Direct live phone number: 214.228.4553 | Toll Free: 1.866.977.8683
1ST TIME
BUYERS - Call Dallas Financing Now!
If you are a first time buyer there are great mortgage
programs that are designed specifically for you. Knowing
the many different kinds of down payment assistance
programs is well worth the research. However we know
the best ones offered. Call Dallas Financing today, we have done the homework
already. Be aware of the programs that attach a second
lien to your property for 8-10 years. There are other
ways to buy a house without using these programs, which
cost money. Call us at Dallas Financing to find out how.
YOUR CREDIT & FICO SCORES
Knowing how the credit systems work in the mortgage
business will give valuable knowledge not only in the
mortgage process, but in your personal finances as well.
When buying a house there are only three different credit
-reporting agencies in the United States. Experian (aka)
TRW, Equifax (aka) CSC, and Trans Union. All three-repository
agencies use FICO scores. Each agency will have a different
FICO score from the other. So you will need to know
what all three of your FICO scores are. The last thing
to remember is once you have your scores all lenders
only look at your middle score. Take your highest score
and then your lowest score; the score in the middle
is the only score that counts. We can do all this for
you in seconds. The company that controls all credit
scores is called the Fair Isaac Company, located in
San Rafael, Calf. www.myfico.com. Just call us. Dallas Financing.
PREVIOUS REALESTATE BUYERS
Since you have already purchased a house, most likely
you're in the process of selling your current home or
maybe you've already sold it. Your previous mortgage
lender will play an important role in your next mortgage.
You will need to get pre-approved for your next mortgage
in advance and most likely your previous mortgage will
need to be paid off before your new mortgage funds,
unless you're rich. Balancing this process can be tricky,
but knowing the right realtor, appraiser, inspector,
lender, and Title Company will greatly increase your
chances with little to no problems. Using inexperience
people and non-licensed professionals will cost you
much money and wasted time. We have done many of
these transactions.
INVESTORS LOANS
If you want to buy and invest in properties you will
need to have great FICO scores of 680
or higher, excellent income for 2 years, 10% hard cash
down plus money for closing costs and plenty of Reserves
in cash in the bank. You will also be required to have
three-six months of mortgage payments in the bank. You must
be very stable and financial strong to buy investment
properties. Also the qualifying process is must more
strict than owner occupied properties. Interest rates
are slightly higher when buying non-owner occupied
real estate. Buying investment properties can be tricky,
you better know what your doing.
PRE-APPROVAL PROCESS
This process is probably the most important step to
take early in the game. No seasoned real-estate person
will take you serious until a mortgage lender like us
writes the approval letter. By getting pre-approved
let's all sellers and realtors know that they are not
wasting their time. Money talks. Also you need to know
how much house the lender will let you buy. If you are
trying to bid on a $125,000 house but your only can
afford a $90,000 House or the lender says you can only
qualify for up to $90,000 your wasting every bodies
time including your own. Plus you could loose all your
earnest money and your appraisal money that you paid
already. These are some things you will need to have
to get pre-approved they are your full name, address,
social security number, W2's or income tax statements
for the previous two years if self-employed, 60 days
of bank statements, your latest pay check stubs and
your drivers license and social security card, 401ks,
IRA or savings account statements. By gathering up these
required documents saves you from many problems later
on. Pre-Apply Now
MORTGAGE APPROVAL LETTER
This is one of the most powerful instruments in the
entire mortgage lending process. By getting this letter
written early in the game gives you power in dealing
with sellers and homebuilders. This pre-approval process
only takes 72 hours. If you want to have the red carpet
treatment this is the ticket.
HOW MUCH HOUSE CAN I BUY-DEBT
TO INCOME RATIOS
All lenders must know how much money you make. The standard
rule of thumb is to take your current monthly gross
income and multiply it by 29%. Let's say you make $2800
per month gross. Multiply $2800 x 29% which equals $812.00
per month. This figure is a rough est. on how much house
payment you can afford. However there are many factors
that can affect these ratios. Like your FICO scores,
length of time on your job, cash in the bank or 401ks,
etc. Now take your same monthly income of $2800 and
multiply it by 41% which equals $1148.00 and this is
the approx. figure that all your bills can't exceed or
go over. Meaning your house payment, credit cards, personal
loans everything that only shows up on your three credit
reports. When you apply for a conventional loan your
ratios can be as high as 50 to 60%. These federal underwriting
guidelines are put into place so that borrowers don't
get over the heads into to much house payment or debt.
PREVIOUS BANKRUPTCY
If you have had a bankruptcy in the past and it's been
over 12 months since the discharge date per the bankruptcy
judge and courts, you might qualify for a new mortgage
loan. This applies to both chapter 13 and chapter 7
bankruptcies. Each case is different and must be look
at very carefully.
TYPES OF LOANS
There are many types of mortgage loans. One is
an FHA government backed loan. This is the safest and
most popular loan that most people want. Second there
is a VA government loan for military people only. Third
is a Conventional backed loan. Meaning private investor
money. All three types of loan programs have many facets
to them and some borrowers may qualify for one and not
the other. Knowing which loan to apply for is important.
Call us to see what's the best way to go.
FEES ON LOANS
Usually there are discount fees and origination
fees attached to the loan. These fees are rolled into
the loan so you don't have to pay them up front. You
can however pay them at closing. Many factors play a
role in charging the fees. Such as down payment, type
of loan, credit rating and interest rates.
PROVING YOUR INCOME
The only way you can prove your income is with w-2 year
-end statements from your employer or federal income
tax reports. If you are a w-2 employee you will need
the last 60 days of your pay check stubbs. If you are
self employed the standing rule is you must be self
employed for a minimum of 2 years. You must have a assume
name affidavit or a letter from a licensed certified
public accountant that handles all your bookkeeping.
GRANT MONEY/DOWN PYMT ASSITANCE
There are programs offered for people that don't have
the required down payment needed to close a loan. These
programs are good however there some bad ones out there.
There are fees involved and the seller of the property
must be willing to contribute to the program. Many rules
and procedures must be followed. Call us for all the
details.
PROCESSING YOUR INFORMATION
After the pre-approval is given all the disclosures
papers are signed, then the complete file must be sent
to a processor. This person verifies all the information
that is being submitted. They look at the entire file
page by page to make sure all the legal stuff is in
order. This process takes about 1 week. There is a fee
for this service but it can be rolled into the loan.
APPRAISAL PROCESS
This process is probably the second most important step
in buying a house. Everything is based on what the licensed
appraiser says the house is worth. What you offer for
the house or what the sales price is listed at means
little. Also what the tax roles say the house is worth
doesn't carry much weight. Knowing the right appraiser
and knowing what the house is worth before making an
offer is critical. By not knowing certain people in
the real estate business could cost you a great deal
of money. You could loose your earnest money, inspection
fees and the appraisal fee itself. By working with us
you do away with all these problems. The fee to the
independent appraiser is around $325.00. You will be
required to pay this fee directly to the appraiser.
It takes approximately 1 week to get the appraisal done.
MAKING OFFERS
Normally it takes $500 to $1000 dollars in up front
earnest money to make an offer. There is a standard
sales contract that most realtors use to make offers
or bids. All parties must sign the contract before it
can be offered. The earnest money will be put in a escrow
account at a title company of your choice. However if
you don't have a strong relationship with a title company
you could have problems. Everything in the real-estate
business is built on relationships, period. It's not
what you know it's who you know.
INSPECTION
PROCESS
Never buy a house without an inspection and a termite
report. Some loans don't require it. However FHA and
VA government backed loans it's a must. You will have
to pay this service directly to the inspector. This
fee costs any where from $200-$300 dollars. You will
get a copy of this report.
TITLE
WORK
When buying a house the title work must be ordered.
You want to make sure that there are no liens against
the property your buying. Are all the taxes paid up
to date on the house your buying, if not you will have
to pay them. By getting a clear title to the property
gives you a document that says everything is good. This
process takes about 3-5 days.
UNDERWRITNG
This person carries all the weight. This is the final
decision maker. If an underwriter decides for any reason
that the loan looks bad or they find to many issues
your loan will not fund. They have all the power period.
So as you can see knowing this person has it perks.
If you deal with any kind of lending institution and
there is no relationship with the underwriting department
you could have a big problem in getting your loan approved.
FUNDING YOUR LOAN
After all is done we set a time with the title company
to close and fund the loan. You will get the keys to
your new house. All parties must be in agreement as
to when the funding takes place. The seller of the home,
listing agent, selling agent, borrower, processor, title
Company, lender, mortgage broker, attorney's etc. You
will need to have all your monies ready by cashiers
check. Also you will need your driver's license and
social security card at closing.
FINAL COMMENTS
If you have read any of the following information you
can see that buying a house can be nerve racking and
it takes a minimum of 30 days to close on a loan. This
is why you only hire highly experienced licensed people
that have been in the business for years to help you.
By using our years of experience and trusting in our knowledge
as well as knowing the right people will make the home
buying process much easier. If you're looking for a
seasoned, accountable MORTGAGE COMPANY that will work for you and hold your hand through
the entire process from start to finish, please call us, we want to be your partner. Call Toll Free Today! 1.866.977.8683. |
