1120 N Duck
Suite I
Stillwater, OK 74075
Office: (405) 334-4518
Cell: (405) 880-6598
1120 N Duck
Suite I
Stillwater, OK 74075
from your first home application through every home financing decision that follows
Read reviews from real customers
NMLS# 294958
1120 N Duck Suite I Stillwater, OK 74075
ericz@sentemortgage.com
When I entered the mortgage business in 1996, my mission was to have every Oklahoman be in the perfect loan for their needs throughout their entire lifetime. Now I understand that was a lofty goal, but 25 years later, I am still driven by my original mission. When you work with me, you will notice that I take the time to learn about you, the individual. Only then, can we get you the best mortgage for your situation, while ensuring that we close your loan on time, with no surprises. I would be thrilled to serve you.
You’ve had it with renting. The thought of writing another check that’s not going towards your financial future is too much. But buying a house can be daunting. Where do you start? What’s the process like? Am I really ready to do and own this thing? Here are 5 quick points that will help you through the process of making the biggest single investment of your life.
1. Price Check
Your first task is to look around at the kind of houses available in the neighborhood you’re interested in. You can do a quick search of actual multiple listings service (MLS) in your area on a number of websites including the National Association of Realtors. You may also get in touch with us as we have plenty of mortgage bankers that are willing to help.
2. Be Realistic
After you get an idea of housing costs in your desired area, it’s really important to determine how much you can actually afford. You can do this using our mortgage calculator. Just enter in how much you can comfortably afford each month for a mortgage payment to get a glimpse of what your monthly payments would be if you bought today.
3. Check Your Credit
Having the best credit score possible is advantageous when purchasing your home loan. While there are no strategies to immediately improve your credit score, you are able to correct it by identifying its shortfalls, all in time to make a meaningful impact on your home purchase. Here are a few sources where you can get a glimpse of your credit score.
https://www.freecreditscore.com/
4. Other Expenses
Of course, your mortgage won’t be your only financial responsibility. It’s important to check out the costs of property insurance, taxes, homeowners association, and maintenance dues in your desired neighborhood. In some areas, the amount you pay for taxes and insurance escrow can almost double your mortgage payment.
5. Get Prequalified
Homeowners are often afraid to become prequalified for a loan. It’s not nearly as much fun as looking at houses. Becoming prequalified for a home loan positions you to make a smart decision over an emotional one.
Buying a home is a daunting decision. The financial and emotional investments involved with purchasing a home are a challenge. But by following these tips, you will soon discover and enjoy the comfort that a home provides.
Some years ago, you bought your first home. If you’re like most people, you don’t have a photogenic memory of what the experience was like. Rather, it was just a blur of people, paperwork and hand cramps from signing your name and initialing the corner of documents for so long.
Well, consider this a refresher course for your very specific set of needs. In addition, there have been some changes in the process since you bought your last home -- we’ll highlight those here.
1. Determine how much of your current home you actually own.
Most of us to don’t own our houses completely when we turn our attention to an upgrade. But hopefully you’ve been in your house long enough to have equity that can be used in the purchase of your new home.
2. Be aware of the costs of selling and buying.
Selling your home may incur commission costs, marketing costs, and some seller closing costs, depending on the circumstances. And in addition to the down payment on your current home, don’t forget you’ll have to pre-pay insurance and taxes for the year. And, of course, there are closing costs as the borrower as well.
3. Think about the timeline.
If the market is a seller’s market (as it is today), you may sell your home quickly but it could take you a while to find a new home. If you need to move before your new home is available (or even contracted), what will you do? And if the market is a buyer’s market, you could find a home quickly. However then you have 2 house payments while you are waiting for your home to sell.
4. Big changes since 2006.
If you haven’t purchased a new home since 2006, recall the burst of the housing bubble and the Dodd-Frank Act that created a significantly new regulatory environment since then. You’ll experience more questions to be answered, more paperwork required, and a longer time in getting the loan to close than you may remember in your last purchase.
5. Other recent changes:
When Congress passed the GI Bill of 1944, Congress created a variety of programs designed to help those returning from World War II. One of the most popular and enduring programs is the VA Home Loan, a one-of-a-kind mortgage program that allows qualified US Veterans to finance a home at a competitive rate, with no monthly mortgage insurance and no down payment.
Today, there are more than 22 million veterans and active duty personnel who may qualify for a VA Loan to purchase a home. If you’re a qualified US Veteran ready to explore the VA home loan process, you’ve come to the right place. Below you’ll find a step-by-step guide to understanding the qualifications, application and paperwork you’ll need to get the ball rolling.
A Sente Mortgage Banker can help make this process easy. Contact us today if you have any questions.
Many of the US Veterans we work with don't immediately realize that their service to our country makes them eligible for a VA Home Loan. To clarify the eligibility rules, below is a list of the basic qualifications one must meet to apply for a VA Loan.
Who exactly is eligible for the VA home loan benefit?
Veterans: The largest single class of eligible borrowers is veterans of the Armed Forces. A veteran will need to provide evidence of the discharge with form DD-214, and the discharge must be read as an “honorable, under honorable conditions and general” discharge.
Active Duty Personnel: Those who are currently serving in any branch of the Armed Forces may qualify by showing evidence of at least 90-days of continuous service.
National Guard and Reserve Members: Current National Guard and Armed Forces Reserve members with at least six years of service are also eligible for the VA home loan benefit. Honorably discharged members of the National Guard of Armed Forces Reserves who have at least six years of service may also qualify.
Surviving Spouses: Unremarried, surviving spouses of veterans who have died as a result of a service-related injury may also claim the VA home loan benefit, as well as the spouse of a service member missing in action. Surviving spouses who later remarry on or after turning 57 may also be eligible.
Others: Cadets at the United States Military, Air Force and Coast Guard academies may qualify, as well as midshipmen at the U.S. Naval Academy.
If you fall into one of these categories, and are ready to make your dream of homeownership a reality, next step is your Certificate of Eligibility.
How to get your Certificate of Eligibility
First, let’s define what it is. A Certificate of Eligibility is often considered the first step in the VA Loan process. It’s is a document that proves that a potential buyer has met the VA Loan service requirements and is eligible to qualify for a VA Loan. It’s a fairly simple document that is obtained in several ways:
Once you’ve determined your eligibility and are ready to hit the streets to find your dream home, it’s smart to begin with a lender to get the application and pre-qualification process started.
Pre-Qualification is a fairly simple process that will allow a mortgage banker to review your income, assets and liabilities and will give you an estimate on how much money you can borrow. Armed with this information you can shop with a budget in mind. The pre-qualification process also gives you an opportunity to discuss financing options with your lender, and to review any potential credit issues during this process.
Credit Scores and VA Loans
VA Lenders validate a responsible credit history by reviewing the credit report and the credit score. VA Loans don’t require perfect credit, but they do require what might be described as an “average” or better credit history. Of primary importance is the most recent two years of payment history. There can even be a late credit card payment or two in the recent past, but if those payments are isolated and the only late payments showing up, then the credit score is more than likely good enough to qualify.
Using credit scores when approving a VA Loan has been around since the late ‘90s, and today credit scores are used to quickly assess a borrower's credit history. Most lenders require a minimum credit score of around 620, but there are exceptions to that guideline on a case-by-case basis. Credit scores might seem a bit foreign to many, but they’re calculated using an algorithm established by a company called Fair Isaac & Company who goes by the name “FICO.” Credit scores are three digits and range from 300 to 850, and the higher the score the better the credit history. When lenders pull credit on a veteran’s loan application, they pull a report from the three main credit repositories of Equifax, Experian and TransUnion.
Rental history is also a major factor when evaluating a veteran’s payment history. It has a greater impact on a credit profile than a late payment on an automobile loan or student loan, and is defined as a payment made more than 30 days past the due date. When a borrower applies for a VA Loan, the borrower also gives permission for the lender to contact the landlord or otherwise provide 12-months of cancelled checks showing the rent was paid on time. Lenders want to see at least a two-year history of rental or housing payments. There are exceptions made, however, for those recently discharged or recent graduates from school who have just started to work full time.
Related: More about Sente's Commitment to Veterans.
Armed with your pre-qualification letter, it's shopping time. Once you’ve selected your dream home, you’ll make an offer and submit your pre-qualification letter to show your commitment as a buyer.
If your offer is accepted, your loan will move into the processing phase. As you might expect, obtaining a mortgage requires your fair share of loan documents and paperwork, and VA Loans are no different. In fact, VA mortgages might even have a few more processing requirements and pieces of paper to sign compared to a conventional home loan. This is primarily due to verifying eligibly for this special zero-down-payment program.
Once your VA mortgage banker receives your loan application, here’s what you can expect them to ask you to provide as part of the process:
Certificate of Eligibility
You’ll need to provide your Certificate of Eligibility (COE), which you can obtain directly from the VA, or you can have your VA approved lender obtain it for you.
Verify Income
VA lenders are required to show evidence that the veteran has the ability to comfortably repay not just current monthly credit obligations but the new mortgage payment, including a monthly portion toward property taxes and homeowners insurance. This verification is completed by reviewing the most recent paycheck stubs covering a 30-day period. If you’re active duty, you’ll be asked to provide a copy of your LES.
If you’re self employed or you rely on other income that doesn’t come directly from an employer, you’ll need your two most recent signed federal income tax forms, all schedules as well as a year-to-date profit and loss statement. The year-over-year income should be consistent without any significant drop in income from one year to the next. The profit and loss statement can be prepared by you or your accountant and does not have to be an “audited” profit and loss.
Assets
Even though veterans are restricted from paying certain kinds of closing costs and there is no down payment requirement, there will still be closing costs that need to be addressed. Your VA loan officer will provide you with a list of expected charges and what they’re for but will also make sure there are enough funds in an account you own that will cover those fees. Verification of sufficient funds to close is performed by submitting your most recent copies of those accounts. If you’re getting a financial gift from a relative to help defray these costs, your lender will provide you with a Gift Letter for the donor to complete.
Insurance
You’ll need to have insurance coverage on the home you’re going to buy that will cover at least the amount borrowed. Once you select a property and the property appraisal has been completed, your insurance agent will provide a policy.
Loan Disclosures
There are multiple VA home loan disclosures you’ll need to review, sign or initial and return to your VA approved lender. Those include the Occupancy Statement, Fair Credit Reporting Act, Equal Credit Reporting Act, Right to Financial Privacy, Disclosure Authorization Form, an Anti-Coercion Statement and Flood Insurance Notice. If you select an adjustable rate mortgage, you will also receive a booklet entitled Consumer Handbook on Adjustable Rate Mortgages. In addition to these loan disclosures, you will also receive and sign copies of your initial, typed loan application.
Everything Else
A VA lender might need additional information from you while the loan is being processed. This could be a missing paycheck stub or signing a disclosure that was previously left blank. When the loan is documented and sent for an approval, the underwriter may have some questions or even ask for additional information for you to bring to the closing table. These additional items brought to the closing are called “loan conditions” and are typically nothing more than updating the file to conform to VA guidelines.
Once the Underwriter gives your file the final approval, a closer will draw up the legal documents and send them over to your title agency and attorney for final preparation. You’re in the home stretch now! A closing date will be scheduled at the title agency and the celebration can soon begin!
Perhaps the most attractive feature of a VA Loan is the absence of a down payment. However, it’s important to note that there are closing costs associated with any VA loan, it’s just a matter of who pays them and how they’re handled (according to the VA there are certain closing costs the veteran is not allowed to pay).
VA Closing Costs Explained
An easy way to remember which charges are considered “allowable” is to remember the acronym ACTORS.
Apply online or call with questions (405) 880-6598
This calculator is for informational purposes only and does not constitute a loan approval or commitment. Actual monthly payments may vary based on specific loan terms, insurance costs, property taxes, and other factors. Please contact your mortgage professional for personalized quotes and detailed information.
Owning a home has been called the American dream. But if you haven’t owned a home before, or haven't purchased one in a while, you may have a lot of questions. After all, for most of us, a home is the largest purchase we'll make. See if the answers to the questions below help, and if you have more don’t hesitate to reach out and contact me.
There are many “rules of thumb” for this, but the best way to answer this question is to talk with a lender. The factors you will need to consider are:
Down payment: how much cash do you have for your share of the price of the home??
Income and assets:what resources do you have to make your monthly payments??
Liabilities: where else is your money going??
Credit score: how good is your credit?
There are many different programs you can look at depending on such factors as how long you plan to stay in the home. I’d also recommend taking a look at the ‘How much house can I afford calculator.
The choice of mortgage is a decision that will be based on your home ownership goals. Items such as the amount of your down payment, the interest rate that results from your credit score, and the amount you want to borrow will also have an impact. To learn more about different types of Loan Products, please don't hesitate to reach out. My goal is to find the right mortgage product that fits with your short and long term goals.