Whether you are a novice home buyer or have already bought a property 15 years ago, browsing real estate listings on the internet is a breeze. However, before you proceed to book an appointment or attend an open house, it's advisable to figure out how much house you can realistically afford.
HOW TO WIN AT MULTIPLE BIDS | NJ NY REAL ESTATE HOUSING MARKET
In order to succeed in today's competitive seller's market, there are several things you should keep in mind. Firstly, it's essential to ensure that your credit score is in good standing. Additionally, it's important to work with an experienced agent who can provide valuable guidance throughout the buying process. Getting pre-approved for a mortgage is also crucial, as it will allow you to demonstrate your financial strength to sellers. Understanding the pricing dynamics of your local market is also key, as is putting yourself in a strong financial position to make a purchase. Finally, in a competitive market, it may be necessary to limit or eliminate any contingencies in your purchase contract. It's worth noting that with conforming loan balances, you can often purchase a home with a down payment as low as 3%, while jumbo loans of up to $6 million and portfolio mortgage programs may be available for borrowers who have recently experienced bankruptcy or foreclosure, provided they meet the necessary credit, income, and down payment requirements.
Here is a quick review of the Mortgage Process
1) First Meeting
At the initial meeting or phone call, we'll provide you with a broad overview of the mortgage process.
2) Mortgage Qualification/Pre-Approval
Your eligibility for a mortgage is determined by several factors, including your Credit Score, Credit History, Income, Assets, and Employment. Lenders base their interest rates on the borrower's risk profile, with those having the best credit receiving lower down payments and lower mortgage rates. Borrowers who have experienced recent credit issues may need to provide a larger down payment and accept a higher interest rate to compensate for the higher risk of default. However, compensating factors like job stability and high asset balances after closing can offset this risk.
As a general rule, your total housing payment (including principal, interest, tax, and insurance) should not exceed 36% of your monthly gross income, while your total monthly debt (housing payment plus credit card and installment loans) should not exceed 43% of your gross monthly income. However, depending on the presence of compensating factors, we have programs that can go up to a maximum of 50% of gross monthly income.
Researching loan options and finding the right choice for your unique situation is essential. Our expert Mortgage Advisors are trained to assist you in this regard, and we also provide mortgage calculators to help you determine what you can afford, whether you should rent or buy, and what your payment will be, among other things.
3) Gather Information
To streamline the mortgage application process, it's advisable to gather all relevant financial documents and store them in a dedicated mortgage folder. Alternatively, you can choose to go paperless and provide us with authorization to electronically verify your income, assets, and tax returns. We offer an alternative DocLess option, call to discuss.
• 30 days of most recent paystubs
• last 2 years of W2
• last 2 years Federal Income Tax returns (1040) signed
• if new employee (offer letter)
Assets and Reserves
• 2 months of bank statements (all pages)
• most recent quarterly retirement, mutual fund, stock accounts
• photo identification (driver license or passport)
• Foreign National work visa (if applicable) Social Security Card
4) Fast Pre-Approval
Our team assists you in assessing your loan options based on the price and timing of your purchase. Obtaining a pre-approval letter can often enhance your desirability as a buyer and improve the chances of closing the deal on time, enabling you to take advantage of current low mortgage interest rates.
5) Get a Rate Quote
To obtain a personalized rate quote, please complete the Inquiry Form, and we will promptly get in touch with you. We offer both mortgage pre-approval and pre-qualification services. Thank you for considering us for your mortgage needs.
With the current state of the real estate market in the NJ and NY metropolitan area, now is an excellent time to purchase a home. Our extensive range of mortgage loan programs ensures that we have options to suit your specific requirements. Here are some examples of our mortgage loan programs:
- First time home buyer
- Move up home buyer and second home purchase
- Jumbo mortgage loans to $3 million
- Investor (1 - 4 units) multi-family 5+ units
- FHA and VA loans
- Foreign National program
- Reverse Mortgage (borrowers must be 62 1/2 year young)
- Less than perfect Credit scores starting at 500+
- No Income Verification
- Pledged Asset Program
- 24 Month Bank Statement Programs for self-employed
- Portolio Loans (niche products not Fannie Mae or Freddie Mac)
With over 24 years of experience in the mortgage industry, we are well-versed in every aspect of the process. Our mortgage loan programs cater to a diverse range of buyers, from those with excellent credit to those seeking a second chance. We are committed to treating all our customers with respect and aim to earn your business by providing exceptional rates and service with a smile.
New Application Technology:
No copying bank statements or paystubs. Apply with our new, secure, hassle-free technology to apply for a home loan completely on-line.