Buying a house is probably one of the biggest investments you will ever make. Often, in the excitement and anxiety of taking this huge step, new home buyers are not aware of what is involved in the process and where to begin.
Being a real estate broker, everyday I receive tons of calls from buyers who are interested in my listings, but when I ask them if they are pre-approved, most of the times I get the same answer: “No, we are just getting started.”
The very first step to becoming a homeowner is to get a pre-approval. Pre-approval is an easy process, but it is time-consuming. It usually takes at least one month to get the pre-approval letter in your hands. Then, you will know exactly how much of a house you can qualify for, and the pre-approval letter assures the seller that you are a serious and well-qualified buyer.
You can start with your own bank or any bank or credit union of your choice. You will have to meet them or talk over the phone. The information that all of them want will be exactly the same: Where do you work? What is your job? How long have you been employed in that same line of work? How long have you had your current job? What is your salary? Do you have any other income? How many borrowers will there be? Yourself? Husband and wife? How much do you have saved? What other debts do you have? They all will require a credit report, copy of two years of income tax returns, and recent pay stubs to prove employment and income. They will require this information from every person who will be on the loan.
Once your mortgage broker receives all the information from you, you will know exactly what type of financing, interest rate, and mortgage amount you can qualify for. Then, your mortgage broker will issue you a pre-approval letter summarizing all this information. Your realtor will submit this pre-approval letter with any offers that you will make. Most sellers will not even look at or consider offers that don’t have a pre-approval letter with them. That is why it is crucial to start the pre-approval process as soon as possible. The sooner you start, the more quickly you will be able to make offers and ultimately become a homeowner.
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It really depends on the lender he has chosen. A good lender should have pre-qualified you and your husband in their office. They should have already gotten you approved for a dollar value, at least in principle.So it’s hard to know what is going to happen, without knowing the specific lender you are dealing with.In any case, everything is in slow motion right now. The low interest rates have prompted thousands of people all over the country to refinance their homes at a lower interest rate. This has slowed lenders down considerably as the infrastructure struggles to keep up with demand.So basically, what I am saying is it could take a few weeks. But a good lender should give you a pre-qualified amount quickly so you can start house hunting.
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You could call the company where you have the loan ask to speak to a loan officer and ask them what their policy is if you cannot/do not make the payments or Call any institution and ask if you make a loan and for some reason cannot make the payments what happens? Just generic information. This is just for your education..Not all institutions are the same.Call an attorney who is experienced in real estate or foreclosures and ask them what steps you should take.,,,, to have the best outcome for yourself.It is scary but not to do anything may jeopardize your financial future in ways you cannot know now.
For some people 20% is a lot to put down. There are many ieansncts where the parents could help out. They can sign onto the mortgage as a guarantor. After one year they can be removed from the mortgage through a lawyer. Lenders want to see that you are good with credit prove your responsible and lenders will have no problem with you in the future. There are many times a guarantor is needed for younger professionals without any credit history. Speak to a mortgage broker they can help you. The slow way is to get a credit card from your bank and start using it. Make sure your payments are on time and in 3-6 months you will start seeing your score. Typically, you need 1 or 2 open lines of trade (credit card, line of credit, personal loan) to get a higher score. Make sure you make your credit card payments right away and try not to carry any balances over to the next month. Keep your statement balance at $0 while using your card regularly
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This answer to this dedenps on how much equity you currently have in the house. Have you made any additional payments. The reason is simple. If the house has declined in value you may owe more than the house is worth. This is the risk you take with 100% financing. When trying to refinance you will need to get another appraisal conducted. If there is not enough equity to borrow against, you are going to have a problem getting a refinanced second mortgage.
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The first thing you and your girlfriend solhud do is complete an agreement as to the division of the property, payment are to be made by whom, who stays in the property in the event of a possible break up and other things that might solve unforeseen legal problems.It is best to do this while everyone is still speaking to each other civil. It is too late to agree to anything when the yelling start.You both may qualify for the mortgage loan and both go on the title deed. Make sure you understand the various deeds that are available and how they transfer property.In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book. Make sure this mortgage broker or mortgage banker is able to do government loans such as FHA and VA loans if you qualify for one.He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.#1 One month of pay stubs for each person that will be on the mortgage.#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.#3 Two years of federal income tax along with the W-2 that match.Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased. Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments. If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.You solhud select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.Make sure your mortgage broker explain all your options so you may make an intelligent decision.What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.So select the best option for you and your financial situation.You solhud also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.Your mortgage broker will now order an appraisal to show proof of the property value.The mortgage broker might ask for additional information or documentation, don’t get all up tight this is normal, just supply the information or find the documents needed.After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.I hope this has been of some use to you, good luck”FIGHT ON”
No way. No how. There are no monthly svicree fees paid to a title company. They have zero to do with your mortgage after it closes. Where did you get this information?There is some confusion somewhere. Perhaps the mortgage company has issued forced placed homeowner insurance on your property after they determined you did not have insurance on the home. Yes, they have the legal right to do this. And yes, it could cause a big change in your monthly payment. If somehow your home insurance was dropped by your insurance company (like a State Farm, Allstate, etc.), then get your own insurance again right away and then notify your mortgage company.Also, call your mortgage company and get clarification about what’s going on here. Make sure you write down what they say.Good luck.
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try work with your lender first. Give them a call and let them know about your situation. In this housing market they might lose even more if they foreclose you so many of them are willing to work with you to help you pay off the mortgage and save your house. All these mortgage got a department that help homeowner that is experiencing hardship just like you. usually it is called the loss mitigation department. Just give them a call and tell them your situation and they will be willing to help you. Foreclosure and bankruptcy is the last thing you want
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yes it is considered a 2nd moragtge its a combo loan so you wouldnt have to set up an escrow or pay moragtge insurance, i would say keep that 1st that 5.25 is a great rate, there are some banks out there that will offer a stand alond second at a fixed rate, depending on the amount of equity in your home, WAMU has great rates now as well as Countrywide, you also have the option to refi to 1 loan but if you are over 80% loan to value you will have to get escrow and most likley PMI, but good luck to you i hope i gave you the answeres you needed
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Second mortgage or home equities do show, when recorded and this is the issue. I used to work for a title company for a major lender and issues do arise. Some lenders send the home equity to be recorded themselves, lenders don’t know all the variables that go into a recording, they miscaculate fees, don’t know about cover pages, maybe there’s a dual tax id and it costs more, some states only accept single sided mortgages. Maybe the county rejects the mortgage as the font is too small, the notary stamp bled through the paper, or there is no stamp or seal at all. If it’s rejected, the county sends it back to the lender, who most times thinks the mortgage is recorded until the borrower goes to refinance and the he is not on record so it takes them 6-8 weeks to go to their vault where they hold everything to either figure out the mortgage was not recorded or they don’t have it at all.I don’t know why people like home eqteiuis, for some it’s a status thing ..I have a 500k home equity ..some need money quick and dont understand the full economic process and think home eqteiuis are a good deal because the rate is low. Like any other mortgage product, home equities have their usefullness, but it’s not for everyone or every situation
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