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Financing in The Woodlands : Real Estate Advice

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  • Home Buying40
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Activity 5
Sun May 31, 2015
Amanda Nicodemus answered:
Since you already have a mortgage, the bank (lender) cannot just add another $50,000 to your mortgage. You will actually have to apply for a home improvement loan with the same bank or another bank/lender. If you are using a contractor, they may offer you their in house financing. But be caution and make sure you understand all the terms of the loan. A lien will be placed on your property since your home/equity will be considered collateral. Good luck Linda! ... more
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Mon Nov 21, 2011
Heather Wright answered:
Hello
I never gave it that much thought. I bought my real estate car in June. Definatly talk to your cpa first. Good luck to your wife in the real estate world!
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Thu Nov 17, 2011
Shane Milne answered:
Will the $300/mo car payment prevent you from qualifying for the amount of mortgage you are seeking with the amount you intend to put down?

If the answer is "no", then it would not impact your mortgage because even if it does impact your score, when you take a term of 15-years or less, the credit score no longer impacts the type of interest rates you get when you are using conforming (Fannie Mae/Freddie Mac) financing - see https://www.efanniemae.com/sf/refmaterials/llpa/pdf/llpamatrix.pdf and notice that the adjustments are for loan terms greater than 15 years.

And financing something new usually does impact your score - because of the credit inquiry & having a new trade line report. New trade lines often hurt scores for a few months afterwards, then from that point forward the scores will increase at a higher rate than they did before because you will have one more positive payment reporting each month than you did before.

How do you know if your $300/mo car payment will prevent you from qualifying? You'd really need to speak with a mortgage professional to see, but in general for investment property financing you want to keep your total debt ratio to 43% or less - including your current housing expenses (you say you have 100% equity - own it free & clear? still have to include the property taxes/insurance though) and the proposed housing payment too. If you have a renter lined up (or already in the home), then that rental income can go towards qualifying if you use a Fannie Mae loan program (Freddie Mac requires a 2-year landlord history though, so if you are planning on using rental income to qualify and don't have that history, seek out lenders who can offer Fannie Mae loan programs)... in that situation 75% of the rental agreement amount goes towards offsetting it's housing expenses (any excess over the housing expense gets added to your qualifying income).
... more
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Sat Oct 25, 2008
B W answered:
One bit of advice is to ask the first lender that you allow to pull your credit to pre-agree to send you a copy of your credit report and then use that copy to send to other lenders that you want to compare rates with. If you choose a lender other than the one that pulled your original credit report, they will have to pull one of their own, but that will reduce the amount of credit checks to two rather than having several pulls when you shop around. If you want a recommendation, for a great mortage pro to buy a home in The Woodlands, email me. I do not make any money if you use my recommendation. ... more
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Thu Sep 20, 2007
Jill Wente answered:
Matt Kovach with Gibralter Mortgage Services. He can be reached at 281.580.7021 and Marilyn Causey with HomeTrust. She can be reached at 281.376.5000. Both of these companies originate their own loans. ... more
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