“ Crash Course” * Preapproval * Documents and Information Needed * What You Will Need * Investment Purchases * 203K (Rehabilitation Loan) November 6, 2010 Patrick Brock Mortgage Loan Officer Bank of America Home Loans 626-253-3944 (cell) [email_address]
Preapproval Why should you get preapproved for a mortgage before you begin your search for a home?
Because there are 3 people who will benefit from that preapproval: YOU! The Buyer Your Agent The Seller
Benefit To… YOU! The Buyer "Please let me know how much house I can afford." There are simply too many variables to answer that question: credit history income debt special mortgage programs etc.
Benefit To… Your Agent By knowing what the financial parameters are, your agent can spend more time looking for houses that "fit." Sound Good?
Benefit To… The Seller A PREAPPROVED offer will definitely stand out! When it comes to a seller evaluating offers, "a bird in the hand..." definitely applies. Simply put: it is better to stick with something you already have, rather than pursuing something you may never get.
Documents and Information Needed <ul><li>Full name of person(s) applying for the home loan </li></ul><ul><li>Date of birth(s) </li></ul><ul><li>Current mailing address for the past 2 years. If renting, what is monthly rent? </li></ul><ul><li>Name of employer, local address, local phone number, position/type of industry, years at employment (if less than 2 yrs with current need previous as well) </li></ul><ul><li>Most recent one (1) month consecutive pay stubs showing current & year to date income </li></ul><ul><li>W2’s for the last two (2) years </li></ul><ul><li>Past two (2) years Federal Tax Returns, all schedules </li></ul><ul><li>Two (2) most recent month’s statements for all checking/savings/401k/CDs, stocks and bonds, etc. (all pages) </li></ul><ul><li>List of all other owned properties appearing on your credit report (if any), including rent amounts and landlord contact information, etc. </li></ul><ul><li>If Condominium, full insurance policy issued by your Home Owner’s Association (HOA) </li></ul><ul><li>INVESTMENT PROPERTY – </li></ul><ul><li>SAME LIST </li></ul>
The 203(k) Loan is a program for rehabilitating and repairing single-family properties. A 203k mortgage can be used to accomplish rehabilitation and/or improvement of an existing one-to-four unit property in one of three ways:
#1 Purchase a property and the land on which the property is located and rehabilitate it.
#2 Purchase a property on another site, move it onto a new foundation on the mortgaged land and rehabilitate it.
#3 Refinance existing indebtedness and rehabilitate a qualifying property.
Minimum loan amount A minimum requirement of $5,000 worth of eligible repairs/ improvements. Up to 100% of the loan amount may go towards rehabilitation.
Mortgage Insurance (UFMIP) 1.0% , and must be 100% financed into the mortgage or paid entirely in cash— the premium may not be partially financed.
Purchase : A minimum FICO Score of 620 is required. Refinances : A minimum FICO Score of 640 is required. Owner Occupied only ___________________________ FICO Scores:
* Purchase (construction-permanent loans are not eligible.) * Refinance - Rate and Term (No Cash-Out) Purpose types: