Category: Qualification

HAVE YOU CONSIDERED ADDING A CO-SIGNER?

HAVE YOU CONSIDERED ADDING A CO-SIGNER?

Sometimes, you may not be able to qualify on your own. Have you considered adding a co-signer to help you qualify? If so, the co-signer will have to complete a loan application and will have to qualify, too. Lenders will combine the incomes and debts of both borrowers and base the loan off of the lower of the two credit scores; both borrowers will be on the loan and on the title. So, if you cannot qualify on your own, consider adding a co-signer. We offer a variety of products and services, ask us how we can assist you today:...

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ARE YOU CONSIDERING GIVING A GIFT FOR THE PURCHASE OF A HOME?

  How can gifts be used towards the purchase of a home?  There are a few different ways.  A gift must be made by a relative.  A gift letter will need to be executed by both the donor and donee stating their relationship, the amount and date of the gift, from what account the gift is made, and that no repayment is expected. The gift is transferred from the donor’s account to the donee’s account and verification is provided to the lender.  The gift funds can also be delivered directly to title at closing.   Another way to give a...

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APPLICATION QUALIFICATIONS FOR A MORTGAGE LOAN

An adult, pursuant to that state’s laws, can apply for a for a mortgage loan. According to Fannie Mae, “borrowers who are natural persons and have reached the age at which the mortgage note can be enforced in the jurisdiction where the property is located” can apply; there is no maximum age limit for a borrower. An exception to the above is an inter vivos revocable trust. We have closed loans in the name of the trust. However, a LLC, Corporation, or Partnership cannot apply for a conventional residential mortgage loan. The loan is made to the individual, and the...

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DISCLOSURE

Tell us everything before you do anything, tell us your story, then we can get the best loan for you. Over the years, we have told our clients to tell us everything about their scenario. We want to see their income, credit report, assets, bank accounts, investment accounts, retirement accounts, and real estate owned. We want to know what these look like before you do anything: pay down credit cards, pay off collections, get new credit, file tax returns early, get a co-signer, put more/less down. You may find you can apply for the right loan now without doing anything....

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QUALIFYING WITH A GIFT LETTER

Can gifts be used towards the purchase of a home? Gifts are allowed on primary residences and second homes, but not on investment properties. To qualify, a gift must be made by a relative. A gift letter will need to be executed by both the donor and donee stating their relationship, the amount and date of the gift, from what account the gift is made, and that no repayment is expected. Documentation of the gift will need to be provided if the gift is by check; a copy of the canceled check. If the gift is a transfer, a copy...

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HOME MORTGAGE DISCLOSURE ACT

You may be asked to provide more information regarding your race and ethnicity when applying for a mortgage loan. Pursuant to the Home Mortgage Disclosure Act (HMDA), lenders collect this information to ensure applicants are treated fairly and that the housing needs of communities and neighborhoods are being fulfilled. Applicants are asked their demographic information in order to monitor compliance with equal credit opportunity, fair housing, and home mortgage disclosure laws. You are not required to provide this information, but are encouraged to do so. The law provides that lenders may not discriminate on the basis of this information. Here...

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