Frank Marta Texas Home Loan Specialist

Realtors guide for Home Loan Process

Introduction: I have come up with this system to better explain the loan process for the Real Estate community. I as a Loan Officer try to educate my fellow Real Estate colleagues in the loan process. If we all are on the same page then we can work in better harmony. With the lenders guidelines becoming tighter we have to band together and form a better system of working together. So that is why I along with some of my Real Estate counter parts we are creating this tool for all of us.

Me as the Loan officer will try to collect all documents upfront from the prospective home buyer. Why because no one wants any surprises at the last minute not if we can avoid it upfront upon application.

Normal documents needed upon Application:

1. Last 30 days of pay stubs (All Applicants)
2. Last 2 years tax returns w/ W-2's (All Applicants)
3. Most Recent 2 months bank statements/ assets (Proof of funds to close)*
4. Copies of ID(s) and SS Card(s) and Resident Alien Card(s) (If Applicable)
5. Money for Credit Report $50.00 (Must charge for serious applicants only)

*This is a trouble spot a lot of times. If we can't prove funds to close this slows down the whole process.

We run credit and then determine what to do from there. There are three things that can happen at this point. Once approved and they can start looking for house. Two, not approved and work on credit with Credit Repair. This takes from 3-6 months depending on the severity of the credit issues. Three, if not approved and decides to payoff collections or paying down on CC Balances. This takes about 1-2 weeks for the Rapid Rescore then start to look for the home.

At this point my work hasn't started yet! Once client is approved and looking for the house it is important to consider some of these tips. Depending on the type of loan approved for it may be helpful for you to know some of these details when looking for the house.

FHA Loan tips when looking for home:

1. Hud Homes- If you go over the appraised value on the site then the client will have to come up with the difference. Example if website says that the house's value is $100,000 and you offer $105,500 then your client will have to pay $5,500 down for that house even if FHA minimum down payment is 3.5%. Why because the house has already been appraised and lenders have to go by them, no exceptions.
2. Foreclosures- Most Foreclosures will not make any repairs to the house to close, so keep this in mind when showing Foreclosures.
3. Foreclosures- Not all banks allow FHA financing.
4. Foreclosures- Mainly Fannie Mae or Freddie Mac foreclosures you should ask for 45 days for closing since they ask for docs to be at title like 4-7 days prior to closing to request there approval to the HUD-1 Settlement statement.
5. Flips - Seller must be on title for more than 6 months before closing. Flips must be on title for more than 6 months and can't make more than 100% profit.

Under contract:

Once you're under contract must provide me with a clear copy of contract with copy of Earnest Money. Canceled copy of earnest money check if gave personal check. Copy of Cashiers check and bank statement to prove came out of bank account. If not then we can't have lender count the credit on HUD statement.

Loan process begins:

Step 1: Set appointment with buyer to come by office to sign disclosures. (Within 3 days of executed contract date)

Step 2: Price loan with all lenders and Lock Loan. (Day 1-3)

Step 3: Loan processor begins with loan checks file for out dated docs. (Day 1-2)

Step 4: Orders request for Title work (Day 1-2)

Step 5: Order request for Verification of Employment (day 2-4)

Step 6: Order request for Hazard Insurance (Day 2-4)

Step 7: Order Appraisal (Day 4-6)

Step 8: Orders FHA Case Number and CAIVERS No.(Day 6-7)

Step 9: Order LDP and GSA (Day 7-8)

Step 10: Begin to package loan (Day 8-10)

Step 11: Send out loan to Lender (Day 8-10)

Step 12: Turn times for lender (Day 11-15)**

Step 13: Lenders conditions (Day 16)

Step 14: Fill conditions (Day 16-20)

Step 15: Lender puts loan CTC (Day 22)

Step 16: Lender sends out docs (Day 23-25)

Step 17: Set closing date (Day 26-29)

*This process can take a bit less or more depending on if something is delayed (Verifications or Proof of funds to close).

**Some lenders have longer turn times than others. (580 Lender want 15 days for submission)

Realtors guide for loan process created by Frank Marta (Texas Home Loan Specialist).

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I help a lot of first time home buyers and everyone has a lot of questions. I wanted to put together a short summary of the loan process. I will be brief just to not over complicate things.

1. Qualification- you need to provide certain documentation to be qualified. 30 days Pay stubs; 2 months bank statements; 2 years tax returns w/ W-2's (2008 & 2007) other forms of income may be requested.
2. Approved- you must know that the approvals are only good for 90 days but that is including finding the house so really about 45-60 days to find the house. Then you may need to be re-qualified.
3. Find house- work with your Realtor/ Representative to find you house. Remember if you are buying with FHA Financing there may be some restrictions. I have noticed that there have been many cases of people having trouble finding houses where the seller's don't want FHA financing. This can be troublesome. So make sure which type of financing your obtaining (FHA or Conventional).
4. Negotiating the deal- there are some things that you should know about when negotiating for your home. If you ask for seller contribution for the purchase of your house the seller will give you the negotiated amount to be applied to your closing costs. FHA allows 6% and Conventional allows 3% or closing. If the seller pays the Title Policy and survey this will help lower closing costs.
5. Executed Contract- Once the offer is accepted you will be expected to pay the Earnest money to the title company to take the house off of the market.
6. Inspection- Once that is done you should do a inspection on the property which will help you know what is wrong with the property if anything. This is very important this is where you will find out if the house needs major work. Like Roof damage, electrical, AC, or plumbing. These are the major things normally if your problem is cosmetic then it is at the discretion of both seller and buyer.
7. Appraisal- Order appraisal for bank to review. This is a professionals analysis of the property and its value.
8. Disclosures- Once all of this is done then we are going to start on the paperwork to prepare for underwriting. Underwriting is where the bank will review your application, property (Appraisal), documents, then determine the underwriters decision. Whether your approved conditionally or not approved.
9. Loan submission- Loan is ready to be reviewed by Lender. Loan sent to bank for review.
10. Conditional Approval- Loan will have conditions to the approval. Once these conditions are satisfied then you will be sent to closing.
11. Closing- Where the Lender will send out the closing instructions which are for the Title company to prepare before we can close your loan or schedule.
12. Scheduling closing- Depending on the title company and the TIME OF MONTH! We will schedule the closing based on the Title companies availability and the buyers convenience and availability.
13. Closing table- Go to Title Company sign all documents.
14. Funding- Certain documents are sent to Lender to review and assure that they have been signed.
15. Keys- Loan funded and money is dispersed and the keys are given to you.
16. Move in- Normally 3 days before closing you can start transferring the utilities so you can have your utilities when you move in.

That's about it. No problem, right!!!!!!!! I hope that this helps better understand the loan process.

Feel free to contact me with more specific questions.

Prepared by;

Frank Marta

Texas Home Loan Specialist

I know that when buying your first home your going to feel some anxiety. Being the fact that's only the most important purchase that your going to make for your future. I think that being well informed is a good remedy for anyone who could be feeling this way. I wanted to give a couple of inside tips for clients to look at to help better prepare you for your journey. Which is what it may seem like if there is no one at your side during this process.

Tip #1:

• Know what you want- What do I mean? It is hard for you to know what price house you want, right? No! You just take the payment that you can handle and multiply by 100. Example: $900/month payment X 100 is a $90,000 house no calculators and no one pressuring you to buy more of a house. Just be sure that you don't go over what is within your means. Remember that you have to qualify for the price and the house needs to pass the lenders appraisal, your not done by any means, it is just a tip.

Tip #2:

• To ensure a smooth transaction make sure that you have your financing in order before you start looking at homes. Why? Too many times people start looking at houses and want to make offers and one of two things happen. One, they are asked for a loan approval and don't have it and have to take time to go and get approved and come back and no home they just missed that house that they spent time going to see. Two, Realtors, Owners, Builders (Everyone) want to save time. You wouldn't go to the store and fill your basket full of food go to the register without knowing how much money you have in the bank before you start buying items, right? Same concept.

Tip #3

• Seek help- If you don't know much about homes or financing ask for help. Too many times I see people after they have purchased there home and they want out but there is nothing that can be done (Refinancing). So make sure that the right people are helping you. Some times we look for the easy fix and many times its not the best choice that we have. A good way to know if the right people are helping you is if "you are asking other people about what these professionals should have covered with you then you might be working with the wrong people".

I hope that you have found this information to be helpful, God Bless.

Inspired by too many mis-informed clients.

Se Habla Espanol!!!!!

Written by:

Frank Marta

Branch Manager

Gold Quest Group

Ph:282-250-1561

Our Market here in Houston Texas is so hot, just like the weather.

I know that you may think how would a Loan Officer know how our Real Estate market be? The reason I know is that I work with Realtors from all over town.

From Katy, Richmond, Sugar land, Tomball, Woodlands, Channel view, and Pasadena. I am able to work with clients from all over Houston and surrounding areas.

I have many clients that have put offers on properties and it is not accepted because of the house having other offers.

Foreclosures are selling at a alarming rate. I see that offers are going over asking price in many cases due to the commpetitive nature of the market.

If you are a First Time Home Buyer there are several different options created to help and make things affordable for you.

These are a couple of options:

1. Down Payment Assistance: Where the Government is giving out money to cover your down payment and most or all of your closing costs. This is a loan for 5 years minimum and if you stay in the home for 5 years then it is forgiven and you don't have to pay any of it back. Note: this program has several limitations (Income, Property & Location.

2. $100 Down Payment:This a little used program it is for First Time Home Buyers and if your interested in buying a Foreclosure property. There are limitations (Type of Foreclosure)

3. $8,000 Tax Credit money from Obama: The stimulas package is funding a credit for your tax return money for $8,000. This money is soon to be approved to be used for purchase money down payment. (Limitations do apply: Income)

If you want to know more about these programs you can contact me for any questions.

Written by Frank Marta Texas Home Loan Specialist

Here is a loan check list that is needed to begin the Home Loan process:

___ Most Recent 30 days of pay check stubs

___ Last 2 years Tax Returns (1040's) with 1099's and/or W-2's (2007 & 2008)

___ Most recent 2 months Bank Statements

___ 401 K, Stocks and bonds documentation

___ Id and Social Security Card (Copy)

___ Resident Alien (Green Card) or work permit (Front and back copies)

___ Child support documentation (receiving or paying)

___ Other income documentation (Alimony, Military pay, SSI, etc...)

___ Lease agreement (If keeping a property)

___ Divorce decreed (If applicable)

Up front costs needed:

___ Appraisal Money ($275-$450)

___ Earnest Money ($500-$1,500)

___ Inspection Money ($275- $400)

___ Option Money ($50-$150)

List created by Frank Marta(Texas Home Loan Specialist)

Branch Manager

Gold Quest Group LLC

Ph: 713-373-0345