Tuesday, July 29, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Do I even qualify for a home loan?

By
From page AHW5 | April 05, 2014 |

The question I get most often lately is: Do I or can I qualify, as a first-time buyer, or qualify again after a short sale or foreclosure for a home loan? The average person truly is getting so many different messages from so many different “experts” that they do not know who or what they can trust anymore.

Some lenders have capped their back-end ratios, which is total income divided by total credit report monthly debt, at 43 percent and they have capped the amount of points and fees charged on a loan so it does not exceed 3 percent of the mortgage value. When they do the above, they have what is called a “QM” qualified mortgage, which is a safer loan.

But other lenders will allow higher ratios. Some lenders do not let VA buyers purchase again after a foreclosure for four years, while others will allow it after only two years.

Wait! Someone said: “After only one year I could come back in and purchase again?” Well yes, if you can completely document a 20 percent or greater loss in income for a minimum of six months preceding your foreclosure or short sale date, and you have re-established perfect credit since the date of your foreclosure for a minimum of 12 months, and you have taken a HUD-approved class, then you quite possibly can.

Some lenders will do FHA loans down to a 640 FICO credit score only, others down to 600 or even 580 scores. If you have a 583 score, will you automatically qualify to purchase a home? Not if you have current late payments and are not being financially responsible. If you had a traumatic medical event and are 12 months past it and your 585 score is attributed to that specific event, can you purchase? Very possibly.

There is no specific, absolute answer. It all depends on the circumstances and how well-packaged and complete your application is when it is delivered to an underwriter.

Some of these restrictions are called “overlays.” They are put in place to make a lender’s portfolio of loans more enticing or saleable on the open market. They might get an investor to pay a premium for not getting any loans under a 640 score. They would also gain a premium by making a block of loans a bit higher quality by requesting a rate of return of 4.25 percent paying for 30 years and are secured by 10 percent or more down payment.

Above is only a taste of what kind of different “standards” there are in the mortgage industry in our new age of the Financial Reform Act or the Dodd-Frank Consumer Protection Act, and that is only on the conforming or FHA/VA side. The jumbo side has its very own quirks that are just as confusing. It is critical that you are getting good, solid information so you can determine whether or not you can actually purchase a home.

So when you are thinking about looking for a home, do not be discouraged until you have spoken to two or even three different lenders. You need to get to a lender who has the least amount of overlays, one who can structure a loan highlighting your positive attributes. Get to a mortgage officer who gives you good, solid, specific information on the questions you have.

You will immediately know who that is once you have spoken to two or three of them. Then it will become very obvious who will be able to answer the question, “Do I even qualify for a home loan?”

George R. Kalis has 20 years as a mortgage consultant. He works at FirstCal Mortgage, 1300 Oliver Road in Fairfield. Reach him at 759-5129 or George@MyMtgMan.com.

George R. Kalis

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

Weather for Tuesday, July 29, 2014

By Daily Republic staff | From Page:

 
Big-rig driver strikes telephone lines in Fairfield

By Ryan McCarthy | From Page: A5 | Gallery

 
Fairfield police log: July 27, 2014

By Glen Faison | From Page: A12

Suisun City police log: June 27, 2014

By Glen Faison | From Page: A12

 
Caltrans makes I-80 lane change

By Barry Eberling | From Page: A5

 
Fairfield tries to end Cordelia Road detour

By Barry Eberling | From Page: | Gallery

 
‘Guardians of the Galaxy’ primed for big screen

By Amy Maginnis-Honey | From Page: A7

.

US / World

 
Sacramento Gold Rush Days canceled due to drought

By The Associated Press | From Page:

Annoying minor floods are increasing on US coasts

By The Associated Press | From Page:

 
Man charged in teen’s 9-month disappearance

By The Associated Press | From Page: | Gallery

Medicare’s own health looking better, report says

By The Associated Press | From Page:

 
Deal to improve veterans’ health care costs $17B

By The Associated Press | From Page: | Gallery

Suspect dead, 2 marshals and cop wounded in NYC

By The Associated Press | From Page: | Gallery

 
New fears about Ebola spread after plane scare

By The Associated Press | From Page:

In Iraq’s Mosul, radicals unleash their vision

By The Associated Press | From Page:

 
Fighting in Ukraine prompts residents to flee

By The Associated Press | From Page: | Gallery

Israeli PM warns of prolonged campaign in Gaza war

By The Associated Press | From Page:

 
Witnesses: Thunderstorm hit beach without warning

By The Associated Press | From Page: | Gallery

Suspect’s mom also charged in Long Beach burglary

By The Associated Press | From Page:

 
City: Emails show ‘cozy’ ties of PG&E, regulator

By The Associated Press | From Page: | Gallery

Pool water dumped in South Tahoe; resort fires 3

By The Associated Press | From Page:

 
Additional charge filed in California wildfire

By The Associated Press | From Page:

California governor takes dig at Texas guard plan

By The Associated Press | From Page: | Gallery

 
.

Living

Community Calendar: July 29, 2014

By Susan Hiland | From Page:

 
.

Entertainment

Kevin Bacon brings his ‘Six Degrees’ to Comic-Con

By The Associated Press | From Page:

 
Sarah Palin launches online subscription channel

By The Associated Press | From Page: | Gallery

‘Sharknado’ sequel has bite and lots of laughs

By Frazier Moore | From Page: | Gallery

 
TVGrid July 29

By Daily Republic Syndicated Content | From Page: B6

.

Sports

Giants lose 5th straight, 5-0 to Pirates

By The Associated Press | From Page:

 
 
Lakers finally confirm Byron Scott is new coach

By The Associated Press | From Page:

Raiders relying on healthy Watson to solidify line

By The Associated Press | From Page:

 
This date in sports history for Tuesday, July 29, 2014

By The Associated Press | From Page:

Quarterback Johnny Manziel’s day at Browns camp

By The Associated Press | From Page: | Gallery

 
Judge OKs record-setting $2B sale of Clippers

By The Associated Press | From Page: | Gallery

Humphrey to savor Hall of Fame day with ‘wingman’

By The Associated Press | From Page:

 
Rays’ Archer: ‘Never saw Hank Aaron flip his bat’

By The Associated Press | From Page:

 
Reed HOF induction gives Bills cause to celebrate

By The Associated Press | From Page: | Gallery

In the Pits: Gordon eyeing 5th title after big Brickyard win

By Jenna Fryer | From Page: | Gallery

 
Marketing agreement an obstacle in US bid for 2024

By The Associated Press | From Page:

Sailors to navigate dirty water in 1st Rio test

By The Associated Press | From Page:

 
Manningham back with Giants, with no guarantees

By The Associated Press | From Page:

.

Business

Contracts to buy US homes slip in June

By The Associated Press | From Page: | Gallery

 
FAA proposes to fine Southwest Airlines $12M

By The Associated Press | From Page: | Gallery

Stocks pause as traders await key economic news

By The Associated Press | From Page:

 
Zillow buying Trulia to build real estate titan

By The Associated Press | From Page: | Gallery

Dollar Tree steps up fight, buys Family Dollar

By The Associated Press | From Page: | Gallery

 
.

Obituaries

.

Comics

B.C. July 29

By Daily Republic Syndicated Content | From Page: B4

 
Get Fuzzy July 29

By Daily Republic Syndicated Content | From Page: B4

Baldo July 29

By Daily Republic Syndicated Content | From Page: B4

 
Baby Blues July 29

By Daily Republic Syndicated Content | From Page: B4

Rose is Rose July 29

By Daily Republic Syndicated Content | From Page: B4

 
Zits July 29

By Daily Republic Syndicated Content | From Page: B4

Crossword July 29

By Daily Republic Syndicated Content | From Page: B5

 
Garfield July 29

By Daily Republic Syndicated Content | From Page: B4

Pickles July 29

By Daily Republic Syndicated Content | From Page: B4

 
Frank and Ernest July 29

By Daily Republic Syndicated Content | From Page: B4

Beetle Bailey July 29

By Daily Republic Syndicated Content | From Page: B4

 
Word Sleuth July 29

By Daily Republic Syndicated Content | From Page: B5

Peanuts July 29

By Daily Republic Syndicated Content | From Page: B4

 
Cryptoquote July 29

By Daily Republic Syndicated Content | From Page: B5

For Better or Worse July 29

By Daily Republic Syndicated Content | From Page: B4

 
Bridge July 29

By Daily Republic Syndicated Content | From Page: B5

Wizard of Id July 29

By Daily Republic Syndicated Content | From Page: B4

 
Dilbert July 29

By Daily Republic Syndicated Content | From Page: B4

Sally Forth July 29

By Daily Republic Syndicated Content | From Page: B4

 
Blondie July 29

By Daily Republic Syndicated Content | From Page: B4

Sudoku July 29

By Daily Republic Syndicated Content | From Page: B5