by ROGER VETRUBA, Senior Loan Consultant There are a lot of bait-and-switch mortgage brokers out there. Especially now that the refinance
market has slowed. There are also a ton of rookie purchase-agents who don't know how different purchase loan money can be.
While many times a good Loan Officer (LO) can tell at a glance whether a potential borrower's criterion qualifies as an "A" paper rated loan, this is NOT always the case, here's why: A lender could give a provisional acceptance "LP Accept". I've seen borrowers with a 580 fico score wanting a loan to refinance and get cash out (read: upper subprime credit, well below Fannie Mae and Freddie Mac's 620 fico cutoff) get an LP accept. An experienced LO would have managed the expectations better and fully preapproved this borrower.
HOW TO PROTECT YOURSELF: Tell the LO you want a full lender preapproval and need to see evidence IF your file is "on the edge". If you have a 740 fico fully documented (full-doc) 90% loan-to-value (LTV) purchase criterion, don't bother, any LO can make that fly in their sleep. On the other hand, if you have a 520 fico no-doc 100% non-owner occupied 95% LTV purchase, don't bother either, because it's not going to happen. However, we can work with you to improve your situation and still accomplish your goals; just takes a little more time.
If your credit score is 580 to 620, and the LO is telling you he/she can get you an "A paper" rate for you to shop the real estate market with, tell them you need to see the approval. It may or may not be provisional (i.e., subject to other conditions.)
NOTE: If your LO never gets any "declines", they're not working hard enough for you. The loan you want is the one you can barely get, because it's likely the best program. Speaking to
investors here...if you have a 730 no-cash-out refi at 70% LTV owner-occ, that's a slam-dunk).
A good LO can "Fully Preapprove" you prior to your shopping and will advise of what's needed. Non U.S. Citizen Homeownership Made Easy! Whether you're a citzen of a non-United States country seeking to purchase a property, or a year-round resident with a temporary or recurring work visa. We are proud to offer up to 80% financing on your purchase. Start here by getting preapproved, we'll then issue a letter of preapproval for your Realtor (or we can suggest one), and start writing offers until you find a property you're happy with. At the close of escrow (typically 30 days), you'll be the proud owner of your own U.S. residence. |
"Full Documentation" requires the two most recent paystubs, last two years taxes, and two month's bank statements. Additional debt ratio calculations apply, the most basic of which allows your total house payment (including principal, interest, taxes, and insurance) to not exceed 45% of your gross income. "Stated Documentation" means we accept the numbers as stated (e.g. unproven), and thus is higher risk (higher interest rate). | | Required Down Payment | Maximum Loan Amount | | Full | 20% | $400,000 U.S. | | 25% | $450,000 U.S. | | 30% | $650,000 U.S. | | | Stated | 25% | $350,000 U.S. | | 35% | $500,000 U.S. | | 45% | $650,000 U.S. |
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This program is for Single Family homes, condos, etc., and the program is intended for people using the property as a 1st or 2nd home. Multi-unit property such as 2-4 units are not permitted, although 5+ units is considered "commercial" financing and is eligible. Six month's worth of house payments are required to be in a U.S. bank account at close of escrow. Borrowers with diplomatic immunity are ineligible. If no U.S. credit score is available, an original letter of credit OR 3 credit references must be obtained from the borrower's home country. If the borrower does not have a social security or tax ID number, a copy of IRS form W-8BEN (Certificate of Foreign Status (click here)) must be provided. Shopping Resources: XE.com Personal Currency Assistant - Will pop open a small currency converter to simplfy prices. Area Conversion Calculator - Helpful to convert square feet to square meters. www.zillow.com - Find out the public record value of a home. © 2003 - 2005 Roger Vetruba - www.RogerV.com |
CLICK HERE TO REQUEST A PRE-APPROVAL APPOINTMENT |