How to buy a home and be prepared for the red tape

In the market that we are in, I am sure we can all agree that things are changing a bit for the better.
In turn we have more people out and about wanting to be homeowners.

 GREAT! Nothing more rewarding than the benefits of owning your own home.

On the flip side, you hear all kinds of horror stories when you start to tell people you are buying a home. Your uncles best friend didn't get his loan because he quit the day before closing on a cash out transaction... I mean who needs to be employed, when you are getting $50,000 in cash?

Or your best friend didn't close for two weeks because she forgot to tell the bank her down payment on her home was coming from a family member loaning it. Why would it matter anyways? It isn't as easy as you would like to think but being informed and gathering documents to help your lender- will keep you ahead of the game and in a smoother process than most encounter.

Keeping educated is key when going through the home buying or refinance process- simply because since the changes in the banking industry have been implemented- banks are more cautious than ever.

Nowadays, the income has to be continuous, we have to verify that its being received- who is giving you money to ensure that it isn't something fishy. Although, you know you wouldn't do anything to commit mortgage fraud, plenty of people have and we have to be careful to follow guidelines so we cover our basis and do our part to protect the financial foundation of our future going forward.

Finding a bank that is both cautious and reasonable with their clients is where I feel our company comes in. We are growing as a mortgage lending bank by leaps and bounds- but we are still small enough to think outside the box where allowed and not always conform to a 4,000 step process for someone's mortgage loan.

We value our clients, and their time and in turn try and keep our underwriting turn times to 6 hours, and our process to close in a little as 7 days. But we do it and still gather what we need along the way.

Here are a few tips for buying/refinancing in todays economy with any bank.

• Get a 2 yr. history of your past. (Where have you lived? Dates? Landlord contact (Yes, so we can verify what you have provided us.) Where have you worked? Dates? Rate of Pay?)
• Know your credit- Have a mortgage professional (Us preferably) pull your credit and see where you fall in line for loan programs. This way you have an idea of how much money you may have to invest into the process. You will also know where you fall in line for qualifying for purchase price.
• Know your deposits, your assets and your idea for where you money might be coming from. What this means is... the banks want to see that your income of course is being put in to your accounts- but when you have odd deposits, (like, your mom gave you $100 for your birthday, your college roommate finally gave you the $600 he owed you, or better yet- your family is giving you money to be nice and help with the home buying process) These funds have to be tracked and in turn, we will need to know if the money being given to you- is repayable, or even get more info depending on the terms/amount of money which may result in us getting more involved in their personal business than they want us too.
• Know your assets- if you want to bring $1,000 max to closing but the numbers work out to where you need $2,000. We have to come up with the amount somewhere. This being said, its always good to have a buffer in your account over the amount you want to bring and the lender can structure it as close as possible to the goal. Ultimately, we have to see that you have the down payment and in turn we process the loan in the same way as the client disclosed to us.
• Employment and income. So this can be touchy, especially if someone is self employed, or receiving non consistent income. Guidelines govern lenders in such a way, that we have to look for the probability of payment. We need to see that the mortgage payment and overall debt is affordable and that your income is likely to continue. * See the first paragraph where the guy quit his job because he was cashing out of his mortgage.* Note, if you receive income from other sources, dependents, social security, etc.. that we will need to show supporting documents for this income- because we have to see it will continue to count it, as well as any court documents that may state something like: $500. a month in child support for 12 months and $50 mo. thereafter until child reaches the age of 18. If you apply with the $500 as income, but know that it is going down- we may potentially be in a situation where you could get overextended and we would not want that for any of our clients.
• Know who's house It will be... We love our clients and want them happy, but loan programs are based on occupancy of the home. Will you occupy it, will you live their seasonally, will you rent it to others and not live there at all? These things matter and determine the banks risk. Properly disclosing this is important and will keep from having last minute hang ups and potentially not closing at all without letting the bank know.
•  Be prepared. no matter how hard a bank may work on your behalf to get you closed quickly and on time, from time to time delays happen. This being said, go into your process with a contingency plan. Have a plan for someone to stay with in case things get delayed, something so small and simple that if mentioned could get you a set up for royalty at your best friends house... But last minute planning can be stressful and delays with any company can happen for a various amount of reasons. Its not that the bank is awful, its that we fight to ensure your loan gets closed and with each hiccup we feel it with you. Sometimes, we cant punch hard enough to get us to where we need to be fast enough- even when we put all effort in.
• Be informed. Use a lender that has a copious assortment of products. This way if your loan falls through with one program you have less likely chance of being turned down and starting over. They may be able to restructure your loan program and get your fit where you are supposed to be and in your home :)

If you are interested in buying a home, we have several references and a process unmatched.
Our team offers no down time and always working on your behalf.
Apply today at: 
www.theresacrowellgreen.com on the apply here link top right :)

We will find your perfect loan program and walk you through the process in baby steps!

Signing off-
T.C.Green