Mortgage FAQs: Buying a House After a Short Sale or Foreclosure? Why So Many Documentation Requirements?

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Our mortgage industry continues to change, evolve and adapt based on years past. That’s why in today’s mortgage update we discuss some of the most important questions that arise in many homebuyers’ and sellers’ minds. Here are the answers as provided by our very own mortgage expert Linda Bertuzzi of Nova Home Loans.

Why do I have to provide so much documentation for my home loan?
Many buyers ask this question and over the years the answer has varied greatly. It started out where home loan files were very thick and they consisted of paper after paper of verifications. Tax returns, income statements, affidavits from previous lenders and landlords, credit reports and so much more. Then for a while things changed. The mortgage industry got very lax and all of a sudden anyone and everyone could walk into a mortgage company or bank and walk out with a home loan.

We all know what the result of that was and following the 2007/2008 housing crisis things changed slowly but very surely. Major banks across the nation had to settle with state and federal regulators and end resulted in very stringent mortgage processes.

What you are experiencing today is part of a collective effort to avoid another mortgage crisis in the future as well as make sure buyers truly can afford what they are borrowing. It’s not just a matter of a house payment; a home loan is a long-term investment that buyers must be able to afford.

How soon after a short sale or foreclosure may I buy another home?
At first after the housing market crashed there were many unknowns as to how long it would take homeowners that were underwater to buy again. But with an effort to streamline the process and help to strengthen the housing industry as a whole, both the Obama Administration and lending institutions came together to be more lenient.

Today, homeowners that were forced to short sale their home can now buy another home as soon as the next day from the sale of their home. This applies in certain cases, and only if the homeowner never defaulted on any payments and remained current throughout the short sale process. On average FHA and VA loans holders can expect to be able to purchase another home within two years of a short sale or foreclosure if credit score is rebuilt and some other requirements have been met.

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If you would like to explore your options, we invite you to contact us today! Linda can be reached at 702 596 9565 and is ready to assist in making your real estate goals become a reality!

Getting a Check at the Closing

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Traditionally, the benefit of owning a home was being able to eventually sell it for a profit. Because the market has hit upon tough times, this scenario hasn’t always been the case, but things are changing. Sellers are getting checks at the closing! After years of struggling or even being underwater, they now have equity. Right now, a lot of people think they can’t sell their home because they don’t have equity, but they just might.

So if you’re thinking about selling and you’re afraid you’re upside down or underwater, I can determine the equity so you can make an educated decision to sell now or stay in the property. It’s a quick process. To give you an accurate look at your home’s value, which will help determine the equity you have in it, I look at such criteria as location, the condition of your home and what other homes are selling for in your neighborhood. This number may pleasantly surprise you. 

If you decide to sell, we can do a personalized walk-through to let you know what you need to do—and not do—to increase your chances of getting top dollar for your biggest investment. This approach will ultimately save you time and money. We’ll also build a strategy so that anyone who is looking for a house in your neighborhood and price range will know about your home. Our job is to market it to its fullest to all the buyers out there by being aggressive.  
 
Give us a call so we can tell you where to be positioned and how to be successful in this market. Please contact us at (702) 303-0040 or email us at mitch@mbsrealestateservices.com. We’d be happy to assist you. 

Mortgage Process FAQs Part 2; What Every Buyer Needs to Know in Today’s Marketplace

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As anyone in the Las Vegas area will tell you, I’ve been doing this for longer than most people can remember. And time and again, the most frequently asked questions have to do with mortgages and financing. So today, I met with Linda Bertuzzi of Nova Home Loans at 702-596-9565, a long-time partner and friend of the Mitch Schwartz real estate team and we share with you a three-part series with the answers to your questions.

One of the hardest things to see as a real estate agent is when we’ve helped someone sift through countless homes, find the perfect dream home and then lose the home because they were not prepared. In today’s mortgage FAQs, we cover what you can do to make sure all your ducks are in a row so you can GET the home of your dreams!

While in process of getting my loan, may I make any other new purchases?
The answer is no. Getting a home loan entails a long process that takes into consideration every little aspect of your financial makeup. It highly depends on your debt-to-income ratio, your spending patters and of course your ability to pay the loan. Though you can make cash purchases or investments with funds you do not plan to use for your down payment or other closing expenses, it’s important to stay in touch with your lender so they know what to expect. Some of the things to avoid are maxing out credit cards, making large purchases and opening new lines of credit.

Do I have to worry about my credit being checked after the first time?
The answer is yes. Though your lender will pull your credit initially to evaluate your creditworthiness as far as your loan goes, lenders are required to keep checking throughout the loan process. Due to a loan quality initiative, banks are required to monitor your credit until the loan closes, making sure you are not pulling more debt with your existing credit lines. Keep in mind, if your credit score dips in the process, you could easily lose the house and wait until you have rebuilt your credit.

How long does it take to get a loan?
The typical time it takes for a loan to be processed is anywhere from 45 to 60 days. However, these are loan applications that have been completed to the maximum capability of the buyer. All requested documents are submitted prior to the loan application process begins; tax returns, bank statements, income statements and verifications – all need to be submitted in entirety.

What’s the most important thing to know about getting a home loan?
The single most important thing buyers should know, especially in a world where information is easily available online, is to educate yourself on the process. Find out what to expect and know in advance the items you will need to present to your loan officer. Any shortfalls in this regard will likely cause hiccups in your buying a home.

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Are you in the market to buy a new home? Ideally the loan process should be started about 30 days prior to writing any offers. Contact us today for more information on what you need, we’ll put you in touch with our favorite lenders and get the ball rolling!

Keller Williams RED Day 2013

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Every year on the second Thursday of May, real estate agents across the country band together, put aside their work and give back to their communities. The occasion is Keller Williams RED Day and it has become a staple of the organization. The event’s mission is simple: Renew, Energize, Donate. Offices across the country use RED Day as an opportunity to get their staff together to host a blood drive, work at a food bank or find some other way to lend a helping hand.

This year, Keller Williams Realty - The Market Place of Henderson teamed up with Rebuilding America. We selected a home to paint the exterior, clean-up the yard and move debris and were able to complete all of these projects on May 9th. RED Day is consistently a great way to get our team out of the office to build relationships with one another and the community.
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If you have any questions about how you can be involved in next year's RED Day or if you have any real estate needs, please feel free to call me at (888) 558-0421 ext. 1 or email me at Mitch@MBSRealEstateServices.com.

The Answers To The Six the Most Frequently Asked Mortgage Questions

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As anyone in the Las Vegas area will tell you, I’ve been doing this for longer than most people can remember. And time and again, the most frequently asked questions have to do with mortgages and financing. So today, I met with Linda Bertuzzi of Nova Home Loans at 702-596-9565, a long-time partner and friend of the Mitch Schwartz real estate team and we share with you a three-part series with the answers to your questions.

What are the costs involved in making a home purchase?

There are lender fees and there are title, escrow, taxes and insurance fees. On average this adds up to about two to three percent of the sales price in terms of cash closing costs needed to close. Ideally, meeting with your lender in advance will give you a clear idea of your closing costs based on your price range, timing and other factors that are unique to you.

When Should I Set a Budget?

These days (especially with there being more buyers than there are homes for sale) it is strongly suggested to obtain a preapproval from your lender before venturing out to search for homes. Not only will you know what you qualify for in terms of your debt-to-income ratio and monthly payment but also you will be able to ascertain your expenses up front.

How Are Interest Rates These Days?

The most popular loan products these days are 15 and 30 year fixed rate loans but we are seeing a lot of lender competition. The Fed has kept the base rate low for at least a few more months, if not more, but no one can really tell when they will start to climb up again. For now, we are still enjoying all-time low interest rates. Depending on your credit and down payment investment, you may be able to secure a lower-than-average interest rate. This is just another reason to meet with a lender before starting your home search.

What Is the Minimum Credit Score I Need to Borrow Money for a House?

Though it’s fluctuated in the past, these days most lenders look for at least a score of 640. Once again, if you are making a significant down payment on the house, that number might be able to go a little lower. But lenders will no longer accept anything lower than 620 as used to be the case prior to the housing industry crash in 2007. Higher scores also translate to better interest rates so if there are two people looking to buy a home and one has a lower score – sometimes it might make sense to remove the lower score from the loan application.

What If My Credit Is Not Perfect?

Many times people will make the decision to buy a house but they have no idea of the condition their credit is in. It is critical to know in advance of starting your home search if there are any concerns that need to be rectified. If you do need help with rebuilding your credit, lenders will share with you specific steps on how to rectify concerns that could later impact your ability to borrow. Sometimes, Linda’s team has helped clients build their score higher to get a better interest rate.

How Should I Choose a Good Lender?

While all lenders will be working from the same investor pools, and therefore will likely offer similar interest rates, the challenge comes with unscrupulous loan officers that charge extra fees then call them discount points. You should choose a lender based on customer service levels, your connection with them, long-standing relationships you may have with them and by reference of your Realtor®.