will also have to obtain 1 years of homeowner insurance (this is purely your responsibility and is not covered in your loan even with 100% financing); all purchases require the borrowing to make a personal commitment of $500 (even with 100% financing) because lenders want borrowers to have a vested interest and not just give them hundreds of thousands of dollars without bringing something to the table.

·          Refinance Only: a) proof of homeowner’s insurance b) copy of most recent mortgage statement

·          2 forms of ID (Driver’s License, Social Security Card, etc.)

If you have already gathered the above necessary items, you may expedite your loan processing by faxing to: Attn: Nick Nelson 314-993-6463

Some basic rules to observe during your loan approval:

·          DO NOT quit or change jobs

·          DO NOT stop paying your bills on time

·          DO NOT STOP PAYING YOUR MORTGAGE!

·          DO NOT make any major purchases, co-sign on any loan, or open any new lines of credit

·          DO NOT allow anyone else to pull your credit, too many inquiries may effect the outcome of any loan in process

Properties for Sale

Want to list a property in this section?  Send us an e-mail with a link to pictures or provide basic information to be posted in this section.