Presented by: Mortgage Network, Inc. Lorimer Skip Trafton District Manager, NMLS# 509662
Being Penny Wise and a Pound Foolish! Passing on having a building inspection Offensive offers Incurring new debt Changing jobs/careers Not getting Pre-Approval for a loan amount before going shopping Being honest and upfront with the lender Taking care of credit issues ahead of time Trying to Max-Out Common Mistakes Potential Buyers Make
Extra counseling time taken with first-time homebuyers. 5 Components of achieving homeownership: Job/Income Stability Credit Available assets and options Personal qualification factors Property qualification factors Preparing The Borrower
Preparing the Borrower DOS Do contact us as soon as possible to get pre-approved before starting your home search. Do save all bank statements, paystubs, retirement statements, tax returns and W2s. Do keep making payments on time and stay current on existing accounts. Do use your credit as you normally would. Do notify your lender if anything changes. Do let your employer know you are buying a home for simplicity when the lender needs to verify employment. DONTS Dont make changes to your employment or income and inform us immediately if anything does change.. Dont max out or over charge existing credit cards, and dont close credit card accounts. Dont make any adjustments or transfers to your investments.. Dont close accounts, consolidate or pay off any balances, collections or charge offs unless communicated by your Loan Officer. Dont make large deposits into your accounts without documenting the source. Dont overdraw on your bank account or bounce a check.
Required Documentation 2012 & 2011 W2s – Include all jobs for the previous 2 years 2012 & 2011 1040s – Provide all schedules and pages & sign Page 2. (State Returns are not required) Last 4 Pay Stubs – Employers business name and address & Borrower name, address and identification information must be present. Last 2 Month Bank Statements – All pages front and back, E-Statements acceptable, History printouts unacceptable. Sales contract – Executed by all parties Real Estate Listing Sheet Real Estate Deposit Check – Provide cancelled check and corresponding bank statement evidencing funds clearing the bank account. Borrower specific documentation, i.e. Divorce decree, Bankruptcy paperwork, Self-employed returns, etc. Preparing the Borrower
Walk borrowers through the loan process Pre-Approval House Shopping Make offer Offer accepted Application Appraisal/Title work ordered Underwriting/Approval Condition follow-up Closing Preparing the Borrower
Communication, Communication, Communication Good news/bad news Weekly updates (minimum) All parties; borrowers, listing and selling brokers, processing/underwriting team and title attorney Best Practices
Some programs require Homebuyer Education Knowledge is a Reality Check Expenses post-closing; i.e., water and sewer, real estate taxes, maintenance, budgeting for heating, etc., etc. Benefits; i.e. tax advantages Importance of Homebuyer Education
Program designed for the consideration of borrowers who have experienced an adverse Economic Event (Pre-Foreclosure sale, Deed-in-lieu or Foreclosure) and can document: Certain credit impairments were the result of a loss of employment, or a significant loss of employment, or a significant loss of household income beyond the borrowers control. The borrower has demonstrated full recovery from the event. The borrower has completed housing counseling. FHAs Back To Work Extenuating Circumstances Program
Eligibility Requirements: Borrowers credit history is clear of late housing or installment debt payments and major derogatory credit issues on revolving accounts. Any open mortgage is current and shows 12 months satisfactory payment history. 12 months have elapsed since date of foreclosure, deed-in-lieu, or short sale. 12 months have elapsed since discharge of Chapter 7 Chapter 13 Bankruptcy was discharged prior to loan application and all required bankruptcy payments were made on time for a minimum of 12 months. FHAs Back To Work Extenuating Circumstances Program
Housing Counseling Minimum of 1 hour one-on-one counseling from HUD approved housing agencies. Be completed a minimum of 30 days but no more than 6 months prior to submitting a loan application. List of agencies can be obtained online at http://www.hud.gov/ FHAs Back To Work Extenuating Circumstances Program
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