The Simple, Efficient, Stress-Free Lender So You Can Smile At Night, Guaranteed.(sm)
If you know you're ready to refinance or purchase, skip to the next step.
Otherwise, we are here to help you navigate this process and provide the information you may need to make an informed decision..
I originate loans for a variety of lenders. I'm not captive to any particular lender. I offer choice. Therefore, I'm in the the best position to find a lender offering you the best rate, terms and fees for your unique situation. You come first.
This is a deliberate process. It really isn't that complex. Here are some pointers.
Mental Readiness: Like any major decision you want to be sure you really want to do this. If there is some doubt, wait until you and your family are comfortable with moving forward.
Credit Report: Take a look at your credit report to correct any errors. While the score you get from free credit services will not be the same as the Home Loan Credit Report, this will give you an idea where you stand. Your credit report and score is a major factor which determines the cost of your loan.(What Is In Your Score)
Bank Accounts: Lenders will look at your bank account. Be ready to explain transactions over $500 for the past two months.
Tax Returns: Most lenders will require the past two tax returns. Make sure they are filed and if you owe taxes make sure you have started a payment plan.
Before You Close: It's usually best to delay any major purchases until after you close your loan. This is for two reasons. You may need to show the lender extra cash reserves in order to close. Some lenders may want an explanation for purchases over $500. If you're planning any changes to your income source such as starting a new job or starting your own business, it's best to do so after your loan closes.
Get a rough idea of your situation so you can run the numbers in the next step.
Lenders typically evaluate the 5 Cs of credit.
Capacity: How much disposaable income do you have to service loan payments? They typically consider monthly debt payments versus your regular monthly income. The lower your DEBT to INCOME (DTI) ratio the better. If your income is irregular or self-generating they typically use a two year monthly average. Find your past two W2, 1099, tax return and past 2 months bank statements.
Capital: How much skin do you have in the game? The more you have invested the better. They typically look at the appraised value of the property versus the loan amount. The lower the Loan to Value (LTV) ratio the better. The acceptable LTV will depend on your income circumstance and veteran status. Lenders will order their own appraisal and you foot the bill. Two months of bank statements will indicate how much extra cash you have available. The more cash the better.
Collateral: Lenders want to know how they will protect themselves if you don't pay in the future. Your property is your collateral. However, the acceptable type and condition varies with lenders.
Character: Lenders decide whether they trust you to meet your loan obligations. This is typically based heavily on your credit history and score. Your credit report should demonstrate responsible use of credit.
Conditions: Lenders will consider the purpose of your loan. Is this a refinancing with cash out, a purchase or a renovation project?
Comfort: At the end of the day both you and the lender must feel comfortable with your overall presentation and the lender's offer to help. They draft their policies and procedures in line with federal and state regulations to protect you, the consumer, and maintain trust and comfort with the home loan process.
What are other lenders offering? This is not an exhaustive list of all lenders in your area but it will give you a good idea of the competition.
I Match Or Best any Rate, Fees And/Or Terms you find here.
Provide your information. Please accurately estimate your credit score or also complete the next step to generate a credit report.
We will provide a Loan Estimate. With an actual credit report we will provide a more accurate Loan Estimate.
There is no obligation to proceed with us.
Please compare Loan Estimates, not verbal estimates, since the estimate must disclose all fees and charges related to your home loan. They are binding on the lender, not you.
Not all credit reports are the same. Use a free service such as Credit Karma to assess and improve your credit profile if necessary. When you're ready order your home loan credit report.
We will send you a link to securely upload documents for all borrowers. Or, you may fax them securely to 323-313-0919. Please include a cover page with your name, contact phone number and email. My team will return via email an estimate of your home loan and required disclosures.
Equal Housing Opportunity Lender
We conduct business in accordance with the Federal Fair Housing Law (Fair Housing Amendments Act of 1988). It is illegal to discriminate against any person because of race, color, religion, sex, handicap, familial status, or national origin: In the sale or rental of housing In advertising the sale or rental of housing In the financing of housing In the provision of real estate brokerage service In the appraisal of housing Blockbusting is also illegal Anyone who feels he or she has been discriminated against may file a complaint of housing discrimination: 1-800-669-9777 (toll free), or 1-800-927-9275 (tdd), U.S. Department of Housing and Urban Development Assistant Secretary for Fair Housing and Equal Opportunity, Washington DC 20410.
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This site is maintained by utvn llc who may benefit directly from affiliate marketing links displayed on this site (Lexington Law). Merit Lending LLC is not affilliated with and does not benefit from utvn llc. Michael Paul Smith, MBA is an owner of utvn llc.