It is definitely time to buy a house. But getting a mortgage can be
so stressful if you don't know what to expect.
Well, I used to work in mortgages. I was actually a manager
at one of the largest mortgage operations in the country. And I can tell
you all of the secrets so that you can get
it done. Let's go.
So, when it comes to mortgages there's three type of home loans --3 big
categories. Most people know about conventional. That
is your traditional loans if you have decent credit. And
those are backed by Fannie Mae and Freddie Mac.
Those are most mortgages for traditional home loans, okay?
The second category is government home loans, okay? So,
FHA type of loans. VA which stands for veteran administration.
USDA loans for like rural areas that are governed by the us department of
agriculture. And then of course FHA is for general
properties that are backed by the government through the federal housing
authority, okay? So, they're usually a little bit easier to get the government
loans but they're a little bit higher risk so
the government has decided to back those loans in order for lenders to
lend to people that probably make a little bit less than
other people or have situations where they can't put as
much money down. They consider those high risk.
And then the last category for mortgage loans
is subprime. Now, many years ago, subprime had a terrible reputation.
Many people paid very high interest rates. They got a lot of arms adjustable
rate mortgages. And a lot of people lost their
properties due to not understanding subprime mortgages and those high
interest rates that came with them. But we're talking about conventional loan.
So, I'm assuming now that you know all 3.
You are wanting a conventional loan, you have stable employment,
you have a regular w-2 job and that you want to buy
a home in a regular area, not a rural area. So, the first thing that you want to
do when getting approved and making sure that you get approved
quickly is before you apply at any of these lenders,
please check your credit first. Yes, I know there are lots of loan
officers and mortgage professionals that will tell you that they can pull your
credit for free. And that is true. Once you apply they can
pull your credit and review what's on your credit report
and assess that. But before you have them do that and before you get an
inquiry on your credit report, I strongly suggest
you pull your own credit, okay? There are websites like
Credit Karma and myfico.com. I actually recommend myfico.com
because they give you fico scores that are similar to what mortgage companies
use. And they can literally tell you what the score is or very similar model
of what the score will be on your mortgage credit report.
Because it is different than your regular credit report.
So, if you go to myfico.com, I literally have a link for you below
so that you can go use the link that's below in the description box
so that you can get a discount, okay? And you can check your credit scores, you can
see what's on your credit. And you can assess your credit situation
before you go to a mortgage professional that's going to pull your credit and put
an inquiry a hard inquiry on your credit report. You
want to see what's up there yourself so you know and there are no surprises
and no one can lie to you. The next smart thing that you want to do
when getting approved for a conventional home loan
is to find a lender that has multiple products and even maybe find a mortgage
broker that has multiple lenders that they
could submit your application to. If you have a credit score over like 680,
okay? Let's say you have a 680 fico score or higher,
you literally can go to almost any bank to get approved so long as your income
and employment is in line. So, you can go to the Bank of America,
you can go to the Wells Fargo you can go to a credit union, you can go to Navy
Federal, you can go to pretty much anywhere you want to if your credit
score is over 680 and your income and employment are in line. And very
traditional and cookie cutter where you have
pay stubs and W-2's. Now, if you find you're in a situation where your credit
score is lower than that or you have a situation where you're
self-employed or you've had gaps in your employment or gaps in your income or
things like that that may trip you up a little bit,
I strongly suggest you find a mortgage broker,
okay? A mortgage broker is not a mortgage lender.
They are a broker, they are a middleman who
finds lenders that will lend to you. They're usually affiliated
or have established relationships called wholesale relationships
with many, many lenders. And the benefit of finding a mortgage broker if you
don't have great credit is that they can have multiple options
for you. They can tell you about different programs
and different products at different lenders. Because even with conventional
financing, lenders have different guidelines. And
one of the things that I know big secret that i'm sharing with you is
many lenders add restrictions to their conventional
financing. Some of them for example you may look at
Fannie Mae's guidelines. And Fannie Mae may say, "Okay, if you have a 620 credit
score and this income we will lend to you." Or
maybe a larger bank like Bank of America or Wells Fargo.
They may add what they call layers. They add different
restrictions or different guidelines that they require
in order for you to get their conventional loan.
And so you may run into a situation where you need to go to a lender that
does not have those restrictions or doesn't have those caveats.
And if you go to a mortgage broker, that broker can tell you which lenders have
which restrictions, which ones are more lenient
and put you with the right lender for your situation.
It's amazing. So, getting a conventional mortgage is not as difficult as you
think. There are tons of people that are
willing to help you and walk you through the process.
Additionally there are lots of programs that are not advertised.
There's lots of programs that help you with your down payment. There's programs
that help you buy homes in certain areas. You can even buy properties with a
conventional loan and the property needs repairs, they will
lend you all of the money to buy the home
and fix the home through conventional programs, okay?
There are conventional lenders that have programs to help you rehab the house
so you can literally buy a home in a smarter way. So, do not think that you
cannot get a home that needs some repairs
because a lot of times if the home needs some repairs, you can fix it yourself
and you'll have equity in the property and you start off in a great situation
instead of buying a home and owning it and owing
exactly what the home is worth. If you can buy a home and you can get it
below market value, if it needs a little bit of repairs, they
will lend you the money to do those repairs
and then your home is worth more money and you still have that great mortgage.
So, there's tons of options out there. With conventional loans, you can do a
traditional one and buy a house that's already repaired and already fixed.
Or you can use one of those conventional rehab programs and check with your
lenders to see what those programs are because they have great
rates. So, hopefully you got a lot of value out of this video.
This is the perfect time to be buying a home. There's tons of mortgage programs
out there. They want people buying homes and
they're creating more and more programs and products
to make it easier for you to get homes. There's people that are losing their
homes and they want to make sure that they're
giving out money to people that can pay and make those mortgages right. So, please
watch all of the videos in this playlist. I've made tons of
content just for you with free valuable information so that
you have all of the tools, all of the resources,
all of this knowledge and skills that you need
to be successful. This is Noelle. To your success.