http://img.youtube.com/vi/mYh0pnfbxms/0.jpg
In Niles and mortgages on your mind? Visit http://thechicagomortgagebroker.com or call 847-235-6221 to get a great mortgage, or at least the information you need to get one.
This video is called “Niles Mortgages: 2 Ways To Kill Your Next Mortgage” because it covers actions of a lady who wanted to buy a house in Niles, IL actions that killed her mortgage.
It could have been called “Chicago mortgages,” Glenview Mortgages,” “Des Plaines Mortgages,” and so on because it applies to all people who’re looking to get a mortgage in Illinois.
Or USA.
But the lady who got me started wanted a home in Niles.
Anyway, the lady qualified only for an FHA loan (We checked her credit, income, assets.)
She got her offer approved and we started getting her loan. We would have gotten her that loan but for her action late in the game.
To get an FHA-insured mortgage loan, the following must be true:
1. The borrower must occupy the property used as collateral as his or her primary residence.
(FHA loans are for primary residences only, no investors, no 2nd homes.
This Niles house would have been our borrower only house and she meant to move into it.)
2. The house must appraise high enough that the loan amount is at least 96.5% of the value of the home.
3. The property must meet FHA’s minimum safety, security and soundness requirements. (Lots of rules that basically say the house cannot be a risk to the safety of the people who will live in it and it will not be deteriorating faster than normal.)
4. Borrowers must have enough cash to cover the closing costs and the down payment (though the FHA allows gifts of up to 6% of the purchase price and, sometimes (for some people) lenders too).
Sometimes, reserves for small apartment buildings, reserves can be required; + for 3- and 4- unit buildings, there’s a self-sufficiency rule:
75% of the lower of market or actual rents must cover interest, principal, property taxes and hazards insurance (PITI).
5. Borrower’s income must be high enough that their housing expenses (PITI) do not exceed 47% of gross income and their total monthly debt payments do not exceed 56%. (Unless, something spooks the lenders, then manual underwriting takes over, and it has much lower debt-to-income requirements).
6.The loan applicant must be perceived as having the ability to pay all monthly debt payments in the future.
7. That is based on employment history and the likelihood that it will continue at the level at the time of application or go up.
Neither the FHA nor Lenders don’t like jumping from being employed by someone to being self-employed; long periods with no employment; employment that cannot be verified, jumping from employment fields that are too far apart, unless the 2nd is better and the applicant has proof (like a recent college degree or vocational school diploma) that he/she has the skills required.
It’s okay to be a receptionist for a trucking company, then an admin assistant for a marketing company. It’s not okay to go from being a chef to being an receptionist or dispatcher for a freight broker.
Well, our borrower broke 2 of the rules.
Quite early in the application process, our client said we would have a hard time getting her second employer to provide us verification of employment info as she’d just quit her job and her former manager was not happy.
That did 2 things:
it increased her DTI (loan-to-value ratios) beyond what was acceptable and
It raised questions about her ability to hold 2 jobs long enough (her future ability to earn enough to cover all her debt payments).
She did the right thing, at first. She came to us (a mortgage company) before looking at houses. But, then, she stopped talking to us about her plans.
Whether you’re dealing with a Niles mortgage broker or not, you need to talk to your loan officer about anything you plan to do that changes your financial or credit portrait.
You found this video at: http://youtu.be/mYh0pnfbxms.
You find my channel here: https://www.youtube.com/channel/UCSqlHTn-ifPv5vibLK4U0RQ.
My website is http://thechiagomortgagebroker.com
13
source
Niles Mortgages : 2 Ways To Kill Your Next Mortgage
No comments:
Post a Comment