I help a lot of first time home buyers and as a first time home buyer I understand there are many questions or concerns that they may have.  I simply put together a short summary of the Loan Process here at NuHome Group.  This summary is very brief to help not complicate things.

Qualification- you would need to provide certain documentation to be pre-qualified. Thirty days of Pay stubs, 2 recent months bank statements, 2 years tax returns w/ W-2's (2013-2012) or 1099’s and other forms of income may be requested, a front and back copy of your social security and photo ID is required.

Approved- you must know that the approvals are only good for 90 days, which is including finding your house. Thus only gives you about 45-60 days to find the house.  If you can’t find a home within that time frame then you may need to be re-qualified.

Find house- work with your Realtor/ Representative to find you house.  Remember if you are buying with FHA Financing there may be some restrictions.  I have noticed that there have been many cases of people having trouble finding houses where the seller's don't want FHA financing.  This can be troublesome.  So make sure which you know what type of financing your obtaining (FHA or Conventional). 

Negotiating the deal- there are some things that you should know about when negotiating for your home.  If you ask for seller contribution for the purchase of your house the seller will give you the negotiated amount to be applied to your closing costs.  FHA allows 6% and Conventional allows 3% or closing.  If the seller pays the Title Policy and survey this will help lower closing costs. 

Executed Contract- Once the offer is accepted you will be expected to pay the Earnest money to the Title Company for them to take the house off of the market.

Inspection- Once you have an executed contract you would need to have an inspection on the property you’re in process of buying. This very crucial and will help you know what exactly is wrong with the property if any.  For example, this inspection will notify you whether the property has: Roof, electrical, AC, or plumbing damage.  These are some of the the major things you are normally confronted with. If your problem is cosmetic then, it is at the discretion of both the seller and the buyer.

Appraisal- an appraisal is required for the banks to review. This is a professional analysis of the property and its value.

Disclosures- Once you have a pre-approval and contract then you would set an appointment at your earliest convince to sign disclosures so we can send your file to underwriting.

Loan Submission- Loan is ready to be reviewed by a Lender. In other words, your loan will be sent to a bank for review.

Conditional Approval- the loan will have conditions to be met in order for the approval.  Once these conditions are satisfied then your loan would be sent to closing.

Closing- Before we can close your loan or schedule for closing we would need the Lender to provide us with the closing instructions for the Title Company.

Scheduling closing- Depending on the title company and the TIME OF MONTH!  We will schedule the closing based on the Title Company’s availability and the buyer’s convenience and availability.

Closing table- you would go to the Title Company and sign all documents.

Funding- Certain documents are sent to Lender to review and assure that they have been signed.

Keys- keys are given to you when the loan is funded and money is dispersed.

Move in- Normally, 3 days before closing, you can start transferring the utilities so you can have your utilities by your official move in date.

That's about it.  No problem, right?!  I hope that this helps you better understand NuHome’s Loan Processing.

For more information about this subject or about loans contact us by phone at (713) 373-0345 or via emailinfo@nuhomegroup.com.

Be sure to check out our website!!!

www.nuhomegroup.com

FHA, VA, and USDA Highlights!!

FHA HIGHLIGHTS FHA- 580+ FICO for PURCH, RT, C/O including Flips & High Balance! FHA - Repair Escrows OK! FHA - 203k Full & Streamline w/ 580 FICO! FHA - HUD REO $100 Down Homes OK! FHA- MFG HOMES OK - 580+ FICO - 620+ FOR SINGLE WIDE   FHA- No LTV Caps! FHA- NO OVERLAYS!!! FHA - YSP Credit UNLIMITED!!! FHA- No DTI CAP - Follow AUS Findings!!! FHA- NO Minimum Credit History or Trades with AUS Approval! FHA- No VOR Unless Required by DU Findings! FHA- Transfer appraisals from ANY lender/AMC OK! FHA- Borrowers with 1 FICO OK! FHA- Collections - HUD Guides Apply - Medical & Charge Offs Ignored! FHA- Mortgage Late OK if AUS Approved!!! FHA- Non-Occupant co-signers - NO MINIMUM FICO! FHA- ESCROW STATE - Non Purchasing Spouse derog’s ignored - only affects DTI FHA- Borrower w/ Work Permits, Non-Resident Alien OK! FHA- 1 Day off Market for Cashout Refi! - Must be off market before date of loan application! FHA- Rental Income on 2-4 Units OK for FTHB!!! FHA- Streamline - 580 Score for- Conforming & JUMBO! No Appraisal, No Income, No Credit Qualifying!!! FHA- Streamline - Max 1x30 in past 12 mos - Cannot be late within past 90 Days! FHA- Streamline -Investment and 2nd Homes OK! FHA- Streamline NO SCORE - Ignore other property

VA HIGHLIGHTS VA- Min 580 FICO regardless of Loan Amount! VA- MFG HOMES OK - 580+ FICO - 620+ FOR SINGLE WIDE  VA- LP or DU FINDINGS OK!!!  VA- NO OVERLAYS!!! VA - YSP Credit UNLIMITED!!! VA- No DTI CAP - Follow AUS Findings!!! VA- NO Minimum Credit History or Trades with Approved or Refer AUS Findings! VA- No VOR Unless Required by DU Findings! VA- Borrowers with 1 FICO OK! VA- NO COLLECTIONS paid UNLESS required by AUS! VA- Up to 2x30 OK on RT, Cashout, Purchase! VA - IRRRL 580+ W/ Appraisal 100% LTV! VA - IRRRL 620+ W/O Appraisal ANY LTV! VA-IRRRL 620+ W/O Appraisal HIGH BALANCE!  VA- IRRRL Job Listed on 1003 Only VA- IRRRL No Income OK VA - C/O Refi's up to 100%!! VA- Approved/Eligible - Unlimited DTI!   VA- REFER/ELIGIBLE - 43% Max Ratio VA- 580+ - All Purchases and all REFIs!!! VA- No Seller Title Seasoning!!! VA- Seller can pay all closing costs & Prepaids + ADDITIONAL 4% VA- 1 Day Off MLS FOR all Refi's including Cashout!

USDA HIGHLIGHTS USDA- Min 580 FICO USDA- Order your own appraisal through any AMC USDA- 640+ - No Overlays to GUS Findings USDA- 640+ - No Trades/Alt Trades OK - No Collections Paid USDA- 580-639 - Refers OK - Max 29/41 Ratio USDA- 640+ - No Rent Verify No VOR USDA- 640+ - No Tradeline Requirement USDA- No Title Seasoning USDA- Max Loan $417k - 102% LTV Of Appraised Value USDA- .40% Monthly MI, 2% Guarantee Fee USDA- No Asset Verification if No Funds needed to close, No reserves USDA-Gift Funds Allowed - Max 6% Seller Concession USDA-Ratios to 36/48 w/ 640+ and GUS Approval w/ Comp. Factors USDA - File sent to RD within 24 Hours of UW Clear! USDA - No Rent Verif. Required Unless we need Ratio Waiver & GUS Refer USDA - Streamline Refi ok w/ 580+ FICO

For more information about this subject or loans contact us by phone at 713-373-0345 or via email info@nuhomegroup.com

Frank Marta NMLS# 245813/835196

www.nuhomegroup.com

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

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 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