6 home loan details to prepare prior to making an offer

Have you found the home you love and now you’re ready to make an offer?  There are six details you should be prepared to communicate to your Realtor to insure the transaction goes smoothly.

Watch this short video to learn what they are:

If you are wanting to work with a lender that is dedicated to delivering home loans without surprises please contact us today!

Thanks!

Part 2: How to Buy a Home Without a Sale Contingency – Down Payment

Over 60% of homebuyers in the United States are repeat buyers.  This means they often have a home to sell concurrently with buying a home.  In today’s competitive housing market it can be a challenge to get an offer accepted when it includes a home sale contingency.

Therefore, it’s always worth trying to see if and how a homebuyer can be pre-approved for their home loan without the requirement of a home sale contingency.

There are two common hurdles that an applicant faces when trying to get pre-approved in this manner.

The second hurdle (HERE IS A LINK to the first hurdle) is cash flow.  Without the existing home sold the underwriter will require that the applicant be approved with both mortgage payments.  I cover that topic in the video below:

If you are seeking to get pre-approved to buy another home and would like to avoid a home sale contingency please reach out to us today!

How to Buy a Home Without a Sale Contingency – Down Payment

Over 60% of homebuyers in the United States are repeat buyers which means they often have a home to sell concurrently with buying a home.  In today’s competitive housing market it can be a challenge to get an offer accepted when it includes a home sale contingency.

Therefore, it’s always worth trying to see if and how a homebuyer can be pre-approved for their home loan without the requirement of a home sale contingency.

There are two common hurdles that an applicant faces when trying to get pre-approved in this manner.

The first hurdle is how the buyer will generate a down payment without the proceeds from the sale of their home.  I cover that topic in the video below:

The second hurdle is cash-flow and I will discuss that in next week’s video.

If you are seeking to get pre-approved to buy another home and would like to a void a home sale contingency please reach out to us today!

Benefit 3 – Avoid contractual problems by getting pre-approved by a reputable lender

Did you know the standard Residential Real Estate Agreement commonly used in Oregon allows the seller to prevent you from switching lenders or loan programs?

In this short video I explain the third benefit of being pre-approved for a home loan prior to starting your search:

Consumers should take the time to compare lenders prior to starting their home search because once they are in an accepted offer they need the sellers written consent to switch lenders.

If you would like to get pre-approved then please contact me today to get the process started!

Benefit 2 – Avoid surprises by getting pre-approved before you start your home search

Are thinking of buying a home and wondering when you should get pre-approved?  Unless you are open to the potential for an unwanted surprise, I recommend you get pre-approved early on.

In this short video I explain the second benefit of being pre-approved for a home loan prior to starting your search:

By taking the time to get a mortgage pre-approval ahead of time a competent lender will be able to properly set your expectations for monthly payments, closing costs, and down payments.  This way, you can direct your home search at a level that is financially sustainable for you.

If you would like to get pre-approved please contact me today to get the process started!

Benefit 1 – Getting pre-approved for a mortgage

Are you thinking of buying a home and wondering if you should get pre-approved?  The answer is “YES!” especially in Portland, Oregon where desirable homes are still very competitive.

In this short video I explain one benefit of being pre-approved for a home loan prior to starting your search:

By taking the time to get a mortgage pre-approval, a home seller will take your offer more seriously than without one.

If you would like to get pre-approved then please contact me today to get the process started!

Credit Myth #7- Qualifying for a home loan without a credit score

After spending over 16 years in the mortgage lending industry I have identified seven myths that consumers commonly hold regarding their credit.  In this series of videos I am going to breakdown each myth and help you better understand how your credit scores are determined so that you can achieve a better outcome for your next loan application.

The seventh myth is that an applicant without a credit score cannot qualify for a mortgage.  Please watch this short video to learn the truth:

It is possible for people without a credit score to obtain a home loan.  They have to be able to demonstrate that they have made on-time payments for other recurring payments such as rent, utilities, insurance or other similar bills.  This is known as a “non-traditional credit reference”.  This approach may not be used for an application with a credit score that is too low to qualify.

If you would like to learn if this loan program would work for you please contact me today!

Credit Myth #6: It takes a great credit score to qualify for a home loan (not true)

After spending over 16 years in the mortgage lending industry I have identified seven myths that consumers commonly hold regarding their credit.  In this series of videos I am going to breakdown each myth and help you better understand how your credit scores are determined so that you can achieve a better outcome for your next loan application.

The sixth myth is that an applicant must have a good credit score to qualify for a home loan.  Please watch this short video to learn the truth:

If you would like to learn about your options for buying a home with a below average credit score please contact us today to get the process started!

Credit Myth #4: Your Job and Income Contribute to Your Credit Score

After spending over 16 years in the mortgage lending industry I have identified seven myths that consumers commonly hold regarding their credit score.  Over the course of the next few weeks I am going to breakdown each myth and help you better understand how your credit scores are determined so that you can achieve a better outcome for your next loan application.

The fourth myth is that a person’s job and level of income contribute to their credit score.  This is not true.  A person’s job and/ or income are not data points included in the algorithm that determines a credit score.  Certainly higher incomes allow households to better afford their payments and make it less likely they would incur adverse events.  But, at the end of the day a person’s credit score is entirely based on their previous credit behavior.

As THIS ARTILCE points out the information that contributes to a person’s credit score are……

  • How length of a person’s credit history
  • If they have repaid their loans as agreed
  • If they have any missed payments which were 30+ days delinquent
  • How they are currently using debt (is the overall level of debt increasing, decreasing, or remaining stable?)
  • The mix of different types of credit accounts
  • If they have any past derogatory events like bankruptcies, foreclosures, short sales, judgements, or collections.
  • If they have recently made other credit inquiries

Please contact me today to learn more about your home loan options.

How long does a pre-approval last for?

 

Video Transcript:

Hey guys, Evan Swanson here, Swanson Home Loans, a division of Cherry Creek Mortgage. I’m trying to pack it all into a day, so I’m on my commute home recording the weekly video. This week I wanted to answer the question that we get a lot, which is how long is a pre-approval good for?

WHEN:

Oftentimes, prospective home buyers are trying to figure out the best time to get pre-approved. First off let me say, I think it makes sense to get pre-approved early and often. This way, if we discover issues that are unknown to an applicant, we can try and fix them before they’ve actually found the house they love and want to make an offer on.

FREQUENCY:

Now, to answer the question, typically pre-approvals are good for either 90 or 120 days. And the reason for this is that’s how long the credit report is good for. Credit reports, depending on the type of loan program, will expire after 90 or 120 days, in which case we have to update that.

NOTE:

That said, keep in mind all the information on a loan application is subject to re-verification by the underwriter. It’s not like if an applicant applied today with a job and got laid off a month from now, we wouldn’t be able to simply rely on the job they applied for, we do have to re-verify that they currently work in the job before closing.

CONCLUSION:

Bottom line, pre-approvals are good for 90 or 120 days. I think it makes sense to get pre-approved as early on in the process as possible.

If you’re curious about your circumstances, or what makes sense to you, please contact me today, I’d love to be your resource. Thank you!