Your Questions About Mortgage Loan Type

Mark asks…

Qualify for Home mortgage?

My credit score is 645, I’ve got nothing bad on my credit report that would hinder approval in that regard. I’ve got $73,000 down payment, plus plenty for closing. Looking to purchase a brand new home. I gross $7000 a month and have a total $700 in monthly debt from 1 auto loan and 1 student loan.

How much if anything can I get approved for?

John answers:

Your credit score of 640 is ok. There are many real estate calculators you might find on the internet that would provide you with information about your qualification for a mortgage loan. It is sort of like a question and answer situation. The calculator ask questions and your provide the figures. Eventually you would have a possible answer as to your qualification and the amount you would be approved for.

Buying a house is a step by step process, this is the first step you should take in order to purchase a house. The rest of the steps will fall in place, no matter the type of property you are purchasing.

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, 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 USDA, FHA and VA loans if you qualify for one. With a VA mortgage loan you are not required to have a down payment, this will save you on closing cost.

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. This will allow you to make an intelligent decision.

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 should 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.

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 should 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 benefit to you, good luck

“FIGHT ON”

Daniel asks…

Mortgage Loan?

im a loan officer/Broker in New York. I was wondering if there is any lenders out there that can do this loan. Its a first time homebuyer, 90 LTV, 3 unit house in Pennslyvania. 686 fico score, Have to go Stated Wage Earner with assets no much, or no ratio witth a VOD. If anyone know anything please let me know, i cant find any banks that would approve the 3 unit at 90 percent for stated.

John answers:

I am sorry to say but in today’s “credit crunch” economic condition the loan type (stated or no ratio) you are needing at the higher loan to value of 90% is getting harder to get and the rates are much higher. And adding a 3 unit to mix & investment property type, which are additional layers of risk to the lender, well you need to get started shopping around. Be careful about upfront fees. I put a website below that also answer your question and give you possible alternatives.

I really don’t think your going to be able to get 90% on a 3 unit.

Hope this helps!

Linda asks…

mortgage loans do itake and equity or a second mortgage on a hous that is paid for.?

i have a house that is paid off but i want to purchase another house so i want to borrow a loan to put 20 precent down on the second house i want to purchase what type of loan can i get is it a equity or is it a second mortgage because the house is paid for.

John answers:

Equity loan is simply a nice name for “second mortgage”, which some people have a fear of (mostly a generational thing, it seems).

But you can use those products as a first mortgage, if you have no other debts.

And it’s probably not a bad idea, since many banks will offer you good terms (under 7%), and they’ll pay all your closing costs for you as well. Then you only pay closing costs on the mortgage for the new purchase.

Donald asks…

Question on how many revolving accounts needed for a mortgage loan?

I talked to one bank (Td Bank North) who said I needed 4 revolving accounts for at least 12 months, as well as my fiance. That is 8 revolving accounts total, which is a lot to me. Do most credit unions/ banks require this many, or would this be the higher end of the spectrum? I have been told by many people that they only needed proof of 2 revolving accounts per person for over 12 months. Any info would be great on this!!!
Thanks!
Just to note:

We are not planning on buying our house until after we are married for at least a year

John answers:

All mortgage loans are not created equal. If you are looking for a loan, you have probably discovered the array of loan types and options. It can be confusing forthe first-time borrowerand are easier to qualify for than conventional loans. They are also guaranteed to the lender, which allows the borrower to obtain more favorable loan terms.

Thomas asks…

I want to get a mortgage?

I want to get a mortgage. Are there any mortgage advisors or someone out there who would be able to advise me on the best strategy to take
Thanks

John answers:

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 should 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 should 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”

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