Your Questions About Check My Mortgage Loan

Sandy asks…

Mortgage loan __ Credit history?

Hi guys,
I have been in the U.S for 2 yrs,but my credit history is a little over a year.
I am looking for a mortgage loan and I appied for bank, and after they check everything, they said that I have good credit scores, good income and all, except I just establish my credit over a year.
They required at least 2 yrs period.
Do you know all the bank/financial institution have the same guideline?
or Do you know other bank that does not require that?
Pls let me know which bank….

Thank you.
who is credit union? can you give me their website?
Can you guys refer me to a very good credit union ? I am from bay area.

admin answers:

It will be hard for you to apply with a credit history so fresh… Have you tried to apply with an actual mortgage company instead of a bank? Some banks are very strict when it comes to credit requirements. What you can also do if interested is apply for an FHA loan. They do not base their decisions solely on credit alone, so you may have a better chance of getting approved. Good luck to you!

Laura asks…

Should I pay off my mortgage quicker or should I save?

Im closing on my first house next week. My husband and I are both 30. I checked I mortgage caculator and found out if we make a payment of $3500.00 1 x a year in addition to our regular payments then we will pay the loan off 10 years earlier. Is that a good thing to do with our money or should we be putting it into some sort of stocks for retirement.

admin answers:

Basically it all boils down to what is your mortgage interest rate versus what rate of return can you get for investing in stocks. If your mortgage interest rate is lower than the rate of return that you can get from stocks, then go with stocks, if it’s the other way around, then go with paying off the mortgage quicker.

Mark asks…

How do I qualify for a mortgage/financing as a foreigner?

I know in my country (South Africa) the banks do credit checks and calculate a max loan amount based on income. How is Texas different? Will the do credit check in country of origin? How does mortgage influence your tax payment to government. We do not get tax cuts for bonds.

admin answers:

The same applies in the US as far as credit checks and income. If you do not have an established US credit history, the bank may require an International Credit Report which can be costly.

Mortgage interest is a tax deductible item on income taxes.

If you are not a US Citizen, you can still purchase property in this country but you will be subject to some different guidelines. This is mostly due to the fact that since you are not a citizen it is a possibility that you will leave the country and not return to pay your obligation. Ask the mortgage specialist at your bank as suggested but many Mortgage Brokers can be of service too. Just make sure they are an established and reputable Broker. In addition, Texas has some very specific lending guidelines that are unique to that state. Being a border state, they might have tougher restrictions on lending to foreigners.

Sharon asks…

Policeman problems……I am a mortgage loan officer. Recently, I denied an applicant’s loan?

(the applicant is a small town policeman….the town we live in has a population of 10,000) because the lender changed their loan program. The man did nothing wrong, it’s just that his loan was a “subprime loan” and the subprime lenders are tightening up. I called the policeman and told him. He called back several times screaming at the top of his lungs, threatening to sue me personally, the company I work for and making all kinds of strange threats. He apparently also did a criminal background check on me, our secretary and the owner. What my question is should I be worried that he or some of his policeman friends will harrass me with pulling me over just to get me back or cause any other problems? I have never had problems with the law just a couple speeding tickets. Has anyone ever run into a situation like this where the police harrass since something did not go their way? Thanks for your input!

admin answers:

As a fellow LO, I understand completely what you’re going through! Although, thankfully, none of my clients are cops : – 0

I’m sure you exhausted all your lender options before denying the loan, and with all the recent changes, I understand how difficult that can be. But FHLMC, FNMA and FHA have been loosening guidelines and have stretched into the Alt-A and higher sub-prime loans. If his mid-score is >580, I would keep looking for a progam that might work. Also, if you live in an LMI area, and/or the borrower’s income is below the median – he may qualify for Freddie’s Home Possible program. There is a special program for people who work for the community such as police officers, firefighters, teachers, etc. The program offers 100% financing with loosened DTI and reserves when manually underwitten, otherwise just go by the LP findings. The name of the program is Neighborhood Solution under the Home Possible guides.

If he doesn’t qualify for the above mentioned program or FHA, I would call the guy and let him know that you are mailing copies of the sub-prime program, before and after the guideline change. Clearly show him in writing why his application is currently denied. Run a credit simulator scenario through your credit vendor and see what improvements he can make to increase his score to an approveable number. Offer to counsel him through his credit score improvement process and let him know that you will be more than happy to help him with financing when he is ready to try again. I would also offer a reduction in closing fees (see if you can waive the in-house processing fee). Hopefully the harrassment will cease.

Best of luck to you.

Robert asks…

FHA mortgage Loan question?

What does it mean to be pre-qualified for an FHA loan?? My credit has been checked, I was asked my income, and they sent it thru the FHA approval computer and said the fha says ok for them to proceed?? Does this basically mean if everything matches up like income, assets, credit we are approved??

The paperwork that I received said we have been “Conditionally approved” but did not state any conditions which was strange. I hope someone can help

They’ve asked for a purchase contract and the title company and they will do an appraisal after they receive a title from what I’m told.

Also under what cases will the underwriters not approve a loan?? How long does this process normall take?

admin answers:

Well that all depends on who your lender is. When you give your application to the loan officer, they run it through an software thats usually referred to “DU” or in some cases “DO” That process is usually instant to see the results. If you come back pre-approved, the loan officer will tell you to gather your information to back up what you said on your application (exam: income documentation, pay stubs, w2’s for the past two years, your current employers information, etc) . If you can provide all the documentation to back up your application, you will have no problem getting the final approval. Getting the final approval depends on your underwriters. If they are busy, it can take anywhere between 2-3 days. If they are slow, they can approve it in a day or so. This just all depends on who your lender is.

Also, there are a lot of reasons why the underwriters might not approve the loan at the end. Title may be one, if there are liens and judgments, they will dissmiss it until the title is cleared. Lets say the appraisal came back and there is a problem with the foundation or the water or whatever reason it may be, that might be another reason why the underwriters will not approve it until its fixed. Your loan officer, whoever is helping you get into your home, should have all of this information for you. They will help you approve any conditions that may be on the final approval. Trust me, your loan officer is your best friend at this point because they want you to get that house just as badly as you do. Thats how they make their money so don’t be afraid to ask questions, to be a bug, to know what exactly is going on at all times because remember, you’re paying them! From my past experiences, it takes around 2-4 weeks for everything to be completed but again, this also depends on your lender. 🙂

Just to note: there are some things that neither you the loan officer can’t fix on the final approval and you will have to wait until that problem is fixed before you can purchase your property.

On the bright side, appraisal problems, title problems that can’t be fixed rarely occur so if I were you, getting the pre-approval is a great step, I’d be really excited!

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