It is definitely time to buy a house. But
getting a mortgage can be so stressful if you don't know what to
expect. Well, I used to work in mortgages. I was
actually a manager at one of the largest mortgage
operations in the country. And I can tell you
all of the secrets so that you can get it done. Let's go. So, when it comes to mortgages there's
three type of home loans –3 big categories.
Most people know about conventional. That is your traditional
loans if you have decent credit. And those are backed by Fannie Mae and
Freddie Mac. Those are most mortgages for traditional
home loans, okay? The second category is government home
loans, okay? So, FHA type of loans. VA which stands for
veteran administration. USDA loans for like rural areas that are
governed by the us department of agriculture.
And then of course FHA is
for general properties that are backed by the
government through the federal housing authority, okay? So, they're usually a
little bit easier to get the government loans
but they're a little bit higher risk so the government has decided to
back those loans in order for lenders to lend to people that
probably make a little bit less than other people or
have situations where they can't put as much money down. They consider those high
risk. And then the last category for mortgage
loans is subprime.
Now, many years ago, subprime
had a terrible reputation. Many people paid very high interest
rates. They got a lot of arms adjustable rate mortgages.
And a lot of people lost their properties due to not understanding
subprime mortgages and those high interest rates that came with them.
But we're talking about conventional loan. So, I'm assuming now that you know all
3. You are wanting a conventional loan, you
have stable employment, you have a regular w-2 job and that you
want to buy a home in a regular area, not a rural
area.
So, the first thing that you want to do when getting approved and making sure
that you get approved quickly is before you apply at any of
these lenders, please check your credit first. Yes, I
know there are lots of loan officers and mortgage professionals that
will tell you that they can pull your credit for free.
And that is true. Once you apply they can pull your credit and review what's on
your credit report and assess that. But before you have them
do that and before you get an inquiry on your credit report, I strongly
suggest you pull your own credit, okay? There are
websites like Credit Karma and myfico.com.
I actually recommend myfico.com because they give you fico scores that
are similar to what mortgage companies use.
And they can literally tell you
what the score is or very similar model of what the score will be on your
mortgage credit report. Because it is different than your
regular credit report. So, if you go to myfico.com, I literally
have a link for you below so that you can go use the link that's
below in the description box so that you can get a discount, okay? And
you can check your credit scores, you can see what's on your credit.
And you can assess your credit situation before you go to a mortgage professional
that's going to pull your credit and put an inquiry
a hard inquiry on your credit report.
You want to see what's up there yourself
so you know and there are no surprises and no one can lie to you.
The next smart thing that you want to do when getting approved for a conventional
home loan is to find a lender that has multiple
products and even maybe find a mortgage broker
that has multiple lenders that they could submit your application to.
If you have a credit score over like 680, okay? Let's say you have a 680 fico score
or higher, you literally can go to almost any bank
to get approved so long as your income and employment is in line. So, you can go
to the Bank of America, you can go to the Wells Fargo you can go
to a credit union, you can go to Navy Federal, you can go to pretty much
anywhere you want to if your credit score is over 680 and your income and
employment are in line. And very traditional and cookie cutter where you
have pay stubs and W-2's.
Now, if you find
you're in a situation where your credit score is lower than that
or you have a situation where you're self-employed or you've had gaps in your
employment or gaps in your income or things like that that may trip you up a
little bit, I strongly suggest you find a mortgage
broker, okay? A mortgage broker is not a mortgage
lender. They are a broker, they are a middleman
who finds lenders that will lend to you.
They're usually affiliated or have established relationships called
wholesale relationships with many, many lenders. And the benefit
of finding a mortgage broker if you don't have great credit
is that they can have multiple options for you.
They can tell you about
different programs and different products at different
lenders. Because even with conventional financing,
lenders have different guidelines. And one of the things that I know
big secret that i'm sharing with you is many lenders
add restrictions to their conventional financing.
Some of them for example you may look at Fannie Mae's guidelines. And Fannie Mae
may say, "Okay, if you have a 620 credit score
and this income we will lend to you." Or maybe a larger bank like Bank of America
or Wells Fargo. They may add what they call layers. They
add different restrictions or different guidelines
that they require in order for you to get their
conventional loan. And so you may run into a situation
where you need to go to a lender that does not have those restrictions or
doesn't have those caveats. And if you go to a mortgage broker, that
broker can tell you which lenders have which restrictions, which ones are more
lenient and put you with the right lender for
your situation. It's amazing. So, getting a conventional
mortgage is not as difficult as you think.
There are tons of people that are willing to help you and walk you through
the process.
Additionally there are lots of programs
that are not advertised. There's lots of programs that help you
with your down payment. There's programs that help you buy homes in certain areas.
You can even buy properties with a conventional loan
and the property needs repairs, they will lend you all of the money to buy the
home and fix the home through conventional
programs, okay? There are conventional lenders that have
programs to help you rehab the house so you can literally buy a home in a
smarter way. So, do not think that you cannot get a home that needs some
repairs because a lot of times if the home needs
some repairs, you can fix it yourself and you'll have equity in the property
and you start off in a great situation instead of
buying a home and owning it and owing exactly what the home is worth.
If you can buy a home and you can get it below market value,
if it needs a little bit of repairs, they will lend you the money to do those
repairs and then your home is worth more money
and you still have that great mortgage.
So, there's tons of options out there.
With conventional loans, you can do a traditional one and buy a house that's
already repaired and already fixed. Or you can use one of those conventional
rehab programs and check with your lenders to see what those programs are
because they have great rates. So, hopefully you got a lot of
value out of this video. This is the perfect time to be buying a
home. There's tons of mortgage programs out there.
They want people buying homes and they're creating more and more programs
and products to make it easier for you to get homes.
There's people that are losing their homes
and they want to make sure that they're giving out money to people that can pay
and make those mortgages right.
So, please watch all of the videos
in this playlist. I've made tons of content just for you
with free valuable information so that you have
all of the tools, all of the resources, all of this knowledge and skills that
you need to be successful. This is Noelle. To your
success..
