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9/16/2014

Mortgage For Bruce Wayne?

Bruce Wayne's house
What Americans think they look like on paper

     
        















Only Bruce Wayne can get a home loan? Only superheroes get a home loan?
Wells Fargo released their survey today of a little over two thousand Americans about home ownership and mortgage. The results are interesting. The popular opinion is only the rich and uber-wealthy with perfect credit and loads of cash can qualify for a loan today.  
Perhaps that is not far off from Freddie Mac Fannie Mae guidelines plus add bank overlay rules, it is difficult for some to get a conventional rate mortgage after the crash.
However, every day I see more niche products cropping up to dispel this myth. Americans and foreign nationals can find home loans that suit their needs.
For specifics of the respondents of the Wells Fargo survey:

Seventy four percent of respondents answered: “know and understand” the process involved in buying a home.
I think this number reflects a self-conscious answer rather than fact. Every day I remind Borrowers of the five circles that make up a mortgage loan approval. Not one day passes when a potential Borrower argues about supplying necessary paperwork or only provides a small percentage of what is necessary to get approval.

Thirty percent of respondents stated that only individuals with high incomes can obtain a mortgage.
Not true at all in fact smaller loans seem to be easier to close
§  Sixty four percent of respondents believe they must have an excellent credit score to buy a home.
Not true a FICO I closed a loan recently with a FICO score of 510
§  Sixty four percent of respondents said that they are knowledgeable about how much of a down payment is needed to buy a home, nearly half (44 percent) also believe that a 20 percent down payment is required.
Not true there are some 0 down programs and 3.5% for FHA
o    When respondents aged eighteen to thirty four were asked to list the biggest barriers to owning a home, lacking the funds for a down payment was among the most difficult issue.
o    Save save and gifts
§  Nearly half (forty four percent) of those who answered the survey said that they know nothing or very little about the closing costs required for buying a home.
This varies state to state and who the escrow or attorney is
Generally in an escrow state costs are about 3% in table funding state 5% or less
About half of the respondents feel they do not have access to homes that fit their needs financially.
Perhaps cost of homes in areas are high

The ten things that really go into mortgage loan approval:
1.  Identification driver’s license and social security cards
2.  Paycheck stubs past month or profit and or loss year to date for self employed
3.  W-2 forms and Federal income taxes signed past two years
4.  Bank statements, asset statements, 401 k past two months
5.  401 k terms of withdrawal.
6.  Decent Credit history- this we can work on credit can be patched
7.  Landlord information or mortgage statement, fire hazard bill and Homeowner Association statement.
8.  Collateral property information and money for appraisal
9.  Property appraises for value and is in habitable condition, Condominiums have other guidelines.
10.           Patience, and an email address you open daily to send pdf. documents because more paperwork may be needed.

You do not have to be a superhero to get a home loan.
But if you want us to include the income from your side line job as
crime fighter and upholder of Gotham City, Bruce Wayne you must be declaring your income from your Bat Man gig.

Caroline Gerardo
NMLS 324982
cell phone number:  (949) 784-9699
 Eagle Home Mortgage a Lennar Homes company
http://eaglehomemortgage.com/carolinegerardo/ 

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