If a monthly student loan payment ( >$0) is provided on the credit report, you may use that amount for qualifying purposes. If the credit report does not provide a monthly payment for the student loan, or if the credit report shows $0 as the monthly payment, the lender must determine the qualifying monthly payment using one of the options below. If the borrower is on an income-driven payment plan, the lender may obtain student loan documentation to verify the actual monthly payment is $0. The lender may then qualify the borrower with a $0 payment. File must contain documentation that the payment is an Income driven payment plan (also known as IBR or Income Based Repayment) For deferred loans or loans in forbearance, the lender may calculate (a) a payment equal to 1% of the outstanding student loan balance (even if this amount is lower than the actual fully amortizing payment), or (b) fully amortizing payment using the documented loan repayment terms. This applies to both purchase and refinance loans so call me to discuss more options on qualifying for a home loan when you have student loans! For more great content on how your purchase power is affected by student loans click here. By David Hughson Broker | Mortgage Planner 858-863-
I may have just missed the student loan debt explosion when I graduated with my undergrad degree in 1998. While college was expensive to attend twenty years ago, we were all borrowing money to get an education, it was nothing compared to the amounts borrowed during the college financing boom of the last fifteen years. Nowadays young people are in record amounts of debt the moment they are handed a diploma which means starting off their earliest earning years with essentially a thirty year mortgage to pay back. College ain’t what it used to be and many times all this borrowed money is for a degree that yields earning power guaranteed to tie up their income for the better part of their career. The student loan income-based repayment plans have been a help to many people. These plans allow monthly payments to be calculated based upon a person’s income which give people a fighting chance to start paying back their loans and be able to eat as well. This is a big deal for those just starting out but there are at least two challenges tied to this calculation. First, the debt will take that much longer to pay off and second when you go to apply for a mortgage the bank approving your application will hit the person for up to 1% of the balance of the
Scariest Situations for Home Buyers & Sellers – Part 4 So, where are we? We have an accepted offer, the home inspection went well, we successfully negotiated a Request for Repairs, the appraisal supported the purchase price, the buyer has removed all contingencies and now it is an unconditional offer. The finish line is in sight. But, there are still a few more “scary” steps ahead of you. For one, the lender needs to get the final loan documents to the escrow company so the buyer can meet with a Notary to sign everything. Now that part can be a little intimidating and nerve-racking for a buyer. That is why it is very important for the loan officer to review the Estimated Settlement Statement or Loan Estimate with the buyer(s) BEFORE they sit down with the Notary. This ensures a less-stressful, and less-scary, loan signing. Next is for the buyers to conduct the Final Walkthrough of the home, contractually this is to be done 5 days before the close of escrow. This is important to confirm that the home is in relatively the same condition as when the offer was accepted and no damage was done when the seller moved out. Now the seller is also supposed to remove all personal items from the home, but often some things are left behind, like yard products (fertilizers, bug sprays, etc.) And while the seller is required
Hidden Secrets Lurking in this Beautiful Home? One of the most important steps in purchasing a home, is having a home inspection conducted. Now, just what kind of home inspection do you need? Well, the first step is to get a General Home Inspection. A general home inspector will conduct a general inspection of 5 primary home features: foundation, roof, plumbing, electrical and overall functioning systems of the home. If the home inspector finds any deficiencies with these areas, he will typically recommend a more in-depth inspection by a specialist, such as a licensed plumber, electrician or foundation specialist. This particular home, my clients were in contract to purchase, had some uneven floors that raised the concerns of these first time home buyers I was representing. Where many agents might try to downplay the significance of any negative findings, the role of a true consultant is to leave no stone unturned and to make sure any concerns of their client(s) are addressed. So in this case, we hired a foundation specialist to investigate the home further. As it turned out, there were some minor corrections that were recommended, which we were able to negotiate with the sellers to have repaired. Now my clients have complete confidence in the home, and that I will look out for their best interests. So if you are looking for a real estate agent that
The New Update You Need To Know About Your Hero Loan Hero Loans were a great idea when they came out. They still are. But like most things, they don’t always go according to plan. Recently I discovered the hard way that most lenders will not issue a first position lien on a property that has a hero loan. They were requiring it to be paid off before they would issue the loan. Well, Hero saw this problem and made one key adjustment that is could possibly change all of the a fore mentioned. For more info on what this is, email me at Scott@GreenMeansGrow.com
Taxes – What You Need To Know Before You File Looking to buy a home, or looking to Refinance the one you got? Lenders have a different way at looking at expenses on your taxes, and I’ll tell you what you need to know before filing. Questions on the video or want to learn more? email me at: Scott@GreenMeansGrow.com
Your offer has been accepted, you’ve made your earnest money deposit, and now you are beginning your investigations. Next is the home Inspection: Per Wikkipedia: “A home inspection is a limited, non-invasive examination of the condition of a home, often in connection with the sale of that home. Home inspections are usually conducted by a home inspector who has the training and certifications to perform such inspections.”p tonspection?ction.ssues with the house you are about to purchase so that you can decide whether to move forward or The most important step to take during your investigation period, is doing yourself the biggest favor and exercising your right to a home inspection. A home inspection is kind of like when you visit your general practitioner for a physical. After some tests, you will be told the results of your overall health, what to watch-out for, what needs immediate attention, and when to seek the advice of a specialist if necessary. A home inspection is not about figuring-out if the property is worth what you are paying for it, that is an appraisal which we will cover at a later time, it’s not about focusing on aesthetic things like a poorly maintained carpet/floor/yard. An inspection is for you to know if there are any alarming issues with the property so that you can decide whether to move forward or walk-away from the transaction. While inspectors do a thorough investigation of the
Did you see the commercials? They were in heavy rotation during the divisional round games of the NFL playoffs and again during the conference championship games yesterday. The Rocket Mortgage offered by Quicken Loans makes it appear that the only thing you need to get a mortgage is 2 minutes and a smart phone. As quickly as that rocket can launch it can crash land even quicker. Now before you think I’m spreading the hate here it’s important to know that I’m a Quicken Loan approved broker and have access to the Rocket Mortgage they advertise on TV. When I send a loan to Quicken the normal turn around time for an approval is 30 minutes. Pretty good, right? But the night and day difference between me sending them a loan and you typing in a few bits of info into your smart phone is the fact that before anything is sent to them or any other lender I’ve completed a thorough review of your credit and financial profile. What consumers may not realize is that at some point an underwriter at Quicken Loans will be requesting your complete credit and financial profile anyway which reduces the rocket-launch beginning to what it truly is, a gimmick. Would you like to supply this information in the beginning of your loan process or several weeks into your loan process. If you choose
So, you’re looking to buy a house and your go to is the good ol’ world wide web? You’ve been looking online, gazing at the numerous photo galleries and cool videos with the hip background music. This is very common in today’s world, but keep in mind the perfect home for sale online rarely becomes the perfect home in person because there is so much more to consider about a property than just how it looks. You really have to experience the home to really know if it is the right one for you and there are just things the camera can never capture. Here are a few things to watch-out-for when looking at properties online: Don’t trust the photos! Some photographers use wide angle lenses and position themselves in certain places of a room to make a space look larger and ceilings look taller; avoid getting all excited later to discover that huge property was really nothing more than a tiny house with a bunch of stains on the walls and missing patches of grass. Also, photos cannot capture the noise level near a property. What if you found the perfect place but in your back yard is the busiest freeway in the city? We recommend you drive-by the area or to save time, do a google street view or satellite view search to avoid moving next to a major
TRID Update For those of you in the know, TRID is in reference to the new lending guidelines. And so far we are one week into our new guidelines and sailing seems smooth. Know, if you are a Real Estate Agent, and do not know what TRID is, there are a couple important things you need to know before writing your next contract. Nothing to be afraid of, but there are some changes that if you and your client are not aware of, could cost you days (like up to 10 days) in delayed closings. For more information on what these must knows are, e-,ail me at Scott@GreenMeansGrow.com, and I’ll be more than happy to share these changes with you
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