Category Archives: Mortgage

5 Things Your Mortgage Broker Wishes You Knew

House Keys Paperwork

Buying a Home sometimes can be a nightmare.  To change this nightmare make sure you have a Mortgage Broker on your side.

I found this great article and wanted to share on “5 Things Your Mortgage Broker Wishes You Knew”

…  http://www.foxnews.com/leisure/2015/09/22/5-things-your-mortgage-broker-wishes-knew/

If you want a dependable and informed Mortgage Broker call me 816-728-1384.

Please share with your family and friends!

Blessings,

Cindy Seely

NMLS # 245378, Mo 10-1649-MLO, Ks 0009720

5 Signs that you are ready to buy your first home

House w CoinsHow do you know when the time is right to buy your first home?  Are you personally and financially ready to buy your first home?

Buying a home is one of the most expensive purchases you will make in a lifetime.  Look at buying your new home as a business decision and not an emotional one.   After all buying a home is a long term financial commitment.

You are ready to buy when…

  1. You have a reliable income source.

You are confident that your current income will stay the same or increase over the next few years.  Buying a home is a long term commitment so you want to make sure that you are in a position to continuously make your mortgage payments.

2. You have a budget and know how to use it. 

Owning a home comes with many expenses so money management is imperative.  Tracking and knowing where your money goes every month is very important.  A great place to get started tracking your spending and budget is http://www.bankrate.com/calculators/savings/budget-calculator.aspx.  This will also give you an idea of the maximum you should spend on your new home and ideas on how to get your debts under control.

In regards to you “expected” cost of owning your new home.  I would suggest doing some research in the area you want to own for property taxes, homeowners insurance, homeowners association dues, maintenance / upkeep costs, projected utilities as well as costs for commuting.

3. You have a savings for your down payment & additional funds.

You should be saving for a down payment but also emergency fund and moving expenses.

Down payment:  most loan programs require a minimum of 3% – 3.5% down payment.  There are loan programs out there the offer 0% down VA and USDA loans.

Additional Funds: I would suggest having additional funds saved after closing on your new home.  You will have moving expenses and you will also want to plan for home maintenance and emergency fund.  It is best to plan and prepared ahead.

4. Your credit score and report is in good shape. 

The higher your credit scores the lower the interest rate and monthly payment on your mortgage will be.  While you don’t have to have perfect credit you will need to be paid as “agreed” the last 12 to 24 months.

5. Get Pre-Approved. 

Contact me to get pre-approved before going shopping for your new home.  And as always if you have any questions please reach out to me.

One of the Many Benefits of Owning Your Own Home is Building Equity. You want to take advantage of building equity As the gap between how much you owe and what the property is worth widens, the equity in your home builds along with building your family’s financial foundation.

Home-Buyer Handbook

Buying your new home can be overwhelming and confusing.  In my 19 years as a mortgage broker I see first hand this confusion.  I found some material I put together that will assist you.

I am sharing a E-Book that will help release some of the confusion of the home-buying process.

Click this link for a copy of:

Cindys Home-Buyers-Handbook 2014

After downloading the Home-Buyers Book I would suggest saving it for future reference.  Then sit back breathe and relax as you read this book.

Please share with your family and friends!

Blessings,

Cindy Seely

NMLS # 245378, Mo 10-1649-MLO, Ks 0009720

Homebuyers Reduce your Stress and Make a More Solid Offer to the Seller with a TBD Approval!

First to clarify TBD – To Be Determined; meaning the property has yet to be found or under contract.

Many buyers think they need to find a house before getting “Approved” for a mortgage.  That is NOT True!  In reality the majority of the underwriting process can be done before finding your new home with a TBD file.

Buying a home can be stressful from negotiating the sales price of the home to the loan and underwriting process.

The solution to reducing the stress:  a TBD Approval!  There is a big difference between getting “Pre-Approved” from a lender and having an “Approval”.  And it will carry more weight with the seller and seller’s agent when making an offer.

TBD Process: signing disclosures, providing supporting docs i.e. income, assets etc.  The file is then submitted to the lender.  Your file will be completely underwritten by an underwriter and fully approved.  Then you will go out and find your new home.  J

When you find the home you want you will then negotiate with the seller on a price which you both agree on.  In the negotiation process you will provide the seller with an “Approval Letter” which carries more weight than a “pre-approval” letter since the underwriter has already seen, analyzed and accepted your credit report, income and assets.

Once you have a property under contract the only thing that the underwriter will require is specific information on the property: appraisal, title, homeowners insurance, inspections etc.

TBD’s are a HUGE benefit to the buyer, seller, Real Estate Agents.

#1.  Buyers have more confidence and less stress knowing that the underwriter has viewed, confirmed and approved their financial picture.

#2.  Sellers have less fallout when dealing with TBD approvals and TBD buyers are held in higher esteem than buyers who have only been “Pre-Approved”.

#3.  The benefit to Buyer, Seller and Real Estate Agents knows that the process will be smoother and take less time to close the sale.  Time needed to close will be reduced by 2 -3 weeks!

How do you get TBD approved and enjoy these benefits? Contact Me at:  (816) 728-1384 or Cindy@CindySeely.com

I can provide TBD’s on Conventional, VA, FHA and USDA Loan Products.  Hot Happy Couple

 

If you have any questions please don’t hesitate to ask and I will answer.

Blessings,

Cindy Seely

NMLS # 245378, Mo 10-1649-MLO, Ks 0009720

Update on What Credit Score is Needed to Buy or Refinance a Home???

Credit PigI get ask this question a lot and wrote a blog on this back in October 2013 and since the lending industry does change often I thought I would update you on Lender Requirements on credit scores.

Lenders have become a little more open when it comes to their credit score requirement, typically now it is 620 for government (FHA, VA & USDA) loans.  Conventional loan requirements for credit scores are typically higher than government, this is due to the face that government loans are “guaranteed” or “insured” by the government.  So that lessens the lenders risk.

The credit score the lenders go off of is your middle score of the 3 credit scores they get when they pull your credit.  If the loan has more than 1 borrower the lender will go off of the lower of the 2 middle scores.

The higher your credit score is the smoother the loan will be underwritten “typically” and the better your interest rate.  So someone with a 760 mid score typically gets a better rate than someone with a 620 mid score.  The reasoning behind this is risk factor, the lower your score the higher the risk taken by the lender to extend the mortgage loan to you.

The down payment amount / percentage plays into the approval!  Let’s say you have a 640 credit score and you will be putting 40% down on your new home.  Since the lender is taking less of a risk the chances are pretty good that you will be approved.  The larger down payment lessens the lender’s risk and they are more open to doing the loan.  This of course is contingent on what derogatory credit is reporting on your credit report.

While some lenders say they will loan to borrowers with scores lower than 600 but I have yet to see one close.  I am from Missouri and “You have to Show Me”!!! LOL

Bottom-line you will need a middle credit score of 620 or higher.

If you have any questions please don’t hesitate to ask and I will answer.

 

Blessings,

Cindy Seely

NMLS # 245378, Mo 10-1649-MLO, Ks 0009720