"Purchasing Homes in Rural Areas require NO DOWN PAYMENT" was brought to you by the outstanding agents at Register Real Estate Advisors.

"Mortgage Options for Foreign Nationals" was brought to you by the outstanding agents at Register Real Estate Advisors.

"Do You Really Know the Comunity You are Moving Into?" was brought to you by the outstanding agents at Register Real Estate Advisors.

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

"Tax Transcripts Could Hold Up Closings for Buyers" was brought to you by the outstanding agents at Register Real Estate Advisors.

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

"Curious About Waiting Periods for Foreclosures & Short Sales?" was brought to you by the outstanding agents at Register Real Estate Advisors.

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.

"Mortgages Available in Today’s Market" was brought to you by the outstanding agents at Register Real Estate Advisors.

"Need A Mortgage for Your Aging Parents Next Home?" was brought to you by the outstanding agents at Register Real Estate Advisors.

"Pre-Approve for a Mortgage at Register Real Estate Advisor’s in House Lender" was brought to you by the outstanding agents at Register Real Estate Advisors.

"You May Qualify For A Lower Interest Rate" was brought to you by the outstanding agents at Register Real Estate Advisors.

In today’s real estate market it takes a minimum of seven days to close on a home purchase.  That is because a recent Real Estate Settlement Procedure Act disclosed rules stating that lenders cannot close a loan until seven days after they have provided the borrower with the original required RESPA disclosures and application (including the Good Faith Estimate and Truth-In-Lending Disclosure).  This is a consumer-protection measure designed to help ensure that a buyer has enough time to read and understand a loan before the closing.

If there are any last minute changes to the loan amount, purchase price, or seller contributions that will add three extra days to the closing.  RESPA now requires lenders to again provide the Truth-in-Lending Disclosure when the annual percentage rate changes 0.125% or more from the original disclosure of the APR on the Truth-in-Lending Disclosure—every single time.  Some lenders interpret this to mean that a re-disclosure is required only when the APR increases, while others require a re-disclosure when the APR changes 0.125% regardless of the direction of the change.  This is a protection that was put in place to prevent lenders from changing the loan note rate or fees on borrowers at closing without proper disclosure to the borrower.

Something else that slows down closings is when the buyer has not filed their tax returns.  All Self-employed borrowers must provide tax returns to their lender.  Consumers want to know why closings are being pushed back or why they fall through completely.  If you are the seller, you are really angered when the sale falls through and you have to put your house back on the market when you were already preparing to move out.  Below is an example to explain one of the many things that can go wrong…

A couple wants to buy a home.  The wife is a W2 employee and qualifies for the loan on the home.  The husband is self employed.  Under new lender rules, the lender has to request the tax returns for the past two years for the self employed spouse and could even require the financials for his company.  The lender has to then consider his business losses a liability, which affects the amount for which they can qualify.  See where I am going with this?  It is common for self employed people – especially those operating an LLC, LLP, or Subchapter S corp – to run their businesses at a loss.  Sometimes this is the difference between pre-qualified and pre-approved.

All of these new lending regulations can slow down or derail real estate transactions, so understanding the requirements will help you to be better prepared for your mortgage process so that you can close on time.  If you would like to pre-qualify for a mortgage, please contact RREA’s in-house lender at 281.288.3500 to get started on your path to home ownership.  We have Realtors that can provide you with a smooth transaction – from house hunting to the closing table.  Call us for more information.

"Is It Closing Day Yet?" was brought to you by the outstanding agents at Register Real Estate Advisors.