Tuesday, April 29, 2014

How Much Money Do You Need to Buy a House?

How much money do you need in the bank to buy a house?  

If you are buying a primary residence (a house you're going to live in) and you won't own more than that one house after closing, then all you need is enough to pay for the down payment and the closing costs.  

How much is the down payment for a primary residence?

For a conventional (non-government) loan, the usual down payment is 5% of the purchase price, although there are conventional loans that only require 3% down.

If you get an FHA loan, then all you need is 3.5% of the purchase price.

If you qualify for a CHFA (Colorado Housing and Finance Authority) loan, then all you need is $1,000.

If you qualify for a VA loan, you don't need any money down.

How much do you need for closing costs?

That depends on the property you buy, but remember that there are three ways to pay for the closing costs:
  • You can pay them yourself.
  • You can negotiate to have the seller pay them for you (subject to certain limits).
  • You can pay a higher interest rate and have the lender pay them for you.
And also remember, you can get a gift from a relative and use that money to pay for your down payment and closing costs.  ALL of the money for the down payment and the closing costs can come from a gift, for both conventional and government (FHA and VA) loans.

If you have any questions at all about how much you'll need to buy a house, just give us a call.

Does your lender sell directly to Fannie Mae like we do, or do they have additional underwriting guidelines that prevent loans from being approved? 

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Faster Closings

Ever get annoyed waiting at a closing after everything has been signed, sitting there twiddling your thumbs while the closer sends the paperwork to the lender for funding approval?

When you use us, that doesn't happen because we don't have any funding conditions.  When the last piece of paper is signed, we are done.  The only thing you'll have to wait for is to get copies of the paperwork.

One more reason people love using the Mortgage Experts!

Does your lender sell directly to Fannie Mae like we do, or do they have additional underwriting guidelines that prevent loans from being approved? 

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Wednesday, April 16, 2014

How Long Do You Need a Job to Get a Mortgage?

The most common question we are asked is, "How long do I need to have a job to get a mortgage?"  Here's the answer: 
  • Generally speaking, it's two years.  However, you do not need to have the same job for all two years.  As long as you have been in the same industry for two years, it does not matter if you changed jobs in the past two years. You only need to have your current job for one month to qualify for a mortgage.
  • If you are self-employed or receive more than 25% of your income from commissions, then you do need to have the same job for at least two years.
  • If you want to count your overtime pay to qualify for a mortgage, you need to have received overtime from the same employer for the past two years.
  • If you want to count your bonus income, you need to have received bonuses from the same employer for the past two years.
  • If you want to count the income from two separate jobs, you need to have had both jobs for the past two years.
  • If you have received specialized training or have a college degree, and then get a job the requires you to have that training or degree, then you only need one month of employment.  The college or training can make up the rest of the two years.
  • If you were laid off and are now working, the length of time you need your current job depends on how long you were laid off.  If you were laid off for 6 months or longer, then you need to have your current job for 6 months.  If you were laid off for less than 6 months, then you only need to have your current job for one month.
There are many other situations other than those mentioned above. Call us with any questions.

Does your lender sell directly to Fannie Mae like we do, or do they have additional underwriting guidelines that prevent loans from being approved? 

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Getting a Loan Without Filing Your Taxes

Some people file their tax returns early, and some people file them late. Can you still get a mortgage if you haven't filed your tax returns?  Here are the rules: 
  • If you are an hourly or a salaried W2 employee, you will need to either file your taxes by April 15 or file for an extension.  We can count your current income, based on your most recent pay stubs, regardless of whether you have filed your taxes or filed for an extension.
  • If you are self-employed or make 25% or more of your income from commissions, then you will need to either file your taxes by April 15 or file for an extension (the same as if you are paid hourly or are salaried).
  • However, if you are self-employed or make 25% or more of your income from commissions, then we have to calculate your income by averaging it over the past two years.  If you can qualify for a mortgage based on the average of your 2011 and 2012 income, then you do not need to file your 2013 taxes to get a loan.  Filing for an extension is good enough.  But, if you can only qualify based on the average of your 2012 and 2013 income, then you will need to file your 2013 taxes before you can get a mortgage.

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Loan Approvals Before You Have a Contract

We can now underwrite loans without a sales contract, so when you are ready to make an offer on a property, your offer is the same as cash.  

Once you have a sales contract, all we need is an appraisal and updated pay stubs and bank statements (if they have expired), and you are ready to close.

There aren't many houses for sale, so make sure your offer stands out and gets accepted.  No more worrying about your loan being approved because the underwriting has already been done.

Remember, we have in-house underwriting and we sell our loans directly to Fannie Mae, so we have the easiest underwriting guidelines in the industry. If Fannie Mae says yes, we say yes.

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Is It Easier or Harder to Get a Loan?

Fannie Mae's monthly housing survey reports that 47% of the adult population in the US thinks it would be easy for them to qualify for a mortgage, which is down 7% from the survey done in January.
What does this mean?  Well, nothing really, other than that the public is often mistaken.  
Here are the facts:
  • Fannie Mae underwriting guidelines are the same as they were last month, and the month before that, and the month before that.
  • Mortgage insurance companies relaxed many of their underwriting guidelines in the past month.
  • Many lenders are continuing to eliminate their own underwriting overlays (the underwriting guidelines they add to Fannie Mae's guidelines).
So what does that mean?  It means mortgages are actually easier to get now than they were last month or in earlier months.  There are stricter documentation standards that require borrowers to provide more paperwork (pay stubs, bank statements, etc.), but that only means a borrower has to look through their filing cabinet for a few more minutes than they used to.  It does not mean that it is harder to qualify for a mortgage.

If you can prove that you earn what you told your lender you earn, and you can prove that the money in your bank accounts came from acceptable sources, and you pay your bills on time, then you can probably qualify for a mortgage.  It's a little more work, but it's certainly not any harder to qualify.
If you want to buy a house, give us a call and see how easy it is to get a mortgage.

We sell our loans directly to Fannie Mae, so there are no additional underwriting guidelines.  

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

FHA, Conventional, and CHFA Loan Comparison

Ever wonder what the differences are between an FHA loan, a conventional loan, and a CHFA (Colorado Housing and Finance Authority) loan?

Well then, check out our handy-dandy quick reference guide.   Click here to download.

We sell our loans directly to Fannie Mae, so there are no additional underwriting guidelines.  

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

5 Common Real Estate Questions

Here are five of the most common questions we get asked by our borrowers:
  • Do I need 20% down?  For a primary residence, you only need 3.5% down for an FHA loan, 5% down for a conventional loan, and $1,000 down for a CHFA loan.  VA loans don't require any money down.
  • Who pays my real estate agent?  The seller pays for both real estate agents - the agent representing the seller and the agent representing the buyer.
  • Is the earnest money in addition to the down payment?  NO - the earnest money is subtracted from the down payment at closing.
  • Is the inspection the same thing as the appraisal?  The inspection is to determine what kind of shape the house is in, and the appraisal is to determine the value of the house.  The buyer orders the inspection and the lender orders the appraisal.
  • If the house doesn't appraise for the sales price, do I still have to buy the house?  No.  You can either pay the difference between the sales price and the lower appraised value in cash (not the smartest thing to do because the house isn't worth it), you can walk away from the deal entirely and get your earnest money back, or the seller can lower the sales price to the appraised value. 

Does your lender sell directly to Fannie Mae like we do, or do they have additional underwriting guidelines that prevent loans from being approved? 

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Financing For Fix and Flips

Did you know that FHA does NOT require a seller to own a house for at least 90 days before selling it?  

That's right - if someone buys a run-down house, fixes it up, and flips it, they no longer have to own the house for 90 days before selling it to someone who is getting FHA financing.  NOT every lender allows this, but we do.

We can also do the same thing with conventional loans.

Pretty nice!

Does your lender sell directly to Fannie Mae like we do, or do they have additional underwriting guidelines that prevent loans from being approved? 

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Multiple Financed Properties

Ever had a deal fall apart because your buyer wanted to buy an investment property, but they had more than 4 financed properties? We can do investment property loans for people who have up to 10 financed properties.  Here's what you need to know:
  • 25% down if the property is one unit
  • 30% down if the property is 2-4 units
  • Minimum 720 credit score
If the buyer has less than 4 financed properties and wants to buy an investment property, then they only need 15% down and a 620 credit score.  They need 20% down if they want to avoid mortgage insurance.

Does your lender sell directly to Fannie Mae like we do, or do they have additional underwriting guidelines that prevent loans from being approved? 

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Only 15% Down for Investment Properties

It is now possible to get mortgage insurance for investment properties.  What does this mean for you?  It means that you no longer need 20% down to buy an investment property.  Now, you only need 15% down for investment properties.

This change is only for investment properties.  For primary residences, you still only need 5% down for conventional loans (3% down with a 680+ credit score), 3.5% down for FHA loans, 0% down for VA loans, and $1,000 down for CHFA loans.

Does your lender sell directly to Fannie Mae like we do, or do they have additional underwriting guidelines that prevent loans from being approved? 

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Entire Down Payment Can Be a Gift

It is now possible for a buyer to get a conventional loan with none of the down payment coming from their own funds.  In the past, mortgage insurance companies required buyers to have at least 3% of the down payment come from their own funds, but now, the entire down payment can be a gift from a relative of the buyer.  

This has always been the policy with FHA loans.  Now it's possible with conventional loans, too!

Does your lender sell directly to Fannie Mae like we do, or do they have additional underwriting guidelines that prevent loans from being approved? 

Have questions about anything related to a mortgage?  Give us a call and see why they call us The Mortgage Experts.  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!  Call us if you want to use the best lenders in Colorado!  

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.