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How To Purchase A Boise Idaho Home With A VA Loan

Posted on by Rick & Jane May

Taking out a Boise Idaho VA mortgage loan on a new home purchase is a fantastic way to finance a property with a low interest rate, with little to no required down payment.

 

Purchasing a home with an Boise Idaho VA loan may seem like a daunting task at first glance, but it is actually pretty straightforward.

 

The basic process is as follows:

  1. Find the Boise Idaho property you would like to buy and arrange the purchase with the seller.  You’ll then sign a purchase contract conditional upon approval of a Boise Idaho VA guaranteed loan.
  2. Choose your lender, present your Certificate of Eligibility, and finish the loan application. Your lender will determine your credit and submit a request to the VA to dispatch a licensed appraiser to evaluate the value of the property.
  3. If the determined value is acceptable to all involved parties, and the lender determines that your loan application meets the VA loan requirements, your mortgage can be approved.
  4. You (and co-borrower, if applicable) will then attend the loan closing and sign the related papers. The closing escrow agent or attorney will explain loan terms and requirements and monthly payment details.

 

After these steps are completed, you will own your own home with a low-interest Idaho VA purchase mortgage, with no private monthly mortgage insurance required!

 

Please note that when the VA receives report of the loan, the Certificate of Eligibility is adjusted to reflect use of entitlement and is then returned to the veteran.

No further actions are required to get your COE back, which just makes the overall process easier for veterans.

A common question we get is, “How long does the Boise Idaho VA loan approval process actually take?” The overall period of time it takes for a VA mortgage approval varies depending on the amount of volume the lender has at that moment. It also depends on how quickly the VA borrower is able to respond to documentation requests.

As of late, getting full approval and closing your Boise Idaho VA purchase mortgage has been taking between 3 weeks to 45 days. This time-frame is more or less the same as that for conventional loans.

There are some things you can do to ensure your loan process is as quick as possible, such as sending requested documents as soon as possible, working with a knowledgeable Idaho VA loan specialist, and making your hours of availability as flexible as you can.

For further advice on how to make sure your loan process goes as fast and smoothly as possible, please read our article titled VA Mortgage Approval – How Long Does It Take?

 

Frequently Asked Idaho VA Loan Questions:

 

Q: What is a VA Guaranteed Home Loan?

A: VA guaranteed home loans are loans made to eligible veterans for the purchase of a home as their primary residence. The guaranty means the lender is protected against loss if you fail to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms.

 

Q: Does my entitlement guarantee that I will get a home loan?

A: No VA cannot compel a lender to make a loan that would violate their lender policies.

 

Q: How much is my entitlement?

A: Your basic entitlement is $36,000. For loans in excess of $144,000 to purchase or construct a home, additional entitlement up to an amount equal to 25 percent of the Idaho VA county loan limit for a single family home may be available .  This means that qualified veterans could get a no down payment purchase loan for those amounts.

 

Q: How do I apply for a VA guaranteed loan?

A: You can apply for a VA loan with my company who is a mortgage lender that participates in the VA home loan program. At some point you will need to get a Certificate of Eligibility from VA to prove to the lender that you are eligible for a VA loan.

 

Q: How do I get a Certificate of Eligibility?

A:  Complete a VA Form 26-1880, Request for a Certificate of Eligibility. You can apply for a Certificate of Eligibility by submitting a completed VA Form 26-1880, Request for a Certificate of Eligibility for Home Loan Benefits, to the Winston-Salem Eligibility Center, along with proof of military service.

 

Q: Can my lender get my Certificate of Eligibility for me?

A: Yes, it’s called Web LGY. Most lenders have access to the Web LGY system. This internet based application can establish eligibility and issue an online Certificate of Eligibility in a matter of seconds. Not all cases can be processed through Web LGY – only those for which VA has sufficient data in our records.

 

Q: What is acceptable proof of military service?

A: If you are still serving on regular active duty, you must include an original statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters which identifies you and your social security number, and provides your date of entry on your current active duty period and the duration of any time lost.

If you were discharged from regular active duuty after January 1, 1950 a copy of DD Form 214, Certificate of Release or Discharge From Active Dutyshould be included with your VA Form 26-1880. If you were discharged after October 1, 1979, DD Form 214 copy 4 should be included.

If you are still serving on regular active duty, you must include an original statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters which shows your date of entry on your current active duty period and the duration of any time lost.

If you were discharged from the Selected Reserves or the National Guard, you must include copies of adequate documentation of at least  6 years of honorable service. If you were discharged from the Army or Air Force national Guard, you may sumit NGB Form 22, Report of Separation and Record of Service, or Reserve, you may submit a copy of your latest annual points statement and evidence of honorable service. Unfortunately, there is no single form used bythe Reserves or National Guard similar to the DD Form 214. It is your responsibility to furnish adequate documentation of at least 6 years of honorable service.

If you are still serving in the Selected Reserves or the National Guard, you must include an original statement of service signed by, or by the direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters showing length of time that you have been a member of the Selected Reserves. Again, at least 6 years of honorable service must be documented.

 

Q: How can I obtain proof of military service?

A: Standard Form 180, Request Pertaining to Military Records, is usd to apply for proof of military service regardless of whether you served on regular active duty or in the selected reserves. This request form is not processed by VA. Rather, Standard Form 180 is completed and mailed to the appropriate custodian of military service records. Instructions are provided on the reverse of the form to assist in determining the correct forwarding address.

 

Q: I have already obtained one VA loan. Can I get another one?

A: Yes, your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan and disposed of the property you can have your used eligibility restored for additional use. Also, on a one-time only basis, you my hae your eligibility restored if your prior VA loan has been paid in full but you still own the property.

 

Q: Is the surviving spouse of a deceased veteran eligible for the home loan benefit?

A: The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit. In addition, a surviving spouse who obtained a VA home loan with the veteran prior to his or her death (regardless of the cause of the death), may obtain a VA guaranteed interest rate reduction refinance loan.

 

If you have any questions about a VA home loan feel free to contact me.

 

Rick & RickandJaneheadshotJane May
Mann Mortgage
Branch Manager/Owners
Direct: 208-861-0000
mannmortgagemeridian@gmail.com
ID MBL-2550 / NMLS # 173614/12870
www.idahohomegroup.com

What Is An Idaho Reverse Mortgage ?

Posted on by Rick & Jane May

What is an Idaho Reverse Mortgage ?

 

An Idaho Reverse Mortgage, also known as a HECM (Home Equity Conversion Mortgage), is a loan made to a person age 62 or older. There are no income, credit or health requirements associated with the loan.

 

The amazing thing about the Idaho Reverse Mortgage is that you can take out a lump sum payment (tax free) to yourself or you can have a monthly payment sent to you (tax free) every month or you can have a line of credit set up for when you need it.

 

All of these things without having to make a monthly payment for the rest of the time you occupy the property as your primary residence for as long as you live.

 

So you are probably wondering how does the Idaho Reverse Mortgage Loan Work? Below I have outlined the different payment options that are available to as a borrower to receive.

1. Tenure – equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.

2. Term – equal monthly payments for a fixed period of months selected.

3. Line of Credit – unscheduled payments or in installments, at times and in an amount of your choosing until the line of credit is exhausted.

4. Modified Tenure – combination of line of credit plus scheduled monthly payments for as long as you remain in the home.

5. Modified Term – combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.

 

Idaho Reverse Mortgage HECM loans does not require any form of repayment as long as the home is your principle residence. Lenders recover their principal, plus interest, when the home is sold.  The remaining value of the home goes to you or your heirs.

 

One of the great things about an Idaho FHA Reverse Mortgage Loan is that you can never owe more than your home’s value.  If you sale your home and the proceeds are not enough to pay the amount that is owed, then FHA will pay the lender the amount that is owed. FHA collects an insurance premium at closing from all borrowers to provide this coverage.

 

The amount you can borrow depends on your age, the current interest rate, other loan fees, and the appraised value of your home or FHA’s HECM mortgage limit for your area, whichever is less. Generally, the more valuable your home is, the older you are, and the lower the interest rate, the more you can borrow.

 

There are no assett or income limitations in order for you to be eligible for a HECM.

 

If you or anyone you know has any questions about the Idaho FHA Reverse Mortgage feel free to contact me.

 

Q: What are the Borrower Requirements for an Idaho (HECM) Loan ?

– Be 62 years of age or older
– Own the property outright or have a small mortgage balance
– Occupy the property as your principal residence
– Not be delinquent on any federal debt
– You must participate in a consumer information session given by an approved HECM counselor

 

Q: How do I know how much of a mortgage I qualify for?

Mortgage amounts are based on:

– Age of the youngest borrower
– Current Interest rate
– Lesser of appraised value or the Idaho HECM FHA mortgage Limit

 

Q: Do I have to have a job or income to qualify? What are the financial requirements?

– No income or credit qualifications are required of the borrower
– No repayment as long as the property is your principal residence
– Closing costs may be financed in the mortgage

 

Q: What kind of properties are allowed?

– Single family home or 1-4 unit home with one unit occupied by the borrower
– HUD-approved condominium
– Manufactured home that meets FHA requirements

 

Q: When do I have to Repay the loan?

A: An Idaho HECM Reverse Mortgage must be repaid in full when you die or sell the home. The loan also becomes due and payable if:

– You do not pay property taxes or hazard insurance
– You permanently move to a new principal residence
– You, or the last borrower, fail to live in the home for 12 months in a row. An example of this situation would be if you (or the last borrower) were to have a 12-month or longer stay in a nursing home.
– You allow the property to deteriorate and do not make necessary repairs.

 

If you or anyone you know could benefit from an Reverse Mortgage loan please feel free to contact me with questions.

 

Rick & RickandJaneheadshotJane May
Mann Mortgage
Branch Manager/Owners
Direct: 208-861-0000
mannmortgagemeridian@gmail.com
ID MBL-2550 / NMLS # 173614/12870
HTTP://FINDYOUAHOMELOAN.COM

 

 

Top 10 Boise Idaho Mortgage Links/Articles/Questions

1. Boise, Idaho FHA Reverse Mortgage Home Loans
2. No Money For a Down Payment? No Problem Try an Idaho USDA Rural Development Home Loan
3. How does the Idaho FHA Reverse Mortgage Loan Work?
4. 3 Great Idaho First-Time Home Buyer Mortgage Loans
5. Common Idaho FHA HECM Reverse Mortgage Frequently Asked Questions
6. Jumbo Mortgage Financing for Boise, Idaho Properties
7. Conventional Home Loans For Boise Idaho Borrowers
8. VA Mortgage Loans in Boise Idaho
 9. Boise Idaho Reverse Mortgage Senior Loans
10. FHA Mortgage Loans in Boise Idaho

Refinancing My Idaho VA Loan With the IRRRL Program

Posted on by Rick & Jane May

The main reason why Idaho VA IRRL Refinance loan is so popular is that it doesn’t require an appraisal. But in states where home values have declined so severely many folks who have VA loans don’t have enough value in their home to at least match their mortgage amount that they are trying to refinance. In these states most VA loan lenders are requiring appraisals as an extra measure of caution outside of the standard VA loan requirements set by the VA. It is unfortunate – but it is what it is.

 

Now, if you live in other states where this loan program may be a viable option to refinance your Idaho VA home loan to take advantage of streamline low VA rates then you may want to pick up the phone and call our Idaho mortgage company to see what is possible for you.

 

You may be wondering if there are other requirements of the Idaho VA IRRRL – or Idaho streamline VA refinance. To satisfy your curiosity below you’ll find some of the other requirements.

 

VA Streamline Requirements

  • Must be current on your mortgage payment
  • Cannot have been 30 days late on your mortgage payment in the past 12 months
  • You must be able to lower your mortgage payment with this refinance, unless you are refinancing from an adjustable rate mortgage.
  • You cannot use this mortgage for cashout purposes unless you are getting money for energy improvements.
  • In many states you may have to get an appraisal.
  • In many states you may have to prove income.
  • In many states you may have to have a minimum credit score.

 

If you meet some of these requirements and you are wondering about refinancing your Boise Idaho VA loan now is the time to call us to see if it works for you to use the IdahoVA IRRL Refinance – No Appraisal .

 

 

Rick & RickandJaneheadshotJane May
Mann Mortgage
Branch Manager/Owners
Direct: 208-861-0000
mannmortgagemeridian@gmail.com
ID MBL-2550 / NMLS # 173614/12870
HTTP://FINDYOUAHOMELOAN.COM

Idaho VA Loan Pre-Approval Letter

Posted on by Rick & Jane May

An Idaho VA loan pre-approval letter is a document granted by an Idaho VA mortgage lender that states that based on preliminary information such as the potential borrower’s credit, assets, and income, that they qualify for a Veterans Administration loan of a specified amount.

 

It is different from a pre-qualification in that some or all of the submitted information is reviewed for accuracy before the letter is issued.

 

Having a pre-approval letter from your Idaho VA lender will show home sellers that you are a qualified buyer and may lead to your offer being more seriously considered.

 

Once you have obtained your Veterans Administration loan pre-approval letter, you will then be able to begin making offers on homes you are interested in purchasing.

 

In order to get your VA loan pre-approval letter, your lender may require the following:

  • At least one months pay stubs or LES (if still active duty).
  • W-2′s and Tax Returns for the past two years.
  • Two months bank statements for any/all assets.
  • Your DD 214 form (if no longer on active duty).
  • Statement of Service from S1 (if still active duty)

 

Your pay stub is needed to show that you are currently employed, as well as your current income. W-2 statements (for the past two years) then show how much you normally earn in a year.

 

If you are currently still on active duty, your Statement of Service must show a minimum of 12 months remaining on your contract.

 

Finally, your DD 214 form will enable your Idaho VA mortgage lender to decrease the amount of time necessary for processing your certificate of eligibility. Once again, this is not required, but it is generally a smart idea.

 

The reason why this is a smart idea is that the majority of direct lenders with the Veterans Administration can put in an order for your certificate of eligibility, which determines whether or not you are eligible for a VA loan.

 

The process can be very quick as long as you turn in all these documents as soon as possible to your loan officer.

 

After your Idaho VA loan officer or lender has the described documents, he or she can submit your information in the VA loan analysis software to determine your eligibility. The calculation that will determine your eligibility is:

 

(Monthly Income) – (Proposed Mortgage Payment + Insurance + Taxes + Utilities for the house + Monthly Credit Card Payments Due) = Residual Income

 

Residual income is the amount of money that you have after you have paid the sum of your monthly bills. The VA will use their judgment after they have calculated your residual income to decide if you will have a satisfactory amount of money left over after you have paid your bills.

 

The VA has established various requirements for what your minimum residual income will have to be, such as what part of the country you live in, the size of your family, how old your children are, and various other factors.

 

When obtaining VA pre-approval letter, be aware that simply getting the letter does not commit the lender to giving you a loan. It just means the initial information has been reviewed. In order for the mortgage application to be approved additional information and documentation about both the borrower(s) and the property must be reviewed to be sure that all of the guidelines are met.

 

If you have any questions about a VA home loan feel free to contact me.

 

Rick & RickandJaneheadshotJane May
Mann Mortgage
Branch Manager/Owners
Direct: 208-861-0000
mannmortgagemeridian@gmail.com
ID MBL-2550 / NMLS # 173614/12870
HTTP://FINDYOUAHOMELOAN.COM

FHA Mortgage Insurance Changes For Idaho Home Buyers

Posted on by Rick & Jane May

– MONTHLY INSURANCE PREMIUM INCREASES FOR FHA HOME LOANS

Previously the monthly mortgage insurance premium was a factor of .55% of the loan amount (if the loan to value was over 95%). As of October 4, the factor has increased to .9% You are probably wondering how this affects the payment. On a $400,000 mortgage, using the old factor of .55% the monthly mortgage insurance would have been $183. Now Using the .9% monthly mortgage insurance factor we are looking at a monthly mortgage insurance payment of $300. This is an increase of $117 a month compared to the previous mortgage insurance for a $400,000 FHA mortgage. The great thing is even though the monthly mortgage insurance is higher the upfront insurance premium has decreased.

– FHA UPFRONT MORTGAGE INSURANCE PREMIUM DECREASED

The Upfront Mortgage Insurance Premium used to be 2.25%. But on October 4, 2010, they dropped it to only 1%. Using the same base loan amount as our previous example of $400,000 and using the old (UFMIP) of 2.25% $9,000 would have been added to the Idaho home buyers loan making the total loan amount $409,000. With the new upfront mortgage insurance premium of 1% we would have a total loan amount of $404,000.

– IDAHO FIRST TIME HOME BUYERS FHA IS STILL YOUR BEST OPTION

FHA mortgages are still the best option for first time home buyers looking to purchase in Idaho. While conventional fannie and freddie guidelines continue to be very tight FHA is still fairly flexible. FHA allows for lower fico (credit scores) as well as as little as 3.5% down payment. FHA also has more of a “makes sense” underwriting philosophy. Many Idaho home buyers are finding FHA to be the best choice even if they have quite a bit of money to put down.

If you have questions about an Idaho FHA mortgage whether you are purchasing or refinancing a home feel free to contact me.

Want to find out more about FHA mortgage insurance changes, then visit Michelle Guth’s site to learn more about Idaho FHA Mortgage Insurance Changes.

Rick & RickandJaneheadshotJane May
Mann Mortgage
Branch Manager/Owners
Direct: 208-861-0000
mannmortgagemeridian@gmail.com
ID MBL-2550 / NMLS # 173614/12870
www.idahohomegroup.com

Seek An Idaho Refinance NOW !!!! Before Rates Go Back Up !!!

Posted on by Rick & Jane May

mortgage rateRefinance your Idaho Mortgage now before interest rates go back up!!!!!!  An Idaho Refinance is what many people need to look into right now with where interest rates are at. Interest rates won’t stay this amazingly low for long so act now !!!! Below I have outlined four main reasons why you should do an Idaho refinance.

 

An Idaho mortgage is generally the largest debt most homeowners have to manage.  It’s a good idea to give your personal real estate finance portfolio a check-up at least once a year.

 

Since there are many reasons a homeowner may choose an Idaho refinance , we’ll take a look at the four most common.

 

1.  Mortgage Rates Drop:

Typically, the most common reason that homeowners do an Idaho refi is to secure a lower interest rate. Rate and loan amount determines the total cost that a borrower will pay.

The lower the interest rate, the less the overall cost will be. Interest is calculated on a daily basis and usually paid back to the lender on a monthly basis.

 

2.  Lower Payments:

Lowering a mortgage payment can be achieved by doing an Idaho refinance and lowering the mortgage rate, lengthening the loan term, combining two or more loans or removing mortgage insurance.

 

3.  New Mortgage Program:

An Adjustable Rate Mortgage (ARM) to a new Fixed Rate Mortgage (FRM), combining a first and second mortgage or paying off a balloon loan are three possible reasons to explore an Idaho refi.

 

4.  Debt Consolidation:

If there is sufficient equity, sometimes paying off consumer debt by combining all debts into one lower monthly mortgage payment can significantly reduce the short-term deficits in a budget.  However, it’s important to keep in mind the total cost of that debt by adding it into a 30 year mortgage payment.

_________________

Frequently Asked Questions:

 

Q:  Do I have to do an Idaho Refinance with my current mortgage company?

No, you may choose any company to do an idaho refi on your home loan since the new loan will replace the existing mortgage.

 

Q:  Is it easier to do a loan with my current mortgage company?

It is possible your current loan company may require less documentation, but this could add additional cost or a higher interest rate. Do your homework and shop around to make sure you’re getting the best deal.

 

Q:  Will I automatically qualify if I’ve never made any late payments?

No, you will have to qualify for your new home loan. However, certain programs will allow for reduced documentation like a FHA to FHA Streamline loan

 

If you have questions about whether or not it would be a good idea or not to do a refi feel free to contact me to go over your options.

 

 

Rick & RickandJaneheadshotJane May
Mann Mortgage
Branch Manager/Owners
Direct: 208-861-0000
mannmortgagemeridian@gmail.com
ID MBL-2550 / NMLS # 173614/12870
www.idahohomegroup.com

 

 

________________________________

Related Article – Refinance Process:

 

10 Advantages Of Getting a FHA Mortgage in Boise Idaho

Posted on by Rick & Jane May

10 Advantages Of Getting a FHA Mortgage in Boise Idaho

1. Only 3.5% down payment which may include closing cost
2. Down payment and closing costs may be gifted from relative or employer
3. Higher qualifying ratios
4. Higher loan to value ratio
5. Cash out refinance up to 85% LTV
6. Can have a non-occupant co-borrower ( immediate family or established relationship)
7. Upfront MIP(mortgage insurance premium) can be financed
8. No pre-payment penalties
9. If interest rates drop you can do an FHA Streamline Refinance without an Appraisal.
10. Seller may pay up to 3% of Borrowers closing costs if stated in Sales Contract

If you have any questions about FHA Mortgages feel free to contact me.

 

Rick & RickandJaneheadshotJane May
Mann Mortgage
Branch Manager/Owners
Direct: 208-861-0000
mannmortgagemeridian@gmail.com
ID MBL-2550 / NMLS # 173614/12870
www.idahohomegroup.com

 

 

 

Top 10 Boise Idaho Mortgage Links/Articles/Questions

1. FHA Streamline Refinance in Boise, Idaho
2. Idaho FHA Reverse Mortgage
 3. Changes Are Coming For Boise, Idaho FHA Mortgages
 4. 3 Great Idaho First-Time Home Buyer Mortgage Loans
5. Idaho FHA and VA Manufactured Loan Programs for Refinancing and Purchasing Homes
6. Jumbo Mortgage Financing for Boise, Idaho Properties
7. Conventional Home Loans For Boise Idaho Borrowers
8. VA Mortgage Loans in Boise Idaho
 9. Boise Idaho Reverse Mortgage Senior Loans
10. FHA Mortgage Loans in Boise Idaho

Benefits and Drawbacks of a Boise Idaho Short Sale

Posted on by Rick & Jane May

There are many benefits to an Boise Idaho Short Sale versus a Boise Idaho Foreclosure, but there also many drawbacks to a short sale that need to be considered before deciding on the best course of action. A short sale is a great option for home owners who need to sell their home and owe more than their property is worth, but a short sale is not for everybody.

Benefits of a Short Sale

  • A short sale will not drop the FICO score as much as a foreclosure. It is estimated a foreclosure will decrease a FICO score by as much as 250 points. The estimated decreased for a short sale is 150 points.
  • The seller will be able to more quickly turn around and purchase another home after a short sale. Fannie Mae announced that effective July 1, 2010, short sellers can purchase a home with a Fannie Mae loan at 80% loan to value only two years after the short sale, and at 90% only four years after the short sale. With extenuating circumstances, Fannie Mae will allow a purchase at 90% loan to value only 2 years after the short sale. FHA requires a three year wait after a short sale, but will lender to 96.5% loan to value
  • A short sale preserves some dignity for the seller. The seller will not have a “Notice of Trustee Sale” posted on their home while they still live in the neighborhood.
  • Working out a short sale may allow the seller to avoid bankruptcy. It is important to work with someone with experience with short sales who knows how to negotiate with the lender (or lenders if there is subordinate debt as well) for Full Satisfaction of all debts.

Drawbacks of a Short Sale

  • Short sales are not exactly “quick”, although this can vary depending on the lender or lenders being paid off. Waiting for the banks to respond can be a very frustrating process.
  • There is no guaranty the bank will accept an offer. Last second maneuvers by the bank are not out of the norm. More frustration.
  • The bank will want to see income and asset documentation from the seller to verify there is a true reason for the short sale. If the seller has significant assets, the bank may go after those assets or prevent the short sale from going through.

Figuring our whether a short sale is the best solution will take research. When a home owner finds themselves in a difficult situation, whether it be because of a job less, decrease in pay, or illness, combined with a drop in property value and even worse, an increase in mortgage payments, it is important to gather as much knowledge as possible. Talk to local real estate experts who offer guidance in how to deal with the many options. The home owner should consult with their trusted attorney, accountant, real estate agent, and loan officer. Consider all options carefully, but most importantly, don’t “do nothing”.

 

For more information regarding short sales and foreclosures feel free to contact me.

 

Rick & RickandJaneheadshotJane May
Mann Mortgage
Branch Manager/Owners
Direct: 208-861-0000
mannmortgagemeridian@gmail.com
ID MBL-2550 / NMLS # 173614/12870
www.idahohomegroup.com

 

 

 

Top 10 Boise Idaho Refinancing Mortgage Links/Articles/Questions

1. Making Home Affordable Program
2. FHA Streamline Refinance in Boise, Idaho
3. Idaho FHA Reverse Mortgage
4. Boise Idaho Home Mortgage Refinance Loan For Home Owners Facing Declining House Prices
5. Applying For A Boise Idaho Mortgage – Required Documents
6. Jumbo Mortgage Financing for Boise, Idaho Properties
7. Conventional Home Loans For Boise Idaho Borrowers
8. VA Mortgage Loans in Boise Idaho
9. Boise Idaho Reverse Mortgage Senior Loans
10. FHA Mortgage Loans in Boise Idaho

article is a syndicated column from Tim Storm

Seven Things Your Boise Idaho Real Estate Agent Should Know About Your Mortgage Approval

Posted on by Rick & Jane May

While many experienced Boise Idaho real estate agents have a general understanding of the mortgage approval process, there are a few important details that frequently get overlooked which may cause a purchase to be delayed or denied.

 

New regulation, updated disclosures, appraisal guidelines, mortgage rate pricing premiums, credit score, secondary approval layering, rescission deadlines, property type, HOA insurance requirements, title and property flip rules are just a few of the daily changes that can have a serious impact on a borrower’s home loan financing.

 

With today’s volatile lending environment, it’s obviously important for home buyers to get a full loan approval which clearly defines all contingencies that pertain to each unique home buyer’s scenario prior to spending any time looking at new homes with an agent.

 

Either way, we’ve listed a few of the top things your Idaho real estate agent should keep in mind while showing you new properties:

Caution – Agents Beware of the items below:

 

Property Type –

High-Rise, Condo, Town House, Single Family Residence, Dome Home or Shoe House… all have specific lending guidelines that can influence down payment, credit score and mortgage insurance requirements.

 

Residence Type –

Need to sell one home before moving into another? Is a property considered a second home if it’s in the same city?  What if I’m buying a home for my children to live in, it is still considered an investment property?

These are just a few of several possible residence related questions that should be addressed by your real estate agent and Boise Idaho mortgage consultant at the initial loan application.

 

Rates / Locks –

Mortgage Rates are typically locked for a 30 day period. Rates also have certain adjustments for property type, credit score and down payment which could have a big impact on monthly payments and therefore approvals.

A 1% increase in rate could literally mean the difference between an approval or denial.

 

Headline News / Employment –

Underwriters watch the news as well.  Borrowers who work in a volatile industry during hard economic times may have to jump through a few extra hoops to prove that their employment and income is secure.

Job changes, periods of unemployment or property location in relation to the subject property are other things to consider that may cause a speed bump in the approval process.

 

Title / Property Flip –

A Flip is considered a property that has been purchased by an investor and quickly sold to a new buyer within a 30-90 day period.  Generally, an investor will do a little rehab work, fresh paint, landscaping…. and try to re-sell the property for a significant profit margin.

While it seems like a perfectly fair transaction, many lenders have strict guidelines in place that prevent borrowers from obtaining financing on properties that have a previous owner with less than 90 days of documented ownership.

These rules change frequently, and are specific to particular property types, so make sure your agent is aware of all the boundaries associated with your approval letter.

 

Homeowner’s Association Insurance –

Some lenders require Condos and Town House communities to have sufficient insurance and reserves coverage pertaining to specific ratios on units that are owner occupied vs rented.

It may also take a few weeks and cost up to $300 to receive an HOA Certification, so make sure your Due-Diligence period is set accordingly in the purchase contract.

 

Appraisal Ordering Procedures –

Appraisal ordering guidelines are changing quite frequently as regulators implement many new consumer protection laws created to prevent future foreclosure epidemics.

Unfortunately, some of the new appraisal regulations have proven to slow the home buying process down, as well as confuse lenders about the true estimate of neighborhood values.

VA, FHA and Conventional loan programs all have separate appraisal ordering policies, so make sure your agent is aware of which loan you’re approved for so that they document any anticipated delays in the purchase contract.

For example, if an appraisal takes three weeks and the average time for an approval is two weeks, then it probably isn’t smart to write a purchase contract with a four week close of escrow.

 

If you or anyone you know have any questions about the information above feel free to call or email me.

 

 

Rick & RickandJaneheadshotJane May
Mann Mortgage
Branch Manager/Owners
Direct: 208-861-0000
mannmortgagemeridian@gmail.com
ID MBL-2550 / NMLS # 173614/12870
www.idahohomegroup.com

 

 

_________________________________

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3. Idaho USDA Rural Development (RD) Zero Down 100% Financing First Time Home Buyer Loan
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Boise Idaho Home Buyers : Ten Credit Do’s and Don’ts To Bear In Mind Prior To Getting Your Mortgage Loan

Posted on by Rick & Jane May

How can a fully approved Idaho home loan mortgage get denied for funding after the borrower has signed loan docs?

Simple, the underwriter pulls an updated credit report to verify that there hasn’t been any new activity since original approval was issued, and the new findings kill the loan.

 

This generally won’t happen in a 30 day time-frame, but borrowers should anticipate a new credit report being pulled if the time from an original credit report to funding is more than 60 days.

 

Purchase transactions involving short sales or foreclosures tend to drag on for several months, so this approval / denial scenario is common.

 

It’s An Ugly Cycle:

  1. Idaho First-Time Home Buyer receives an approval
  2. Thinks everything is OK
  3. Makes a credit impacting decision (new car, furniture, run up credit card balance)
  4. Funder pulls new credit report and denies the loan

 

In the hopes of stemming the senseless slaughter of perfectly acceptable approvals, we’ve developed a “Ten credit do’s and don’ts” list to help ensure a smoother loan process.

 

These tips don’t encompass everything a borrower can do prior to and after the Pre-Approval process, however they’re a good representation of the things most likely to help and hurt an approval.

Ten Credit Do’s and Don’ts:

DO continue making your mortgage or rent payments

Remember, you’re trying to buy or refinance your home – one of the first things a lender looks for is responsible payment patterns on your current housing situation.

Even if you plan on closing in the middle of the month, or if you’ve already given notice, continue paying that rent until you’ve signed your final loan documents.

It’s always better to be safe than sorry.

DO stay current on all accounts

Much like the first item, the same goes for your other types of accounts (student loans, credit cards, etc).

Nothing can derail a loan approval faster than a late payment coming in the middle of the loan process.

DON’T make a major purchase (car, boat, big-screen TV, etc…)

This one gets borrowers in trouble more than any other item.

A simple tip: wait until the loan is closed before buying that new car, boat, or TV.

DON’T buy any furniture

This is similar to the previous, but deserves it’s own category as it gets many borrowers in trouble (especially First-Time Home Buyers).

Remember, you’ll have plenty of time to decorate your new home (or spend on your line of credit) AFTER the loan closes.

DON’T open a new credit card

Opening a new credit card dings your credit by adding an additional inquiry to your score, and it may change the mix of credit types within your report (i.e. credit cards, student loans, etc).

Both of these can have a negative impact on your score, and could result in a denial if things are already tight.

DON’T close any credit card accounts

The reverse of the previous item is also true. Closing accounts can have a negative impact on your score (for one – it decreases your capacity which accounts for 30% of your score).

DON’T open a new cell phone account

Cell phone companies pull your credit when you open a new account. If you’re on the border credit-wise, that inquiry could drop your score enough to impact your rate or cause a denial.

DON’T consolidate your debt onto 1 or 2 cards

We’ve already established that additional credit inquiries will hurt your score, but consolidating your credit will also diminish your capacity (the amount of credit you have available), resulting in another hit to your credit.

DON’T pay off collections

Sometimes a lender will require you to pay of a collection prior to closing your loan; other times they will not.

The best rule of thumb is to only pay off collections if absolutely necessary to ensure a loan approval. Otherwise, needlessly paying off collections could have a negative impact on your score.

Consult your loan professional prior to paying off any accounts.

DON’T take out a new loan

This goes for car loans, student loans, additional credit cards, lines of credit, and any other type of loan.

Taking out a new loan can have a negative impact on your credit, but also looks bad to underwriters and investors alike.

…..

Follow these Do’s and Don’ts for a smoother mortgage approval and funding process.

Just remember the simple tip: wait until AFTER the loan closes for any major purchases, loans, consolidations, and new accounts.

 

If you have any questions about the information above feel free to call or email me.

 

Rick & RickandJaneheadshotJane May
Mann Mortgage
Branch Manager/Owners
Direct: 208-861-0000
mannmortgagemeridian@gmail.com
ID MBL-2550 / NMLS # 173614/12870
www.idahohomegroup.com

 

 

_________________________________

Related Credit / Identity Articles:

Top 10 Boise Idaho First Time Home Buyer Mortgage Links/Articles/Questions

1. 3 Great Idaho First-Time Home Buyer Loans
2. Idaho Housing and Finance Association Zero Down 100% Financing for First-Time Home Buyers
3. Idaho USDA Rural Development (RD) Zero Down 100% Financing First Time Home Buyer Loan
4. Idaho VA 100% Home Financing Loans
5. Idaho First-Time Home Buyer Frequently Asked Questions
6. Jumbo Mortgage Financing for Boise, Idaho Properties
7. Conventional Home Loans For Boise Idaho Borrowers
8. VA Mortgage Loans in Boise Idaho
 9. Boise Idaho Reverse Mortgage Senior Loans
10. FHA Mortgage Loans in Boise Idaho