Wow! What a day I had yesterday, 3 weeks ago one of my referring Realtors sent me one of their clients. She went online and field out an online credit application. After running her credit and looking at documented income from her jobs and getting a 626 mid credit score and a 43% debt ratio. I was able to receive a DU approval. She went house hunting and found her dream home.
In the mean time the lender that I was using for her financing sent out a notice that their guidelines were in the midst of change. There new guidelines would only allow for a 640 credit score and a max 48% debt ratio for any loans that were not registered by said date.
After checking with the lender AE and getting the registration deadline and getting the go ahead to use the old guidelines on this particular loan and as long as the loan was registered before the deadline, we where ok to move forward with the loan per the lender. So I have gotten a DU approval, my customer signs my disclosures, signs the lenders disclosures per the new MDIA regulations, i get an ok from the lender to order the appraisal and i get the ok to use the old guidelines as long as the loan is registered by the deadline. Well, the file went into underwriting where it was decided that they would not allow a portion of her income to be used. Thus it sent her debt ratio up to 56%. So now I am trying to find a lender who will allow a 620 credit score and a higher debt ratio with a DU approval.
Well, i get on the phone and start calling my other lenders and with out notice being sent out by these other lenders, they too have changed their guidelines to a max 45%-50% debt ratios, with a very few allowing up to 55% debt ratios Give me a break! I have a full doc loan with DU approval. My customer is a single mom with 2 kids and working two jobs to be able to afford a house for her and her kids. She is trying to use the government Tax Credit to help offset some of the cost so, now what do I do?
Ok, so I start going through the different ways and scenarios to see what i can do. I have to find a way to lower her debt ratio. If I suggested that she not use the Tax Credit for closing cost, that would alleviate about $200 in debt. That would put her at 54% debt ratio without being able to use these funds for closing. Still not enough but that would help! I could lower her interest rate below par with discount points. That would be a double edge sword. It would increase her closing costs but lower her monthly payment. Not so good! I could extend the terms of the loan and decrease her monthly payment that way, truly not an overall benefit to the customer. So keeping to my motto, the customer comes first...I keep digging for a solution.
After several hours of calling and e-mailing. I was talking with one of my very knowledgable AE's and he told me about a few programs that are not widely used or even available with many of our other lenders; even some of the big banks do not use them he said.
Here is how the programs work in conjunction with FHA financing. One of the programs would allow me to lower her monthly payment (only for qualifying purposes) to help reduce the debt ratio. The second program will allow me to change the terms for the Tax Credit and use a lower monthly payment in calculating her debt ratio. BAM! Being able to lower her debt ratio, while still using the Tax Credit for closing costs and she now is at a 53% debt ratio. This AE also stated that with DU approval they do not worry about the debt ratio. Imagine that! A lender who is willing to do loans in the manner of which the programs were set up for.
I am happy to have found out about these alternate programs that are not readily known about. Being able to save my Realtors deal and be a part of helping a customer purchase a home where her kids will now have their own room and a back yard to play in. This is truly what being a loan officer is about. Helping families!
Even though each home and home buyer is unique, the same mistakes are made over and over again when making a purchase. This special report will point out seven of the most common mistakes made during home buying and how to avoid them.
Buying a home is one of the most exciting events in a person’s life, whether it’s the first home or the fifth one; however, it can also be one of the most stressful. Purchasing a home should be regret-free and anxiety-free.
Learning to avoid these 7 most common mistakes when buying a home can help lower your stress and help you focus more easily on possibly the single largest purchase of your lifetime.
When you consider the scope of the purchase, it’s surprising how many people haven’t done sufficient research.
Research your buying power – It’s easy to get a cursory idea of what you can afford through some of the realtor websites. Many have calculators that allow you to input your salary and debts.
Better yet, sit down with a professional before you go house-hunting. You can find out exactly what you can afford in less than an hour with qualified mortgage consultant Christy Hempel.
When it comes to making an offer on a home, sellers are far more interested in offers that come from pre-qualified buyers. They know that the sale will in all likelihood go through and that there won’t be any unforeseen problems at the last minute. Secure Mortgage Company. offers clients a loan approval letter to present to sellers to verify their ability to close a loan.
How Much Can You Afford?
Answering these questions can help you find out how much house you can afford. Meeting with Christy you’ll also find out if you are eligible for any special mortgage packages or interest options.
Do you receive any yearly bonuses?
How much of your annual earnings is overtime?
How much is your annual salary?
What debts do you have outstanding?
Can you pay off any debts before buying a home?
How much do you spend?
What is your income tax bracket?
Do you have any expenses that will deplete your savings?
Do you have any “gift” money?
What’s your credit score?
Do you have cash for down-payment and closing costs?
There is danger in buying a home that’s not right for you because you are planning too far in advance.
Your life can change pretty dramatically in the space of a few short years. You may experience a change in health, family or financial status for example. While you can’t plan for everything, you do need to consider that you may have to sell the home unexpectedly in the not-so distant future, and the house must have some resale value.
It’s a big decision and only a foolish person would enter into it lightly. But it’s just as easy to let caution get the better of you. The real estate market isn’t fixed, it can change dramatically.
Some markets are very tight, with few homes available – a tight market probably won’t get better in the next year.
The National Association of Realtors estimates that the appreciation rate in most markets will be at least 4 to 6 percent.
Looking at everything before making a decision, it’s tempting to think that the grass is always greener somewhere else, but you may find that the first home is the best home for you.
If you wait, that home may not be available later. Don’t rush into a decision, but if a house feels right, contact a local realtor to help you make an appropriate offer.
If you develop microscopic vision when looking at a house, it’s possible to overlook far greater potential problems.
Interior Decorating - Don’t get caught up in decorating features. These are all easy features to change. However, the layout and floor plan of the home isn’t easy to change.
Exterior - It’s important to have a home with nice curb appeal, but again, you can change that later. It’s far easier to change landscaping than it is to rip out walls or add-on to a home to try and make it livable.
Price – Don’t focus completely on the price. Most buyers go out with an idea that they will only spend a fixed amount.
A budgeted amount is often the first criteria when it comes time to evaluating homes.
Many buyers focus on existing homes, and don’t consider newly constructed homes. It’s hard to see the final vision of a planned home community, especially when touring through a development that is merely empty lots and partially built homes.
However, these homes have great appreciation value, especially when you get in during the initial phases of the development, before the model homes have been built and the developer has invested a lot of money in marketing the community.
Many people start looking at homes by driving by a home for sale and getting the number off the sign, or visiting an open house.
While that’s a great way to get a feel for the market, it’s also easy to make a commitment to buying a home that doesn’t
necessarily reflect your best interests.
Working with a real estate agent can actually save you time and money.
Let’s say you found your dream home and put in an offer. What happens next?
If your sale follows most standard sales, the home is inspected and appraised; the information is shared with the buyer (via the agent) and the mortgage company. The mortgage company processes the loan agreement, the buyer and seller sign off and the home is yours!
However, in highly competitive markets, some buyers waive the home inspection so that the loan can go through more quickly.
So what’s the problem? If there are defects that the homebuyers discover later, they have no recourse – the house is theirs, warts and all.
In a nutshell, be patient. It’s at this stage, when people try to rush the process, that some of the biggest and most costly mistakes can take place.
Mortgage Consultant Contact | Home Page | Apply Now | Home Mortgage Calculators | Houston Real Estate Blog | Foreclosure Listings
Copyright © 2010 Secure Mortgage CompanyPortions Copyright © 2010 a la mode, inc.Another XSite by a la mode, inc. | Admin Login| Terms of Use| Site Map
