Linda Le - Hawaii Loan Officer

Lenders main objective is to make sure the individual is qualified prior to searching for a home. The main reason lenders ask so many questions upfront is because they want to make sure they have as much information as possible in order to know which loan programs the borrower may qualify for and is best for their unique financial situation.

Some of the questions lenders will ask during the pre-qualification process are:

Contact information: Contact phone number and emails
Personal information: name, address, birthday and social security number
Job Information: Who do you work for, what is your job function, how long have you worked there, how long have you been in this line of profession.
Income Information: What is your gross income?
Debt Information: What are your monthly debt obligations? Credit cards, car loan, personal loan, child support... etc.
Assets: How much do you have in your savings, checking, IRA, brokerage accounts, and cash?
Credit Scores: When was the last time you ran your credit report? How were the scores? Do you have any current or past delinquencies, any liens or bankruptcies?
Down Payment: How much do you plan to put down? Which bank account will money be drawn from? Will it be gift money?
Who else will be on the loan?

All these questions are important to a successful qualification of a loan. They allow the lender to see what potential red flags may come up. For example, cash is always a concern to lenders as it can not be documented. So if you have cash in a bank box, take it out and deposit it into your bank account (remember, it'll have to be in your account for at least two months).

Good luck in your pre-qualification process. If you already have been pre-qualified and would like to get pre-qualified again, please contact me at 808-561-5943 or email me at lle@pacificaccessmortgage.com.

- Linda Le, Loan Officer, Pacific Access Mortgage

The appraisal process is undergoing some major changes. Mainly, being able to request a specific appraiser for a specific job is a thing of the past. Every lender is implementing a process to adhere to the Home Valuation Code of Conduct. Which means, appraisals will be ordered on a rotational basis depending on each lender's process. In addition to that, direct communication with the appraisers is now extremely limited.

This is such a bummer for me! I like being able to work with the appraisers I choose because they will let me know if there is a potential issue with a property. Also, if I have a relationship with them, sometime they will not charge of the borrower cancels out on the deal. Let's see how streamline they will make this new process.

Great news!! Not only have rates dropped, but USDA Rural Development announced that approximately $10 billion in purchase funds are now available.

What is USDA Rural Development? It’s the only 100% financing program available (aside from VA loans).

Key points to note on the USDA loans:

· 2% Funding Fee (can be financed into the loan)

· No limit on Seller Contributions

· Owner Occupants only

· Income Limitations for $53,200 for single person in Honolulu and $60,800 for 2 person

· Must be a U.S. Citizen or Permanent Resident Alien

· Must be in a rural area

For more information on the areas that are qualify for this loan program please see check out the website below:

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Did you know that Countrywide came out with a plan to assist borrowers with either subprime mortgage or pay-option adjustable rate home loans? This program may temporarily cut interest rates on some loans to as low as 2.5%! The idea of the program is to modify a loan's terms just enough to create a new monthly payment, including principal, interest, taxes and property insurance. If you know anyone who has that type of loan with Countrywide, be sure to share this information with them.

Have a great weekend!

Below is my Finance Friday newsletter I send out every Friday. I wish I knew how to create it to launch directly on this site. Oh well, I guess converting it to a jpeg will have to do for now.