Employment Information Are You Stable?
This section of your home loan application addresses your employment information. Stability is considered by looking back over at least the past two years. Another of the two year look backs of a mortgage loan application.
Be prepared to provide your mortgage lender with the name and address of your employer(s). How long have your worked for this employer? Please be exact with your to and from dates. Many times I’ve asked mortgage loan applicants, “How long have your worked there? I will receive a reply “I’ve been there about two years”. Probing further I find that you have been with this employer one year and 10 months. One year and 10 months is not two years, we need to look back further.
What is the phone number of your employer(s)? The question being asked here is not necessarily your work phone number, but what is the phone number of the person your home loan lender should call to verify you really work there. Yes, we actually will call!
You will need to tell your mortgage loan lender your position, title and type of business of your current job and any previous jobs, if you have changed jobs within the last two years.
You will be asked, how long have you worked in this profession? This is a big component of measuring employment stability. You will not be penalized just because you have changed jobs in the past two years. If you have been in the same profession for a longer period of time and your job change represents advancement you are happy, your lender is happy, everyone is happy. On the other hand if your latest job indicates you make less money in the new position you may be asked to provide an explanation. There can be many legitimate reasons for accepting a job for less pay, but this could also be a sign of questionable employment stability.
Saving the best for last, are you self-employed? If you have been self-employed for less than two years you will have a difficult time obtaining loan approval. If you have been self-employed for longer than two years, but have changed locations within the last two years be prepared to explain why a change in location does not affect your income stability and as a result your employment stability.
If you have been employed with the same employer for two years or longer this section is a snap. You probably have all the information in the front of your mind. However, if you’ve changed jobs in the last two years you may need to gather this information for your previous employer(s). The more complete information you provide in the beginning the less stressful the home loan application process will be. Your mortgage loan officer will also love you for providing complete and accurate information.
Have you had multiple job changes, gaps in employment or a change of profession in the last two years? Do not be afraid to apply for a home loan. Remember to provide complete and accurate information. Provide your mortgage loan officer with explanations for any job changes, gaps in employment and changes in profession from the beginning.
Your home loan lender has to manage their time. When reviewing 
two mortgage loan applications where one is complete and another is not, guess which application receives attention first. You are correct, the application that is complete moves to the top of the stack.
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Jay Williams
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Christmas time holds special memories for me and I'm certain this is true for countless millions of others.
I remember one Christmas when I was quite young when I got up early, before anyone else, and in my zeal to open each and every present I received I diligently opened every Christmas present under the tree. That went over real big with my parents.
Another Christmas memory stands out from my childhood. This was the year my younger brother rose early, went to the woods and gathered a collection of switches. He substituted the stocking stuffing, for my youngest brother, with the switches. Two of us had a pretty good laugh, the other three members of the family failed to see the humor.
A Christmas memory that still makes me laugh occurred when I was a young adult. I was in the kitchen with my parents. One of my brothers walked in with a platter. He proudly announced "Watch This", as he tossed the platter into the middle of the kitchen floor. Of course it shattered into a million pieces. My mother was dismayed. My father and I thought "What is this fool doing"? The crestfallen brother then said, "They told me it was unbreakable"
The greatest memories have been Christmas's with my wife and children. Maybe for another year I will reflect on paper some of those special memories.
For the last several years, including this year, I've listened to the flap of Merry Christmas vs Happy Holiday's. I'm not trying to offend anyone with "Merry Christmas" and on the surface I'm not offended by "Happy Holiday's"
What I am offended by is the attempt to remove Christmas and it's meaning from our culture. If you celebrate something else you can tell me, but it is Christmas to me and from me! The fouth of July is a holiday.
Christams is about memories and traditions. Traditions are upheld and new traditions are born every year.
Memories are reflected upon and new memories are created every year. Every year at this time It is Christmas.
Mostly Chistmas is the celebration and rememberance of the birth of Jesus Christ. I guess this is what really offends some. So be it.
As for me and my house at 10:00 tonight we will be attending our traditional communion service at our church. Jesus is the reason for the season.
Please feel free to share some of your Christmas memories for others to enjoy.
Merry Christmas From Me To You!
Jay Williams
In an era of high foreclosure and short sales the FHA 203(k) loan program may be just the answer.
It can also be the answer for existing homeowners that may choose to remodel/upgrade their current home
I don't really know how long this loan program has been in existence, except it has been around as long as I can remember. It has, although, been rarely utilized. Many lenders are unfamiliar with the program and others don't have access to the program.
What is this loan program? The 203(k) program can be used to repair, rehabilitate and/or improve an existing one-to-four dwelling.
It can be used to purchase a home and remodel or make necessary repairs. It can also be used to remodel and/or repair and existing home while refinancing the current indebtedness.
In a practical sense this loan provides construction financing combined with permanent financing for existing homes.
This is obviously not your everyday mortgage loan and if you are looking to purchase a fixer-upper, or remodel your existing home you will need to seek out not just any home loan lender. Contact a trusted lender in your area.
Real estate agents and builders you will want to team up with a trusted lender to develop a niche that may be in demand in the coming months.
I encourage comments from those that have experience with FHA 203(k) financing. A dialogue will be helpful to educate consumers and those of us in the industry.
Over the next few weeks I will be posting some of the nuances and particulars of this home loan program, so stay tuned!!!
Jay Williams
Part III of the Uniform Residential Loan Application compiles Borrower and Co-Borrower information.
Of course you will need to provide your full name, as it appears on your social security card. It is also useful to provide your loan officer with any other name you may use or any other name you may have used.
First, we like to call you by the name you prefer to be called. Second, if you have changed your name either by marriage or previous marriage or have used any other name, it's a good idea to share this with you home loan lender.
A credit report, once pulled has a section labeled "AKA Information". Credit reporting agencies pick up name variations associated with your social security number. Many underwriters request explanations of name variations listed on the credit report.
Remember your loan officer is your friend, not the enemy. The more your mortgage loan officer knows the better they can assist you navigate this process smoothly.
Next you will be asked to provide your social security number, home phone (or cell phone if you don't have a separate land line), date of birth and number of years in school. I've never really figured out the true relevance of the number of years in school question, but it is there none the less. I suppose if a prospective borrower stated, as example, they were a lawyer and had only attended school for 12 years that would be questionable. More than likely a bureaucrat thought this would be a good question to ask and it has been there ever since.
You will be asked if you are married, unmarried or separated. This has nothing to do with loan approval, but can have some bearing in to how title will be held. Your state will have specific laws as to how title can be held based on marital status and which forms may have to be signed or acknowledged by a non-borrowering spouse. Consult your local mortgage loan officer for advice on this subject.
How many dependents do you have, not listed by a Co-Borrower and what are their ages? A few loan programs have special characteristics based in some part on the number of children living at home. VA and USDA loan are two that come to mind.
The mortgage industry is famous for one year, two year and sometimes three year look backs and look forwards. Your residence history is one that has a two year look back feature.
If you have lived at your present address for less than two years, be prepared to provide complete address information to cover at least two years. If you are asked, how long have you lived at this address one year and nine months is not two years. Be prepared to give the; from and to dates of your residence history for at least the last two years.
Do you or have your rented, owned or lived with relatives for every address listed to cover the two year period? Your residence history will be verified along with your payment history. A verification of mortgage and/or rent may be requested If you have rented be prepared with all landlord information and how to contact the landlord.
The housing payment history verification can be a very important factor in determining loan approval. Thirty days or more late in the last two years is not a good thing. Being more than 30 days or more late in the last 12 months can cause your loan to be denied.
Lastly, if you anticipate your home loan application will have co-borrowers please be ready to provide that information during your initial interview with you mortgage lender.
My mission is to provide residential mortgage lending services in Greenville, Pitt County and Eastern North Carolina. I am determined to deliver these services with openness, reliability and resourcefulness. The foundation of my activities accepts that I consider the needs of my customers and business partners ahead of mine. As a professional I strive to know more about my vocation than my competition, while enriching others.
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Property Information and Purpose Of Loan
Jay Williams
When I initially speak with someone interested in a residential mortgage most of the time the first question I am asked is either (1) what are your rates. Or (2) what do I need to do to qualify for a loan?
The purpose of this series is to address the steps in completing a mortgage loan application for qualifying purposes. I will make one quick statement on rates. The question is not what are my rates, but what is your, the customers, rate. Home loan rates are dependent on many factors such as your loan profile, the type of loan needed and the purpose of the loan. The rate is about you.
We are going to be discussing the 1003. What you ask? I don't understand what it is about government, quasi-government or whatever, it seems they can only speak in terms of numbers or anachronism. How about the Uniform Residential Loan Application? Yes, it is called that too.
We are actually going to start with Part II: The Property Information and Purpose Of Loan. You may be wondering why don't you start with Part I? Let me just say that Part I Type of Mortgage and Terms of Loan is what we are going to figure out after the application has been completed. Please don't ask me to understand or explain the thinking of the bureaucrat that put this form together.
Is this a purchase or a refinance? Or maybe a construction loan or construction-permanent financing? Various loan programs will have different guidelines and pricing (aka rates) depending on the purpose of the loan. It is YOUR rate not the lenders to be determined.
This next question is a big one. Will this loan be for a primary residence, a second home or investment property. Be truthful! I've seen a lot of crafty responses given here.
If it is your primary residence then you plan to live there. Loan agreements will require that if you declare the property as your primary residence then you are expected to occupy the property within 60 days of closing AND you intend to occupy the property for at least a year. If this is not the case and you know it, then at the very least you will be in default if not guilty of mortgage fraud!
Is this to be a second home? This declaration represents that you intend to occupy the residence on occasion. If you have a property designated as a second home, but you have a tenant ready to lease the dwelling for the next 12 months you don't have a second home. You have an investment property. I can not tell you how many times I've had clients call, well coached, stating they want to purchase said property as a second home. It is not worth being guilty of mortgage fraud trying to save a little on rate. It is YOUR rate not the lenders you are trying to determine.
Is this investment property? You are going to have a larger down payment or equity position required and you are going to have a higher rate. Why? The latest statistics I have heard is that investment property has a 400% greater likelihood of going into default. Don't play games here! It is what it is. You may find a lender to play with you, just not me.
How many units are involved? This means is this a single family residence, a duplex, triples or quadruplex. Residential mortgage financing is limited to 1-4 unit properties. If the building that you own has more than four units you will need a commercial loan not a residential mortgage. If you are seeking financing for 2 or more detached dwellings you are applying for more than 1 loan. And yes, your rate will be determined by how many units you are financing.
If you are considering a refinance your lender will need to know how much you purchased the property for. How much do you presently owe on the property? It is helpful to also know what you think the property is worth today. A real wildcard in today's market. What is the purpose of the refinance? Are you just simply looking to reduce your rate or change your term (number of years)? Are you considering borrowing more than you presently owe, aka cash out? If so, what do you intend to do with the additional cash? Guess what, the answers to these questions will be factors in determining your rate.
Who is going to be on the deed or who is going to own this property. Some loan programs require that all owners also be on the loan and some do not.
Lastly, in this section what will be the source of your down payment and/or settlement charges? How do you plan to pay for any cash needed for closing?
Wow, I had now idea I would write this much about this little section.
Oh, it is also helpful to know if the property is something other than "stick built" like modular, manufactured log home, etc as this may impact your rate and terms
My mission is to provide residential mortgage lending services in Greenville, Pitt County and Eastern North Carolina. I am determined to deliver these services with openness, reliability and resourcefulness. The foundation of my activities accepts that I consider the needs of my customers and business partners ahead of mine. As a professional I strive to know more about my vocation than my competition, while enriching others.
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Jay Williams
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Integrity is the cornerstone of my business. I believe a mortgage should be about building relationships, and helping my costumers achieve their home financing goals, not just a transaction.
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