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Old 07-15-2006, 04:46 PM
 
414 posts, read 1,268,806 times
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How are people buying homes from a distance? Are you doing a no doc type of loan? are you handing them pay stubs?

Can anyone go over the process such as if you lived in another part of the country and got your house to be bulit using your current jobs income then you moved down and get another job in NC.

Thanks it would be helpful
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Old 07-15-2006, 05:02 PM
 
2,301 posts, read 1,886,964 times
Reputation: 317
Quote:
Originally Posted by TBLTZ
How are people buying homes from a distance? Are you doing a no doc type of loan? are you handing them pay stubs?

Can anyone go over the process such as if you lived in another part of the country and got your house to be bulit using your current jobs income then you moved down and get another job in NC.

Thanks it would be helpful
Yes they are processing it as a no doc loan but our mortgage person said if we have ast least 1 paycheck in Az she can process it normally.
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Old 07-15-2006, 05:56 PM
 
1,126 posts, read 3,563,811 times
Reputation: 413
Quote:
Originally Posted by a1m1700
Yes they are processing it as a no doc loan but our mortgage person said if we have ast least 1 paycheck in Az she can process it normally.
The more docs you have the less % you get charged. But, I would say most are doing a no docs loan
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Old 07-15-2006, 08:52 PM
 
414 posts, read 1,268,806 times
Reputation: 80
so how do they decided what loan amount they are going to give you?

I have good credit but I have probably have a somewhat high amount of debit im trying to payoff.

What are some decideding factors?

Also how long after you applied did you know you get approved?
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Old 07-15-2006, 09:05 PM
 
2,301 posts, read 1,886,964 times
Reputation: 317
Quote:
Originally Posted by TBLTZ
so how do they decided what loan amount they are going to give you?

I have good credit but I have probably have a somewhat high amount of debit im trying to payoff.

What are some decideding factors?

Also how long after you applied did you know you get approved?
They asked me if I had a house to sell, how much I wanted to put down. How much I made how much do I expect to make in NC.

Of course they checked my credit. I gave them all my info on what we make now, paystubs bank statements, etc.

Takes about a week to get approval. It depends how busy they are.
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Old 07-15-2006, 09:06 PM
 
1,126 posts, read 3,563,811 times
Reputation: 413
Quote:
Originally Posted by TBLTZ
so how do they decided what loan amount they are going to give you?

I have good credit but I have probably have a somewhat high amount of debit im trying to payoff.

What are some decideding factors?

Also how long after you applied did you know you get approved?
Nothing. Good credit is it. Washington Mutual your FICO has to be above 620 is all. It is usually .5-and up % higher though for the loan. Ours was .25% higher. We did buy it down some. I think it was $1200 to buy down "x" % The more docs you have the less they charge you on the %. The bank is Long Beach Mortgage and they sell it to their parent bank 100% to Washington Mutual.
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Old 07-15-2006, 10:39 PM
 
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This is very helpful info. We don't know what we are going to do yet, but this helps us figure out a few things. When you have lots 'o dollars tied up in your current home, you kinda wonder what to do.
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Old 07-15-2006, 11:17 PM
 
414 posts, read 1,268,806 times
Reputation: 80
Quote:
Originally Posted by TornadoAlley
Nothing. Good credit is it. Washington Mutual your FICO has to be above 620 is all. It is usually .5-and up % higher though for the loan. Ours was .25% higher. We did buy it down some. I think it was $1200 to buy down "x" % The more docs you have the less they charge you on the %. The bank is Long Beach Mortgage and they sell it to their parent bank 100% to Washington Mutual.
Thanks Tornado

I feel like this is a confidence booster for me. I have a credit score of 680-700So I should be in good shape then. What do you mean when you say "buy down"?

I can give them paystubs/back statements I don't have a problem with that.

Do people ususally put money down or is everyone doing 100% financing?

I don't have a house to sell either
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Old 07-16-2006, 03:17 AM
 
Location: Charlotte,NC, US, North America, Earth, Alpha Quadrant,Milky Way Galaxy
3,769 posts, read 6,745,506 times
Reputation: 2109
Quote:
Originally Posted by TBLTZ
Thanks Tornado

I feel like this is a confidence booster for me. I have a credit score of 680-700So I should be in good shape then. What do you mean when you say "buy down"?

I can give them paystubs/back statements I don't have a problem with that.

Do people ususally put money down or is everyone doing 100% financing?

I don't have a house to sell either
Hi Tbltz, your income, credit score *and* your current debt load ratios matter the most. Lenders typically fall into two categories- Portfolio Lenders and Conventional Lenders. Portfolio lenders use what's called a front end and back end ratio to determinte how much they will loan to a borrower. The front end determines what your maxium house payment (principal, interest,taxes,insurance) per much *can* be based on your gross monthly income. The backend ratio takes into account your income, and all your debt expenses(credit cards, car loans, etc., etc., etc.) including your proposed new mortgage.

Coventional Lenders are stricter in their qualification ratios compared to portfolio lenders. For example, a typical conventional lender (i.e., your bank) may require your front end (how much mortgage you can afford) to be no more than 28% of your income, and your back end (your total monthly debt obligation including the house payment) to be more than 33% of your gross income.

So if you make $3000/mo, conventional lenders will calculate you can afford house that has a total monthly mortgage of about $840/mo ($3K X .28) (that's principal, taxes, etc.). Your back-end qualifying amount will be $990 ($3K X .33) this is what conventional lenders will use to see if you can actually make the payments.

Portfolio lenders are more flexible and typically allow you to buy more house (i.e., the ratios are higher) for the same income. The reason is conventional lenders follow very strict fannie mae guidelines. The instant they complete the loan, it's packaged up nice and neat and sold on the resale market. Portfolio lenders typically keep the loan in their portfolio, therefore they can make and break their own rules.

Your credit score is good and will definitely get all lenders to talk to you, if your debt load relative to your income is high (remember it's all about the ratios) then you may want to pay down the debt as much as you can or consider putting a down payment amount (i.e., if you can come up with 5%-25%).

My tactic is to have all this down on paper before I talk to potential lenders. Remember, you drive the process, they want *your* business. I typically stop them in the middle of their sales-speak, and tell them Look, I've got a 680 credit score, I want no doc and no income verification, I've got 3 years of bank statements, a letter from my account demostrating I've been in business for 6 years, my debts are this, my average gross monthly deposits are that, and I've had only 1 late in the last 5 years, etc., etc., etc. Can you work with that? If not, keep rolling.

Also, don't give every lender your SSN to pull your credit. If you have to many inquiries into your credit, it can actually lower your score! I know, credit is a strange world. You can access your credit report for free, I would pull from all three credit agencies (equifax, transunion, TRW) , and if you're married pull your spouses as well. Note, get all three as the lender will take the average of all three (and there can be a big difference between the 3, like a 50 point swing!). Fax it over or email it over to the lender. Don't let them pull it until you feel you can get the deal you want. They will pressure you and tell you it's okay- the best come back is tell them you know to many inquires will lower my score- they typically shut up about it after that. Everyone is given (I think) a 30 day window in which you can go "finance" shopping. I.e., you go to a bunch of car dealers, or your shopping for a home loan. So you do all your shopping in that 30 day window, if your credit reports are pulled beyond that window it could effect your score negatively.

Someone mentioned Washington Mutual, they are a good lender (I've not usd them but I know others that have and had good sucess, particularly on the no doc stuff).

Anyway, just remember your the customer, and they want your business (even though you want their money )

Sorry for the lengthy response, but hopefully it helps and you can google for the stuff I didn't make clear...

You asked if people are doing 100% financing...I'm not, I'm doing at least 20% down. Most lenders want to see you've got some "skin" in the game. However the way things are going in NC with property values you could do 100% financing and walk in with some equity since your house can appreciate by the time it takes to build/close/and move in. I'm not a fan of 100% financing though, but it does work for a lot of people

Last edited by Miker2069; 07-16-2006 at 03:26 AM..
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Old 07-16-2006, 08:16 AM
 
414 posts, read 1,268,806 times
Reputation: 80
Quote:
Originally Posted by Miker2069
Hi Tbltz, your income, credit score *and* your current debt load ratios matter the most. Lenders typically fall into two categories- Portfolio Lenders and Conventional Lenders. Portfolio lenders use what's called a front end and back end ratio to determinte how much they will loan to a borrower. The front end determines what your maxium house payment (principal, interest,taxes,insurance) per much *can* be based on your gross monthly income. The backend ratio takes into account your income, and all your debt expenses(credit cards, car loans, etc., etc., etc.) including your proposed new mortgage.

Coventional Lenders are stricter in their qualification ratios compared to portfolio lenders. For example, a typical conventional lender (i.e., your bank) may require your front end (how much mortgage you can afford) to be no more than 28% of your income, and your back end (your total monthly debt obligation including the house payment) to be more than 33% of your gross income.

So if you make $3000/mo, conventional lenders will calculate you can afford house that has a total monthly mortgage of about $840/mo ($3K X .28) (that's principal, taxes, etc.). Your back-end qualifying amount will be $990 ($3K X .33) this is what conventional lenders will use to see if you can actually make the payments.

Portfolio lenders are more flexible and typically allow you to buy more house (i.e., the ratios are higher) for the same income. The reason is conventional lenders follow very strict fannie mae guidelines. The instant they complete the loan, it's packaged up nice and neat and sold on the resale market. Portfolio lenders typically keep the loan in their portfolio, therefore they can make and break their own rules.

Your credit score is good and will definitely get all lenders to talk to you, if your debt load relative to your income is high (remember it's all about the ratios) then you may want to pay down the debt as much as you can or consider putting a down payment amount (i.e., if you can come up with 5%-25%).

My tactic is to have all this down on paper before I talk to potential lenders. Remember, you drive the process, they want *your* business. I typically stop them in the middle of their sales-speak, and tell them Look, I've got a 680 credit score, I want no doc and no income verification, I've got 3 years of bank statements, a letter from my account demostrating I've been in business for 6 years, my debts are this, my average gross monthly deposits are that, and I've had only 1 late in the last 5 years, etc., etc., etc. Can you work with that? If not, keep rolling.

Also, don't give every lender your SSN to pull your credit. If you have to many inquiries into your credit, it can actually lower your score! I know, credit is a strange world. You can access your credit report for free, I would pull from all three credit agencies (equifax, transunion, TRW) , and if you're married pull your spouses as well. Note, get all three as the lender will take the average of all three (and there can be a big difference between the 3, like a 50 point swing!). Fax it over or email it over to the lender. Don't let them pull it until you feel you can get the deal you want. They will pressure you and tell you it's okay- the best come back is tell them you know to many inquires will lower my score- they typically shut up about it after that. Everyone is given (I think) a 30 day window in which you can go "finance" shopping. I.e., you go to a bunch of car dealers, or your shopping for a home loan. So you do all your shopping in that 30 day window, if your credit reports are pulled beyond that window it could effect your score negatively.

Someone mentioned Washington Mutual, they are a good lender (I've not usd them but I know others that have and had good sucess, particularly on the no doc stuff).

Anyway, just remember your the customer, and they want your business (even though you want their money )

Sorry for the lengthy response, but hopefully it helps and you can google for the stuff I didn't make clear...

You asked if people are doing 100% financing...I'm not, I'm doing at least 20% down. Most lenders want to see you've got some "skin" in the game. However the way things are going in NC with property values you could do 100% financing and walk in with some equity since your house can appreciate by the time it takes to build/close/and move in. I'm not a fan of 100% financing though, but it does work for a lot of people
Thanks for the lengthy post. It totally helps. Im looking to pay down my debt for the next 6 months. That is when I plan to go look at a place in charlotte to buy. Thanks for the help
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