Financing in Bakersfield>Question Details

Gayle, Home Buyer in Bakersfield, CA

My husband and I want to buy in Nov. In the meantime I've secured a Certificate of Elgibility from the VA. What's next ?

Asked by Gayle, Bakersfield, CA Sun Jun 16, 2013

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Yes these posts are all correct.

Dee Oliver is making a great point. The best deals out there right now tend to be the short sales, that is becuase the buyers are not going to get any money out of it anyway and so it does not matter what they sell for.Short sales are quickly going going away as prices are going up and it takes months to to get the full approval. It is worth the effort as you could save 20-40 thousand in the Bakersfield market going that way.

Valerie is also correct, you need to be preapproved. To answer your question, we go off of the gross amount, but VA takes it a step further, they look at something called "Residual Income." which is the income left after you pay your set bills, and is calculated on a number of factors such as your family size.

Besides the C of E we want the DD214 "assuming you have been discharged" and then just the normal items we have on any mortgage. Just a few more forms, the sellers will need to sign a form saying they know they can not keep even a dime of your ernest money. Probalby best not to mention too soon.

When you say you have a 401 loan, I am assuming that is a 401 K? Becuase it has less than a year to go we will not count that against you. You do not need to put any money down on a VA loan. Many people put only a dollar down as a good faith deposit, I recomend putting down more ernest money if you can, though it is not required. It just makes your offer seem stronger. They can't keep it anyway, but the sellers feel better.

Anyway, I do not know if it is a trend, but interest rates have been going up and home prices have been going up too. Waiting to November many not be the best idea, if you can avoid it. But really no one knows what will happen, it appears to be forming a trend.

The point is that you may not need to wait, and it does not seem like it would be a good idea to do so if you do not have to.

Anyway, if you would like I could get you pre-approved, there is not obligarion or cost for doing so, ny phone number is 949-930-1210.
0 votes Thank Flag Link Mon Jun 17, 2013
Gayle, the lender will go much more than just income. They will look at debt to income ratio and credit scores. Also, there is a certain amount of money you need to have in reserves... it is best to meet with someone sooner rather than later so you are well informed. The more information you have, the better prepared you will be!
Call Cherie Bowen with Academy Mortgage, she is wonderful at walking people through the process. Her number is 661-343-1068.
Thanks,
Valerie
0 votes Thank Flag Link Sun Jun 16, 2013
Gayle, Home Buyer in Bakersfield, CA
We have a 401 Loan that's up in nov. that's why we want to buy then. If we go get pre approved do they go by your annual gross or net? My husband makes 45k a year. The only pmt we have is a car.
A moment ago - [x] delete
0 votes Thank Flag Link Sun Jun 16, 2013
Gayle,
Have you met with a lender to get your finances in place? I would suggest doing that so you know what you need to get that ever-so-important pre-approval letter that needs to accompany any offers you write up. When you meet with a lender, you not only find out what you can buy but you find out what you WANT to buy. You can discuss how much you will need for closing costs, what your monthly payments are for different price ranges and then you are much more prepared to begin your home search.
If you do not have a lender in mind to work with, I would be happy to give you the contact information for the lender I do a lot of work with--- she is one of the best!
Once you meet with a lender and get your financing in place, it will be time to contact a Realtor to help you start your search. I suggest doing that a few months before you plan on buying because the market is so competitive, you will get familiar with what is on the market and how quickly they go! You should get out there and see a few homes in order to zero in on your "must haves" and narrow down the location you want to buy within.
Good luck!!! If you don't have a Realtor already, feel free to contact me and I'll be more than happy to help you find your home when the time is right!!

Thanks,
Valerie
0 votes Thank Flag Link Sun Jun 16, 2013
Give me a call and I will put you in touch with a lender who can walk you thru the process. Also, do you want to close escrow in November or start looking in November? Do you want to take advantage of short sale homes? If you do, they can take 4 to 6 months, maybe more depending on whether there is a first and 2nd trust deed loan on the property. There are quite a few things we need to discuss. Feel free to call me at any time. DEE OLIVER REALTOR - MIRAMAR 661-747-7763.
0 votes Thank Flag Link Sun Jun 16, 2013
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