Hello Sweet Pea -
It sounds as though you might be working with an inexperienced loan officer.
The loan officer before they can even qualifiy you for a loan, must run you and your husbands credit profile, and from that they will have the payment & credit history.
Depending on the lender, they can also take alternative trade lines if your husband does not have more traditional ones.
Being that your a first time home buyer, I've take the liberty to write everything I tell my first time home buyers.
How To Buy Your First Home - (1st Time Home Buyer Secrets Revealed)
If you're about to purchase your first home, let us be the first to congratulate you! You've made a great decision.
But before you begin that home buying journey, we want to educate and inform you. That's why we have put together this NO-COST report, entitled 'First-Time Home Buyer Secrets Revealed'.
In this report, you will discover how easy it really is to become a homeowner and finally own a piece of the 'American Dream'. Sit back, relax and enjoy this NO-COST Report.
WHY HOMEOWNERSHIP IS SMARTER THAN RENTING
- Income Tax Savings - As a homeowner, you can deduct your mortgage interest from your personal taxes. This can really add up. That's thousands of dollars per year - in your pocket! If you add up the tax savings, you might be surprised to find out that, after you factor in tax savings, you can own a home that has more room than your apartment - and still end up paying less than you are paying right now for rent!
- Home Equity - Every time you write a check to your landlord, you might as well be flushing that money down the drain. It's gone forever. But when you own a home of your own, you will be building equity in something that belongs to you. The principal you pay each month is similar to depositing money into a savings account. After many years of paying into the home, you will have a tidy nest egg saved up that you can use for emergencies, your children's education, or retirement.
- Security, Comfort, and Privacy - There is a reason people call homeownership 'The American Dream'. A home is something special that you can call you own. You can be proud to invite your friends and family over and show them 'your home'.
THE MONEY - HOW TO GET THE FINANCING YOU NEED
- Banks vs. Mortgage Lenders - You first need to understand the difference between banks and individual mortgage originators like us. Banks handle savings accounts, car loans, investment accounts, etc. Mortgages are just one of many services they provide. We're different because we only deal in mortgage loans. We sleep, eat, and breathe mortgage loans and nothing else. Would you go to a general physician to have heart surgery performed? Of course not. So why go to a big bank, when what you need is a mortgage specialist?
- Timing is Everything - It has never been cheaper and easier to borrow money to buy a home than it is right now. Even if rates go up a bit, they will still be monumentally lower than they were back in the 1980s, for instance. Back then rates were as high as 20%! Nowadays, even people with bad credit regularly get rates much, much lower than this. But don't wait too long. Rates are cyclical. They will start rising again, and you will have missed your chance at homeownership.
UNCLE SAM WANTS TO HELP YOU BUY A HOME
- Uncle Sam is Your Friend - The U.S. Government wants for you to own a home and they will go the extra mile to help you afford one. Why? Well, every time one home is built, the effect on the economy is quite significant. Think of all the people involved in the construction of a new home, for instance. Welders, Electricians, Carpenters, Plumbers, Framers, Roofers and others are greatly affected by your choice to purchase a home.
- Little or NO Down Payment - Uncle Sam has programs like FHA and VA that can help you get into a home with a low down payment, or in some cases, with ZERO down.
- FHA and VA Programs - If you read our mortgage glossary, which is available for download by visiting my website, you will discover that FHA stands for 'Federal Housing Administration' and that VA stands for 'Veteran Affairs'. Get familiar with these programs, because they just might be your ticket to the American Dream.
HOW TO DETERMINE IF YOU QUALIFY FOR AN FHA OR VA LOAN
- VA Specifics - The VA Loan allows active or honorably discharged military personnel to obtain a home loan with 0% Down Payment. In addition, the seller is required to pay a large portion of your loan closing costs!
- Do You Qualify for a VA Loan? - To determine if you qualify for the VA loan, you simply need to meet the following criteria. First, you must be either active in one of the Armed Forces or an honorably discharged military veteran. Second, you must have reasonable debt-to-income ratio. This means that your current bills (car loan, student loans, bank loans and credit card bills) cannot exceed 41% of your income.
- FHA Specifics - If you don't qualify for a VA loan, then you should look into an FHA Loan. The FHA Loan Program allows little or no down payment, depending on your circumstances. The largest down payment you may be required to provide is 5% down. In addition, the FHA loan is also very liberal, in that, it allows a 41% debt-to-income ratio (including your mortgage payment), just like the VA Program.
- Do You Qualify for an FHA loan? - If you have proof of employment, a small down payment, and a decent payment history for your other bills in the last two years, you would likely qualify for an FHA Mortgage.
- What if you are Self-Employed? - If you are self-employed, that's OK too. We will simply need proof of income from your most recent tax returns. If you can provide this, and meet the regular criteria for an FHA loan as listed above, you qualify!
ABOUT YOUR CREDIT SCORE
Studies show that most Americans would rather see their dentist than have an appointment with a mortgage loan officer. The likely reason is that they are afraid of rejection - afraid of the big bad loan officer who will stamp a big red NO on their application. This is far from reality. Remember, Commissioned Mortgage Originators are in the business of saying YES. We've heard it all and seen it all and we are willing to help you, no matter what your situation is.
- Credit Problems are OK - You might be confused about how a lender determines if your credit is good enough to qualify for a mortgage loan. Let's clear up that confusion right now. Basically, if you've had credit problems in the past, the mortgage company will look at those problems and ask the following questions:
a.) How far in the past are your credit problems? (i.e.- if you had multiple delinquencies on your credit card this year, you might not be able to obtain a loan)
b.) If your credit problem is in the past, is it likely to recur again?
c.) Is whatever it is that caused your credit problem gone, or is it still present today?
d.) How good is the probability that you will pay your bills faithfully every month from now on?
- Judgments - If you have a judgment against you that has not been satisfied, you will not be able to obtain a mortgage loan. To obtain a mortgage loan, the mortgage company will require title insurance. Title insurance cannot be applied against your loan if you have an outstanding judgment.
- FICO Score - Although lenders look at much more than just your 3 digit FICO (credit) score, you should try to keep your credit as clean as possible, because the higher the score, the better!
- No Credit History - Even if you don't have any credit history whatsoever, you can qualify for a mortgage loan. As a matter of fact, it's not all that difficult. If you have a stable income, proof of employment, and a small down payment, you too can qualify for a mortgage loan!
MORTGAGE TERMS 101
As a First-Time Home Buyer, you are going to encounter a lot of new and unfamiliar terms. You should educate yourself on the meaning of these terms. To help you in this process, we would like to give you access to the 'Ultimate Glossary of Mortgage Terms'. To access this glossary, visit our website.
GETTING PRE-APPROVED IS THE SMARTEST MOVE YOU CAN MAKE
In many areas of the country, home sellers won't even speak with you unless they can confirm that you will qualify for the financing to purchase their home. In addition, you need to make sure you know how much you qualify for so you can avoid wasting time and effort inquiring about homes that are priced above what the lender determines you can afford. Get pre-qualified. It's fast, easy and best of all AT NO COST!
New! - We are now offering a NO-COST Pre-Approval Service for First-Time Home Buyers. It's fast, easy and at no cost to you. You'll get a copy of your credit report, as well as a NO-COST mortgage analysis.
- If you qualify, we'll provide you with a certificate that you can show to home sellers to prove that you are qualified to purchase their home. We'll also allow you NO COST Access to our VIP Home Buyer Service, which will allow you to find out about HOT New Listings before even some Realtors find out about them!!
- If you don't qualify, we'll be honest and professional, giving you the same respect we would give an A+ credit borrower. We'll show you why you don't qualify and then give you a specific plan to follow so that we can provide you with home financing sooner, rather than later.
DON'T WAIT! - TAKE 7 MINUTES AND FILL OUT OUR NO-COST, SECURE ONLINE PRE-APPROVAL FORM.
P.S. - One year from now, you'll be looking back on this as the best decision you've ever made. Start living the American Dream today.
P.P.S - Don't forget that we are in the business of saying YES. We can't wait to shake your hand and tell you 'Congratulations, You're Approved!'
Darren Meade is a Local and National Real Estate Expert. He has created two FREE websites to help educate the public on buying; selling or refinancing a home.