Credit Score in Louisville>Question Details

Michael Thac…, Real Estate Pro in Louisville, KY

Maybe our many great lenders in our market can help our buyers on Trulia. What three things can a "buyer" do BEFORE coming to see you?

Asked by Michael Thacker, Louisville, KY Wed Nov 13, 2013

Looking forward to seeing what is suggested because I think that the responses can help many to understand the process and the work involved.

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Answers

7
ryateslenders’ answer
I think talking to a lender is the first step as long as they are financially able to purchase a home. The credit scores on a mortgage credit report are completely different than a free consumer report they can get online, different algorithm used. We offer a service to help evaluate a home buyers potential for obtaining a loan. If we feel they have a chance to get approved then we refer them to one of the lenders we are partnered with. It's a pretty unique program, we've helped guide a lot of home buyers from start to finish. Check out our site..
2 votes Thank Flag Link Fri Nov 15, 2013
Hi Michael,

In a nut shell the three things we would like buyers to know understand and have ready to document is their credit, income and current debt status. Borrower should know that they can legally check their scores free once per year - Freecreditreport.com although this isn't the report we will use for them and the scores will not be accurate, it does give them an idea of what their credit history looks like and an opportunity to start getting erroneous info removed. Number 2 is income, borrower should have their paystubs, w-2's and tax return ready to discuss with their loan officer, it helps cut down a lot of time and makes qualifying a lot easier when borrowers understand what their income actually is. Finally, borrowers need to understand their debt levels. Current lending standards will only allow us to approve borrowers with a max 55% DEBT TO INCOME RATIO. Which means no more then 55% of their gross income can be allocated toward revolving, installment or mortgage debt.

I don't ask that borrowers know how to run these numbers or be able to qualify themselves, but a basic understanding of their own financial picture helps. The minimum they can do is have their info ready when they call. Hope that helps!
1 vote Thank Flag Link Wed Nov 13, 2013
Anthony,

Wow! All great answers!! I am sure that your response will be very helpful to readers here!

I wonder if there are other things that need to be considered?!

Michael

http://www.MichaelThackerRealtor.com
Flag Wed Nov 13, 2013
The following is a list of documents that may be required to process your mortgage loan:

One full month’s worth of pay stubs
Last 2 years W-2?s
Last 2 years tax returns
Last two months bank statements for all accounts

Joel Lobb
Senior Loan Officer
(NMLS#57916)

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

phone: (502) 905-3708
Fax: (502) 327-9119
kentuckyloan@gmail.com

Company ID #1364 | MB73346
http://mylouisvillekentuckymortgage.com/
0 votes Thank Flag Link Sat Feb 14, 2015
Navigating the world of mortgage financing for many prospective borrowers can be intimidating. The best they can do to be ready is to have their information together before they contact a mortgage professional. They will need their last two years full tax returns,W2 statements and a recent pay stub together. They will need the documentation from the asset account they will use for down payment. Once they have this information, contacting an experienced mortgage professional is the next step. This individual should guide them through the process and options. The prospective buyer should also understand that not all lenders have the same guidelines. While most lenders may have minimum credit score requirements of 640, financing is available for borrowers with scores as low as 560 in some circumstances. I've been able to approve many borrowers that have been denied elsewhere because of our experience and product depth. Please let me know if I can help in any way. Eddie Sexton 502-645-0102
0 votes Thank Flag Link Tue Nov 26, 2013
1. Gather the required paperwork and have it ready to fax or email
2. Have a general idea of what their credit is like and address anything that is negative
3. Determine what is most important to them in selecting a lender - are they strictly concerned with rate or do they value working with a true professional and experiencing a smooth closing with no surprises and are they willing to overlook 1/8% difference in rate to ensure this happens
0 votes Thank Flag Link Wed Nov 13, 2013
I can actually sum it up in one: Have your paperwork together. Every mortgage program now asks for the same basic items:

Most recent 30 days' paystubs
Last two years' w-2's with 1040 forms and federal schedules

Most recent two months' bank statements (and any other liquid assets).

It is also recommended to avoid any new purchases during the time of the application and try to keep from moving money around in accounts.

Pretty simple stuff, actually.
0 votes Thank Flag Link Wed Nov 13, 2013
All of the steps of buying a home are important, miss one and risk a nasty fall. I always toss out the first step is to find a Realtor they trust. Then have their agent introduce them to the loan officer they trust the most.

Yeah, I know Michael, that last sentence does not necessarily answer the question of what they should do before they meet with me, but it is what is best for buyer. It is important for the selling agent and the LO to have a strong relationship based on past experience which fosters trust. Let’s assume their agent sends them to me. The next step after the introduction is to gather ALL of the support documents needed to truly decision the loan. Most LO’s don’t bother asking for that in the PQ stage. That is why I estimate 30% of the “approved” buyers do not actually qualify for the loan they have applied for. Send the docs to the LO, then pull credit, run DU using basic loan parameters and then meet and review client’s goals. Only after doing all of that should a path, loan product and price be determined.

It is like taking a pile of pickup sticks and laying them in a straight line.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Wed Nov 13, 2013
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