In order for me to do a better job assisting buyers when purchasing a house, I worked as a mortgage loan officer for three years; therefore I know the in and outs of the mortgage industry. I handled the loans from beginning to ending (origination to closing). I will share my knowledge with you before you meet with a mortgage loan officer and I am committed to educate you on your choices for the financing of your house.
Prior to start looking at houses, every home buyer should always meet with a mortgage loan officer in order to determine what sales price of house they qualify for. In the lending industry, this is called getting pre-qualified. The loan officer will meet with you to fill out a loan application, review your income, asset, debts, employment history, credit score, credit history, and debt to income ratio (DTI). You will be required to provide the loan officer with the following documents:
1. Two (2) most recent W-2 forms if employed or the last two (2) years tax returns if self employed
2. Two (2) months worth of pay stubs
3. Two (2) most recent bank statements for all checking & savings bank accounts, as well as any investments/retirement plans
4. Drive license and social security card for you and your spouse
After doing all these things, the loan officer will let you know if you qualified and for what sales price you qualified. After this process is done, buyers are welcome to go house hunting.
There are different type of mortgages. The most commons are: conventional, FHA, VA, Texas Vet, and USDA. Consider getting a fixed rate mortgage. A fixed rate mortgage is one where the interest rate stay the same until the loan is paid in full.
A first time home buyer is a person who has not own a house in the last three years. In many cases, the first time home buyer criteria is waived for veterans from the Armed Forces. The state of Texas has financial incentives for most first time home buyers. Some income and other criterias must be met. These incentives are: Texas First Time Homebuyer Program - Bond Progam 77 (4% of the loan amount for down payment and closing cost assistance), and Texas Mortgage Credit Program (a Mortgage Credit Certificate allows the you, the homebuyer, to claim a tax credit for some portion of the mortgage interest paid per year. It is a dollar for dollar reduction against your federal tax liability).
To learn more about the requirements, criterias, and details of these incentives, go to the following links:
TDHCA Texas First Time Homebuyer Program (Bond Program 77)
http://www.tdhca.state.tx.us/homeownership/fthb/down-payment-assistance.htm
Texas Mortgage Credit Program
http://www.tdhca.state.tx.us/homeownership/fthb/mort_cred_certificate.htm#whatismcc
If you have not talked to a mortgage loan officer yet, the following are three out of many mortgage companies you can contact. We do not have any afiliation with these lenders, but have experienced great service for our buyers. These loan officers are experienced and knowledgeable about the mortgage products available in the market. Feel free the contact them or any other lender.
Rod White, Premier Nationwide Lending, (915) 203-0919
Denice Herrera, Rocky Mountain Mortgage Corporation, (915) 791-4153
Pat Carmona, First Light Federal Credit Union, (915) 401-9169
If you have any questions about financing for the house to be purchased, feel free to contact your lender or contact us for guidance. We are here to share our knowledge with you. We look forward to hearing from you.
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