1. “ 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]
3. Preapproval Why should you get preapproved for a mortgage before you begin your search for a home?
4. Because there are 3 people who will benefit from that preapproval: YOU! The Buyer Your Agent The Seller
5. 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.
6. Benefit To… Your Agent By knowing what the financial parameters are, your agent can spend more time looking for houses that "fit." Sound Good?
7. 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.
11. 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:
12. #1 Purchase a property and the land on which the property is located and rehabilitate it.
13. #2 Purchase a property on another site, move it onto a new foundation on the mortgaged land and rehabilitate it.
14. #3 Refinance existing indebtedness and rehabilitate a qualifying property.
15. 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.
16. 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.
17. Purchase : A minimum FICO Score of 620 is required. Refinances : A minimum FICO Score of 640 is required. Owner Occupied only ___________________________ FICO Scores: