This forum post is about the life and career of the most corrupt politician in the history of the United States. It is the first of a two part series.

https://youtu.be/rejpzjsVb_0?si=v9uYlYpLhPBcs1P3

What are lender overlays by mortgage companies. What is the differences between a conventional loan and government-backed mortgage loans. What does it mean if a mortgage loan is backed by the government. Are conventional loans backed by the government? What are common lender overlays on FHA, VA, USDA, and Conventional loans.

https://www.youtube.com/watch?v=0bJLSrNiqyE

Mobile home parks are great investments and are becoming increasingly popular and profitable. Who finances Mobile Home Parks and how do you qualify. What are the financing guidelines of Mobile Home Parks

What are the benefits of getting pre-approved when house hunting?

I have been a customer of Marine Credit Union since 2020. The reason I am a loyal customer of Marine Credit Union is because of personal banker Troy Fredrick. Troy is one of the most hard working banking professionals I have met and will not tell you what you want to hear but the facts. The answer you will get from Mr. Troy Fredrick is never a NO. It’s not if you will get a loan but WHEN. He will recommend a game plan for you to either enhance your credit profile or if it is something Marine Credit Union cannot do, Mr. Fredrick will open up potential avenues for his borrowers may explore. Troy always acts for the benefit of his clients and never steers his clients in a direction where he sees any potential harm. Troy Fredrick always goes above and beyond and I have witnessed him work diligently on a $1,000 Credit Rebuilder loan the Same diligent way he does a $20,000 loan. As a national manager of a national mortgage company licensed in 48 states including Washington DC, Puerto Rico and the U.S Virgin Islands, I use Troy Fredrick as a inspiration and role model to all my support and licensed personnel. I am a firm believer that it’s the people that make a great company and institution. There is a reason why Marine Credit Union is a leader in its field with a reputation for being the best of the best financial institution. Answer is a no Brainer. Troy Fredrick. Thank you Troy Fredrick for being you. You are not taken for granted and appreciated for everything you do for me and my family. Professionals like Troy Fredrick are the true silent heroes in life. Humble, honest, and transparent. Five plus stars. Like to thank upper management of Marine Credit Union for having platinum professionals like Troy Fredrick representing your awesome financial institution. God Bless. Marine Credit Union offers auto loans, RV loans, second mortgages, lines of credit, and most importantly, a great credit rebuilder program for people who need to rebuild and establish their credit. Contact Troy Frederick if you need the services of a great credit union at troy.frederick@marinecu.com

Here is the link for Marine Credit Union

https://www.marinecu.com/

marinecu.com

Marine Credit Union

At Marine Credit Union, we believe every member of the community can achieve the goal of financial ownership and giving back.

https://www.youtube.com/watch?v=BzjnRYvtw20

The Old Man and the Chair

Every month or so I visit my ailing uncle in a nursing home on Long Island. He is the last living sibling of my mother. Alfonso is 91 years old, his memory is intact, but his body is failing. Just ask the nurses about Zio, he a regular Don Juan. His greatest joy when I visit is to wheel him out on the patio for fresh air, we reminisce about our family which are long gone, he asks of my children, but can’t remember their names, all is good with Zio Alfonso, I was named after him, my name is Al.

Every time we take the fresh air I notice an old man sitting off by himself in a make shaft rocking chair. He sits under this canapé, well not exactly, it is an old canvas tarp riddled with holes, and stares directly at the sky. The wind blows and the canapé flaps, I would find this mostly annoying having the wind in my face. The old man sits an stares for hours with a look of serenity on his face. His face is weathered like that of a man who worked outdoors, his hands were large and strong, they are calloused. His neck is broad and leather wore from direct sun. He appears to be about 90, when I ask my uncle about him, my uncle turns and says in his broken English, “pay no attention to him, he is an old fool, just sits and stares, and one comes to visit him.” My uncle lacked social skills and always had an opinion on everything. However, I paid the old man no mind as suggested.

Month after month I visit my uncle and see the old man, finally I had to ask the old man why he sits and stares. One day after visiting my uncle, who was nearing the end of his life, I got the nerve to ask him. I asked, “ why do you sit there old man?” He answered, “ this is my life now as I am an old man with no family, I sit and remember the past.” “Do you have any children, I queried?” “No,” replied the old man, “never had any, I was away from home most of my life and never settled down,” I thought how awful for the old man, alone and old. The old man said,” I am most content sitting and staring at the sky, I lost most of my eye sight some years ago from diabetes.”

I was intrigued, “ what was your occupation?” “I was a sailor,” he answered. “My home is the sea.” He went on and added, “ I joined the Navy at 16, fought in WWII, been sailing ever since.” Wow, I thought to myself, this guy is a living history book. “I long for the sea, the salt air, the wind that caressing my face, the burning of the sun on my neck, and the singing of whales.” “When was the last time you sailed?” The old man let go with a hardy laugh, some what similar to an old pirate. “ Argh, ha, ha, ha, its been maybe thirty years since I’ve sailed a schooner.” Now I’m thinking, a schooner is a small two masted boat. “Now, I just sit and feel the wind and listen to the flapping of the canapé, reminds me of the sails.” I said good bye and promised him when I returned to visit my uncle I would stop by and say hello.

The next month’s visit was saddened by the passing of my beloved Zio Alfonso. He had lived a long wonderful life, I soon realized that he was the last of the Italian immigrants arriving at Ellis Island over eighty years ago. I sat on the patio where I would wheel my uncle, I sat and stared, looking through the old man in the chair. When suddenly, someone yelled, “ hey, kid, I’m sorry about your uncle, come sit with me a while.” The old man in the chair sensed I was near.

“Why, thank you sir, he was the last of the elders.”

My Zio had left an inheritance for me, nothing big, I was his only close relative. Ten thousand dollars and a note that read, “ do something good for someone, or do someone something good.” He spoke in Yogi Berra-isms.

Never making sense at first, but eventually there were words of wisdom. I sat with the old man for an hour where I would sit with my Zio, on the back patio of the nursing home. The old man and I sat for hours never saying a word. When he suddenly said, “ would you please come see me time to time?” How could I possibly say no, he was lonely and I was still mourning my Zio. I reposted, “Certainly, maybe not every month but I will come visit with you, is there anything you need?” The old man though for a moment and said, “just a visit now and then.”

A month went by and I didn’t visit, I was feeling guilty, so the next Saturday I drove to the nursing home it was at the end of Long Island, Montauk. “Do something good for someone,” my Zio’s words resonated in my head. I had to make one stop before I visited the old man. When I arrived he was happy to see me and said, “ thanks for coming, I feel my end is near, it hasn’t been a good weak for me.” I spoke to the nurse, he was depressed and lonely. I asked the nurse if he could travel, she responded, “ only short distances with an aide.” Would he be able to take a quick ride over to the Montauk pier?” The nurse said as long as she went along.

The three of us hopped into one of the nursing homes’s van with the nurse driving.” Where are we going?”she questioned me. “Just to the pier as I winked my eye.” The old man was thrilled to be out and about. We pulled up the pier and we walked to the end, the old man knew he was close to the ocean as he inhaled deeply and sighed. I had rented a schooner for the day,” do something good for someone.” Yogi again in my head. I wheeled him to the bow and sat him in a fishing chair. As we slowly pulled away from the pier I could see the joy on his face. He finally had the wind in his sails, the sun on his neck and the seagulls were serenading him with the flapping of the sails. He quietly cried tears of joy.

When the sailing trip was done he thanked me for the wonderful memory and I promised to visit next month. The next month’s visit was my last, the old man passed away. The nursing staff said they had never seen him so happy during the last month. Before his cremation was scheduled I called the State Department to let them know of his passing. They said the Navy will depose of the his body. Three days later the United States Navy showed up with an entire fleet of sailors. He had been one of the last survivors of the USS Arizona in Pearl Harbor.

The old man in the chair was given a full naval funeral with a burial at sea in Pearl Harbor, where he now rests with his shipmates.

How is life in the Philippines. How is it like to raise a family. How is the economy? How is the cost of living in the Philippines, cost of housing, job opportunities, education, room for advancement, weather, tourism, culture, demographics, and political and government system.

How are the housing prices and cost of living in Utah? What are the average home prices in Utah? What are home prices in Utah compared to other states in the nation? Have home prices in Utah skyrocketed like other states? Are people priced out of the housing market in Utah like they are priced out of the housing market in California? Is buying a house in Utah a good investment?

Can someone please explain what it means when a lender or finance company does a FORCE PLACED INSURANCE on the borrower? What does FORCE PLACE INSURANCE MEAN? HOW DOES FORCE PLACE INSURANCE WORK? WHAT IS THE PROCESS OF FORCE PLACED INSURANCE? HOW MUCH IS THE PREMIUM OF FORCED PLACED INSURANCE? DOES THE LENDER GET A KICK BACK ON FORCE PLACED INSURANCE FROM THE INSURANCE COMPANY?

An “asset depletion mortgage loan” is a type of mortgage that is designed for borrowers who have significant assets but may not have a traditional source of income, such as a regular job or salary. These loans are sometimes used by retirees or self-employed individuals who have substantial savings and investments but may not meet the standard income requirements for a traditional mortgage.

In an asset-depletion mortgage loan, the lender considers the borrower’s assets, such as cash, stocks, bonds, retirement accounts, and other investments, as a source of income to qualify for the mortgage. The lender calculates the borrower’s monthly income by depleting or drawing down on their assets over a specified period, often 3-5 years. This calculated income is then used to determine the borrower’s ability to make mortgage payments.

It’s essential to note that asset depletion loans typically come with higher interest rates than traditional mortgages because lenders consider them riskier. Borrowers should carefully consider the terms and conditions of such loans and be aware of the potential risks and costs involved.

These types of loans can be complex, and eligibility requirements may vary from lender to lender. Borrowers interested in asset depletion mortgage loans should work closely with a qualified mortgage professional to understand the specific criteria, terms, and options available to them.

https://www.youtube.com/watch?v=wcegWjnPm3k

FHA (Federal Housing Administration) loans are a type of mortgage loan program offered by the U.S. Department of Housing and Urban Development (HUD). These loans are designed to make homeownership more accessible to a broader range of people, particularly those with lower credit scores or a smaller down payment.

Regarding two to four-unit multi-family properties, FHA offers a specific type of loan program known as the FHA Multi-Family Loan or FHA 2-4 Unit Loan. Here are some key points about FHA loans for multi-family properties:

1. Property Eligibility: FHA 2-4 Unit Loans are designed for multi-family properties with 2 to 4 separate housing units. This can include duplexes, triplexes, and fourplexes. The borrower must also live in one of the units as their primary residence.

2. Down Payment: One of the advantages of FHA loans is that they typically require a lower down payment compared to conventional loans. As of my last knowledge update in November 2023, the minimum down payment for an FHA loan is 3.5% of the purchase price. This means you can potentially purchase a multi-family property with a relatively small down payment.

3. Loan Limits: FHA loan limits vary by location and are subject to change annually. The loan amount you can qualify for depends on the county where the property is located.

4. Credit Requirements: FHA loans are more lenient when it comes to credit requirements compared to conventional loans. However, borrowers are still required to have a reasonably good credit history.

5. Mortgage Insurance: FHA loans require mortgage insurance premiums (MIP) to protect the lender in case of default. There is an upfront MIP payment, which can be financed into the loan, as well as annual MIP payments.

6. Owner-Occupancy: One of the key requirements for an FHA multi-family loan is that the borrower must live in one of the units as their primary residence. This is known as owner-occupancy and is intended to encourage homeownership.

7. Property Condition: The property must meet certain FHA minimum property standards, which means it should be in good condition and meet safety and habitability requirements.

8. Rental Income: If you’re purchasing a multi-family property with FHA financing, you can use the expected rental income from the additional units to help qualify for the loan.

It’s important to note that loan programs and guidelines can change over time, so I recommend contacting an FHA-approved lender or a mortgage broker for the most up-to-date information and discussing your specific situation if you want to obtain an FHA loan for a multi-family property. Additionally, rules and regulations may have evolved since my last knowledge update in November 2023, so verifying the current requirements is important.

Here is breaking news about the Biden Crime Family and Big Mike Obama

Anthony Spilotro also known as Tony Spilotro was a ruthless Chicago Mobster. He rose up the ranks of the Chicago Mob Family

https://youtu.be/eD3qYR6aa18?si=aiqVaKsduMRCkZcf

James O’Keefe an undercover journalist and former President of Project Veritas went on a date with a gay senior White House Cyber Security Executive Advisor confirming Dementia Joe Biden does have Dementia and is Senile. Also mentioned is Kamala Harris is not liked and not respected by staff members and senior White House advisors

https://youtu.be/UfAvM7c4Jz0?si=IES5sHCVpkDPrg7O

Utah requires 15 NMLS hours to get a mortgage loan originator license. This extra 15 hours of NMLS CE is a one-time deal besides the 20-hour NMLS CE course required for loan officers. If you want to be a manager because you have a branch office or a mortgage company, you need to take an additional 40 hours of NMLS CE course and take a state Principal Lending Manager (PLM) four-hour PLM exam. The exam is for the state of Utah DRE/DFI and is over 200 questions. The issue is getting study materials with practice exams for the Utah Principal Lending Manager license is very difficult. I had to take the 40-hour UTAH PLM course two times because the class is only good for one year. I failed the Utah Principal Lending Manager license twice and I am scheduled to take the third time on Monday July 24th, 2023. I will keep you all posted.

Non-QM late payment guidelines are set by individual wholesale lenders. Non-QM loans are portfolio loans and do not have uniform standardized agency mortgage guidelines like qualified mortgages. One non-QM lender can have a certain guidelines while a different lender will not. Only a few wholesale lenders will do non-qm loans for late mortgage payments in the past 12 months. In this FORUM, we will cover non-QM late payment guidelines by non-QM portfolio wholesale lenders.

Conventional loans have water test requirements. Who knows what those requirements are? Does every home need a water test? What does the coventional loan water test cost?

A tree grows not just in Brooklyn but also in New Jersey. I’m nothing special, just a 60-year-old apple tree in Northern New Jersey, yes, the Garden State. The owner of the house planted me in memory of his dad, who was an apple farmer. My Golden Delicious apples are wonderful! Local folks know of my history and travel each fall to pick my beautiful orbs of sunshine.

Cider, apple pie, you name it, I can make it. I came up from a seed, just like my parents and grandparents. My great-grandfather led the way back in the 1930s. He and his siblings had the only producing orchard during the Great Depression. They were generous with their fruit as they gave to anyone who was hungry, not like that Wizard of Oz apple tree, grumpy and cheap. They fed everyone! I was planted as a reminder of when times were difficult.

Back in those days, the highlight of the week’s work was topped off by a fresh apple pie for Sunday dinner. When I was a lad, a seedling, too young to produce a crop, I was the playground for the kids in the neighborhood. As I aged, they would climb me, tie old rubber tires from my branches and make swings. I was loved and cherished. I can’t begin to tell you the satisfaction I had watching these kids grow up. Youth was innocent. Although dirt-poor, the joys of a simple existence may be gone in today’s culture. The anticipation all week of a hot fresh apple pie gave hope on Sunday as much as going to church.

At one time, the owner’s dad had a huge orchard, but as years went on during the Depression, he lost much of it. Bank foreclosures, unable to hire workers or till the land himself, his farm shrunk, and worries of feeding his family grew overwhelmingly. When the owner’s son planted me was no longer a farmer, he became a builder, swearing never to farm for a living after seeing what his dad experienced. However, I was planted as a symbol as to not to forget.

As the years ticked away, and I was a sapling nearing the juvenile stage of my life, I gave shade for summer picnics. I also gave shelter from the storms and allowed all birds to nest in my branches and give birth to new life. My roots never faltered, and I stored water when It rained.

My crop increased every year, and soon I was producing more apples than any other apple tree. I was a great landlord, never evicting anyone. They could come and go as they pleased. Sooner or later, most would return with their families and tell of my wonderful living conditions.

Soon after my sapling period, I’m not sure when though, kids started carving their names on my trunk. I hated this, destroying my beautiful bark with crude initials. The owner’s five-year-old daughter was the first to etch into me with her initials, DM. She was barely a sapling herself when she borrowed her older brother’s pocket knife. Boy, did she get a whooping! Her DM was carved so low on my trunk that it was hardly one foot above the ground. At first, I despised this, but in time I grew fond of the daughter and felt almost honored for her to “tag” me.

I aged quite nicely during my adult years, and each year my harvest increased, and suddenly I saw an increase in carved initials. DM’s etching led the way for many other kids. DM was now three feet above the ground, and below her were her four siblings and neighboring children.

My adult years were very fruitful, but old age is rapidly approaching. I turned 50 last spring, and I am showing signs of decline. I am considered an elderly tree. My apple crop, although tasty, is less and less each year. DM’s initials are now twelve feet above the ground, and she is nearing 50 years old. The owner who planted me passed away last summer, and I am beginning to feel useless. DM’s youngest brother is 35; PA tagged me when he was 10. He is a builder just like his dad. He now owns the house that has been passed on through the generations. I am now in the autumn of my years and reaching the snag phase of a tree; I’m near death.

He wants to replant the orchard! Wow! I didn’t see that coming, but he wants to chop me down! I do not understand why? The day has come, and I am being razed. It doesn’t seem to hurt. The owner chops me down, but my roots are saved. My root bulbs will be planted throughout the new orchard; I will live longer and prosper once again.

When they cut me down, they were extremely careful not to disturb the first 12 feet of bark. The bark was gently removed, planed, and sanded down. The 20 or so initials carved into my bark created a bench. Every child’s initials since 1950 can be seen on the backing off the bench.

An engraved metal plaque also reads, “You were there when we needed you, and your roots are now our future.”

There are a lot of scums of this Earth people in existence today. There are selfish people, liars, thieves, and people with no morals who are willing to take advantage of you any chance they can. However, the world 🌎 is not all bad. There are kind people who are not selfish with a good heart. Here’s a short video clip about generosity and kind hearted ♥️ people:

https://www.facebook.com/share/v/qyV4z4c42VZEPafk/?mibextid=Ls6BEq

• This discussion was modified 7 months ago by  Gustan Cho.

Climate change refers to long-term shifts and alterations in temperature and weather patterns, primarily driven by human activities. These changes can manifest over decades to millions of years and can result from natural factors as well. However, the current trend of climate change is largely attributed to anthropogenic factors. Here’s a detailed overview:

Causes of Climate Change

1. Greenhouse Gas Emissions:

   • Carbon Dioxide (CO2): Released from burning fossil fuels (coal, oil, natural gas), deforestation, and various industrial processes.
   • Methane (CH4): Emitted during the production and transport of coal, oil, and natural gas, as well as from livestock and other agricultural practices.
   • Nitrous Oxide (N2O): Released from agricultural and industrial activities, as well as during fossil fuel combustion.
   • Fluorinated Gases: Synthetic gases used in various industrial applications.

2. Deforestation:

   • Trees absorb CO2, and when they are cut down or burned, the carbon stored in them is released into the atmosphere.

3. Industrial Activities:

   • Emissions from manufacturing and energy production contribute significantly to the accumulation of greenhouse gases in the atmosphere.

Effects of Climate Change

1. Temperature Increases:

   • The Earth’s average surface temperature has risen, leading to more frequent and intense heatwaves.

2. Melting Ice and Rising Sea Levels:

   • Polar ice caps and glaciers are melting, contributing to rising sea levels.
   • This poses a threat to coastal communities through increased flooding and erosion.

3. Extreme Weather Events:

   • Increased frequency and severity of storms, hurricanes, and typhoons.
   • More intense and prolonged droughts and floods.

4. Impact on Ecosystems and Biodiversity:

   • Species migration and changes in the distribution of wildlife.
   • Increased risk of extinction for many species unable to adapt to changing conditions.

5. Ocean Acidification:

   • Increased CO2 absorption by oceans, leading to a decrease in pH levels, which affects marine life, particularly coral reefs.

Mitigation and Adaptation

1. Mitigation:

   • Reducing Emissions: Transitioning to renewable energy sources like wind, solar, and hydroelectric power.
   • Energy Efficiency: Enhancing energy efficiency in buildings, vehicles, and industries.
   • Carbon Sequestration: Planting trees and employing technologies to capture and store CO2.

2. Adaptation:

   • Infrastructure Resilience: Building infrastructure to withstand extreme weather events.
   • Water Management: Developing strategies to cope with changes in water availability.
   • Agricultural Practices: Adapting farming techniques to new climate realities.

Global Efforts and Agreements

1. Paris Agreement:

   • An international treaty aiming to limit global warming to below 2 degrees Celsius above pre-industrial levels, with efforts to limit the increase to 1.5 degrees Celsius.

2. United Nations Framework Convention on Climate Change (UNFCCC):

   • An international environmental treaty established to address climate change and its impacts.

• This discussion was modified 7 months, 3 weeks ago by  Gustan Cho.

Want to thank my dear friend @TriciaJ Tricia James our favorite preferred wholesale Mortgage Lender who has brought it to my attention of Animal Care LA County Shelter who are overwhelmed with dogs and cats in desperate need of foster care and permanent forever homes. I think this great organization needs help I am all in

https://www.facebook.com/share/p/jVxynCH7FFk7BUS9/?mibextid=oFDknk

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https://www.youtube.com/watch?v=oEmWLVJZKgM

Original Article:

https://www.mortgagesensei.co/blog/how-to-get-a-mortgage-as-a-first-time-home-buyer

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This is a common question that I answer all the time. It’s easy to explain but may be difficult to execute. No worries! I’m going to lay it all out in the simplest and easiest way possible. At the end of this blog, you will know what financial areas you should focus your attention on as a first time home buyer

Understanding the 5 Pillars of a home loan will help you identify the financial factors that a lender evaluates to determine if you’re eligible for a home loan. In this article, we’re going to focus solely on what it takes for you to become a well-qualified borrower. If you simply focus on that and develop good financial habits, you will soon find yourself in a position to not just be able to qualify for a home loan, but to be considered a well-qualified borrower in the eyes of lenders, realtors, sellers, or anyone else involved in the home buying process. Take your time to read through this, and feel free to reach out to me here for any assistance that you may have.

What credit score do you need to buy a house for the first time?

Depending on your selected home loan program, you could qualify for a home loan with as low as a 500 FICO credit score. However, let’s not worry about “how low of a credit score can I have and still qualify for a home loan?” and focus instead on “what do I need to financially focus on daily?” With that being said, I recommend focusing on the FICO factors that impact your credit the most. Using myFICO Education as a guide:

Payment History (35%): This is simple to understand—don’t miss any minimum monthly payments for ANY of your credit accounts. A lot of people, when they read this, will say, “No duh, Sensei!”. Well, if it’s that obvious, why are so many people missing the mark here? There are many reasons, but I’ll list two:

1. Over-extending your credit/spending capacity, and
2. Limited amount of emergency/reserve funds.

Did you know that you only need a TOTAL of 3-4 credit accounts aged for 2+ years and properly managed to get a 700+ FICO score! Keeping your total credit accounts under 5 will help you in managing your credit accounts to ensure nothing falls through the cracks. Here’s my recommended financial habits to help you in raising your credit score:

1. Frugal spending habits: “How much you keep is slightly more important than how much you bring in”. One of my favorite books is “The Richest Man in Babylon”. The concept is pretty simple: “Priority saving and investing over any other spending choices”.
2. Fanatical saving: One of the main reasons people credit suffers is through some kind of financial hardship whether that’s unexpected medical expenses, job loss, or something that tends to be outside of your control. Having enough savings to weather the storm for months or even years, will give you a large enough financial safety net to make it through recessions, rapid inflation, unexpected expenses, etc.

Amounts Owed/Credit Utilization (30%): Our areas of focus are:

1. Revolving: “how much of your credit limit is drawn and owed.”
2. Installments: “how much of the credit debt is still owed compared to your starting amount.”

Developing frugal spending habits will greatly help you in keeping your credit utilization low. I understand that emergencies come up and you have to use your credit cards, but the truth of the matter is that FICO doesn’t care about your emergencies, or why your credit cards are maxed out. They only care that your credit card is maxed out. If you cannot quickly pay down your credit card balance under 10%-30% of the credit limit within 30 days of charging it, then you probably should not charge the product/service to your credit card.

Negative Status: Collections, charge-offs, repossessions, bankruptcies, foreclosures, Late payments within 2-years, etc. You can do everything right, and getting one of these can set you back overnight. All of these derogatory events result from some negative financial event that occurred, whether unintentional or intentional, the results will be the same. For those who have been victims of identity theft, you know from experience that creditors don’t care that your identity was stolen and a criminal damaged your credit. All they’re going to tell you is “take responsibility in fixing your credit.” Working towards preventing these negative financial events from reporting on your credit or removing them from your credit is your third focus. If you need help, reach out to Kredit Kleanse for expert credit repair assistance, or schedule time to start your home loan qualification process by clicking here.

How much income do I need to buy a home?

After the 2008 housing crash, our government implemented S.A.F.E. requirements for lenders to do their due diligence to ensure that the borrower is protected from predatory lending. One of the main focuses was on DTI (Debt-to-Income ratio). For the sake of this blog, I’m only going to focus on two aspects of DTI that are more relevant to this article:

Total Income: In this case, the borrower simply doesn’t make enough to afford the home regardless of how little debt they may have. For instance, the borrower earns $100,000 per year for income and wants to purchase a $1,000,000 home. Those numbers, in most cases, won’t work. Here’s my personal calculation: whatever your “total annual income” multiplied by 3x-4x should put you in the range of a home you can afford AND still enjoy life/save/invest/etc. This is not stating what you will qualify for, but simply a measuring equation to see if you are in the ballpark. Please note that (1) your area could be more or less expensive, (2) current interest rates, and (3) the lender you choose WILL affect your final qualification. The best course of action here is to either:

1. Increase your qualifying income: This is VERY tough conversation to have, and honestly the part of the job that never sits quite right with me. But truth is truth regardless of how I feel about it. Ways to increase your income are:
   1. Ask for a raise
   2. Go for that promotion
   3. Create passive income
   4. Start a business/side hustle (you’ll need a 2-year history of having that business)
   5. Get a 2nd job (you’ll need a 2-year history of working both jobs)
   6. Add a co-borrower/signer
   7. Obtain a higher paying job
2. Reduce your housing price if possible: I’ve helped people that simply weren’t able to increase their income, maybe because they are retired on fixed income, can’t change jobs due to their needed benefits or family, etc. To those people I would suggest reducing they’re home buying price by adjusting their home search parameters. The more flexible you are on the type, location, etc. of your new home, the more options you will start to have. Maybe a smaller starter-type home is what you need.

Usable Income: In this case, the borrower makes enough “gross income”; however, the challenge is the borrower has too many debt obligations that are eating away at the potential income we could use for a housing payment for the home they want. This is normally when the lender will tell you “your DTI is too high to qualify”. The best course of action here is to reduce/eliminate your monthly credit debt obligation. You can use a method called “debt-snowball”. The debt snowball method is a debt payoff strategy that involves paying off debts from smallest to largest balance. Once a debt is paid off, the money that was previously allocated to that debt is then used to pay off the next smallest debt. This strategy can help build momentum and keep you motivated as you pay off your debts. As each debt is paid off, payments increase in size, similar to a snowball rolling down a hill. We are also able to help our clients quickly identify exactly which credit accounts to pay off to move the DTI ratio meter the most. Schedule time to start your home loan qualification process by clicking here.

How much cash should you have before buying a house?

Lastly, we have to address the “Where’s the money coming from?” aspect. This is the red pill of our housing market/economy. Meaning that it’s ALWAYS better to bring money to the table over not bring anything. You have to be able to invest in the purchase of your home. The ideal scenario is a borrower that can fully fund all expenses needed to purchase a home without needing any assistance. Now don’t get me wrong, we will help anyone get into a home. However, if we look at the true data, people that need financial assistance to buy a home tend to have a more difficult time becoming homeowners: (1) loan programs are too restrictive, (2) sellers don’t want to sell to someone using a loan assistance program, (3) they’re not able to qualify for as much house as a traditional loan program, etc. These are the four areas you should consider:

Down Payment: This normally ranges from a minimum of 3%-5% for primary residence loan programs. If you don’t have the funds, there may be a home down payment assistance program available for you.

Closing Costs: Title costs, government recording fees, appraisal fee, credit report fee, setting up your prepaid/escrow account for property taxes and homeowners insurance, etc. This normally ranges from 3%-6% of the purchase price, depending on the area.

Moving Expenses: Will you need to rent a moving truck, hire movers, take time off from work, pay for deposits for utility hookups, build new furniture, throw a housewarming party, etc.? Many lenders will tap you out at closing, and you may be blinded by the excitement of buying your first home and you simply forget about these costs that are unrelated to buying a home. This is an unknown number because everyone is different. All I’m doing here is making sure you’re aware of this and plan for it the best way you can.

Once you add up everything the starting line is anywhere between 6-11% of the purchase price. If you don’t have it or simply don’t want to spend that amount, then you’ll need to work with the right people that have a strong understanding of creativity financing. schedule time to start your home loan qualification process by clicking here.

Give it to me straight and don’t sugarcoat it Sensei!

Over the course of my career, I’ve had the pleasure of working with some of the grittiest people I’ve ever had the pleasure meeting. Some of those people “had no hope” of buying a home as a first time home buyer. What allowed them to become homeowners was knowing how the game works. It’s like golf—if you don’t know how to (1) pick the right club, (2) examine the landscape, and (3) swing with the right technique using the right amount of force and accuracy, you’ll easily get tired of “trying” to play golf. There are a lot of people today who are trying to buy a home, instead of actually being able to buy a home.

One of the biggest misconceptions, in my opinion, is that people are trying to get a lender to qualify or approve them for a home loan, instead of just being a well-qualified buyer for a home loan before they even reach out to the lender to “verify their financial status”. Credit, repayment ability, funds needed for closing—these are your core pillars that truly make up the borrower aspect of a home loan.

I’ve been in this business since 2011, and I can tell you without a doubt that traditional loans walk, look, and act similar. Yeah, there are guideline differences, but the truth of the matter is that even with these differences, the essence of the home loan is still the same. Working with someone that has these core home loan assessment experience will put you on the right track FAST. Schedule time to start your home loan qualification process by clicking here.

What would you do Sensei?

The 5 Pillars of a home loan are made up of: Credit, Repayment Ability, Funds Needed for Closing, Subject Property, and Loan Program. For this subject of “How to get a mortgage as a first-time buyer,” you have to find out what you qualify for. My recommended sequence of focus is: (1) Credit, (2) Repayment Ability, (3) Funds Needed for Closing, (4) Loan Program, and (5) Subject Property.

Here’s the honest truth:

1. Before you go under contract to purchase a home (i.e., subject property), you should know what you qualify for (i.e., loan terms/program),
2. Before you know what you qualify for (i.e., loan terms/program), you will have to go through the lender’s evaluation process (pre-qualification/pre-approval),
3. When you go through the lender’s evaluation process (pre-qualification/pre-approval), we will be verifying and evaluating your credit, repayment ability, and available funds for closing.

When you want to buy a home your credit, repayment ability, and available funds are the areas that YOU control. A lender does not control these aspects of your financial life. Your financial habits do. These three (credit, repayment ability, and funds needed for closing) are the pillars that you build up to be in a position to purchase a home. The last two (loan program and subject property) are the aspects of the home loan process that are more of an effect of the first three pillars.

We live in an instant gratification society and want everything now, fast, and easy. The truth of the matter is, that’s not how buying a home works. Now let’s be clear, your home-buying process can and should be simple and easy. If it’s not, you’re probably working with the wrong loan officer/lender. But you should not expect it to be “instant.” It takes time to buy a home, even more so to buy a home “right.”

When you first enter the housing market to purchase a home, you may have some challenges ahead. However, if you stay focused and dedicated, you will find the right home for you and your family. By following these steps and being prepared, you can increase your chances of securing a home loan and becoming a homeowner. It’s important to be patient and diligent throughout the process, as it can take time and effort to achieve your goal of homeownership. We are here to help you every step of the way. Schedule time to start your home loan qualification process by clicking here.

Happy house hunting! – Mortgage Sensei “Financing Futures, Building Dreams”

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Author Bio:

Nelson C. Thompson, Jr., President of The Mortgage Sensei Company. With years of experience in the mortgage industry, Nelson specializes in helping first time home buyers navigate the complexities of obtaining a mortgage. His mission is “Financing Futures and Building Dreams”

References

• List any sources or references used in the blog post.:
• Mortgage Sensei – 5 Pillars of a home loan – https://www.mortgagesensei.co/blog/5-pillars-of-a-home-loan
• myFICO.com – Education – https://www.myfico.com/credit-education/whats-in-your-credit-score
• FICO – https://www.fico.com/
• Kredit Kleanse – https://kreditkleanse.com/
• NMLS Resoruce Center – https://mortgage.nationwidelicensingsystem.org/safe/SitePages/default.aspx
• CFPB – https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-to-income-ratio-en-1791/
• Mortgage Sensei – Home Page – https://www.mortgagesensei.co/
• Special Thanks to Gustan Cho Associates’s GCA FORUMS: https://gcaforums.com/wp-login.php?redirect_to=https%3A%2F%2Fgcaforums.com
• Special Thanks to NEXA Mortgage: https://nexamortgage.com/
• Special Thanks to Candice Thompson: https://candinichelle.co/
• Special Thanks to Whitni Bell: https://whitnibell.exprealty.com/

• This discussion was modified 7 months, 2 weeks ago by  Sapna Sharma.
• This discussion was modified 4 months, 3 weeks ago by  Sapna Sharma.
• This discussion was modified 4 months, 1 week ago by  Sapna Sharma.
• This discussion was modified 3 months, 3 weeks ago by  Sapna Sharma.

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How to Get a Mortgage as a First Time Home Buyer

As a First Time Home Buyer learn what financial factors you should focus on BEFORE you reach out to a lender or start shopping for your next home.

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