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| Bruce Wayne's house |
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| 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
Lennar Homes company