Your Questions About Save Loan Program

William asks…

how to get a loan for real estate?

Please explain in detail.
What all ways are there to get loan for real estate ?
What do we have to give ? and what is collateral ?
Thank you for taking the time for explaining it all :)
the kid thanks for your explanations in both the questions
I have one more question:
will the bank give ANY amount of money for real estate to us ?

John answers:

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, 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. 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.

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 benefit to you, good luck


Paul asks…

How are/did you save your financial nest egg?

Was it investments? Or simply putting aside a certain amount each pay day?

I’m the accountant in my household, and am pinching pennies to save these days…after mortgage, utilities, car notes/insurance, groceries…not much is left. I feel at times my family is a small disaster away from financial ruin, and saving has become a challenge.

Tell me your experiences, folks, I’d love to know!
Thorough ideas, HONEYB1, so far, looks like I’m on track. I love the idea of an end of the month sit down evaluation, really comb through what were wants vs. needs…thank you for responding!
Khana, I, too, have that special credit card for those purposes. I just can’t seem to put aside enough for that “emergency” that can happen!

John answers:

Hi!!! Saving money is hard and it is a challenge for most Americans. So many live paycheck to paycheck and at any minute could be in financial ruins. Just as you know you have to pay your mortgage, car loans, utilities, etc make yourself pay x amount into a savings account. Find one that will pay interest. Then after you have saved so much you can invest in short term programs such as cd’s. Your financial institution will help you.

A tip that I learned from a fanancial seminar is to take a month and write down everything that you/family spend. Everything (pack of gum, cup of coffee, etc). Then at the end of the month make a list of the things that you needed and the things that you wanted and the things that you can now see were a complete waste of money. Then for the next month only spend half of what you did on the wants and try not to buy any of the things that were in the waste of money list. You will be surprised at how much you will save.

I was also told there that you should try to save up enough money that would cover you for 3 months if something were to happen where you had no income. So strive for that goal first.

Another thing is to make our your grocery list/shopping list when you are not hungrey and you are in your kitchen. So you can see what you really need. Then make sure to stick to the list. I used to allow myself to buy just $10 of stuff that wasn’t on my grocery list because I would always see something I wanted when I got to the store but now I am trying not to do that because that comes out to be almost $500 a year of extra stuff.

I was also told to shop more frequently for groceries. Sounds odd I know but it is true. You don’t have as much waste with foods going bad if you go weekly. Also you kind of get tired of going so you go in and out without looking around (AKA spending more money) and you don’t feel deprived from the store if you are a confessed shop-a-holic like me. If I only got out to the store once a month I would buy up everything just to be buying. LOL!!!!

My husband has a 401K at his employment and they match a certain percent he puts in. He puts in 10% of his income each week before taxes and out of that 10% he invests about 1/4 of that in stock and bonds and such. He is actually making some easy money that way. He is learning when to pull them out and switch them before he loses money.

We couldn’t save much during our first 2 years of marriage because I was finishing school and my husband was working as an intern. But in the last 2 years we have really been accomplished at saving. We are not rich and have to watch our money but we feel good about the fact that we can save money.

I have a friend that uses those Christmas Clubs that banks offer and then just takes the money and puts in her savings. She said knowing she has to pay monthly she will save.

These are just some ideas. Hope these help!!!!

Daniel asks…

Where can i get a student loan for a five week course?

I am taking a five week course to be a CNA. I dont have any credit at all and I do not have a co-signer. The only person who will sign for me already has to many loans out in her name so they wont let her cosign for me. My course starts december first i dont need the money for tuition until after the course is over with so as long as i can get it by January.

John answers:

If you have no credit and no credit-worthy cosigner, you aren’t going to qualify for any loan. For this type of program, you would need a personal loan, not student loan. It’s likely that you will need to save up the money for this 5-week program.

Have you found out if an employer would pay for this program for you? In my area, if you apply for a CNA job at a nursing home, they will provide the CNA classes free of charge… It’s worth looking at.

Nancy asks…

Is the National Guard Student Loan Repayment Program only available for officers?

I’m planning on joining the Minnesota Army National Guard and I just got back from meeting with my recruiter for the 2nd time. I graduated from a 4 year college in the spring, so I have my bachelor’s degree. I could go into the Guard as an officer but I didn’t really want to after hearing what the training is like and how long it takes, but everybody’s been telling me that it’s the way to go.

Anyway, my recruiter said that the loan repayment program is only available for people going to OCS and you can only get money for loans if you go all the way through with your commission. Is this true?

John answers:

Yes Maria – NG repayment is for enlisted only – even that may be going away soon since the military is downsizing and Congress is looking for places to save money. There is another alternative though but it depends on the type of student loan that you have.

There is a Federal Loan forgiveness program for those who get college degrees and join active duty military, Teach, and for those NG or Reserve folks who are mobilized for at least one year. You can get up to 50% of your loans forgiven for active duty, years spent teaching, or mobilized to combat zones (in past averaged 12.5% per year). I used it many years ago.

From your comment, you probably are not military officer material. The purpose of military training, especially an officer, is to accomplish assigned missions without causing your untimely death or the death of those soldiers that you are appointed over. The military is a continuous training event except when in actual combat. Of the 27years that I was in the Marine Corps, I trained for at least 24 of those which made me very proficient at my job and I ensured that every Marine under me was trained as well. Keep in mind that training is more than digging foxholes, long field marches with pack loads, shooting weapons at targets, etc. It is also learning everyday in your assigned MOS to the extent that when something comes up, you know what you have to do without much thought. As to whether it is the way for “you” to go, only you can make that decision. Caution: once you go that way, there is no way to back out since you will have signed a contract with the US govt. You will be stuck for several years, so put that into our future job formula. Definitely, do not use student loan payback as a reason. War is hell and is very demanding of soldiers, Marines, sailors, and airmen. Lives are at stake and every officer must be dedicated, without question, to ensure that their assigned folks survive and that the enemy doesn’t! If you think you can do this, then consider the Guard. If not, go to work in your college major.

Best wishes – you have a lot to consider.

Lieutentant Colonel, US Marine Corps-Retired

PS: Had short stint in active Marine Corps Reserves after 4 years active duty and combat time plus brother in Tenn NG as SSgt with 15 years Service.

Mandy asks…

Loan Application Program – Database Normalization?

I am creating a loan application program. With every client/borrower it needs a reference person.
Should I save the reference person (name, relationship, contact number) to the ‘Person’ table?
Thanks in advance!

John answers:

To normalize it properly, you would need a single table where ALL people are stored–clients, borrowers, reference people, etc. You will then need a relationships table that will store the people and the relationship to the actual loan. This table would contain the Loan ID, Person ID, and Relationship ID (borrower, reference, cosigner, etc.).

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