Register Real Estate Advisors

1. THOU SHALL NOT CHANGE JOBS OR BECOME SELF-EMPLOYED
2. THOU SHALL NOT BUY A CAR, TRUCK, OR VAN UNLESS YOU PLAN TO LIVE IN IT
3. THOU SHALL NOT USE YOUR CREDIT CARDS OR LET YOUR PAYMENTS FALL BEHIND
4. THOU SHALL NOT SPEND THE MONEY YOU HAVE SAVED FOR YOUR DOWN PAYMENT
5. THOU SHALL NOT BUY FURNITURE BEFORE YOU BUY YOUR HOME
6. THOU SHALL NOT ORIGINATE ANY NEW INQUIRIES ON YOUR CREDIT REPORT
7. THOU SHALL NOT MAKE ANY LARGE DEPOSITS INTO YOUR BANK ACCOUNT
8. THOU SHALL NOT CHANGE BANK ACCOUNTS
9. THOU SHALL NOT CO-SIGN FOR ANYONE
10. THOU SHALL NOT PURCHASE ANYTING UNTIL AFTER CLOSING

1. Social Security Numbers
2. Driver’s License
3. Employment Info for the past two years, Current Pay Stubs
4. 2 Years Tax Returns
5. If renting, landlord info
6. Addresses for past two years
7. 2 Months Bank Statements
8. Current Loan Information
9. Homeowners Insurance Info
10. Purchase Contract for the Property if it has been chosen
11. Bankruptcy Documentation if applicable
12. Divorce Decree if applicable

For more information, contact your RREA lending professional at 281.288.3500.  We want to help you purchase your next property!

The Spring is when most sellers want to put their houses on the market and most buyers want to start looking for a home.  However, April is also Tax Season.  Tax Transcripts are important for lenders representing buyers.  If you are buying a home and have not filed your taxes, your closing could be significantly delayed.  If you are a seller, be sure to ask your agent to ask the buyer’s lender if the buyers have filed their taxes so that you won’t have to worry about it close to the closing date.  The reason this has become such a big issue for buyers is due to the amount of fraud from buyers who provided false tax returns showing they qualified for the loan, but they had turned in a different return to the IRS.  So now all returns have to be verified and we see a lot of closings held up due this issue, or the buyer finds their dream home and cannot make an offer until their tax returns are filed.  So I recommend that buyers take care of all tax filing issues before they get pre-approved to purchase a home in the Spring.

Here are some general guidelines, but check with your particular lender to see if you need to file your tax returns before you close on your home purchase.

1. If the borrower is a W-2 employee & has no self employment or commission income then most lenders won’t require the tax return for 2011 until after April 15^th  when it is due.
2. If the borrower is earning commission or is self employed, & their income for 2009 & 2010 is sufficient, most lenders will just require a profit loss statement for 2011 showing they are in line with previous years in addition to tax returns for 2009 and 2010.
3.  If the borrower is commission based or self employed  & the lender needs 2011 income to justify their earnings, then a lot of lenders will need the tax return for 2011 and the Tax Transcript pulled directly form the IRS.
4. It can take the IRS about 4-6 weeks to make the transcripts available after the return is filed (longer if it is mailed in rather then sent electronically). And if the borrower OWES taxes, they actually put those returns aside and they take longer to get transcripts back to the lenders.  This is what can drag out your closing!
5. If the tax return shows the borrower owes taxes, then most lenders have to show the taxes as paid or show a payment agreement with the IRS that will be include in the debt ratios

In today’s market there are a lot of short sales and foreclosures.  If you are one of the unlucky home owners that had to go through this process then you will have a waiting period before you can get qualified for another home loan.  Depending on the type of loan you want or need for purchasing your next home, you will have different requirements.  If you had to file a Chapter 7 or Chapter 13 there are also requirements before you can get a home loan.  Please see below:

Conventional Loans Require:

• Chapter 7 BK – 4 year waiting period from the discharge/dismissal date
• Chapter 13 BK – 2 year waiting period from the discharge date or 4 years from the dismissal date
• Multiple Bankruptcies – If there are multiple bankruptcies within a 7 year period, the waiting period is 5 years from the most recent discharge/dismissal date
• Foreclosure – 7 year waiting period from the completion date
• Deed-in-Lieu/Pre-Foreclosure Sale (Short Sale) – Minimum 2 year waiting period

FHA/VA Loans Require:

• Chapter 7 BK – 2 year waiting period from the discharge/dismissal date
• Chapter 13 BK – 1 year of the payout must have elapsed and the borrower’s performance must have been paid as agreed.  Document that the borrower’s current situation is not likely to recur.  The court must grant permission to the borrower to enter into a mortgage transaction.
• Foreclosure/Pre-Foreclosure/Short Sale – 3 year waiting period
• VA Loans ONLY – 2 year waiting period for Foreclosures

If you will be using a lender to help you purchase a home, there are several things that you will need to be aware of from the time you apply for your mortgage until your home closes.  This is a list of “don’ts” to help you get through that process without red flag problems.

1. Don’t change jobs

2. Don’t change your pay structure – you will most likely need a pay stub

3. Don’t apply for new credit

4. Don’t change your marital status

5. Don’t deposit money into your bank that cannot be documented –repayment of personal loans, side jobs, sale of assets must all have a paper trail

6. Don’t dispute items on your credit report

7. Don’t run up your credit card bills

8. Don’t let your driver’s license expire- the notary at the title company requires current identification

9. Don’t fall behind on any bills

10. Don’t assume that once you have loan approval you can go spend all your money.  You will need money for closing!

11. Don’t apply for other loans for properties- lenders check a system called MERS which identifies any loans you have applied for

12. Don’t put gift funds into your account before clearing with your lender

Your Realtor will work hard to help you find the perfect real estate purchase for your family.  Make sure you do everything you can to get that real estate sale to a closing by following the list above.  When in doubt, talk with your Realtor or lender.  The loan application is the first step in getting a mortgage – there is a lot that your loan officer will do after that point to get the transaction closed for you.  If you are looking for a Realtor or a Lender, call RREA today to get started 281.288.3500.

If you are thinking about purchasing real estate and know you have some spooky credit, call RREA’s in house lender, Terry Traylor today!  He can help move you in the direction of better credit so that you will be able to purchase a home by next Halloween!  Give us a call today at 281.288.3500 and ask for Terry.  Don’t let bad credit haunt you!

Most people want to speed up the loan process and get moved into their new home as soon as possible. The sellers are chomping at the bit to get their money. So what can be done to speed up the loan process?

First of all, the sales contract between the buyer and seller (which is usually a promulgated form Realtors use) is the key to speeding up the loan process. The contract includes everything the lender, appraiser, title company, surveyor, insurance company, and Realtors need to proceed with the transaction. If it’s not completed correctly or if there are changes made, it can slow down the process. You will need a highly trained and experienced Realtor that understands the new contract changes to complete this process. Below are some key points your Realtor will need to pay particular attention to.

Make sure the buyer and seller names are correct on the contract. Only the name or names of the borrowers on the loan need to be on the contract and should read the same as the loan documents will be drawn.

Your Real Estate Agent should include the title company name and phone number on the contract so everyone knows how to get in touch with the title company throughout the transaction. The earnest money check must be from the buyer and not someone loaning them the money. Underwriters need to see proof that the earnest money cleared the buyer’s account. If the buyer’s are going to use “gift” money, they need to discuss that with their lender so it can be documented properly.

All address information has to be exactly correct on the contract. Otherwise, an addendum will have to be completed with the correct street address.

All FHA loans must include the amendatory clause and recert signed by all parties.

The contract must have an execution date and all pages must be initialed by the buyers and sellers.

Repairs should be written on an amendment, not on the initial contract. Repairs on a contract are a big red flag for lenders. This can slow down your lending process.

If a survey will be done, someone has to pay for it and that is indicated on the contract. If you will be using an existing survey the seller will need to complete an additional form for the lender and title company.

It is important that your contract be legible for all parties.

As you can see, there area lot of reasons for having a trained Realtor representing you when purchasing a home. A trained and experienced Realtor will help you to close your home purchase on time without problems. If you are thinking about buying a home, please call 281.288.3500 to speak with a highly trained, experienced real estate agent that can guide you through the home purchase and accurately complete all of your paper work so you can speed up the loan process!

1. More Time to Pay Monthly Bills – Card Companies will be required to mail monthly bills at least 21 days before the payment’s due.
2. Same Due Date Each Month – The payment due date will have to be the same on every monthly statement.
3. More Information about Minimum Payments – Credit Card Bills will have to show how long it will take to pay off the balance if you are making only minimum monthly payments and options for paying off the balance in 36 months.
4. More Restrictions for Exceeding Credit Limits -  Before you can be charged an over-the-limit fee, you’ll need to “opt-in” or give your card issuer permission to complete transactions that will exceed your credit limit. If you sign up, you can still be charged for exceeding your limit. If you don’t sign up and make a charge that puts you over your limit, the card issuer may or may not decline the transaction. But either way, you can’t be charged an over-the-limit fee if you don’t sign up.

5. More Favorable Terms For Paying Off Balances with Higher Interest Rates – Currently, for accounts with different interest rates, such as cash advances and balance transfers, your payments typically go toward paying off balances iwth the lowest interest rates first.  In the future, payments in excess of the minimum amount will be required to pay off balances with the highest interest rate first.
6. Prohibition on Increasing the Interest Rates on Existing Balances – Under most circumstances card issuers won’t be allowed to increase rates on existing balances but will be allowed to increase rates for future purchases after the first year. A penalty rate can’t go into effect unless you don’t make a required payment within 60 days of its due date. In that case, you’ll need to be given a 45-day notice that tells you why your rate was increased. The penalty rate must be decreased to the original rate after six months in a row of timely payments.

7. More Notice Before Rates Can Be Increased on Future Balances – Rates can’t be increased during the first year after your account is opened. After the first year, you’ll have to be given at least 45 days’ notice before your rate can be increased. Plus, you’ll have the ability to close your account and maintain your current rate.

In today’s market, it is increasingly more difficult to get financing for a home.  As a Realtor, I have built relationships with lenders in the community and there are some I highly recommend because of successes I have had with them and others I do not recommend.  Buying a home is an involved process and you do not want to get bogged down on the lending side.  If your lender is not finished with the loan by your closing date, you could lose the house that you want to purchase.  I can help you choose a lender that will work on your behalf to help you get into your next home.  Please call me for a referral of lenders that I have had proven success with.  Not only can I help you find a lender to work with, I can help walk you through the process so you can get the keys to your dream home. 

1. Apply for a Pre-Approval and work with your Realtor (me) to find your dream home
2. Make an offer to the Seller including your Pre-Approval from the lender to strengthen your offer
3. Loan Application must be completed and submitted to the lender
4. Lender orders appraisal, credit report, verification of your employment and assets
5. Lender evaluates application and support documents, approves loan and issues letter of committment
6. Closing is held, loan documents are signed, and the loan is funded
7. Lender disburses funds to the closing agent at the title company, seller is paid, and title to the home becomes yours
8. Required documents are recorded at the County office of records

It’s that easy.  Call me today to get a list of lenders that I trust to take care of my clients mortgage needs.