Get Your Mortgage At A Lower Rate
Are you looking to purchase a new home?
Refinance to a lower payment or rate?
Reduce the term of your mortgage and pay your home off sooner?
Time for a bigger house?
Time to purchase that investment property you’ve always wanted?
Time to downsize and start planning for retirement?
Need cash from your home to consolidate debt and free up monthly cash flow?
Need to turn an adjustable rate into a fixed-rate mortgage or refinance to stop paying mortgage insurance?
- We help you choose the right home loan for your needs
- We do all the legwork for you working on your behalf to find the lowest possible rate
- Free appointment – No application or credit report fee – no obligation
Whatever your mortgage needs, here to help you find the right mortgage loan with the lowest available interest rate.
Visit the learning center for more about all the benefits we offer or contact us for more assistance.
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Are you looking to purchase a new home? Refinance to a lower payment or rate, or reduce the term of your mortgage and pay your home off sooner? Maybe it’s time for a bigger house or purchase that investment property you’ve always wanted or time to downsize and start planning for retirement? Get Updates Now!
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What Do You Need for a Mortgage?
Buying a home today is tougher than ever. The Federal Government has over-regulated the mortgage industry due to the housing collapse in 2007. It’s not an entirely bad thing. However, it makes the process for attaining financing extremely stressful, time consuming, and frustrating at times.
I tell my clients, “Buying a home isn’t easy, but it can be simple if you follow the instructions I give you.”
The GOOD NEWS is after hundreds of closed loans in this market, I’ve created a system that takes a very complex process and simplifies it for you. My Professional Team is always here to assist along the way as well.
In this article, I will give you a wining game-plan to acing your mortgage.
You will understand the 4 areas that and underwriter will base their approval on:
1
Your Credit Score Report
The first step in getting pre-approved for a mortgage involves pulling a copy of your credit report and conducting a pre-mortgage credit analysis. Most banks, online lenders, and credit unions require a 640 minimum credit score. Our bank is a direct lender with NO overlays, therefore, we rely on agency credit score guidelines.
Program Credit Score Requirements
- Down Payment Assistance Programs: 640+
- VA and FHA: 580+
- Conventional Fannie Mae/Freddie Mac: 620+
In addition to a qualifying credit score, banks like to see 3 trade lines (accounts) with a 12-month payment history reporting on your credit report. These do not have to be open active accounts. If you do not have 3 tradelines reporting on your credit report, we can often times work around this problem to arrive at a solution, but we’ll need to take a look.
The other option is to support your credit history with non-traditional credit. These are accounts paid monthly that don’t report to your credit.
Examples of Non-Traditional Credit
- Auto Insurance Bills
- Utility Bills
- Cell Phone Bills
- Rent Bills
- Etc.
But this can take some time to build.
If your credit score misses the mark, you can still purchase a home. Many people think that you cannot buy a home with a bankruptcy, shortsale, or foreclosure on your credit report. That simply is not the case. There are minimum waiting periods after a credit event which we can review during our consultation. It is important to speak with a Mortgage Professional that understands credit and is equipped to help you.
If you need a credit report, begin immediately.
As always, my Team would be happy to review your credit report with you and give you appropriate feedback for getting approved to purchase a home or refer you to a professional credit repair company if needed.
2
Cash, Down Payment, & Closing Costs
- The USDA-Rural Home Loan
- The VA Home Loan
- The California Housing Finance Agency
All other loan programs require the borrower to make a down payment on their purchase. In addition to that down payment, closing costs are included.
Banks will require you to prove that you have money to pay for your down payment and closing costs in any of these:
- Checking
- Savings
- 401k
- Investment Account
In some situations today, the seller is paying the borrower’s closing costs, so the only remaining funds needed to close is the down payment.
Down payment money must be verified – You may receive gift funds to purchase a home, but either way, you must properly support and provide a paper trail of where those funds originated.
3
Documenting Your Income & Employment
Banks require a 2-year consistent employment history. “Consistent” means working in the same line of work and without gaps of employment. Exceptions can be made if there are gaps in employment, but in most cases, a previous 6-month consistent work history prior to buying a home is required.
If you are a college student, intern, or apprentice – the time spent in school or training qualifies as “employment history” in most cases.
*Read carefully here. This is where most loans encounter issues.
The bank will require you to support your work history with the following:
- 2 Years of W-2s
- 2 Years of Tax Returns
- 30 Days of Your Most Recent Pay Stubs
- Your College Degree (if applicable)
The underwriter will order tax transcripts from the IRS to verify your tax returns and to ensure your taxes are paid. Any outstanding IRS debts may be required to be paid off or your income will need to support the IRS payment.
Prior to funding your loan, the bank will contact your employer to confirm that you are currently employed and to verify how you are paid (bonuses, hourly, commissioned, salary, etc).
4
Type of Properties for Financing
- Single Family Homes (SFR) 1-4 Units
- Townhomes
- Condos
- Manufactured Homes – must be on permanent foundation on owned land, not in a park.
Each of these property types require specific agency requirements. Please contact us for more details and questions.
NEXT STEPS:
Establishing A Budget – Your Mortgage Plan
In some cases, a bank will approve you for a mortgage in an amount higher than you wish to afford. A professional mortgage advisor will conduct a pre-mortgage credit analysis and help you determine a mortgage and financial budget designed to helping you pay-off your debt and eventually your mortgage early – saving you thousands of dollars in interest paid.
We value the opportunity to review and establish a budget that works for you! Remember, come the 1st day of the month you are the one writing the check and your payment needs to fit within your family’s lifestyle, budget, and goals.
Finding the Home – The Right Realtor
I highly recommend that you not only work with a Real Estate Professional that knows the area you are looking to purchase in, but more importantly, a Real Estate Professional that sells real estate full-time at 40+ hours/week.
You would never visit a doctor that practiced medicine on the side. So why make the largest financial decision of your life with a part-time Real Estate Agent? I work with some of the finest Real Estate Professionals, and would be happy to refer an agent to you in your area.
The Perfect Loan Process
We make it easy.
Schedule an initial mortgage planning discussion surrounding:
1) Your Current Situation
2) Goals/Budget
3) Timeline
There are so many additional factors that go into qualifying for a Home Loan today it’s important that you are working with a professional that understands the ins and outs of the process and current market trends.
I want to be your mortgage advisor!
I encourage you to reach me directly at 909-261-0332 or via email at mike@mrmortgageguy.com
If you found this information valuable, please share it! If you are a Real Estate Broker and would like information like this to be shared at your next office meeting, please contact my office to scheduled me!
