Realtors Guide For Home Loan Process!!!

Realtors guide for Home Loan Process

Introduction: I have come up with this system to better explain the loan process for the Real Estate community.  I as a Loan Officer, try to educate my fellow Real Estate colleagues in the loan process.  If we all are on the same page then we can work in better harmony.  With the lenders guidelines becoming tighter we have to band together and form a better system of working together.  So that is why I along with some of my Real Estate counter parts we are creating this tool for all of us.

As the Loan officer, I try to collect all documents upfront from the prospective home buyer.  Why? Because no one wants any surprises at the last minute not if we can avoid it upfront upon application.   

 Normal documents needed upon Application:

1. Last 30 days of pay stubs (All Applicants)
2. Last 2 years tax returns w/ W-2's (All Applicants)
3. Most Recent 2 months bank statements/ assets (Proof of funds to close)*
4. Copies of ID(s) and SS Card(s) and Resident Alien Card(s) (If Applicable)
5. Money for Credit Report $50.00 (Must charge for serious applicants only)

*This is a trouble spot a lot of times.  If we can't prove funds to close this slows down the whole process.

 We run their credit and then determine what to do from there.  There are three things that can happen at this point.  Once approved and they can start looking for house. Two, not approved and work on credit with a Credit Repair or with credit repair tactics.  This takes from 3-6 months depending on the severity of the credit issues.  Three, if not approved and decides to payoff collections or paying down on CC Balances.  This takes about 1-2 weeks for the Rapid Rescore then start to look for the home.

 At this point my work hasn't started yet!  Once client is approved and looking for the house it is important to consider some of these tips.  Depending on the type of loan approved for it may be helpful for you to know some of these details when looking for the house. 

 FHA Loan tips when looking for home:

1. Hud Homes- If you go over the appraised value on the site then the client will have to come up with the difference.  Example if website says that the house's value is $100,000 and you offer $105,500 then your client will have to pay $5,500 down for that house even if FHA minimum down payment is 3.5%.  Why because the house has already been appraised and lenders have to go by them, no exceptions.
2. Foreclosures- Most Foreclosures will not make any repairs to the house to close, so keep this in mind when showing Foreclosures.
3. Foreclosures- Not all banks allow FHA financing.
4. Foreclosures- Mainly Fannie Mae or Freddie Mac foreclosures you should ask for 45 days for closing since they ask for docs to be at title like 4-7 days prior to closing to request there approval to the HUD-1 Settlement statement.
5. Flips - Seller must be on title for more than 6 months before closing.  Flips must be on title for more than 6 months and can't make more than 100% profit.

 Under contract:

Once you're under contract must provide me with a clear copy of contract with copy of Earnest Money.  Canceled copy of earnest money check if gave personal check.  Copy of Cashiers check and bank statement to prove came out of bank account. If not then we can't have lender count the credit on HUD statement.

 Loan process begins:

Step 1: Set appointment with buyer to come by office to sign disclosures. (Within 3 days of executed contract date)

Step 2: Price loan with all lenders and Lock Loan. (Day 1-3)

Step 3: Loan processor begins with loan checks file for out dated docs. (Day 1-2) 

Step 4: Orders request for Title work (Day 1-2)

Step 5: Order request for Verification of Employment (day 2-4)

Step 6: Order request for Hazard Insurance (Day 2-4)

Step 7: Order Appraisal (Day 4-6)

Step 8: Orders FHA Case Number and CAIVERS No.(Day 6-7)

Step 9: Order LDP and GSA (Day 7-8)

Step 10: Begin to package loan (Day 8-10)

Step 11:  Send out loan to Lender (Day 8-10)

Step 12:  Turn times for lender (Day 11-15)**

Step 13:  Lenders conditions (Day 16)

Step 14:  Fill conditions (Day 16-20)

Step 15:  Lender puts loan CTC (Day 22)

Step 16:  Lender sends out docs (Day 23-25)

Step 17:  Set closing date (Day 26-29)

*This process can take a bit less or more depending on if something is delayed (Verifications or Proof of funds to close).

**Some lenders have longer turn times than others. (580 Lender want 15 days for submission)

 Realtors guide for loan process created by Frank Marta (Texas Home Loan Specialist).

For more information about loans or this topic please contact us at info@nuhomegroup.com or call us at (713) 455-0134

NuHome Group 713-373-0345
1445 North Loop West Suite 105 Houston, TX 77008
Frank Marta NMLS# 245813/835196

A Special Video

Although most of my blogs are mostly pertained to Mortgages and Real Estate, I thought it would be neat to throw in something a little different.

As most know, I am a firm believer in Jesus Christ, I’ve built my foundation on his rock with not only my family, but with my business as well. I came across this amazing video and would like to share it with the world. I’m quite sure someone will look at this video and think to their selves, “Gosh, this is me!”

I hope you view this video and analyze it fully. I’d appreciate if you’d keep the rude comments to yourself or simply skip this blog. If you have any questions regarding this video please feel free to comment and ask below, I’d be happy to answer. Thank you and have a blessed day.

(If you can not view the video here, here is the actual link, http://vimeo.com/51565514 )

Do I Need a Pre-Approval Letter to Make an Offer?

Do I Need a Pre-Approval Letter to Make an Offer?

At the end of the day, you don’t necessarily NEED a pre-approval letter to make an offer on a piece of property.  But nowadays, with so few properties on the market, and so many multiple-bid situations, it’s often a requirement just to hear back.

Sure, you can tell your real estate agent to tell the listing agent that you’ve got an 800 credit score, $1 million in the bank, and a job that pays you $500,000 a year. And they might say fine, skip the pre-approval.

But chances are that’s not your financial profile, so just to play ball and keep everyone happy, it often makes sense to get the pre-approval done. It will also strengthen your offer.

And as I alluded to earlier in this post, it’s good to know where you stand as well.  You might think you’re a sure shot at getting a mortgage, but surprises aren’t all that uncommon and mortgage guidelines change all the time.

So a pre-approval could actually save you time and money, despite being a task that needs to be taken care of upfront.  It shouldn’t take very much work to get one anyways.

Just remember not to feel obligated to use the bank that furnishes the pre-approval letter for you!

 For more information about loans or this subject please contact us via email atinfo@nuhomegroup.com or give us a call at 713-373-0345

NuHome Group 713-373-0345

1445 North Loop West Suite 105 Houston, TX 77008

Frank Marta NMLS# 245813/835196

What Is A Pre-Approval?

A pre-approval is a written, conditional commitment from a bank or a mortgage lender that says you are pre-approved for the mortgage financing in question.

It comes only after filling out a loan application, supplying verified income, asset, and employment documentation (assuming these items are necessary), running credit, and underwriting the loan file.

Acquiring a pre-approval shows the interested parties (sellers, agents) that you’re a committed buyer, boosting your chances of sealing the deal at the price you want. It will also show you how much house you can afford, not just an estimate.

Pre-Approval Requirements:

• Credit report
• Bank statements
• Pay stubs
• Tax returns

Once you provide all the required documentation and get the pre-approval letter from a bank or lender, it is typically valid for 60-90 days. Just note that things can change during that time, such as your credit score, so it’s not 100% guaranteed.

As you can see, being pre-approved and pre-qualified are not the same thing, so make sure you know the difference before shopping for a home.

For more information about this subject and about loan questions please contact Frank Marta Texas Home Loan Specialist. Info@nuhomegroup.com or give us a call (713) 373-0345

NuHome Group 713-373-0345

1445 North Loop West Suite 105 Houston, TX 77008

Frank Marta NMLS# 245813/835196

What Is A Pre-Qualification?

If you choose to finance the home purchase with a mortgage, you’ll need to get pre-qualified first. A “pre-qualification” isn’t as robust as a pre-approval, but it’s a good first step to ensure you can purchase the home you desire (or any one at all).

A pre-qualification is a pretty straightforward, simple check to see what you can afford based on your income/debt levels (debt-to-income ratio), assets, down payment, employment history, perceived credit score, and so on.

You can get pre-qualified very quickly and easily with a bank or mortgage broker, but it won’t carry much weight in the eyes of the agent or the seller.

After all, with a pre-qualification you’re simply supplying estimates and your credit report probably hasn't yet been run (though it should be pulled early on in the process). That said, a pre-qualification, or pre-qual, is just a determination of what you’d likely qualify for if you made an offer and applied for a home loan.

It’s not necessarily a waste of time, but it’s not going to get you very far.  You can liken it to running a few numbers to see where you stand, but it cannot be used in place of a pre-approval.

 For more information about this subject and about loan questions please contact Frank Marta Texas Home Loan Specialist. Info@nuhomegroup.com or give us a call (713) 373-0345

NuHome Group 713-373-0345
1445 North Loop West Suite 105 Houston, TX 77008
Frank Marta NMLS# 245813/835196

Follow NuHome Group!

Help us get more followers and likes through our Social Medias!

Keep a look out on our special free giveaways on Twitter and Facebook!

https://www.linkedin.com/pub/frank-marta-houston-tx-mortgage-company/8/a62/728

https://www.facebook.com/pages/NuHome-Group-LLC/858160390879926

http://activerain.trulia.com/profile/frankmarta

https://twitter.com/FrankMarta6

NuHome Group 713-373-0345
1445 North Loop West Suite 105 Houston, TX 77008
Frank Marta NMLS# 245813/835196

How Do I Calculate My Monthly Income?

 If you’re a future home buyer, you might have used one of those “How much mortgage can I afford?” calculators online. These calculators typically gather information like your down payment amount, credit score range, monthly or annual income and debts.

Then, they’ll spit out an estimate of what a bank might lend you mortgage-wise.

These calculators work primarily by figuring out your debt-to-income ratio and then how much you can afford to pay for your monthly mortgage payment. This is similar to how banks decide how much to lend you, but first you must know what your monthly gross income is.

Yearly– Take your yearly gross pay and divide it by 12 months.

Monthly– If you are paid monthly, and then your gross pay is your gross monthly income. Pen and calculator

Semi-Monthly – Multiply your gross income by 2.

Bi-Weekly– Multiply your gross income by 26, then divide it by 12

Weekly– Multiply your gross income by 52 (weeks per year) and then divide it by 12 (months per year)

Hourly– Multiply your hourly income by the amount number of hours you work a week.  Then multiply that amount by 52 (weeks per year) and divide it by 12 (months per year)

Gross income: Your gross income is how much you make before taxes, or any other deductions are taken out.

Here is a visual Chart

NuHome Group 713-373-0345
1445 North Loop West Suite 105 Houston, TX 77008
Frank Marta NMLS# 245813/835196

What is the difference between the Listing Price and Appraisal?

When it comes to real estate, there must be a meeting of the minds for a property sale to take place. The value a buyer applies to a property can vastly differ from the value a seller or lender places upon it. The seller, the buyer and the lender must find an agreeable value to attach to a property so the sale can proceed. This can be accomplished only when the listing price and the appraised value are as close to each other as possible.

Listing Prices:

Listing prices are influenced by the real estate agent, and set by interested and often emotional sellers.

Sellers are not held by any rules when they list a home. In some cases, sellers take what they paid for the house, add what they have spent on improvements and even add amount for profit.

Often times, sellers will list their home based on the amount needed to pay for the real estate agent, closing costs and cover the amount of the mortgages.

Extra low prices are generally the result of an extra motivated seller that has to sell and move in a rush, so they’ll list their property below market comps in order to be the most competitive.

Appraised Value

          When a potential buyer goes to a lender to get a mortgage for property, the lender will take several factors into consideration when determining the property’s value. Appraisals are meant to be realistic determination of the value of a home if it were to sell in the current market, in its current condition.

The property’s neighborhood, the value of properties of similar size and construction, even such things as the type of fixtures on the premises and layout of the parking lot are considered when determining the appraised value of the property. Appraisers are also asked to look only at the comparable sales within a certain distance, usually one mile except in rural areas, and within a specified period of time, which is 3-6 months in the current market. This is the value on which a lender will determine whether to proceed with evaluating overall creditworthiness of the potential buyer.

Warning

A large gap between the appraised value and the asking price can be a problem for the buyer. If the lender thinks the appraised value of the property is not enough to cover the requested mortgage, the lender could require a larger down payment, which can be problematic for a buyer because it could require additional funds of several thousand dollars.

The Verdict:

While list price is never a good indication of what a home in your neighborhood is worth, appraisals are not an exact science that will determine the true value of your home either.

Some will argue that a home is worth what people will pay for it, so there’s obviously a little room for personal interpretation.  Either way, the bank securing that piece of real estate for a mortgage loan generally always has the final opinion that matters the most.

NuHome Group 713-373-0345

1445 North Loop West Suite 105 Houston, TX 77008

Frank Marta NMLS# 245813/835196

Mortgage Related Terms: "Shop Talk"

Understanding the “Shop Talk” between the various industry professionals is quite important. If you do not know the terms it may be a bit difficult to make a home buying decision, therefore we wanted to highlight the top terms that most borrowers will hear several times throughout the approval and home buying process.

We have assembled a list of key term and hope that this gives you greater confidence when discussing important topics that may impact your transaction.

Mortgage Related Terms:

• Amortization Schedule: A schedule of payments showing the amount applied to the principal and interest through the payoff.
• Annual Percentage Rate (APR): The effective rate of interest that includes loan related fees.  The APR helps determine the total cost of borrowing a loan and is used to compare loans that are advertised with different note rates.
• Adjustable Rate Mortgage (ARM): As opposed to a fixed-rate mortgage where the payment is set for the full term of the loan agreement, an ARM is tied to a specific financial index and may adjust after a set amount of time.
• Buydown:Where a borrower pays an up-front fee to lower the mortgage rate and monthly payment.  Rate Buydown’s can be used to help a borrower qualify for a loan, or as a means of negotiation where the seller would contribute to a lower rate in order to entice a buyer to purchase their property.
• Combined Loan-to-Value (CLTV): The total amount of mortgage obligations on a particular property compared to the fair market value.
• Debt-to-Income Ratio (DTI): A borrower’s minimum monthly liability payments divided by their gross monthly income.
• Default: Failure to fulfill an obligation to pay a mortgage.
• Delinquency: Late payments on a monthly liability.  Creditors generally report payments to credit bureaus once the delinquency goes past 30 days.
• Disclosure: A big stack of documents that the lender, buyer and sellers sign during a real estate purchase or mortgage transaction.  These disclosures may also notify all parties involved of their rights and obligations.
• Discount Point: The amount paid to decrease an interest rate. 
• Fico Score: The three credit reporting agencies in the United States, Equifax, Experian, and TransUnion, collect data about consumers used to compile credit reports. The credit agencies use FICO software to generate FICO scores, which are sold to lenders.

Each individual actually has three credit scores at any given time for any given scoring model because the three credit agencies have their own databases, gather reports from different creditors, and receive information from creditors at different times.

• Fixed Rate Mortgage: A mortgage loan where the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or “float”.
• Good Faith Estimate (GFE): A good faith estimate must be provided by a mortgage lender or broker in the United States to a customer, as required by the Real Estate Settlement Procedures Act (RESPA). The estimate must include an itemized list of fees and costs associated with your loan and must be provided within three business days of applying for a loan.

These mortgage fees, also called settlement costs or closing costs, cover every expense associated with a home loan, including inspections, title insurance, taxes and other charges.

A good faith estimate is a standard form which is intended to be used to compare different offers (or quotes) from different lenders or brokers.

• Gross Income: Total taxable income which is generally verified by a lender through tax returns and W2′s.
• Home Equity Line of Credit (HELOC): A line of credit secured by real estate.
• HUD-1 Statement: A comprehensive and itemized list of closing costs prepared by a closing agent that detail all of the financial figures in a mortgage refinance or purchase transaction.
• Joint Liability: When more than one person applies for and secures a mortgage.
• Jumbo Mortgage: A mortgage with a loan amount above conventional conforming loan limits. This standard is set by the two government-sponsored enterprises Fannie Mae and Freddie Mac, and sets the limit on the maximum value of any individual mortgage they will purchase from a lender.

Fannie Mae (FNMA) and Freddie Mac (FHLMC) are large agencies that purchase the bulk of U.S. residential mortgages from banks and other lenders, allowing them to free up liquidity to lend more mortgages.

When FNMA and FHLMC limits don’t cover the full loan amount, the loan is referred to as a “jumbo mortgage”. The average interest rates on jumbo mortgages are typically higher than that of conforming mortgages.

• Loan-to-Value (LTV): The loan-to-value (LTV) ratio expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property. For instance, if a borrower wants $130,000 to purchase a house worth $150,000, the LTV ratio is $130,000/$150,000 or 87% (LTV).

Loan to value is one of the key risk factors that lenders assess when qualifying borrowers for a mortgage. The risk of default is always at the forefront of lending decisions, and the likelihood of a lender absorbing a loss in the foreclosure process increases as the amount of equity decreases. Therefore, as the LTV ratio of a loan increases, the qualification guidelines for certain mortgage programs become much stricter. Lenders can require borrowers of high LTV loans to buy mortgage insurance to protect the lender from the buyer default, which increases the costs of the mortgage.

The valuation of a property is typically determined by an appraiser, but there is no greater measure of the actual real value of one property than an arms-length transaction between a willing buyer and a willing seller. Typically, banks will utilize the lesser of the appraised value and purchase price if the purchase is “recent.” What constitutes recent varies by institution but is generally between 1–2 years.

• Loan Rate Lock:Where the loan officer locks a specific rate with a lender for a set amount of time.
• Liquid Assets:Money in a bank or investment account that can be obtained quickly.
• Loan Origination Fee: A fee paid by a borrower to a lender for obtaining a mortgage loan.
• Loan Servicer: A mortgage servicer is the company that borrowers pay their mortgage loan payments to. Mortgage servicers either purchase or retain mortgage servicing rights that allow them to collect payments from borrowers in return for a servicing fee. The duty of a mortgage servicer varies, but typically includes the acceptance and recording of mortgage payments; calculating variable interest rates on adjustable rate loans; payment of taxes and insurance from borrower escrow accounts; negotiations of workouts and modifications of mortgage upon default; and conducting or supervising the foreclosure process when necessary.

Many borrowers confuse mortgage servicers with their lender. A mortgage servicer may be a borrower’s lender, but often the beneficial rights to the payment of principal and interest on mortgages are sold to investors such as Fannie Mae, Freddie Mac, Ginnie Mae, FHA, and private investors in mortgage securitization transactions.

• Mortgage Insurance: Mortgage insurance (also known as mortgage guaranty) is an insurance policy which compensates lenders or investors for losses due to the default of a mortgage loan. Mortgage insurance can be either public or private depending upon the insurer.

Mortgage Backed Security: A mortgage-backed security (MBS) is an asset-backed security or debt obligation that represents a claim on the cash flows from mortgage loans, most commonly on residential property.

First, mortgage loans are purchased from banks, mortgage companies, and other originators. Then, these loans are assembled into pools. This is done by government agencies, government-sponsored enterprises, and private entities, which may offer features to mitigate the risk of default associated with these mortgages.

Mortgage-backed securities represent claims on the principal and payments on the loans in the pool, through a process known as Securitization. These securities are usually sold as bonds, but financial innovation has created a variety of securities that derive their ultimate value from mortgage pools.

• Private Mortgage Insurance (PMI): Private mortgage insurance (PMI) is insurance payable to a lender or trustee for a pool of securities that may be required when taking out a mortgage loan. It is insurance to offset losses in the case where a borrower is not able to repay the loan and the lender is not able to recover its costs after foreclosure and sale of the mortgaged property.
• Acceptance:Generally used when a seller accepts the terms presented in a purchase contract offer.
• Contingency:A “Subject To” provision in a purchase contract or mortgage approval that requires more work or documents to be submitted prior to a final decision to be completed.
• Due-Diligence: The period of time described in a purchase contract for the buyer and seller to perform certain duties such as appraisal, loan approval and inspections.
• Deed of Trust: In real estate, a trust deed or deed of trust, is a document wherein specific financial interest in the title to real property is transferred to a trustee, which holds it as security for a loan (debt) between two other parties.

One is referred to as the trustor the other referred to as the beneficiary. In its simplest terms the trustor would be the receiver of money and the beneficiary would be the lender of money. The trust deed document most likely would be recorded (constructive notice) with the County Recorder where the property is located as evidence of and security for the debt.

When the loan is fully paid, the monetary claim on the title is transferred to the borrower by reconveyance to release the debt obligation. If the borrower defaults on the loan, the trustee has the right to foreclose on and transfer title to the lender or sell the property to pay the lender from the proceeds.

• Earnest Money: The deposit money deposited in escrow by a buyer in good faith to secure a purchase transaction.
• Escrow: A third party that holds money or property in trust until a transaction has been complete.  There are several uses for the word “Escrow” in the real estate or mortgage process.

Closing Escrow describes when a purchase transaction is complete. An Escrow or Impound account involves having your annual property and hazard insurance payments handled by a third party and taken out of monthly installments in a mortgage payment.

• Equity: The difference between a loan balance and a property’s fair market value.

 For more information about this subject and about loan questions please contact Frank Marta Texas Home Loan Specialist. Info@nuhomegroup.com or give us a call (713) 373-0345.

NuHome Group 713-373-0345

1445 North Loop West Suite 105 Houston, TX 77008

Frank Marta NMLS# 245813/835196

House Problem Signs

For more information about this subject and about loan questions please contact Frank Marta Texas Home Loan Specialist. Info@nuhomegroup.com or give us a call (713) 373-0345.

NuHome Group 713-373-0345
1445 North Loop West Suite 105 Houston, TX 77008
Frank Marta NMLS# 245813/835196

Homebuyers Check List

For more information about this subject and about loan questions please contact Frank Marta Texas Home Loan Specialist. Info@nuhomegroup.com or give us a call (713) 373-0345.

NuHome Group 713-373-0345
1445 North Loop West Suite 105 Houston, TX 77008
Frank Marta NMLS# 245813/835196

Basic Steps to Buying A Home

For more information about this subject and about loan questions please contact Frank Marta Texas Home Loan Specialist. Info@nuhomegroup.com or give us a call (713) 373-0345.

NuHome Group 713-373-0345
1445 North Loop West Suite 105 Houston, TX 77008
Frank Marta NMLS# 245813/835196

Red Flag Signs for Realtors

 As we all know, the real estate business is always up, going and competitive. It may become over whelming with finding listing, showing houses, dealing with clients, and over all put someone else’s needs before yours. As a Realtor you want to provide your client with top customer service and immediate feedback. Realtors always go out of their way to help clients but, the one thing that is most frustrating is when you spend time and money on a client who can’t qualify for a loan. Here are three ways to determine whether your clients credit will qualify.

1. Foreclosure- the process of taking possession of a mortgaged property as a result of the mortgagor's failure to keep up mortgage payments.
          This is a red flag because this shows the ability to pay on a mortgage, the banks frown upon this. That is a property you that you lost, that doesn't help you in any way and you’ll have to explain why you lost the property. The most lenient reason for banks are: loss of spouse, economy reasons, the company you worked for went down and/or business failed.

2. Bankruptcy- (of a person or organization) declared in law unable to pay outstanding debts.
          Bankruptcy is when sign an act stating that you can no longer pay your bills. What the court does is hire an attorney to help you file or send out ceases and desist letters which legally keep collection companies from contacting you.

3. Judgment’s- A collection
          This is when the collection companies take you to court, are awarded the case, and are allowed to be reported on your credit report and public report. The banks do not except any bank judgment’s. They must be paid, because in the state of Texas a judgment can be tied into Real Estate. Since judgment’s are tied into real estate, if you want to sale your home or refinance your home you will be forced to pay from your proceeds of your sale.

          Why does this affect you? You just stated that you can not pay for your bills, that’s a major risk for banks. There are special limitations with bankruptcy.  Depending on what kind bankruptcy you filed it will affect the amount of time you will have to wait before you purchase your next new home.

If your Client does not have any of these, your chances are greater than 50/50!

For more information about this subject and about loan questions please contact Frank Marta Texas Home Loan Specialist. Info@nuhomegroup.com or give us a call (713) 373-0345.

NuHome Group 713-373-0345
1445 North Loop West Suite 105 Houston, TX 77008
Frank Marta NMLS# 245813/835196

How do I repair my credit?

Most of us, at some time or another, have done something to affect our credit rating, perhaps without even knowing it. A late or missed credit card or home mortgage payment is just one example. When you buy a home, your real estate agent will encourage you to get pre-approved for your mortgage. It's during the home loan application process when problems often come to light.

For home loan purposes, a score of 650 or higher generally indicates a good credit history and will make it easier for you to secure a mortgage. If your score falls between 620 and 650, your borrowing capability will be examined more closely. And if you rate below 620, you may have a credit crisis. When you’re planning on buying a home, your credit score will have a big impact on your interest rate and loan terms. If your score falls on the lower end of the scale, you’ll pay a higher interest rate. Dip too low, and you may not get approved at all.

Blemished credit is both stressful and costly, but it's not the end. As hopeless as the situation might seem, bad credit won't last forever. There are things you can do right now to begin improve your credit score.

In my 12 years of being a loan officer I am always asked, “What should I do to fix my credit?” I normally recommend 3 things to do.

1. If you have a serious credit problem and/or a lot of collections (anything over 6 collections), I recommend you go to a credit restoration company. If your collections are $500 and under, I suggest you pay them and get them out of the way. As a rule, If your collections exceed $1,000 and are more than 2 years old, you can leave those alone for now. When you are trying to repair your credit with credit restoration companies its best to go with local companies, it would be most convenient for you. In addition to this, you would need to have at least 3 open and current lines of credit.

2. Secondly, if you do not have 3 lines of credit, you should open 3. Understand that if you have bad credit or low credit scores it would be difficult to find someone to give you a loan. Here’s the trick! Upon your first payment, you should go pay off 50% of your loan. For instance, if you get a line of credit for $500 pay off $250 on the first payment, if you get a line of credit for $1,000 pay off $500 etc. This will give you an immediate boost of 10+ points on your credit score. Just be mindful that you have to pay off 50% or more on your first payment.

3. Lastly, the easiest thing you can do is visit your local Credit Union and open 2 secure loans. If you are married open jointly secure credit lines. For the third account, open a secure credit card. You should only charge 10% of the limit and never exceed 10%, this will give you a boost on your credit report.

It's important to note that repairing bad credit is a bit like losing weight: It takes time and there is no quick way to fix a credit score. 

If, after all your work, you still score below the 620 mark, it doesn't mean that you won't qualify for a home loan. It may mean, however, that your mortgage will take longer to process and the terms and interest rate may not be as good as you were hoping for. Talk to your real estate agent about referrals to high-risk lenders.

Repairing bad credit can take many months to a year or more. But when you're ready to buy a home, you'll be glad you took the time to improve your score - and your mortgage payment will be lower because of your efforts.

NuHome Group 713-373-0345

1445 North Loop West Suite 105 Houston, TX 77008

Frank Marta NMLS# 245813/835196

30 Day Closing Guaranteed!

30 DAY CLOSING GUARANTEE

Terms and Conditions

Please review the terms and conditions below.

Disclaimers

Pre-Approval and Closing Guarantee are based on a preliminary review of Borrower's credit information only and is not a commitment to lend. The Closing Guarantee is subject to verification of the information submitted on Borrower's application, in addition to Borrower’s property eligibility.

Rules and Restrictions

1.   The "30 Day Closing Guarantee" timeframe begins upon receipt of the pre-approved Borrower's completed application and executed purchase and sales agreement.

2.   A mortgage payment, for the purposes of this promotion, is defined as principal and interest up to $1,500.

3.   Any additional required documentation/information must be provided by Borrower within 48 hours of each request.

4.   Any alteration to the loan amount or loan terms by, or per request of, Borrower will invalidate the guarantee.

5.   Any alteration to the closing date documented in the original purchase and sales agreement will invalidate the guarantee.

6.   Should Borrower choose their own title agent, title vendor must submit preliminary title work within 10 days of initial application.

7.   Appraisal must be scheduled within 24 hours of initial contact by appraiser.

8.   Property must appraise at or above the sale price.

9.   All pre-closing conditions must be satisfied 5 days prior to the scheduled closing date.

10.                Closing dates extended due to a delay in completion of new construction, and improvements or repairs made to an existing property, will invalidate the guarantee.

11.                Loans for new construction properties require a final certificate of occupancy for consideration.

12.                Fraudulent or purposely misleading information provided by Borrower will invalidate the guarantee.

For more information about this subject and about loan questions please contact Frank Marta Texas Home Loan Specialist. Info@nuhomegroup.com or give us a call (713) 373-0345

NuHome Group 713-373-0345

1445 North Loop West Suite 105 Houston, TX 77008

Frank Marta NMLS# 245813/835196

FHA Loans: Can you have more than one FHA property?

FHA loans: Can you have more than one FHA property?

Yes with certain exceptions.

FHA loans allow for you to have more than one FHA loan if one of these apply: 

1. If you can prove that your family size has grown you may be eligible for a second FHA loan. 

2. If your job relocates you more than 50 miles from your home. 

3. Divorce.

 For more information about this subject and about loan questions please contact Frank Marta Texas Home Loan Specialist. Info@nuhomegroup.com or give us a call (713) 373-0345


.NuHome Group 713-373-0345
1445 North Loop West Suite 105 Houston, TX 77008
Frank Marta NMLS# 245813/835196