Mortgage News & Tools: 2015

Monday, September 14, 2015

NEWS

Wednesday, May 27, 2015

Starting your mortgage process - Para comenzar la compra de su casa

Buying a home can be a complex process, but it doesn't have to be. With a little preparation, you can save a lot of time and hassle by having all of your documents ready when your mortgage professional needs them.

To start with, the lender will need personal information to verify employment for you and your
co-borrower (if there is one). They will also need information regarding all of your debts and assets.

In order to expedite the paperwork process, start gathering the following items:
• Most recent paystubs for one month
• W2s from the last two years
• Signed copies of your last two years' tax returns, including all schedules that were filed
• Driver License , Social Security Card
• Purchase Contract --- when available.
• Most recent bank statements for two months
• Most recent statements from any retirement and investment accounts for two months.

IN ADDITION, PLEASE FILL OUT APPLICATION HERE or if you prefer, you can print this one page, fill out and email it back to me (lorena.colin@supremelending.com) or fax it back to 866.497.5308.

Click here for do’s and don’ts on your mortgage process

Lorena Colin
Loan Officer, NMLS #389462
Direct: 561.272.8980 Ext. 34 Cell: 561.777.5355 Fax: 866.497.5308
Lorena.Colin@SupremeLending.com
www.LorenaColin@SupremeLending.com
110 SE 4th Avenue, Suite 102
Delray Beach, FL 33483

FHA Approved Lender - #1722400006. VA Approved Lender - #8815610000. Fannie Mae Approved Seller/Servicer - # 27222-000-0. Everett Financial Inc. dba Supreme Lending strives for compliance with all applicable state and federal regulations pertaining to mortgage lending, advertising, and marketing including but not limited to all federal regulations set forth in title 12 of the Code of Federal Regulations, and the guidelines promulgated and/or enforced by the U.S. Department of Housing and Urban Development,
The Consumer Financial Protection Bureau, and the Federal Trade Commission. Supreme Lending is not affiliated with any government agency. All applications are subject to underwriting guidelines and approval. This does not constitute an offer to lend. Not all applicants will qualify for all loan products offered. All loan programs, terms and interest rates are subject to change without notice. All fees are subject to state and federal high cost thresholds. © 2013 Everett Financial, Inc. dba Supreme Lending (NMLS ID #2129) at 14801 Quorum Dr., #300, Dallas, TX 75254. All rights reserved. For all licenses, visit http://www.nmlsconsumeraccess.org/. Florida Mortgage Lender License MLD131.

PARA COMENZAR LA COMPRA DE LA CASA.-

Comprar un hogar puede ser un proceso complejo, pero se puede simplificar. Con un poco de preparación, usted puede ahorrarse mucho tiempo y problemas teniendo todos sus documentos listos cuando su oficial en préstamos hipotecarios los necesite.
Para comenzar, el banco necesitará su información personal para verificar su empleo y la de su co-aplicante (si hay alguno). Además también será necesaria toda la información referente a sus deudas y activos.
Para poder expeditar el proceso, por favor reúna los siguientes documentos:

• Talones de cheques del trabajo más recientes para cubrir un mes
• Ultimas dos devoluciones de impuestos firmadas con todos sus apartados y hojas
• W2s de los últimos dos años o 1099
• Licencia de conducir, Tarjeta del Seguro Social y Residencia si aplica
• Últimos dos estados de cuenta del banco
• Los últimos dos estados de cuenta de cualquier cuenta de inversión y cuenta de retiro.
• Contrato de compra --- si ya lo tiene.
Ademas por favor sea tan amable de llenar UNA APLICACION EN LINEA AQUI o imprimir esta hoja, llenar y hacerme llegar via email (lorena.colin@supremelending.com) o por fax al 866.497.5308.

Para ver un video con lo que se debe y no se debe hacer durante el proceso, de clic aquí

Lorena Colin
Loan Officer, NMLS #389462
Direct: 561.272.8980 Ext. 34 Cell: 561.777.5355 Fax: 866.497.5308
Lorena.Colin@SupremeLending.com
www.LorenaColin@SupremeLending.com
110 SE 4th Avenue, Suite 102
Delray Beach, FL 33483

FHA Approved Lender - #1722400006. VA Approved Lender - #8815610000. Fannie Mae Approved Seller/Servicer - # 27222-000-0. Everett Financial Inc. dba Supreme Lending strives for compliance with all applicable state and federal regulations pertaining to mortgage lending, advertising, and marketing including but not limited to all federal regulations set forth in title 12 of the Code of Federal Regulations, and the guidelines promulgated and/or enforced by the U.S. Department of Housing and Urban Development,
The Consumer Financial Protection Bureau, and the Federal Trade Commission. Supreme Lending is not affiliated with any government agency. All applications are subject to underwriting guidelines and approval. This does not constitute an offer to lend. Not all applicants will qualify for all loan products offered. All loan programs, terms and interest rates are subject to change without notice. All fees are subject to state and federal high cost thresholds. © 2013 Everett Financial, Inc. dba Supreme Lending (NMLS ID #2129) at 14801 Quorum Dr., #300, Dallas, TX 75254. All rights reserved. For all licenses, visit http://www.nmlsconsumeraccess.org/. Florida Mortgage Lender License MLD131.

Removing credit disputes

Clients can remove disputes for us at no cost. These are the direct numbers to assist the customers in getting this done.

Experian 888-210-9101 and 866-673-0140, is answered by a live human being, tell them you need the National Consumer Assistance Center to end the dispute(s), hours are 8AM-5PM Pacific time and up to 72 hours to remove disputes. (e-mail confirmation will be sent when done).

Equifax 404-885-8300 is answered by a live human being, tell them you need to speak with someone in the Executive Consumer Service Department. Up to 72 hours to remove disputes.

Trans Union 312-985-2000 is has a machine greeting but just stay on the line and you are transferred to a live person, tell them you need to speak with someone in the Special Handling Department for instant removal.

Once the disputes are removed we can pull a new credit report.

Understanding Social Media

Factors considered to prequalify to purchase a home

The 4 C’s: credit, capacity, capital and collateral.

Credit: Te credit is measured by a number called credit score.

Credit scores are created by taking information and analyzing that data to forecast how someone is likely to behave in the future. By looking at factors like how much debt consumers carry, and whether they have paid their bills on time in the past, for example, they help predict whether someone might pay a new bill on time or how they will handle a credit line increase. Credit scores range from 300 to 850 and are reported by three major credit bureaus (Equifax, Experian and TransUnion). creditscore

IF YOU HAVE NO CREDIT: There’s a phrase that says “no credit is better than bad credit” and it is true. Why? Because you can obtain a mortgage with no credit score, as long as we can show 3 alternative lines of credit in good standing for the past 12 months such as a cell phone, electricity, cable, car insurance, etc. If you want to start establishing your credit, you may want to obtain a pre-paid credit card and wait a few months, paying on time and then getting a regular (unsecured) card. You can also ask someone who has good credit to add you as an authorized user in their account which will show up on your credit report.

IF YOU HAVE BAD CREDIT: If you already have bad credit, no problem, you have two choices: Fixing it (opening investigation or disputing inaccurate information where creditors are unable to prove within 35 days should be removed from your credit report) or you can obtain an FHA loan with a fico score under 580, however the required down payment will be 10% and you will have to explain and show compensating factors. Make sure you get informed on how to fix your credit before undertaking the task yourself. There are experts that you could hire to help you as well.

IF YOU HAVE GOOD CREDIT: Congrats! You will have access to the best loan programs and the best interest rates.

Capacity: Lenders look at your income, employment history, and other financial obligations in order to know if you will be able to pay back your loan. They will use your total gross monthly income and multiply by a percentage called debt ratio (on conventional loans usually 45% and for FHA loans up to 55%) and that will be the maximum total payment that you can make, and that should include: your new home payment, your monthly installment account payments and the minimum payment on your revolving accounts. Usually lenders seek for 2 years of employment in the same line of business. If your income is not enough to qualify for the purchase of a home, you may be able to get a co-signer.

Capital: Lenders consider the money and savings you have readily available plus investments, properties, and other assets that could be sold fairly quickly for cash. Having these reserves prove that you can manage your money and have funds, in addition to your income, to pay the debt. It will also be considered to source the down payment on your new home, which can also come from a gift from a relative. If you don’t have the money for the down payment or a gift from a relative, but you are a first time home buyer, with 640 Fico score (and income not higher than 75,000 in Palm Beach County), you may qualify for a bond loan which is a second mortgage with no monthly payment to assist with $10,000 for down payment and closing costs.

Collateral: Lenders take into account the value and condition of the property. With traditional loans, the property must meet some safety and habitability requirements. When finding a home that does not comply with these requirements (in need of appliances, roof, fixtures, etc.) we can provide a “renovation loan” which would allow buying a property in those conditions as long as the repairs would be done in connection with the loan. The money to purchase the house and the cost of the repairs are then combined in one loan.

The last thing that you will need throughout the process of buying a home, is patience. The lenders will ask for a good amount of paperwork, but if you get the right guidance and you are willing and able to cooperate, it will be a smooth transaction. I hope you give me the chance to be that person to help you.

Building a credit score in 5 steps

Step 1: Understand what factors influence your credit score

These first two steps are simple. By simply reading this article, you can check them off the list. Let’s start with how your credit—or FICO—score is calculated. Your credit score is affected by 5 factors:

Payment History: Your payment history accounts for 35% of your credit score. The goal is to establish a record of full, on-time payments. Recent history is given more weight.
Amounts Owed: Your debts account for 30% of your credit score. Credit bureaus look at both your total debt and your debt-to-credit-limit ratio. Not all debts are bad, but loads of credit card debt is definitely frowned upon.
Length of Credit History: How much history you’ve already established accounts for 15% of your credit score. This can make it difficult for folks just starting out.
New Credit: Recent credit acquisitions account for 10% of your credit score. New accounts are handled with suspicion.
Types of credit used: The types of credit utilized account for 10% of your credit score. It’s helpful to diversify.

Step 2: Learn the guidelines for building credit

Lenders use your credit score to determine your financial trustworthiness. They’re more inclined to give money to people who will successfully pay it back. To prove your trustworthiness, you must demonstrate through example. Here’s a list of simple guidelines to follow as you work your way up the ranks.

Make payments on time. ALWAYS. This is the #1 rule of building credit. This applies to credit cards, loans, mortgages, everything.
Keep credit card debt low. Use your card regularly, but don’t spend money you don’t have.
Stay well under your credit limit. You’ll be scored favorably if you keep below 30% of your total credit limit. To raise your limit, consider a no fee credit card.
Don’t take out cash advances.
Keep accounts open for as long as possible, especially if doing so is cost-free. This raises your average account age and your total credit limit.
Don’t open too many new accounts all at once. This lowers your average account age.
Check your credit report regularly and make sure everything is kosher. This won’t count against you.
If possible, diversify the types of credit you utilize. Paying through installment loans will raise your score.
Stay away from prepaid debit cards. They don’t improve your credit. Ever.

Step 3: Check your credit score and history

You’re entitled to one free credit report a year from AnnualCreditReport.com. However, this won’t give you your credit scores; for that, you can sign up for a credit monitoring service and cancel during the trial period. Here are some top providers and their trial periods:

Name	Monthly Fee	Grace Period
TransUnion	$19.95	7 days
GoFreeCredit.com	$16.95	30 Days
PrivacyGuard*	$14.99	30 Days

* PrivacyGuard gives estimates of your credit score from all three bureaus.

Plus, the Discover it and some Barclays cards offer free FICO scores to cardholders. If you have the Discover it, you receive your score along with your monthly statement. If you have the Barclaycard Rewards MasterCard, Arrival, Ring, Frontier, Juniper or Carnival, you can check your score online.

Step 4: Get a credit card for no or low credit(credit score = 300-629)

Now that you have an understanding of how your credit score is calculated and how to manage your spending, you’re ready to take action. Finding a credit card for which you qualify can be tricky.

If you’re starting at square one, you should know the difference between secured and unsecured credit cards. A secured credit card is for very limited credit and comes at no risk to the issuer. When you’re approved, you’re required to make a deposit. The deposit is generally a couple hundred bucks and determines your credit limit. When you eventually close your account, the deposit is returned to you. Essentially, secured credit means you borrow money from yourself rather than a lender.

One of the best secured cards out there is the Capital One® Secured MasterCard®. It has a low $29 annual fee, and a $200 initial credit limit. However, based on your creditworthiness, you may need only put $49 or $99 down to get the full $200 limit. And if you don’t have $200 to spare, you can pay in installments for up to 80 days. You don’t want to use the Secured MasterCard forever, but until you qualify for better options, it’s a good place to start.

Step 5: The authorized user strategy

Consumers can help their credit scores by becoming what’s referred to as an authorized user on someone else’s credit card account.

When you’re an authorized user, the account is added to your credit reports. And, if the account is old, paid on time and has a low balance relative to the limit, it will likely help your scores. This is often referred as: “piggybacking.”

If you can convince a parent or loved one to add you to their card, then you will likely see immediate benefits when it is reported to the credit bureaus.

The best news about this strategy is that there is no blow back on the primary cardholder and the newly added authorized user is not liable for any of the card’s purchases. In fact, the authorized user never even has to get a physical credit card.

When you add someone as an authorized user, the card is mailed to you, the primary account holder. You can choose to shred the card or give it to the authorized user. And, if you give them the card and you don’t like how they’re using it, you can have them cut off.

Finally, the authorized user has no “permissions” on the account, which means they cannot call the card issuer and have a new card mailed to them. It’s really like having a credit card with training wheels.

The cons: the same way that positive credit behavior is reported to the credit bureaus, if the primary cardholder gets into financial trouble and starts missing payments or runs a balance too close to the credit limit, that activity will be reported to the credit reports of the authorized user and it can definitely lower their credit scores. If you are considering using this strategy, be wise chosing who will authorize you on their accounts.

Sources: http://www.nerdwallet.com/blog/credit-score/building-credit/ andhttps://www.mint.com/blog/credit/building-and-improving-your-credit-in-2013-the-authorized-user-strategy-0113/

What is debt to income ratio and how much can I afford?

In order to calculate how much home you can afford, the lenders will take the gross income shown on your tax returns (if you are self employed it would be the average of the last 2 years net income) divided by 12 to obtain your monthly income. Once you have your monthly income, multiply by 45% and substract the montlhy obligations shown on your credit report such as car payment and credit cards minimum payment. The result will be the maximum that you can pay for your new home with everything included: Principal, Interest, Taxes, Insurance and HOA of applicable.
Here's a table to give you an idea of the loan amunt at different interest rates. Add mortgage insurance, home owner's insurance, property taxes and HOA if applicable to get the total payment.

Bond program

This program allows buyers to receive assistance to pay for their down payment and closing costs in the form of a second mortgage upto $7,500 at 0% deferred for 30 years.

What does it mean? It means NO monthly payment for the borrower, but the loan does have to be repaid at the end of the 30 years or when the property is refinanced or sold.

Among the requirements, the borrower must:

Be a first time home buyer (or have not owned a home as a primary residence for the past 3 years)
Have a minimum fico score of 640
Have a maximum debt to income ratio of 45%
Their income must be less than the maximum allowed income per county BOND INCOME LIMITS
Need to do complete a First Time Home Buyer Education class. If you need a contact, call: Pedro Padilla at Credit Card Management Services, Inc. P O Box 220597, West Palm Beach FL 33422 phone: 800-920-2262 fax: 866-561-2622. English and Spanish classes in person or online www.ehomeamerica.org/debthelper discount code: CCMS24

To read the details of the program please visit the official website,

The bond program CAN be combined with both, government (FHA) and conventional loans.
To see the notice of reduction from 10,000 to 7,5000 click here

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