FHA 203(k) News

This week's episode of FHA 203(k) Rehab Loan News, has important information about 203(k) streamline guidelines.  If you are considering purchasing a bank owned,  foreclosure, or a HUD Home in Maryland or Virginia, the FHA 203(k) streamline loan is a great loan for you.  Visit http://HUD.gov/HUDHomes for current HUD Homes for sale.






Other FHA 203(k) Renovation Loan Posts:   

1. FHA 203(k) Mortgage News 
 
2. FHA 203(k) Renovation Loan Updates

Stay tuned for our featured HUD Home of the Week.

Don't Switch Jobs When Buying a Home in Woodbridge, Va

Don't Switch Jobs When Buying a Home in Woodbridge, Va
In the Northern Virginia area many people work for the federal government or for companies that support the government. These employees are used to working on a contract basis. Many times the names on the contract may change but the job duties and assignments are the same.
This fact of life almost cost one first time buyer in Virginia her new home purchase. In today's world of lending nothing is taken for granted: tax transcripts are requested from the IRS, credit reports re-verified, and before closing your job status is verified again too.
Imagine the shock in my voice when the underwriter (upstairs in my office) calls and says your client no longer works at ABC company, so I can't clear the loan for closing. I am sure she heard me scream NO WAY from downstairs.

But I am thinking sure the client still works there. Yesterday, I just spoke to her on her work phone about the closing details for her no money down purchase in Virginia.
I still was in denial so I called the client on her work phone again to share the information and ask how can this be? The client went on to tell me that two weeks ago the contractor she worked for had changed but her job duties and pay were the same.


Although we provide a Do's and Don'ts Checklist at the beginning of the home buying process,she did not feel it was necessary to disclose the change after all everything was still the same except the name on the check.

We did close the loan after waiting for the first pay stub from the new contractor.
Although the contractor change was out of her control it is important to share the details of any changes with your Woodbridge FHA Loan Expert when buying a home in Woodbridge, VA.
If at all possible DO NOT change jobs during the home buying process. But if you do be prepared to present the offer letter and first pay stub before being able to close on your FHA or Veteran Home Loan .


original article posted at www.woodbridgemortgagenews.com

Queen of Mortgages vs. Michelle Obama

Michelle Obama was recently seen doing the "Dougie" for the Let's Move Initiative. You decide, whose "Dougie" was better? 

FHA 203(k) News You Can Use- Episode 2

The FHA 203(k) Renovation Loan is not only an excellent product for purchasing a home that needs a little TLC, the 203(k) streamline can be used to refinance repairs and upgrades of your existing home. Basement not complete? Consider a FHA 203(k) Renovation Loan as an option. In our first episode of FHA 203(k) News You Can Use (click if you missed it) we shared some exciting news about our new and improved FHA 203(k) program. It will make closing to construction much quicker. Watch the video below for this week's FHA 203(k) mortgage update.




original article posted at www.woodbridgemortgagenews.com

Veteran Loans Under 620 Credit Score

Veteran Loans with a credit score under 620?

original article posted at www.woodbridgemortgagenews.com

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Roadmap to Good Credit

In late August 2010, Mr.Buyer was referred to me by an agent to get pre approved.  But this was not a ready to go client. We provided the client a detailed roadmap to

get mortgage ready in the next six months.

Many times we do this (you know give the buyer a chance to participate in their own rescue), but when we check-in a couple months later via phone the buyers have not done anything to change their situation.        

     

Well this client was different he did everything we asked and had greatly improved his credit score

as a result. So finally in early March of this year we were able to issue a Mortgage Pre-Approval Letter to start shopping for homes with a Veteran Home Loan.

I asked the buyer if he was going to work with the Agent that originally referred him and he decided not to. According to the buyer, the agent did not keep in touch and one of his friends had a great experience with another Realtor that he wanted to work with as well.

I immediately asked for the Agent's information since we had never worked together, I sent him an email and left a voice mail to introduce myself and let him know I would be working diligently on the team. As a lender I am aware that you, Mr. or Ms. Agent, are putting the biggest part of the transaction in my hands. So I try to communicate quickly with agents that I have never worked with to start establishing a working relationship.

After house hunting and receiving an accepted offer from the seller with my pre-approval letter, the agent goes on to explain to the buyer he feels he would be better off with his lender. The buyer called me and asked why his Realtor would state that and I told him because most people like to do business with people they know, like and trust. And rightfully so, at this time I am none of those to your Realtor.

I then call and leave another voicemail for the agent to let him know that we are going to do the best job for Mr. H, and that he can count on me to get the loan to closing and to communicate throughout the process.

Shortly after the signed contract addendums returned from the bank, the agent sends the client rate quotes via email from his preferred guy and pressures the client again to go with his lender. At this point I am not to happy with the way this transaction is starting, so I call the agent yet again and politely ask what he needs from us to move forward with confidence . He goes on to give me some speech about doing the best for the buyer. But the buyer has clearly stated, to me anyway, he is very pleased with our services and sees no need to switch lenders.

Anyway, after providing two good faith estimates with the buyers rate lock options, Mr. Realtor again tells the buyer he could get a lower rate with his lender and he really thinks he should switch. I am trying at this point not to take this personally, but I was a little frustrated as I knew it was my roadmap to credit recovery, the buyers willingness to take action, and our ability to stay connected that led to the buyer even being able to look at homes with Mr. Realtor, let alone submit a contract.

I placed one more call to the agent to say I appreciate you looking out for the best interest of the client but the information you are giving him is not taking into account this buyer's overall financial scenario. But had you called me back earlier, you would've understood that not only do we have skin in the game but we also are providing a loan to a client who otherwise may not be approved. (Which I am sure made him somewhat uncomfortable, and he probably hears that line all the time.)

I then explained we do VA loans and FHA loans for buyers with less than 620 score ( there are not many lenders that still write these loans) but as a result the interest rate is typically an .125 to .250 higher than market....I am sure some would cry foul on this, but it is what it is. This information had been explained upfront to Mr. H and he was given the opportunity to continue working to raise his credit score above 620 or move forward with buying now. And of course he chose the latter, Mr. H had paid his dues by correcting his past credit mistakes, had great debt to income ratios, and a clean rental history. So sitting on the sidelines was no longer an option, buying at .125 higher rate was still cheaper than renting in his case.

Anyway I politely asked Mr. Realtor, "Will your preferred lender do a VA loan for a buyer with a credit score under 620?" Nope, just as I thought. Even with the added pressure by his agent the buyer did remain loyal and I am very pleased to close the loan.

It's always nice when a plan comes together!

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Considering Buying A Short Sale in Prince William County?

Considering Buying a Short Sale in Prince William County?
original article posted at www.woodbridgemortgagenews.com
  
  Well, consider this...short sales are typically a bargain, but you have to be willing to wait.  If you are not patient then a short sale purchase is not for you. Although banks, the actual seller of the home, claim to be more ready to handle this market with new departments and fancy software, on average my clients have waited four months to close on their short sale purchase. Be prepared to hear absolutely nothing in the beginning. Then requests for more information (you already provided) to be submitted again in the middle, and then a mad rush for closing.
Here are a 5 tips to help a short sale flow smoothly while waiting:

1. Do continue to use credit as usual, but do not max out credit cards or revolving accounts because chances have it, the initial credit report for preapproval will have to be reviewed again before closing

2. Keep your lender updated with recent paystubs and bank statements through out the waiting period. Be careful about large deposits and odd transactions that are red flags.

3. Do have your agent keep in touch with listing agent frequently even if there are no new developments.
 
4. Be prepared for the bank to not accept or counteroffer your initial offer with the seller. I have seen banks raise price, reduce seller concessions, and flat out reject an offer.
  
5. Be patient and don't take the lack of movement early on in the process as an indictment against you or your offer.   

Navigating a short sale purchase requires help from an experienced loan officer, Realtor, and title company. Call "Your FHA and VA Loan Expert" at (703)497-3936 to help take away the stress of purchasing a short sale home in Prince William County, Va.