Tag Archives: fha mortgage

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

 

 

 

 

What Credit Score Do You Need to Get a Mortgage?

Credit Score Mag GlassDo you know the answer to this question?  If your answer is “No” realize you are not alone.

If you are thinking of purchasing a new home or refinancing your existing mortgage it is Tremendously important to know what the minimum credit score requirements for mortgages.

If your credit score is to low you probably will not get approved for a mortgage loan. Your credit score will not only have an effect on being approved but also on what interest rate you will pay.  The Higher your credit score the lower your interest rate will be.

Minimum Credit Score Requirement for Mortgage Loans:

FHA : Minimum credit score “typically” is 640 with most lenders.  There are a few lenders out there that say they will go down to 580 but I have yet see or hear of one closing.

VA:  Minimum Credit score “typically” is 640.

USDA:   Minimum Credit score “typically” is 640.

Conventional:   Minimum Credit score is 680.

Mortgage lenders go off of your “Mid Score” which is the middle of 3 credit scores; example if your credit scores are 646, 687 & 669 the lender will use 669. If you by chance only have 2 credit scores they will go off the lower of the 2 scores.

I would advise you to shoot for a credit score of 740 or above that should be your goal.  The higher your credit score the less the risk the lender assigns to your mortgage and the better your interest rate.

The banks / lenders use your credit score to assign a “risk” to you mortgage.  When lenders analyze / underwrite mortgages your credit score is a major factor in loan approval.  Your credit score not only impacts the interest rate you pay but also the maximum loan to value for your loan.

With the current changes in lending it is very likely that lender criteria will require higher credit scores in the future.  So be prepared and work on increasing your credit score.

I would suggest checking into your credit score several months in advance of wanting to buy your new home.  A web site that I recommend is creditkarma.com it is a free site and they do not ask for credit cards.  They also give you FREE credit scores!

I would suggest checking your credit every 4 – 6 months to make sure it is accurate.  If you have a lender/bank pull your credit then your score will take a “hit” of 5 – 7 points to your credit scores.  But going into CreditKarma.com and pulling your credit report will not reduce your credit score.

If you have any questions on this or if you are ready to see about a new mortgage give me a call!

Blessings,

Cindy Seely

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

Do you Believe you are chained to your current lender for Life?

Locked 100 Bill

What is stopping you from cutting that chain and reducing your monthly payment? 

Available Mortgage Options:

Conventional

FHA

VA

USDA

Worried that your house will not appraise?   Not always a worry;   NOT all refinance programs require an appraisal!   Call me and lets see if your refinance requires an     appraisal 816-728-1384.

Call me and together we can cut that chain 816-728-1384

  “I am upfront and to the point and I do what is best for my clients!” – Cindy Seely

 

Cindy Seely,  (816) 728-1384, Cindy@CindySeely.com                                
NMLS – 245378, Mo. 1649-MLO, Ks. 0009720, licensed in Missouri & Kansas                                                                                 
360 Mortgage Inc.,  28 Westwoods Drive, Liberty, Mo 64068   NMLS 80777