Things to remember during the home buying process.
Here are some common mistakes people make during the approval process that has cost them their new home loan.
1) Make sure you continue to pay ALL of your bills on time and do not open any new accounts. These actions will cause your score to drop.
I have had 2 clients in the past 6 months lose their financing for forgetting to pay a $25 per month credit card bill! Not only are lenders looking at your credit scores but they are also looking at your payment history. Even if the score doesn’t drop enough to knock you out, the payment history may.
2) Do not change jobs if at all possible. Try to wait until after you close on your new loan. If it’s too good of an opportunity to pass up, let your lender know as soon as possible so they can make arraignments and prepare the underwriter. You will be required to provide more paper work so keep that in mind. Your employment is a key factor in the mortgage approval process, and if you can’t show steady gainful employment, you might be denied.
3) Do not change financial institutions during the approval/underwriting process. Even if you hate your current bank, tough it out until after closing. You’ll have to provide information about previous accounts that are now closed, and therefore inaccessible. And if you diversify your money too much in money market accounts, savings accounts, checking accounts and other places, you’ll have a harder time with the disclosure process.
4) Hold off on any and all large purchases. Don’t go out and buy that new plasma TV or living room set until after you are in your new home. Until you are actually closed the underwriter will follow very specific steps including verifying and re-verifying everything at different points throughout the process. Any large purchases will affect what funds you have available that may be required for your down payment, closing costs or reserves.
Here is what I really want you to remember. If you plan on buying a home, make that your priority. Be ready to provide everything your lender requires at a moments notice.
If you don’t try and take on more than one life changing event at a time, your home buying experience will be smooth.
VA IRRRL
VA-to-VA Refinance made easy!
The VA IRRRL Refinance or VA Streamline Refinance is the easiest way to get the lowest VA Mortgage Rates for your VA refinance. Program details are below for this incredibly easy VA refinance. We lend nationwide!
VA Refinance Highlights:
Designed to help lower VA mortgage rates with little hassle, low cost, and minimal paperwork. You can use this program when refinancing va mortgage arms to a low fix rate!
Qualification requirements:
1. Must be currently employed.
2. “Rate and Term” refinance only- no cash out.
3. No late payments on your mortgage over the past 12 months. One 30 day late may be acceptable with explanation.
4. No liens on your home currently.
5. Current loan must be VA.
6. New VA funding fee only .5%!
While cash out is not allowed on this program, we can structure your VA refinance so that you skip 2 mortgage payments!
In addition, you should receive an escrow refund from your current lender. This means more “cash” in your pocket!
Does a VA refinance make sense for me?
Fill out our no obligation quick quote tool to find out how much you can save! A VA refinance is also great for refinancing va mortgage ARMS!
Click here to get started!
VA Home Loans
VA Loans Done Right is a group of VA Mortgage professionals with over 20 years of experience in VA Home Financing. VA Mortgages remain one of the best Home Loan Programs with some of the Lowest Mortgage Rates in the United States and can help active and retired military achieve the American dream of home ownership with 100% financing, no mortgage insurance, and reasonable credit guidelines. VA is arguably the best first time home buyer loan in the market.
The VA Home Loan Guaranty
The Veterans Administration offers a stable, government-backed mortgage program that has been around for decades. Despite recent tightening of mortgage qualification standard, VA remains a flexible program designed to help veterans achieve the dream of home ownership. VA rates are competitive with “conventional” rates and payments are low due to no mortgage insurance.
One of our experienced VA Home Loan Experts will give you a free, honest, no obligation consultation to help determine if you qualify for VA financing!
Purchase a home with VA Financing
What is the VA Certificate of Eligibility
OK, sounds good, but do you qualify? The first step to determining if you qualify for a VA Home Loan is to order your VA Certificate of Eligibility (COE). We can obtain your COE in minutes through our VA Portal. You must have a DD214 or be active military in order to request your COE. Visit our Certificate of Eligibility page for more information.
Once you have determined your eligibility, the next step is to get pre-approved. If you are buying a home, the seller will want to see a pre-approval letter submitted with your offer. Our VA Home Loan Experts can help you get pre-approved today!
Today’s National VA Mortgage Rates for 11/4/2009
*Please note that VA Mortgage Rates are subject to change, sometimes several times per day.*
*All VA Mortgage Rates assume a credit score of at least 620.*
*All VA Mortgage Rates posted are based on 30 day locks. *
*Please note that the VA Mortgage Rates posted are subject to adjustments for the following criteria*
1) Loans under $124,999.00.
2) State specific adjustments.
VA 30 year fixed
With 1 point – 4.75%
With 0 points – 5.0%
VA 15 year fixed.
With 1 point – 4.25%
With 0 points – 4.5%
VA 3/1 year ARM
With 1 point – 3.875%
With 0 points – 4.50%
VA 5/1 year ARM
With 1 point – 4.25%
With 0 points – 4.50%
RESPA Reform Coming Soon
The Department of Housing and Urban Development (HUD) has passed new regulations amending Regulation X, the regulations that
implement the Real Estate Settlement Procedures Act (RESPA).
On January 1, 2010, HUD will require that lenders and mortgage brokers provide borrowers with a new standard Good Faith
Estimate (GFE) that clearly discloses key loan terms and closing costs. Closing agents will also be required to provide
borrowers a new HUD-1 Settlement Statement that clearly compares the borrower’s final and estimated costs.
Main Components of RESPA Reform:
> Re-defines an “Application” for 3-day disclosure purposes
• Must contain at least the following 8 items, and borrower must indicate intent to apply:
- Name
- Gross Monthly income (if applicable)
- Social Security Number
- Property Address
- Estimate of property value
- Loan amount being sought
- Interest Rate
- Product Type
> Prohibits collection of fees (except for credit report) prior to borrower’s receipt of GFE
• GFE must be issued within 3-business days of an application as defined above
> New standardized Good Faith Estimate (GFE) form
• Allows borrower to easily compare GFEs from various lenders when shopping for a loan
• Will be three (3) pages and include rate/lock information in addition to fees
> HUD Mandated Tolerance Limitations on Fees/Charges (varies according to three classes of fees/charges)
• Unless there is a valid “Changed Circumstance” (list to be published at a later date), lenders/brokers are prohibited
from exceeding certain fee tolerances from most recent GFE to settlement
• Zero Tolerance—certain charges cannot increase at settlement
• 10% Tolerance—the total of charges in this class can increase up to 10% at settlement
• No Tolerance Limitation—certain charges can increase at settlement
> Amends yield spread premium disclosure requirements
• The new GFE section, “Your Adjusted Origination Charges”, must disclose all lender and broker fees/credits,
including yield spread premium (YSP)
> New HUD-1 Settlement Statement
• Revised to be comparable with the new GFE
• Added page that compares HUD-1 to the GFE
• Highlights key loan terms
As losses continue to mount for lenders and GSEs, several lenders have increased the minimum credit score required on VA and FHA loans from a 620 mid score to 640.
Stay tuned for more updates.
Thursday, the House of Representatives voted unanimously to pass the Service Members Home Ownership Tax Act of 2009 extending the current $8,000 first-time home buyer tax credit to November 30, 2010 for members of the military, Foreign Service, and intelligence corp who served at least three months of qualified overseas duty in 2009. At least for now the program is set to expire on November 30th, 2009 for everyone else. The justification for the extension stems from the fact that if you’ve been serving abroad, it makes it difficult to look for a house and take advantage of the program. Extending it another year certainly makes sense.
The bill still needs to pass the Senate, be reconciled, and then signed by the President before it is law. Given the circumstances this seems highly likely.
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