Mortgage 101
The Basics:
Conventional can go down to 3% with PMI (can finance)
10% no mortgage insurance single premium can roll PMI into home loan.
Good credit is 720 and higher, 600 or below is credit repair
Approval-income, credit, work history, assets, salary, retirement, child support (before 15 years old), disability income, alimony
Pre-approval is best for offers, Pre-qual is just an estimate
Questions:
Have you spoken to a lender?
How is your credit?
Self employed or a W-2 Employee?
Are you ready to speak with a lender?
More tips:
Credit is only affected once in 30 days no matter how many times it’s pulled
Conventional-Sellers can give 3% back to buyer for closing costs without dropping the price
Formula for Debt To Income ratio (DTI) is total monthly debt divided by gross income
Interest rates are important, but points are important too! You want someone that is experienced.
VA loans are backed up as of October 2021 because of appraisers so closing should be 60 days
Manufactured/Mobile Homes- No earlier than 1976, engineer or architect must issue a letter, no add-ons, no singlewides, HUD labelaka “seal” or “tag”, VIN number (on tongue)
Student Loans-high balances need really good credit.
Self-employed-tax return for 2 years, bank statements, etc…
Do NOT list properties for FHA, VA, USDA...mark Cash or Conventional because of government appraisal guidelines.
Send clients “Do’s and Don’ts” from Fallon or Greg!!!
