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!

There are mortgage programs that are aimed specifically for foreign nationals moving to the United States.  If you are a foreign national moving to the United States to live in the Houston area, contact RREA’s in house lender to get qualified for a loan specialized to your needs.  Properties that are eligible for foreign national loans are both single family homes and condominiums.  These loans do require at least 25% down payment.  Call RREA today at 281.288.3500 to talk with our in house lender about qualifying and to our Realtors who can help you purchase a home.  Realtors work differently in Texas than in other parts of the world, so talk with a Realtor before you purchase a new or resale home in the states.

When you are having trouble paying your mortgage, you have several options.  You can use the property as a rental and buy a second cheaper home to live in, do a short sale, go into foreclosure, or do a bank walk away.  There are pros and cons to each option and each impacts your credit differently.

I have seen families rent out their homes and purchase or rent a cheaper house until they catch up financially.  This is a viable option as long as you find a good tenant that pays on time every month and does a good job maintaining the property.  A con is that if the home needs a lot of repairs over the next year it could be costly.  In this situation, your credit has no negative impact unless you slow pay on your mortgage due to slow paying tenants.  Remember that if you cannot find tenants, you still have to continue to pay your mortgage, HOA fees, taxes, and insurance.  If you purchase a smaller home, now you owe two of everything!

If you sell your house for more than you owe on it and you aren’t paying the difference, you are doing a short sale.  This shows slow pay on your credit, but at least you can buy another house in a few years which is a better outcome than having a foreclosure on your credit.

The only good thing about a bank walk away is that you no longer owe on a mortgage.  As for your credit, it’s just like a bankruptcy.  As far as your credit rating is concerned, a deed in lieu and a bank walk away damage your credit equally according to FICO.  Bad credit can damage any security clearance you have.

These are some things to think about when you cannot afford your mortgage.  You should always consult with as many professionals as you can to determine which route is better for you.  If you would like to talk with a Realtor who can help you through a short sale, give RREA a call today to speak to one of our Realtors.

Today FHA is making some changes.  The upfront MIP is increasing from 1% to 1.75%.  The monthly MIP is increasing from 1.15% to 1.25%.  Although these are small changes, they can make a difference when getting a mortgage.  Another change is that if you have more than $1K in collections (even if they are medical collections) you will need to resolve the collections or provide proof of a payment plan with three months of consistant payments.

Here is a segment from yesterday on the “Price of Business” (1070 AM Houston), hosted by Kevin Price, with myself and guest Jeff Wagner, mortgage banker with On Q Financial. We talked about the current lending environment and what this means to home buyers. Enjoy.

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

In today’s real estate market, there are many different mortgages available for you to choose from. If you are thinking about purchasing a home, you can call RREA’s in house lender today to see what type of loan products you qualify for. Our in house lender, Terry Traylor, can help you determine your mortgage limit, interest rate, and what product will best meet your home purchasing needs.

There are a variety of mortgage loans available. There are Jumbos for loans over $417K. There are loans for investors that allow homes to be flipped before the 90 day limit. For first time home buyers, there are Down Payment Assistance Loans that help with closing costs. For Foreign Nationals that are non-U.S. Citizens there are loans that allow them to purchase second homes in the U.S. With the 203K Loan people can make improvements before or after closing. The HomePath Program was designed for Foreclosed Fannie Mae owned properties. The REO Extended Lock Program helps homeowners purchase a short sale or REO property by allowing an extended interest rate lock. The credit 580 Program increases the FHA guidelines to include borrowers with credit scores between 580-639. Dissipating Asset Programs provide asset-rich clients the ability to qualify with no income up to a maximum loan amount of $5 Million while the Pledged Asset Mortgage allows borrowers to pledge eligible assets in lieu of a down payment, second mortgage or a home equity loan to cover normal down payment requirements. And you thought there were only FHA, Conventional, and VA Loans! Today’s lender has lots of options for you to take advantage of. Call today to find out more -281-288-3500.

If you need to purchase a home for your aging parents because they cannot qualify for a mortgage on thier own, there are mortgage programs that can help you. The property would be classified as a primary residence for your mother and father. It can be an investment property for you at the same time. Your parents must have insufficient income to qualify for the mortgage on their own and you must be their primary source of loan qualifications. Technically, you will own the property, but your parents will also be on the title. There are no distance requirements for the location of your parents residence, so they can be cities apart from your primary residence. To learn more about this or any other mortgages available, please call RREA’s in house lender, Terry Traylor at 281.288.3500. He can help you get pre-approved for your next real estate purcahse.