100% (Zero Down) Mortgage

Unusual Deposits After Mortgage Loan Application

2009-09-08T12:11:00.000-07:00

Anything that changes during or after the approval process AND before closing can cause problems. All underwriters have their own interpretation of guidelines.

In addition, there are a lot of variables.

As for as deposits go, if there is a documented history of receiving this type of bonus, I do not believe there would be a problem getting your home mortgage loan approved. You MUST have supporting documents that show these funds are consistant with income received in the past as well as any letters, paystubs and deposit slip showing this is the source of the funds. It is wise to run this by your Mortgage loan officer or mortgage underwriter if possible as it is a matter of interpretation.

Selling and Buying a New Home

2009-08-25T14:40:00.001-07:00

Editing: Keep checking back

Selling and Buying A New Home Checklist

1. Check Your Credit.

There is nothing more disappointing than wanting to buy a new home only to find you have credit issues to clear up before you can buy that new home. In a way that statement is wrong. Selling your home, finding a new home and then being declined because of credit issues is far worse. In this situation, you could end up renting or at the least have a lot of sleepless nights...

Get a free copy of all three credit reports and check for issues. Issues such as collections, judgments and low scores are factors that could keep you from buying a home, pay a higher rate and/or requiring a higher down payment. You do not need a credit repair company, you can dispute and clear them up. Dispute them and follow up! These are issues you want out of the way up front. Follow them and don't be disappointed.

2.Determine the value of your home

Go to http://www.zillow.com/ and input your address to see what homes are selling for in your area. If you are not familiar with the homes on Zillow, ride by them and make notes of similarities and differences. Make notes of differences that increase or decrease the value of your home. While you are out, record addresses, similarities/differences and real estate agent name and phone number of any homes you see that are listed. Look for FSBO's. Call the realtor or FSBO and inquire into sales price and details of the home. Make note of number of bedrooms, baths, garage size, lot size and anything else that might come to mind.

At this point you need to compare all those properties to your home. Will you have enough equity to pay agent fees, possibly closing cost for buyer and make an adequate down payment on your new home?

If you talk to agents in this process get a feel for how you interact with them. Is this someone you want to list your home with or use to buy a home???????

3.Find a Good lender/broker

At this point you have a general idea of your credit standing, what your home will sell for and how much you will have for a down payment. Now it is time to find someone you are comfortable with to handle the loan for your potential new home.

Talk to your friends, relatives, co-workers and associates to see if they can suggest a mortgage lender or broker. At the same time do some research on your own by checking with your bank, your credit union, local paper and the yellow pages for a potential lender. Talk to them. Make sure you comfortable with them and always check the local Better Business Bureau.

The next step is to get pre-qualified. You need to know how much you qualify for, how much you need to pay down and if this what you want to do.

4. Family Meeting

Have a family meeting. Discuss your options. Do you have a good chance of getting where you want to go? If you have children, will they lose friends, can they make new friends and how about new schools?

5. Spruce Up Your Home

Location, location and location! You hear that a lot in the real estate business. Hello! Your home
is where it is so your job is to make it appealing enough to get a potential buyer inside. Curb appeal is what you need. Make your home attractive from the street. Clean up the yard, put some flowers out, wash the windows, mow the lawn and be ready to show it at anytime.

Since you are in the initial stages of selling your home. Put a for sale by owner sign in the yard. Post it on http://www.fsbobasics.com/ and other FSBO sites. You could sell without the use or cost of an agent... Money saved is money earned!

6. Search for an area First

Absolutely do not look for a house to fall in love with, LOOK FOR AN AREA TO LIVE IN and then find a house to fall in love with! There are a number of things to consider in finding an area.

First and foremost you must check into crime in the area. Your number one priority is safety for you and your family. Check crime stats at sites such as http://www.crimereports.com/ and http://spotcrime.com/.

Secondly, is there high industrial pollution. Your family's health is a high priority.

Thirdly, is there high amount of traffic in the area? Safety again.

Fourth, are the schools more than satisfactory. This applies even if you do not have children in school. You or your heirs may want to sell some day. Think about resale value.

Fifth, is it convenient to shopping areas?

7. Search for Home in that area on your own.

Go back to http://www.zillow.com/ and search for homes in the area you want to move to. Make notes of addresses and ride by some of the properties. Look for for sale by owners and homes that are listed. Call the agents and the FSBO properties. Ask about number of bedrooms, baths, garages. seller concessions and asking price.

Do this to see what’s available and price range only. Get a feel for the area.

8. Look for an agent

9.List your home

10. Find a home

11. Negotiate contract.

Seller concessions…Subject to home inspection, loan
approval, rate

2009-06-07T14:08:00.000-07:00

100% Mortgage Loan Programs

100% Financing!
0% Down!
No Money Down!
Flexible Credit!
No Mortgage Insurance!
No Reserves Required!
30 Year Fixed Rates!
Lowest Monthly Payments!
Expanded Ratios!
Loan Amounts to $417,000
No Maximum Sales Price!
Not Just For 1st Time Home buyers!

Credit Guidelines

Flexible Credit Criteria. The USDA has developed an electronically based Guaranteed Underwriting System (GUS), to expedite loan approvals. GUS automates the manual underwriting process. Lenders can now electronically enter a home buyer's loan application information into the GUS online program and within seconds get a loan decision.The Suburban/Rural Development Loan allows for manual underwriting allowing us to consider the personal circumstances of each borrower and make good common-sense decisions regarding those who have demonstrated the ability to manage their financial affairs in a responsible manner. This is particularly helpful when a borrower has lagging credit scores despite a sustained recovery from past difficulties.

No Credit History

A lack of credit history reflected on a credit report is not a problem with the USDA Rural Development Loan. We can document the applicant's willingness to pay debts through third-party verification, copies of canceled checks, or other acceptable documentation for recurring payments or monthly obligations such as rent, utility, phone, and bills.

Credit Scores

Credit Scores above 620, credit is considered acceptable. Documentation is streamlined as follows: No credit waiver required for derogatory trade lines except for Federal debt. No rental history required.Credit Scores below 620 full underwriting must be done. Exceptions are granted for extenuating circumstances.

Chapter 7 Bankruptcy

A Chapter 7 bankruptcy does not disqualify a borrower from obtaining a USDA Rural Development Loan if at least three years have elapsed since the date of the discharge of the bankruptcy. An elapsed period of less than three years may be acceptable if the borrower can show that the bankruptcy was caused by extenuating circumstances that were of a temporary nature, were beyond the applicant's control, and have been removed (e.g., loss of job, delay or reduction in government benefits or other loss of income, increased expenses due to illness, death, etc.).

Chapter 13 Bankruptcy

Chapter 13 bankruptcy does not disqualify a borrower from obtaining a USDA Rural Development Loan provided he has successfully completed the bankruptcy debt restructuring plan and has demonstrated a willingness to meet obligations when due for the 12 months prior to the date of application.

Foreclosure

A borrower may obtain a USDA Rural Development Loan after a foreclosure when three years have elapsed from a foreclosure with the loss of security or when one year has elapsed in a foreclosure with no loss of security.

Collections, Charge-Offs, and Judgments

Under the USDA Rural Development Loan, collections must be paid in most cases, but we may make exceptions depending on the account type, the amount owed, and the cause of the collection. All judgments must be paid, and charge-off accounts showing balances must be paid.

Click to find the USDA Office near you

2009-02-12T09:00:00.000-08:00

Editing:
Keep checking back

1.
Check Your Credit.

Get a free copy of all three credit reports and check for issues. Issues such as collections, judgments and low scores are factors that could keep you from buying a home, pay a higher rate and/or requiring a higher down payment. You do not need a credit repair company, you can dispute and clear them up. Dispute them and follow up! These are issues you want out of
the way up front. Follow them and don't be disappointed.

2.Determine
the value of your home

Go to http://www.zillow.com/ and input your address to see what homes are selling for in your area. If you are not familiar with the homes on Zillow, ride by them and make notes of
similarities and differences. Make notes of differences that increase or decrease the value of your home. While you are out, record addresses, similarities/differences and agent name and phone number of any homes you see that are listed.
Do the same for any for sale by owner homes (FSBO) you see. Call the agents and
FSBO's and inquire into sales price and details of the home. Make note of number of bedrooms, baths, garage size, lot size and anything
else that might come to mind.

If you talk to agents in this process get a feel for how you interact with them. Is this someone you want to list your home with or use to buy a home???????

Were there any FSBO homes that you might have interest
in. Search http://www.fsbobasics.com
and other for sale by owner sites for homes in your area and compare to your
home.

3. What's the Best
Loan Type For You

By type I mean Conventional, FHA, VA or USDA.

Conventional loans refer to all loans that do
not have a government guarantee or insured by the government. It does include
sub-prime, but the most common conventional loan is one that is underwritten
using Fannie Mae or Freddie Mac underwriting guidelines. In most cases a
conventional loan requiries a larger down payment. You can find conventional
mortgage loan guidelines here.

FHA loans has a little less stringent credit
guidelines and as little as 3.5% down. The down payment can come from an
immediate relative or a long time acquaintance. Mortgage insurance is required
on all 30 year loans regardless of loan to value. Some people have referred to
FHA as the new sub-prime. Click here
for FHA mortgage underwriting guidelines.

VA loans are for Veterans as well as active
duty military personnell. VA does not require a down payment. Veterans Home
Loans do not have mortgage insurance but does have a funding fee. You can find
VA loan underwriting guidelines here.

USDA loans does not require a down payment and
the loan can be for 100% of the value. There are income limitations and the
property should be rural in nature. Like Veterans loans there is no mortgage
insurance and there is a funding fee. Click here
for Rural Housing Guidelines.

4. Find a
Good lender/broker

why broker

At this point you have a general idea of your
credit standing, what your home will sell for and how much you will have for a
down payment. Now it is time to find someone you are comfortable with to handle
the loan for your potential new home.

Talk to your friends, relatives, co-workers and associates to see if they can suggest a mortgage lender or broker. At the same time do some research on your own by checking with your bank,
credit union, local paper and the yellow pages for a potential lender. Talk to them. Make sure you comfortable with them and always check the local Better Business Bureau.

The next step is to get pre-qualified. You need to know how
much you qualify for, how much you need to pay down and if this what you want to
do. To a home seller, being pre-qualified means they won't have to wonder if
they are wasting their time because you will not qualify for a mortgage to
finance the amount you are offering for the home.

After
you are pre-qualified:

Do
not take on new debt or make any expensive purchases.
There are so many big purchases that people want to make in connection with a
move: appliances, window treatments, furniture, etc. Additional debt could
change your debt ratio. A change in debt ratio may cause the loan to be declined
and is likely to delay your mortgage closing at the very least. In
addition, do not make any expensive purchase that reduces the funds to close
your home loan.

Do
not switch banks are move money around. Mortgage lenders have to paper
trail all your funds and will most likely ask for several months of
statements on your checking accounts, savings accounts, money market accounts
and any other liquid assets. Moving money around will require more paper work
and time to get your mortgage approved.

Do
not change jobs. Do not to make a job change during the time
between your mortgage application and the closing on the home you are
purchasing. One of the factors mortgage
companies consider is length of present employment; they are partial to
stability at residence and employment. A change in employment could cause the
loan to e declined or at the very least, changing jobs initiates the need for
more paperwork, and may delay your closing.

Do not pack
important documents. Mortgage loans require a lot of supporting
paperwork. Do not pack your bank statements, tax returns, pay stubs or other
important paperwork. Do not pack
your checkbook! Mortgage
closing can be delayed if additional funds are needed at closing.

Do not buy or lease
a new car. This should go under the general heading of "no new
debt." It is highlighted here
because, for some strange reason, many buyers do run right out and lease a new
car during the time between mortgage application and closing!
As with any debt, this will change your "debt-to-income ratios"
and may cause you not to qualify for your mortgage.

Do
not ignore your lenders request for documents. Being pre-qualified
does not mean your home loan is approved and your work with the lender is far
from over. Your mortgage lender will need copies of your bank statements, W2s,
pay stubs and any liquid assets statements used to get your loan pre-qualified.
You should provide requested documentation as soon as possible to avoid any
delay in getting your mortgage approved.

In
short, do nothing that negatively impacts your ability to qualify for your
mortgage loan, or initiates a new round of paperwork. If you have any doubts about doing something that may affect
your ability to qualify for your mortgage loan, please consult your loan
originator before you do it.

These
suggestions are merely that—suggestions.
No one is saying, flat out, that bad things will necessarily follow if
you do any of the above. They are
offered as cautions. Many buyers
seem to view the mortgage application procedure as a static action, a snap shot
of their financial lives at a given moment in time. It’s not. It’s an on-going process that takes into
account everything you do right up until the day of closing.

4. Family
Meeting

5. Spruce Up
Your Home

6. Search
For An Area First

Absolutely do not look for a house to fall in love with, LOOK FOR AN AREA TO LIVE IN and then find a house to fall in love with!
You might want to check with http://neighborhoods.realtor.com/
for an area. There are a number of things to consider in finding an area.

First and foremost you must check into crime in the area. Your number one priority is safety for you and your family.
By all means use internet resources such as http://www.familywatchdog.us/
and http://www.moving.com/real-estate/city-profile/index.asp
.

Secondly, is there high industrial pollution. Your family's health is a high priority.

Thirdly, is there high amount of traffic in the area? Safety again.

Fourth, are the schools more than satisfactory. This applies even if you do not have children in school. You or your heirs may want to sell some day. Think about resale value.

Fifth, is it convenient to shopping areas?

7. Search
For Home In That Area On Your Own.

Go back to http://www.zillow.com/ and search for homes in the area you want to move to. Make notes of addresses and ride by some of the properties. Look for sale by owners and homes that are listed. Call the agents and the FSBO properties. Ask about number of
bedrooms, baths, garages. seller concessions and asking price.

Do this to see what’s available and price range only. Get
a feel for the area.

8. Look For
An Agent

9.List your
home

10. Find a
home

11.
Negotiate contract.

Seller concessions…Subject to home inspection, loan
approval, rate

mb draft

2008-12-12T09:34:00.000-08:00

Today’s mortgage financing environment is complex, complicated, and confusing. There are more options available for financing your home than ever before – from a 30-year fixed rate loan to a payment option ARM. You need someone to help you navigate through this myriad of loan program options to help you select what best fits your needs and goals.

Today, more people are able to qualify for homeownership than ever before. There are loan programs that cater to people with vastly different credit histories and income levels. You need someone to help you find a loan program that fits your financial circumstances -- now and in the future.

Two out of three Americans choose a mortgage broker to help them obtain a mortgage loan. Why? Mortgage brokers are experts in analyzing, structuring, underwriting, packaging and negotiating loan proposals. As independent real estate financing professionals, they have direct access to hundreds of financing sources to help you find a loan program that will be the best fit for your individual circumstances. And because mortgage brokers work with all types of credit and income parameters, they have been able to obtain financing for homebuyers who might otherwise have been unable to own their own home.

Why do most Americans turn to mortgage brokers to finance their home purchase? It’s simple. Compared to other options, mortgage brokers offer consumers more choices, more convenience, and more expertise. Why should you use a NAMB certified mortgage broker? Let’s face it. The home buying process is stressful. You need a mentor who can help you make the right choices when financing your home. You need an expert you can trust to help you make the right decisions. You need someone who can help give you peace of mind. You need a mortgage broker who is a proven professional – a NAMB certified mortgage broker.

Think about it. Your home is most likely the largest purchase you will ever make. Purchasing and financing your home is a complicated and scary process. When financing this purchase, you need to make sure you work with someone you can trust. Someone who can help you make the right choices. Someone who is ethical, fiscally responsible, knowledgeable, and experienced in the mortgage business.

That someone is a NAMB certified mortgage broker -- either a Certified Mortgage Consultant (CMC) or a Certified Residential Mortgage Specialist (CRMS). The CMC and CRMS are professional designations issued by the National Association of Mortgage Brokers (NAMB) to recognize mortgage brokers who have attained the highest levels of professional expertise. Only experienced mortgage professionals who have demonstrated their competence in the mortgage business by meeting tough eligibility requirements and passing a rigorous exam have earned the right to use the CMC or CRMS designation. Since NAMB members must adhere to a strict code of ethics and best business practices, when you choose a NAMB certified mortgage broker, you know you are dealing with someone you can trust.

To keep pace with constant changes in the economy, tax laws, and mortgage programs, NAMB certified mortgage brokers commit to a program of continuing education. At a minimum, NAMB certified mortgage brokers must successfully complete 30 hours of mortgage-related continuing education every three years to maintain their certifications.

So when you are thinking about home financing solutions, choose a professional mortgage broker who is a CMC or CRMS. Look for the CMC or CRMS seal of certification, and ask those brokers you are considering using if they are a CMC or CRMS. To find a NAMB certified mortgage broker in your area, please view our NAMB Designee Directory. Why choose a mortgage broker?

Two out of three Americans do. Brokers provide consumers with:

· Choice

· Convenience

· Expertise

The consumer receives an expert mentor through the complex mortgage lending process. The broker offers the consumer extensive choices and access to affordable home loans while balancing the consumer's financial interests and goals.

Have more Americans been able to buy homes because of mortgage brokers?

Yes! Mortgage brokers have pioneered the subprime credit market, using innovative loan packages to allow low-to moderate-income borrowers, with less than perfect credit histories, to start enjoying the benefits of home-ownership. Many low income borrowers with less than perfect credit histories would not have been able to purchase their dream home without the assistance and dedication of a mortgage broker.

Are mortgage brokers lenders or bankers?

Neither. A broker is a real estate financing professional acting as an independent contractor. The range of products and services offered through brokers, and by brokers, is evolving rapidly. There are circumstances when brokers may act as bankers, funding their loans. However, the majority perform origination services up to the point of funding.

Does the mortgage broker really care about the quality of the loan itself?

Yes, absolutely. The safety and soundness of the mortgage lending community is directly linked to the success and integrity of its home loan originations. Furthermore, mortgage brokers represent the single largest residential origination source today, emphasizing that they play a significant role in the mortgage loan process. These numbers highlight the fact that consumers who exercise their choice, choose mortgage brokers; most likely because brokers are dedicated to their customers: consumers, wholesale lenders, and ultimately, American taxpayers.

Should brokers be regulated?

Brokers are regulated by several federal laws and regulations and dozens of state laws and licensing boards. NAMB supports reasonable and fair state and federal regulation of mortgage brokers and lenders. The industry is regulated by 17 federal laws and numerous state and federal regulations.

What role does the broker pay versus the wholesale lender?

The wholesale lender underwrites and funds the home loan, may service the loan payments, and ensure the loans' compliance with underwriting guidelines. The broker, on the other hand, originates the loan. A detailed application process, financial and credit worthiness investigation, and extensive disclosure requirements must be completed in order for a wholesale lender to evaluate a consumer's home loan request. The broker simplifies this process for the borrower and the wholesale lender, by conducting this research, counseling consumers on their loan package choices, and enabling them to select the right loan for their home buying needs.

The mortgage loan process can be arduous, costly, and seemingly impossible to the consumer. The broker works as the liaison between the borrower and the lender to create a cost effective and efficient loan process.

Do brokers work for the wholesale lender or the consumer?

Neither. As an independent contractor, the broker allows wholesaler lenders to cut origination costs by providing such services as preparing the borrower's loan package, loan application, funding process, and counseling the borrower. Brokers help keep loan rates low due to their minimal overhead and setup costs. Furthermore, the broker will seek the loan which best suits the borrower's financial circumstances, needs and goals. From the consumer perspective, with rare exception, the broker does not get paid unless and until the loan closes. Thus, the broker has the ultimate incentive to provide the best possible customer service to the consumer.

Isn't the broker supposed to get the best deal for the consumer?

Since mortgage brokers offer the products of many wholesale lenders they often can offer consumers a wider selection of loan products. This question presumes that anyone can know what is "the best deal." While many would consider "the best deal" to mean "the lowest rate," a loan program with a very low interest rate may not be the best choice for a consumer with limited cash, if that rate comes with high points and fees. A 15-year loan may save a borrower tens of thousands of dollars in interest payments of a 30-year loan, but the higher monthly payments may be acceptable to the consumer. So, "the best deal" for any consumer depends on his financial circumstances, needs and goals.

Today over two-thirds the nation's mortgages are originated by mortgage brokers. This clearly indicates that consumers are choosing the superior options, service, and expertise offered by mortgage brokers. Brokers have forced retail lenders to compete with other loan sources driving down costs nationwide.

Don't brokers "steer" consumers to the wholesale lender who pays the highest fees to the broker?

While isolated instances of adverse steering can occur, the mortgage brokerage industry has predominantly armed consumers with a free-market economy weapon: open and vigorous competition. Any consumer exercising his or her basic right to shop and compare, will ultimately find the loan options that are in his best interests. The combination of government-mandated disclosures and vigorous competition has presented today's consumer with unprecedented levels of choice. While price is an important consideration in advocating a specific wholesale lender, brokers also make their professional recommendations based on a number of other factors which include the lender's:

· reputation for service

· underwriting criteria

· ability to fund a loan on time

· compliance with consumer's requirements

Why do brokers collect fees from both the consumer and the lender? Isn't this a conflict of interest or a duplication of charges prohibited by RESPA?

RESPA allows fees to be charged between settlement service providers, as long as those fees are reasonable for services, goods, or facilities actually provided. Mortgage brokers provide the same services to consumers as do retail loan offices that typically charge the consumer an origination fee. These services include: taking the application, obtaining the credit report and appraisal, counseling the consumer on the loan process, and collecting the necessary documents. Brokers also provide separate and distinct services and facilities to wholesale lenders. These include marketing the lender's products and assembling and delivering the completed loan package.

In addition, lenders may pay brokers a premium -- "yield spread premium" or "service release premium" -- which may include compensation for the services and facilities, but also represents payment for the intrinsic market value of the closed loan. All of these are legal compensation. It is important to remember that regardless of which party compensates the broker (lender or consumer), in almost all cases the broker receives nothing until the loan closes.