There are loan programs for everything. Give us a call to help you get started. (424) 999-5710
If you do not qualify today, we will give you a plan of action, in order to qualify you in the future
Requirements For Loan Approval:
1. 2 years in the same job / business
2. Most recent 2 pay stubs covering the last 30 days
3. Past 2 years of taxes (1040s) or (1099s)
4. Most recent bank statement
5. Copy of photo id or driver’s license
6. Copy of social security card
The first and most important step in the home buying process is to get pre approve by a lender.The amount that you can borrow will be based on your debt to income ratio and credit score. We will need to know your current debts (car note, student loans, credit cards etc.). It will be best for you to get your house first, before you get your new car. If you have any collections within 7 years or less, you will need to pay them off first, in order for us or any other loan company to fund you.
Investors, even though you have $40,000 cash for a down payment, you still need to qualify for the full loan value of the property. If you don’t want to qualify for the full loan value of the property by your self or with a partner, you can join our group of investors. Give me a call for more information (424) 999-5710
Current home owners, if you want to purchase another property, we will need your most recent mortgage statement, property tax bill and homeowners insurance bill for all properties owned.
If your married, we will need the same information above (your wife or husband will affect how much you can borrow).
If your self employed, be careful when you file your taxes, 1099 filers make a lot of deductions. We or any other loan company, will not be able to fund you if you made it look like you didn’t earn a profit. Your tax returns must show that you actually made money. How much money to show? Depends on how big you want your house to be?
Example 1: You earned $250,000 last year but you only reported that you just netted $9,000 on your taxes. We will not be able to qualify you for a loan under this situation. The banks will see you as a bad credit risk because your company is not really profitable.
Example 2: For a house worth $300,000, you have to net $60,000. For a house worth $200,000, you have to net $40,000 (and with zero debts).
See stated income loans below – to qualify otherwise.
If you just came from another country with a VISA, we will be able to finance you if you meet our qualifications. But if you came on a job transfer without a visa, you will need a minimum of two years working on the U.S. side, in order for us to fund you.
Stated Income loans are back, if you have a minimum of 20% down with a good credit score and your a 1099 filer, you might be able to qualify under this loan program; call me for details.
If you did a Short Sale, here’s the breakdown on how long you have to wait to qualify for financing again
(Double check with your lender or contact me, I can put you in touch with one if you don’t know any):
• 2 Years – VA(military) loan
• 3 Years – FHA Loan 3.5% down
• 2 Years – Conventional 20% down
• 4 Years – Conventional 10% down
• 7 years – Conventional less than 10% down
If you’ve been pre-approve through another lender, is a good idea to shop your loan around once you pick your house. Even a savings of a point or a fraction of an interest rate, will be the difference of paying $5000 or $30,000 over the term of your loan.
You must have a social security card in order to get a loan. All ETIN buyers need 20% down.
If you qualify for a loan, we may help pay your closing cost. This will save you an additional $10,000 (estimate) that you can use to buy new furniture for your new place, have a bigger down payment, save for retirement, or use the extra money for what ever your needs are. Our closing cost assistance, depends on which loan type you are able to qualify for.
Anything under a 20% down payment, you will be require to pay mortgage insurance. It will increase your monthly mortgage payment by $190 to $500 (depending on the loan amount). This include the famous low down payment of $1500 (0.5%) to 3.5% trough FHA an or VA loan programs. If you can give a 20% down, the mortgage insurance fee will be wave.
If you can not afford 20% down, it will best to give a 5% down payment instead of the minimum 3.5%. Not all houses qualify under the low down payment program (and it will be the house you like). Plus, we are in a housing shortage market at the moment. Believe it or not, there will be 5 to 15 bidders going after the same property. So your offer has to be better than all the folks who are placing bids with their low down payment programs. Your chances of getting the property will be greater because you are offering a higher down payment than the folks with their lower down payment offers.
If you need funds for your down payment, borrow against your 401k plan at work. Borrowing against your 401k plan is a great strategy to use for additional funds for your down payment. It won’t show on your credit report and repaying the loan back will be deducted from your pretax gross salary. So you will hardly feel the effect on your pay check. The experts will tell you, that you will have less money when you retire if you borrow against your 401k. But there’s no better strategy than turning a $5000 – $20,000 401k loan into potential hundreds of thousands of dollars in your new home investment.
Closing costs fees average around $4624 for a loan amount of $200,000 in the state of California. The fees include origination fee charged by the lender ($1725), title, insurance, third-party fees and property taxes ($2898).
Origination fee charged by the lender includes:
Commitment Fee $715
Document Preparation $73
Broker, Originator or Lender $1,053
Tax Service $67
Wire Transfer $25
Title and third-party fees include:
Attorney, Closing or Settlement $648
Credit Report $18
Flood Certification $10
Employment Verification $58
Inspections (pest, etc.) $110
Title Search and Title Insurance $2,023
In addition to the above fees, you have to inspect the house before you buy it. A home inspection and termite report can show you everything that is wrong with the house that otherwise you or the home seller wouldn’t have known about. It will give you a solid grasp of the current condition of your future investment. Depending on the findings of the home inspector, I can negotiate a better deal for my client prior to you signing on the dotted line. The home inspection and termite report will cost you an additional $200 to $300 each.
The best way to qualify for a home loan is to have zero debt and a minimum of 620 credit score. In addition, your bank account must show that you have enough money for the down payment, closing cost and 3 months’ worth of mortgage loan payments. This is the best possible way to show the bank that you’re a great candidate for financing. You’re only risking 3 to 20 percent of the value of the property and the banks are risking 80 to 97% of the home value. The bank has more to lose than you do, if you default on the loan. It’s best to purchase your property before buying a new car. Buying a new car beforehand, will reduce dramatically the amount you can borrow for the home loan. Be smart about your money, purchase a home that will increase your net worth, instead of that $75,000 luxury car that will be worthless in 3 years.