This process generally includes:
Prequalification: In this part of the process, your agent based on data obtained from your W2s, your taxes of the last two years, pay stubs, and credit report information, determines the amount for which you are eligible to buy a home.
A preapproved for a mortgage letter is generated. This is sent to the real estate agent who is going to be responsible for searching the house, which is based on the amount stated in the preapproved mortgage letter, as well as in other information that he obtains from the customer, such us neighborhood, size, near schools, etc.
Once you find a house that fits your desires, an offer to the seller is submitted. If the seller accepts the offer, a deposit of usually $1,000 has to be made.
Then, a loan application to the bank is sent. Once it is accepted you continue to provide to the bank all the documentation required. At the same time, in order to find any unknown damages that may cause the buyer to withheld his purchase, a home inspection is done.
It is necessary to do an appraisal of the house, as well as a correct homeowners insurance, and a certification that ensures that the house is not in foreclosure.
As soon as the bank’s approval is received the closing is scheduled.
Generally, the process will take 3-4 weeks from signing the contract until the closing.
Traditionally, 30 years has been the preferred financing method when applying for a loan for home. However, the Federal Reserve and the government have adopted a series of measures in order to reduce the negative impact on the taxpayers’ equity. All these due to the way housing market has been affected by the economic situation nowadays.
Incentives like the loan of $7,500 that later on turns on $8,000 has been created. In addition, the government has tried to motivate the customers through the reduction of interest rates ever. This procedure offers to the customer the opportunity to own a property “Free and clear” in a half of time by refinancing the mortgage from 30-years to 15-years.
For instance, a customer from real life bought a house two years ago. He got an stable interest of 5.5% for 30 years with a monthly payment of $950. He can now refinance his mortgage and to get a 4% interest with a payment near to $1,120. That is a little less than $200/month, which means that he is saving over $80K in interest, and more importantly, his house is going to be fully paid in a half of time. Something that once seemed an impossible dream!
There are some strategies to reduce the mortgage time even more…
You call us 720-319-1153 for a consultation without any obligation.
It is a fact, in the current real state market a big percentage of the houses on sale are acquired by banks, who at the same time received them through “For closure”, “Short sale” or by the process called “Deed in Lieu” in which the customer agrees to voluntarily return the property to the lender.
All of this, forces the properties to be vacant for elongated periods of time making them susceptible to damage and vandalism.
The houses look dreadful! Even though, only months ago a family lived there. A buyer has no other choice, but to start thinking about the total make over the house requires. Paint, carpets, ceilings, kitchens, bathrooms and the many appliances the house is missing. All adding up to more than $15,000; money many new buyers do not have.
This is not a problem any longer! We offer a program that takes all the advantages of the traditional Federal Housing Administration mortgage (FHA) for new buyers, and includes the value for repairs, and if you really want it, the appliances, all within your loan. It is up to you to decide how much you want to fix. Leave your house as good as new!
Once your credit has started, you must ensure not only to make the payments within the established time, but also to keep the percentage of use no more than 40% of the available limit; that is, if you have a quota of $ 300 you should not use more than $ 120.
Another thing is to avoid the permanent consultation of your credit, because this can cause your scores to be reduced.
Please contact me for more details on the topics discussed here. Due to the limited space it is not possible to treat them with the amplitude that their importance deserves …
Call now at 720-319-1153
- Are you considering in getting a home loan?
- Good credit?
- Bad credit?
- No credit at all?
- Let us to help you!
If you have been rejected in other places because of your credit problems, we can offer alternatives to help you making your dream of having your own house to come true.
Let us to give you a complete consultation, without obligation and even better, at no cost. In each case we can advise you about the necessary steps to put yourself in the right path to buy your new home.
Do not waste your money in “credit repair companies”. In many cases they are not the true solution for your credit problems. More over, sometimes after months of paying for their “consultation” these companies can do nothing to improve your credit report.
Have you ever calculated how much money you have wasted renting a house?
Let’s see an example:
If you have paid $800/month during the last 5 years, you have “thrown” $48,000 on which, not even a small part has been claimed as deduction on your taxes. (See “Advantages of owning a home”).
Do not think it over… This is the time to have your own house! In this long process you will need the help and advise of a qualified personal.
Let me be your guide in this amazing process.