Posts Tagged ‘Gwinnett Mortgage’

About the Author:  Chuck Walden (NMLS #148160) is a loan officer with GMAC Mortgage.  Email Chuck at chuck.walden@gmacm.com or call 678-725-8076. Website is www.ChuckWalden.com

The market is better.  Rates are low.  Home prices are rising.  BUT what if there was more?  Hopefully, I can answer some of those questions and give you a way to move more property, make more money, and do an even better job for your customer.

What if a lender offered to pay the majority of the closing costs?  Would this help your negotiations?  Of course it would.  What if closing costs and seller concessions weren’t an issue?  What if you could throw out the standard 3% seller concessions because it wouldn’t even matter?  Talk about a negotiating tool.  Wouldn’t it be awesome if your buyer could come to the table with just their down payment.  Do you think they would remember that and refer more business to you?

What if a lender guaranteed you would close on time?  I know you’ve heard that before.  BUT, what if they offered to pay your buyer $500 if they didn’t close on time?  Do you know of any lenders that want to pay money to a buyer.  I don’t.  Talk about motivation.

What if a lender communicated with you constantly so you never had to “wonder” what was going on with the transaction?  Have you ever had to pick up the phone and ask?  My bet would be yes.  Wouldn’t it be great if you knew when the file came out of underwriting?  Or, that the appraisal and title are in and there are no issues?  Even if there are issues, you want to know.  You need to know.

What if you felt like you had control over every transaction?  You knew your buyers or sellers were in good hands.  You knew that they were getting the best deal out there.  You knew that you were going to close on time. 

Maybe this sounds like a perfect world to you and there’s no way this could ever happen.  I challenge you to find out.  My job is to make the purchase of a home as stress free as possible.  With some of the lowest rates in the industry, guaranteed to close on time, most of the closing costs paid by the lender, and communication throughout the process……Is there anything else you, your buyer, or your seller needs?  If there is, I would love to hear about it.

If you’re interested, I would love to talk with you to show you how this is a reality.  These tools will no doubt help you to grow your business, receive more referrals, and make more money.  Feel free to email me at chuck.walden@gmacm.com or call me at 678-725-8076 anytime to discuss how I can do this for you.  It’s new to your market so be the first to take advantage and don’t delay.

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About the Author:  Chuck Walden (NMLS #148160) is a loan officer with Prospect Mortgage.  Email Chuck at chuck.walden@prospectmtg.com or call 678-725-8076. Website is www.ChuckWalden.com 

Now that you have chosen your loan product and your new home, what happens next?  Gone are the days of providing a couple of pay stubs and bank statements.  Each individual situation is different.  Your life “picture” will be looked at in order to determine what items are needed for underwriting.  Typical items will include but are not limited to:

1)  2 years of tax returns – Specific items that will be looked at are – do your tax returns match your W-2’s?  Are there any unreimbursed business expenses on the 2106?  If self employed, did your business have a profit or loss?  Is the rental property you own mentioned on your return?

2) 2 months of pay stubs – Specific items that will be looked at are – does your year to date income make sense?  Are there any repayment of loans mentioned?  Does your salary or hourly wage match what you told your loan officer?  Are there any bonuses or overtime wages?

3)  2 months of bank statements for any asset listed on the loan application – Specific items that will be looked at are – does your bank statement show any deposit that is not payroll related?  If so, where did the money come from?  Be prepared to write or type a letter of explanation regarding these deposits and proof.

4)  A written or typed letter indicating why you want to purchase the home

5)  Proof of rent payments – if you are currently renting from an individual, you will need to provide 12 months cancelled checks showing that you have been making your payments on time.  If renting from a company, you will need to provide contact information so they can confirm payments have been made on time for the last twelve months.

6)  A copy of your unexpired drivers license

7)  A credit card number – this is to order the appraisal on the home you are buying.  Appraisers are paid directly with this credit card before they will view the property

8)  Bankruptcy papers – if you have declared bankruptcy, you must provide the complete bankruptcy package along with the discharge paperwork.

9)  Divorce Decree – if divorced, you must provide the complete divorce paperwork package

What we are trying to accomplish is to present a “picture” of you, the home buyer, to the underwriter. Underwriters do not speak to the buyer, so we need to present a story that says, this is John Smith, this is what he’s about, and this is why he wants to buy the house.

It’s always a good idea to contact your loan officer before you start looking for your new home.  He or she can tell you where you stand, how much you can afford, and if something needs to be addressed.  Also, have all of your paperwork ready at the beginning for review.  I promise it will take the drama out of your home buying.

Apply today at www.chuckwalden.com .  Call today at 678-725-8076.  Email today at chuck.walden@prospectmtg.com

 

 

 

 

 

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About the Author:  Chuck Walden (NMLS #148160) is a loan officer with Prospect Mortgage.  Email Chuck at chuck.walden@prospectmtg.com or call 678-725-8076. Website is www.ChuckWalden.com

As a loan officer, I have to look at every loan as if I’m the underwriter.  If I put myself in her/his shoes, what will I see?  What are potential issues and red flags?  A question asked of me constantly is, what does an underwriter look at when evaluating my loan?  Listed below is my opinion on what can make a strong loan.

First, your credit will be evaluated.  Your credit score is a number which will tell the underwriter if you have been paying bills on time and if you have had any issues related to collection accounts, judgments, liens, bankruptcy, or a foreclosure.  if you have credit cards, are they maxed out?  Your credit score is also a great representation of the likelihood of you making your future house payment.  The higher the score, the more likely you are to make your payment and make it on time.

Second, your debt to income ratio will be evaluated.  Debt to income is basically money coming in verses money going out.  If you make $2500 per month and your bills are $1250 per month, the debt to income ratio is 50%.  The debt to income ratio is also broken down into two numbers.  The first number is your housing ratio. This number is your total house payment (principal,interest, taxes, insurance, and mortgage insurance if applicable) divided by your monthly income.  The strongest number would be anything at 28% or less.  If your number is over 28%, that’s ok.  Loans are approved all the time with a number higher than 28%.  The second number analyzes your total debt.  This would be your future house payment plus all of your other monthly debt divided by your monthly income.  A solid number is 42%.Once again, loans are approved at a higher number up to and including 50%.  The higher the number, the weaker the loan.

Third, the property you are buying will be evaluated.  Lenders do not want to lend money on a home that has issues or that does not appraise for the amount you are purchasing the home for.  The underwriter will look at the appraisal to determine if there are any safety and health issues, comparable sales in the area, square footage, etc. If you are using FHA financing, appraisals are very strict and if anything is noted on the appraisal that could be a concern, then it will be imperative that the issue is resolved before an approval will be granted.  The appraisal is one aspect of the loan that cannot be predicted.

Fourth, your assets will be evaluated.  The underwriter will look at how much money you are putting down on the home and how much you will have after you close.  If you are using every dollar you have to purchase the home, that will be an issue.  Don’t forget, you have to turn on utilities, buy furniture, etc.  All of which will cost money.  The more money you put down the stronger you look to the underwriter.  The more money you have in the bank after you close, the stronger your file will look.  If your bank statements have large deposits or multiple deposits that are not payroll related, you will have to prove where that money came from.

All four of the above items are important and will be looked at as a total picture.  When discussing buying a new home with your loan officer, do not hold anything back.  Layout your problems, concerns, and dreams.  It’s best for everyone involved in the transaction to be upfront and honest right from the beginning.  This will make your home buying experience much less stressful.  Also, when you first start thinking about purchasing a home, call me. Don’t wait until you have already found your dream home.  It’s much better to know how much you can afford and if there are any issues before you even start looking for your home.

I speak to a lot of potential home buyers every day.  One question that I get is, why do I need to be preapproved?  This preapproval arms you with a legitimate document, that tells the seller two things.  First, it tells them that you are serious.  Second, it tells the seller that you are qualified to buy the home you are making an offer on.  Very few, if any, sellers will accept an offer without a preapproval letter.  Also, if an agent is driving a potential buyer around without being preapproved first, they are wasting their time, effort, and money. I am amazed when a buyer tells me that they have already been preapproved with another lender, only to find out later that the other lender never even checked their credit.  How can a lender issue a preapproval letter without checking credit?  The answer is you cannot.  If you have been preapproved and have a “letter” in your hands and the lender did not check your credit, income, or assets, you’re only walking around with a piece of paper.  You could be setting yourself up for failure later on down the road.  You found your dream home!  You submit your offer and it is accepted!  You turn in your paperwork to your lender and you don’t qualify.  Wow, what a let down that would be.

 

The preapproval process is something that should be taken very seriously. I imagine that you would rather hear that you will qualify in 60 days, rather than get denied right now.  It is important to work with a lender or loan officer that takes this process seriously.  They will (or should) ask you for the following when preapproving you:

 

1)  30 – 60 days of paystubs

 

2)  2 years of tax returns

 

3)  2 months of bank statements in order to show you have the cash to put down on the home you are buying

 

The loan officer will also ask for your social security number, full name, and current address.  This info will allow them to see if you actually  qualify for the home you would like to buy.  It will also allow them to alert you of any potential red flags.

 

If you are a potential homebuyer, please take the time to do this.  If you are an agent, please make sure that your buyers do this.  Underwriting guidelines are tight.  Let an experienced loan officer

 

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help you and your customers navigate this process.

 

 

On November 15th, HARP 2.0 arrived like an early Christmas present.  Now we have to wait until it’s time to open it. Unfortunately, patience is not one of my gifts, but I’ll do my best.

HARP 2.0 is a refinance program intended to help approximately 7 million homeowners who are currently over 80% loan to value their home or completely underwater due to declining home values.  The main criteria of the program is that your loan must be owned by Fannie Mae or Freddie Mac and you must have closed before June 1, 2009.  You can check to see if your loan is owned by Fannie Mae here or Freddie Mac here. If it is not owned by one of these two entities, you are not eligible for the HARP program.  This also eliminates FHA, USDA, and Jumbo transactions.  You can check to see if your closing date was prior to June 1,2009 by looking at your closing paperwork.

The HARP 2.0 program offers some very lenient guidelines.  

1)  You are allowed to have one 30 day mortgage late over the last 12 months. 

2)  A typical appraisal probably will not be required. Lenders may use an AVM (Automated Valuation Model) to determine your homes value.  The appraised value will not matter.

3)  You can use any mortgage lender for the HARP program.  You do not have to use the same bank that currently holds your mortgage.

4)  If you currently have PMI (Private Mortgage Insurance) you will continue to pay the same monthly premium and continue to have PMI.

5)  The maximum loan amount is $417,000

6)  You can roll in the costs associated with the loan into the new mortgage

7)  Primary residences, Second Homes, and Investment properties all qualify

8)  You cannot consolidate a first and second mortgage into one loan under this program.  If you currently have a 2nd mortgage or HELOC, it will be up to the bank that holds the 2nd to agree to subordinate the junior mortgage.

9)  If you have already taken advantage of HARP, you are not eligible to do so again.

10)  You do not need to have a job to qualify unless your new principal and interest payment increases by more than 20%.  Your income will not be verified.

When the first HARP program was released in 2009, lenders applied their own criteria to the program. For instance, some only allowed the loan to value to be 95%.   The program should be released and ready to go the first week of December.  As lenders attempt to wrap their hands around this new program and determine exactly what the qualifications will be, let’s get ready to take advantage.  If there is a huge gain in refinance volume, it is possible that lenders will raise rates in order to control the flow of new refinances

Freddie Mac

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into their pipelines.  You need to start getting your paperwork together now so when it’s time to act, you’ll be ready.  Send an email to chuck.walden@prospectmtg.com for a complete checklist of items you will need.