 |
 |
 |
           |
 |
 |
 |
|
 |
 |
|
|
|
 |
Mortgage Loan Most Bankers Wont Give May Be Exactly What You Need to Buy or Refinance Your Home
A few years ago, a loan officer who worked for me was having a problem helping a customer. He was new to the business and had very little patience for problems (as you might have already guessed, he didn't last very long). He told me the customer was a doctor, who had left a hospital job to open his own practice. He was trying to refinance a $300,000 home, but he could not show any current income. After the loan officer and I discussed the options, he walked away from the loan, completely frustrated. So, I asked him if I could work on it. He agreed, saying he didn't wanted to be bothered with it any longer. So, I did what all good mortgage professionals do, and I picked up the telephone and began calling lenders and telling them the problems with the customer. After a couple of hours of examining the gentleman's loan papers and talking to him and several lender representatives, I found the solution - a Stated Income program. You see, this customer, in most conventional bankers' eyes was not "bankable," because he really did not have any income. He would have plenty of income in a few short months, but banks don't loan on what you may have. Wholesale mortgage lenders are different. When I reached the branch manager of one of top lenders in the country, I explained the situation to him. Most importantly, I told him that my customer had nearly perfect credit, and he could show 18 straight months of W-2 income of well over $200,000. Furthermore, he had plenty of equity in his house and maintained over $100,000 in liquid assets (stocks, bonds and savings). "This is no problem," the branch manager said. "Simply write the amount he needs to make on the application. With everything else this guy has going for him, I'll sign off on this loan tomorrow." And that was all there was to it - we just had to put the right numbers on the paper. Once again, you need a mortgage professional for this special program. Not many banks offer stated programs. Many people who need stated programs get turned down by not only banks but by inexperienced mortgage brokers who don't understand the breadth of the programs at their fingertips. So, you may have to enlighten them with your own insight by telling them this is the program you need. Stated programs are for people who may not qualify for a conventional loan, because they do not meet income requirements a lender has, like the gentleman in the previous example. Another example is someone who does not show all of her income on a W-2 tax return, for one reason or another. This person may make enough money to cover the mortgage payment, but she can't prove she makes it on paper. Lenders like to see two years of W-2 income. This proves to them that you consistently make enough money to pay back the loan. Now, it's important to note that this is a good credit program, and a lender will want someone with at least A-minus credit for approval. All the loan requires is all standard documents, except income verification. In other words, the loan officer is going to state your income on the application, and no proof is required. Please note that this program is not intended for someone who works at McDonalds to try to state that he makes $200,000 yearly, so he can get approved for a $400,000 loan. It is intended for people, like salesmen, whose incomes fluctuate or for businessmen, who work on bonuses, which they may not receive until the next year. As long as the income is reasonable for the profession, no underwriter will ever question it. So, if you needed to make 60,000 yearly for approval, but you only show $54,000 on last year's W-2, your broker can get you a stated program, and he will simply write $60,000 on the application. Don't worry, the lender won't ask for pay stubs or tax returns. This seems fraudulent, you might say. It isn't, as long as you follow the guidelines set forth by the lender. Remember, they created this program, so they could loan more money. You'll pay, of course, because the lender will hit you with a premium on your rate, because the loan is more of a risk. So, instead of getting a 6% rate, you might get as high as 6.75%, but at least you'll get your loan. Mark Barnes is the author of the new novel, The League, the first work of fiction, based on fantasy football. He is also an investment real estate and home loan finance expert. Learn more about his suspense thriller at http://www.sportsnovels.com Get his free mortgage finance course at http://www.winningthemortgagegame.com
MORE RESOURCES:
Mortgage-Refinance - Google News |
|
|
|
RELATED ARTICLES
Secured Lending - a Guide to Releasing the Value in Your Home The recent boom in house price values have made some homeowners more wealth than they could have possibly earned though working in their jobs, however what use is all that wealth if you can't get your hands on it until you've sold your house? The quickest and easiest way to unlock the increased value in your home is often a secured loan that will allow you to receive a lump sum upfront without having to move or remortgage your house.Why take a secured loan?Perhaps it's time to take that amazing touring holiday, perhaps it time to replace the kitchen or even build an extension to your home, with unsecured lending normally restricted to amounts less than £25,000 if you need borrow more money then the best option will be a secured loan. Mortgage Lead and Mortgage Leads A mortgage lead is an exciting thing because you are filled with the thought of buying a house. Mortgage leads are listings of information dealing with how much a house will be. Flexible Mortgage Guide Here is a useful flexible mortgage guide. Flexible mortgages are loans which allow you to increase or decrease the size of your repayments within certain limits. Home Equity Loans Can Provide Cash in a Hurry Think About the Long Term. Estimate how long you expect to stay in your current house. Home Loans and Mortgages - Beware of New "Mortgage Elimination" Scam The booming real estate market has allowed many Americans to become "equity rich." They may not have a lot of cash on hand, but they might have equity in their homes worth several hundred thousand dollars or more. Home Loans Buying a home remains the great American dream. Home ownership rates have been exploding in recent years, spurred on by the historically low interest rates in the home mortgage market. Need a Mortgage, Refinance or Equity Loan? Learn What it Takes, Before Applying Do you know what it takes to qualify for mortgage and refinance loans? There are several factors involved with qualifying for a purchase, refinance or equity line of credit, and having an in-depth understanding of these could make the difference in you being accepted or turned down by a bank loan officer.Here are some things loan underwriters use in seeing if you qualify for a loan: your credit rating; your income; the amount you wish to borrow vs. How to Avoid Paying Mortgage Insurance In today's world, a borrower should not be paying mortgage insurance (PMI) on their home mortgage with a few exceptions such as an FHA loan. Mortgage Insurance is a thing of the past. Recent Bankruptcy? Its Not Impossible to Obtain a Home Loan Because the new bankruptcy laws go into effect on October 17, 2005, more Americans than ever are filing for relief using the federal bankruptcy laws. The vast majority are simply overextended and cannot possibly repay the obligations they have open. Be Prepared when Seeking a Mortgage When you're looking for a mortgage, whether it's a first time loan or you're taking advantage of an opportunity to refinance an existing mortgage, it may seem that you're wading through a quagmire of uncharted territory. If you're prepared ahead of time, you'll avoid some of the common pitfalls and know how to find the best deal for your situation. Do Your Homework - Find the Mortgage That Fits Your Lifestyle and Your Budget You've been looking at houses for months, and finally you've found it--the house that's just right. So now, all you have to do is to purchase your new home, move in, and get settled, right? Not quite. Mortgage Basics for First Time Home Buyers Anyone planning to take out a mortgage for the first time will most likely find the job a little daunting, not least because the financial jargon can often be very difficult to make sense of. As with any major financial decision, it is essential to fully understand every aspect of a mortgage plan before making a commitment. Mortgage Marketing W. Edwards Deming said "Marketing and innovation are the only source of value in business, everything else is a cost". Applying for a Home Mortgage Loan Online - The Pros and Cons If you have considered applying for a home loan mortgage online, there are a few pros and cons to think about with getting a home mortgage loan online:Pros:1. The process of applying for an online home mortgage loan is very simple, unlike some lenders who operate in the 'real' world and ask for heaps of information. Mortgage-Refinance Treachery: Avoid Mortgage Bankers and Brokers Biggest Trick -- The Sales Pitch What the average homeowner or home buyer fails to realize is that bankers, loan officers, mortgage brokers, or whatever your lenders call themselves, are salesmen. Certainly, if you purchased your home from a realtor and used her lender, you most likely got a feeling of trust in that person, because the realtor referred him. Tips for Finding the Best Agri Mortgage and the Best Agri Loan The Research Rates of Agri MortgageFirst thing, when finding an agri mortgage is to check the interest rates and the rate movements, too. The agri mortgage rates can't be too constant, they are rising and falling along the Wall Street security; that reflects the direction of rates. Home Equity - Let the Market Eliminate Your Private Mortgage Insurance In decades past, most people who were interested in obtaining a home loan were required to put down at least 20% of the purchase price. Those days are gone, and as home prices have risen faster than incomes, the average down payment required by lenders has dropped. Refinance Benefits - Refinancing Could Save You Money The most common reason most people refinance is to save money, but many people refinance for various other reasons.1. For Mortgage-Refinance Help, Get the Best Mortgage Professional, Not a Bank Loan Officer When you need a mortgage -- either because you are buying, refinancing, taking out equity or getting into investment real estate, you need a good mortgage professional. Now, you may be tempted to go to your local savings and loan, as they may promise lower fees or zero costs. What is a Self-Certification Mortgage? A Self-Certification mortgage is a mortgage designed for people who are unable to provide proof of income. This type of mortgage was originally designed for the self employed who historically experienced difficulty obtaining a loan with 'high street' lenders due to not having audited accounts available.
|
 |