Hot Tips for Home Buyers!

What Lenders Look for in Home Loan Applications

The 3 C's....

Ø   Credit

·         What are the FICO scores?

·         Are there any Judgments, Collections, Late Payments?

·         Quantity and Quality of the credit tradelines

Ø  Capability

·         Job stability and history

·         Salary versus commission/bonus income

·         Deductions

Ø  Collateral

·         Liquid funds – checking, savings, stocks, etc

·         Non-liquid funds – 401k, retirement

·         Gift funds

Avoid changes to your financial profile

Remember, lenders are looking for stability in all these categories. 

Ø  If you buy an expensive car with a loan that will affect your budget and your ability to repay a mortgage.  It can also negatively affect your scores.

Ø  Any large deposits and transfers of funds into your banking accounts have to be sourced.  It is important to document all deposits (I would say any deposits over $1000). 

Ø  Changing jobs/employers is typically done to benefit and increase your earnings and is an obvious change.  However, the lender can have additional requirements you will need to follow.  If your pay structure chanes (more commission based than salaried, or salary to hourly) this can affect how they will qualify your capability to repay the loan.

Shopping For the Right Mortgage

There are many different types of loan options available in the market.  There are fixed rates, adjustable, interest only, government, etc.  It is important that the mortgage consultant is able to explain what loan options you qualify for based on your application.  There are some important questions to ask in addition to completing an application that can help assess your strategy as well.

Ø  How long to you anticipate living in the home?

Ø  Do you expect any changes over the next several years, such as expanding your family?

Ø  Do you expect any changes in income due to promotions, relocations, retirement, and inheritance?

Ø  Are you conservative with your investments strategies?

The most important part is communication.  The home loan applicant has to communicate with their mortgage professional any changes, good or bad.  The mortgage professional has to communicate the process and programs to the home loan applicant.  This is one of the largest financial transactions most people will ever experience in their lives. 

For more information, contact:

Eileen Horan
Mortgage California
Ph: 650.645.1775 / M:831.566.9908/ EFax: 408.335.2474 eileenhoran@mortgagecalifornia.com

To Own or To Rent?

Purchasing a home requires a thoughtful decision. For some, leaving a rented apartment is difficult due to its financial flexibility; however choosing homeownership can be financially rewarding.

Here are some things to keep in mind when considering buying a home:

Undecided?

Don’t Wait Until It’s Too Late
Buyers sitting on the fence while waiting for the “prices to go down” will miss out on long-term appreciation gains and possible tax advantages.

A Smart Investment
Renting does not provide equity benefits. Make your money work for you by building equity in your own home and benefiting from possible tax advantages* as a homeowner.

Good News!

High Inventory
There is currently a greater selection of homes for sale on the market. Sellers are motivated and many homes are priced to move! That means you have a better chance of finding the home that best fits your lifestyle and needs.

Motivated Sellers
Because the market is moving more slowly, some sellers may be highly motivated to participate in special financing programs such as buying down the interest rate on your loan. This makes homeownership much more affordable than you think.

Finding the Right Loan For You
A loan consultant can provide you with a wide selection of mortgage options that have payment structures to best suit your individual needs. As a full service mortgage banker and broker, Princeton Capital can offer many loan options along with competitive pricing. They have greater control in the decision making process from start to finish, so your loan can close faster with more flexible terms.