Step One: Get pre-approved by a qualified loan officer. Give us a call directly, or take a moment to complete our short pre-approval form. This enables us to evaluate your income, assets, and credit score, and to determine the highest loan amount you will qualify for. We’ll also advise if challenges exist that might require further preparation before a full loan approval is likely. Step Two: Once you’ve been prequalified for a loan, work with a qualified Realtor to find your home and make a purchase offer. We will work closely with your agent and make ourselves available at all times should she need to be in contact with us. Step Three: With an accepted offer, we will submit your application for final loan approval. Step Four: Sign closing documents and within a few days you’ll own new your new home!.close ↑
This can be a complex and sometimes daunting concept, yet it is not an uncommon transaction. Here are the key Factors to Consider:
•Down Payment: Move-up buyers often use the proceeds from their current property’s sale to cover the down payment of their purchase loan (either in full or in part).
•Loan Qualification: If the buyers cannot afford to “carry” both loans simultaneously, they will need to sell their current property before the purchase escrow closes.
•Home of Choice: Move-up buyers who cannot qualify for both loans concurrently need to add a “Home of Choice” contingency to their listing offer.
•Concurrent Closing: When move-up buyers are successful in finding their home of choice, they often try to schedule a concurrent closing whereby they move directly from their current property into the new property without interruption. If a concurrent closing cannot be scheduled, it becomes necessary to create a “lease back,” find temporary housing, short-term rental, and/or storage options.
•Contingent: When making an offer to purchase, a buyer who must sell their current home (in order to qualify for their new home) would want to make the offer contingent upon the sale of buyer’s home. This makes the offer slightly weaker, but it also protects the them from losing their good faith deposit.close ↑
It depends on the loan and the lender. For a purchase or refinance, 30 days is reasonable and can often be less. If your loan is a jumbo, 30 days is possible, but 45 days is more realistic. If you are dealing with a foreclosure or a short sale, all bets are off. You can get a loan approval quickly, but the bank that owns the current loan can drag their feet for an indefinite period of time. Often these purchase transactions to take 60+ days.close ↑
It depends on what you mean by low. There is tiered pricing even for scores in the 580-800 range. You loan will be least expensive if your score is above 760.If your score is 620 you can still get a competitive loan – either a conventional conforming or FHA – but remember, the lower the score, the more expensive the loan. The higher the score, the more the loan will cost you. It is not only your credit score, but what is causing the score to be low that will have an impact. Open judgments, with certain exceptions, have to be paid off prior to funding a loan.close ↑
For Chapter 7 or 11 Bankruptcy there is a 4-year waiting period after your bankruptcy is discharged. For Chapter 13 there is a 2 year waiting period from discharge date or a 4-year waiting period if your Chapter 13 is dismissed. In either case, you must have re-established credit prior to applying for a loan. This may be revolving debt such as credit cards, installment loans such as an automobile purchase or any other debt.close ↑
Property taxes are charged on a fiscal year beginning July 1st and ending June 30th; hence tax years are referred to as 2004/2005, 2005/2006. Taxes are billed in two equal installments: first installment covers July 1st through December 31st, second installment covers January 1st through June 30th. Tax bills are sent to homeowners in the last week of October. Tax payments are due November 1st and February 1st; tax payments are delinquent on December 10th and April 10th.close ↑
Upon change of ownership, the Assessor’s Office will reappraise the property and will bill the new owners for any difference in taxes resulting from a higher assessed value. The Assessor will issue you a supplemental assessment bill which is prorated based on the number of months remaining in the fiscal year ending June 30th. More information about reassessments can be found below.close ↑
If you have a foreclosure on your record, there is a 4-year waiting period prior to purchasing an owner-occupied property.However, if the foreclosure was due to extenuating circumstances (loss of a job, health issues, etc) the waiting perior is 2 years. You must be able to document the extenuating circumstances.You must have other positive credit, and new credit established since the bankruptcy. There must be no past due items pertaining to housing (rental verification) since the foreclosure. A Deed-In_Lieu of foreclosure follows the same guidelines as a foreclosure. A Deed-In-Lieu of foreclosure requires a 4-year waiting period unless the deed-in-lieu was due to documented extenuating circumstances, in which case, 2 years.A Deed-In-Lieu of foreclosure requires a 7-year waiting period with less then 10% down payment.close ↑
Each situation is different. By paying all or partial fees, you will be able to get a much lower rate. Often the difference in the rate between a fee or no fee loan is so great that your lower payment and substantial savings over time will make a fee loan worthwhile. It is important to analyze the difference in your loan offerings and the structuring of the loan. How long you play to own the home, what your current and future goals are, etc. If you are offered an easy, no fee loan, ask your lender for an analysis before you decide.close ↑
It is very important that your purchase contract contains an “appraisal contingency”. This gives you time to have an appraisal completed to be sure you are not over-paying for the home. If the appraisal comes in low, you have two options.1. The lender will loan only based on the appraised value. If the guidelines of your loan are for 80% loan-to-value, the lender will loan 80% of the appraisal and you will have to add the difference to your down payment. -or-2. You can go back to the seller and renegotiate the price based on the appraisal.close ↑
It doesn’t cost more if you use a mortgage company, and often can cost less. This is because your mortgage broker is not tied down to one set of loans and rates but can shop many banks for you. Because the mortgage broker deals with the “wholesale” division of the banks, you do not pay more, and often less. A mortgage broker also has sources that are not available directly to the public. In addition, it is up to the broker to know the lender that will be the best fit for you and your needs. Many mortgage brokers will also be available to you at your convenience, not just during banking hours.close ↑
It doesn’t matter who is servicing your loan. The lender you make your payments to is the “servicer”. In other words, they own the right to collect your monthly payment but they probably don’t actually own your loan.close ↑
No. That is a common misconception. FHA’s mortgage programs do not typically have maximum income limits for qualifying. However, income limits may be present when qualifying for down payment assistance or other secondary financing programs (including those funded by HUD) that may be used in conjunction with an FHA loan. Generally, to be eligible for an FHA loan, you must have a valid social security number and have lawful residency in the United States and be of a legal age to sign on a mortgage in your state. Lenders will verify income, assets, liabilities, and credit history for all parties on the loan. close ↑
