if you want to save a lot of money and you happen to be a Veteran then you need to read this article I will be telling you how you can save a good chunk of cash, find out how you can get up to $1,500.00 towards the closing costs. Now if you are Vet like me ( I was in the Marines, nothing personal if you were not ) and you have been thinking about how to get a home loan because you have a goal of buying a house or because you are in need of refinancing your home. Then you really need to know the benefits of getting a VA home loan as well as getting started, because as a veteran, VA home loans do offer you some very good benefits. But before you can get your va home loan there is one thing that you will have to do, and its something that everyone has to do to get their Home loan Benefits. I will talk about that at the end of this post but for now we will go over some of the benefits of a VA Home loan. If you are a veteran and have not looked in getting a home using your VA benefits, it may be a good time to just see what you may qualify for.
Getting qualified for a home loan in today’s times is a lot more difficult than it was just a few years ago, so the last thing you want to do when trying to buy a home is ruin your chances on closing your home loan. But getting your home loan killed is a lot easier than you think. You can actually be in escrow and do something that you were not suppose to do. Believe it or not people do things even when they are not suppose, even after they have been told explicitly, “DO NOT DO THIS!” , and then they do ???? People apply for credit cards , or go buy a car etc etc etc ….
While in escrow just because you are were approved in the initial process of the loan, remember its not over till its over. So until you get your keys to your house there are few things you should not be doing. As well as things you should do.
Even though it is a bit more challenging to get a home loan we are still closing loans. We are still doing loans for those that have filed bk a few years ago as well as those that have had to short sale or even had foreclosures. Just because your credit is not perfect does not mean you cannot get a home loan if you are curious about getting qualified let us know. Also try to use some one local in getting your home loan. Its a whole different ball game getting your home loan from 1-800-LoanMe $$ etc.
So to help you from Self Sabotage here are some Commandments for you to follow
If you plan on buying a home this year, here are couple of things to keep in mind. So you do not kill your chances on getting a home loan this year and stop yourself from getting qualified for a home loan. This will not cover everything that can keep you from getting a home loan but these are the two biggest things that seem to kill the deals that come my way.
1) This is the number one killer on getting a home loan, and stopping someone from buying a home. Buying a car, is the number one killer whether that be a new car or a used car. If you even think it may be a possibility that you want to buy a house this year or the next. Wait on the car unless you can buy it cash or just changed your mind on buying a home. Most car loans are for 5 years, so if for example your debt to income does not justify the car payment and a mortgage payment. You may be looking at 5 years till you get qualified for a home loan.
Another thing even if you are planning on co-signing for your son or daughter that car payment just became your car payment. If you do not want that debt to be considered as part of your debt, then make sure that your son or daughter gets their own checking account in their name only. Make sure that they make the payments on time and after one year. So that way the debt will not be counted against you, and keeping you from qualifying for a home loan.
2) The number two killer for qualifying for home loans. Is paying your bills. Even if they are old collections or just small accounts does not matter that it is a $40.00 balance that you may have on your credit card. If you for some reason forget to pay your bills because you are just too stressed or frustrated for what ever reason. Then you end up having a 30 day late or maybe even a 60 day late from the last time you had your credit checked and got qualified to buy a home. So you find your home and submit your offer based off of your last approval. But then a new credit check is done and now because you have some accounts showing that you paid late. Your score just dropped a few points that could be enough for you to not qualify for a home loan. Also if you know you are planning on buying a home don’t get any new cards. That 10 or 20 % discount is just not worth it.
So don’t buy any new cars or even used ones, if you plan on buying a car in the near future, and pay your bills on time. Good Luck !!
Buying a home is not so easy as it once was, and in the past few years since the recovery it has even gotten more expensive. The thing is every one wants the 100 % financing deal as if they were buying a car. Yes there are loans out there with only 1/2 % down. But you still have closing costs. Yes there are some sellers that will pay for most if not close to all your closing costs.
But here is the thing those scenarios are not always typical but if you have to stick to that scenario that you want a house with putting little to nothing in the process you will have to be very, very , very patient.
Because most sellers to not want to pay for all of your closings costs unless they are selling the house at a premium, but even then the house has still has to appraise in value. Not to mention the loan that you may be trying to get is basically going to be govt. sponsored so an FHA loan or VA loan. Sometimes the house may be in need of repairs and, so that home you want may not qualify for that loan. Or someone may have to do the repairs and the seller may not want to so you may have to do the repairs on a home that is not even yours, and you are not guaranteed to close on the deal. But the lender wants those repairs done period.
Bottom line is just be as prepared as possible, its better to have some funds so that you can negotiate. Best case scenario unless you are doing a VA loan or USDA loan have 5% for the down payment. So you can get rid of PMI anything less than that you will get with mortgage insurance. That is as long as we talking about buying this house as your primary. If you are doing a VA Loan or USDA loan you are in luck they do not have any PMI and which can be several hundred dollars on top of your regular mortgage payment limiting you on how much house you can qualify for.
But you should at least have 3.5 % saved up of whatever you are trying to buy, so you have some room to bargain and negotiate. Lets say you cannot get the seller to pay for any of the closings costs or repairs. Then apply for a FHA home loan with down payment assistant and use some of the 3.5% that you have saved up to pay for those closing costs. The point is, save up money, I know we all like free stuff but the idea of buying a home with nothing down and no costs should not be one of them. If you would like to see what kind of loans you can qualify for let me know.
Reality is getting a home loan to buy a house is much, much different than it was 5 years ago which really was not that long ago. Getting a home loan in today’s world really requires you to prove every thing. Not only do you really have to show that you have a job and that you do make money, and that you can afford the payment, but that the funds you have for the down payment or the closing costs is really your money.
I know that may sound odd, but you really do have to prove that the money you are using to buy a house is really your money. With the Patriot Act and the war on terrorism and money laundering, when you are getting a home loan you have to show a paper trail basically of those funds or they must have been seasoned in your bank account in your name for at least 2 months.
So if you want the process to go smoothly in just this one part of the loan process put your money in the bank. I still find people that have money stashed here and there and when it comes to getting a home loan they have nothing in the bank account. Another tip to make the loan process a bit smoothly. Regardless of where you are getting an income, whether it be from your job or some kind of support if you do not have direct deposit and like to get the check and make your own deposits. Deposit the whole check, do not go to the bank and make a partial deposit. Just deposit the entire check and then once you have done that if you need funds then take what ever you have. Because when you have a pay stub showing you got paid $2k but all that was deposited in the bank was $1,300.00 and the next deposit was $800.00 or what ever then you have to explain why there is an inconsistency.
Also last tip to make the loan process a bit easier avoid taking out or making unscheduled deposits every time you make $500.00 deposit or withdrawal from your account the lender is going to ask for an explanation. They are looking for items you may have not disclosed other debts etc. You will have to write up a letter of explanation regarding those transactions.
Now if the lender does not believe your explanations as to why there are inconsistencies or whether those are your funds. They will disallow the use of those funds. So you may have $10k in the bank but it won’t matter, you have to get what is called gift funds (more on that in next post ) just to close your home loan because they will not consider the $10k yours.
So put your money in the bank to have the 2 months seasoning. If you are gonna make deposits and withdrawals make sure you can document the paper trail. Finally when you get your pay check deposit the entire pay check so it matches with your deposit, then take the funds you need.
Good lucking on buying your home.