Miami Home loan, and Element Funding, direct lending mortgage bank, added a brief overview of the home buying process. Several of the slides have additional commentary included in this post. . Jim Carter, loan officer, completed this presentation at the Business Referral Group presentation on June 24, 2014.
The slides for the seminar are located on YouTube at this address:
The following are the Home buying Seminar Slide Notes. Each slide that has a note is noted by a number below that refers to the slide in the presentation. Those slide numbers are in the lower right corne r of each slide.
Slide 1. New Buyer or Buyer rentering the market seminar.
Most are considered Millennials (also known as the Millennial Generation or Generation Y) are the demographic cohort following Generation X, Strauss and Howe use 1982 as the Millennials’ starting birth year and 2004 as the last birth year. (Book: Millennials Rising: The Next Great Generation).
Slide 3: Steps to Home Ownership Flyer
This slide can be downloaded if you want a copy.
BLUE is Element Funding – which could include me, the processor, our underwriter, closer, scheduler, appraisal and others. Green is the Real Estate Agent, and, Maroon is the buyer and their helpers such as attorney, title company and others.
-Recommend Paul Kade, Real Estate Attorney and Eli Ristine, Real Estate Agent.
Slide 5. 7 Financial Advantages of Buying vs Renting – Consult your Tax Professional & Financial Planner for your best solution.
Recommend Ellen R. Siegel and Associates, and, Ricky Mercado, CPA.
Slide 6 – Loan Types FHA requires the buyer to keep the mortgage insurance for the life of the loan while the conventional can be cancelled once the value of the loan on the property = 80% of the value. A new appraisal may be needed. Allows ratios = this is debt to income ratios, higher than Conventional.
Conventional loans are set at 45% debt to income Jumbo Loan is for a loan exceeding the national guidelines of Freddie Mac & Fannie Mae. Guidelines are set by the specific investors ARMs are for professionals in a field where their income is expected to grow substantially. Otherwise we recommend fixed loans.
Slide 7. Loan Process Qualifying credit scores have moved down due to the Consumer Finance Protection Bureau threating banks to lower their standards to accommodate some lower scoring buyers, so, that is the new Middle range.
Pre-qualification is a little tricky, because banks will just ask the buyer for their information, while I request all the documents up front so we do not get a surprise later. I’ve got a case right now where the buyer just called the bank and asked to be pre-qualified, which the bank did, and now that they finally sent their tax returns, it turns out they have a business on the side with a substantial loss last year which affects the amount of income we can use to qualify them.
The monthly home payment also depends on the home the buyers are considering and factors such as property taxes could be from about 1.75% for a home that previously had a home owners deduction to 3% or more for a property that was previously in investment status.
Each house also has different insurance characteristics, such as age of the roof, does it have shutters, electrical, and age of the house, so that is another factor that is variable, and requires inspections and an appraisal to determine the exact insurance cost. So, we look at each house for the potential buyers to help them understand the monthly payments as best we can until we get all the factors in place.
1. Collateral = Property
2. Capital = Assets
3. Capacity = Income
4. Character = Liabilities
The underwriting process helps us determine if the house and the person are qualified to complete the transaction.
So, if you or, anyone you know, is looking to find a Miami Home Loan, or a South Florida Home Loan, to purchase their own first time home, or to refinance an existing property, and would like help in getting their best financing solution call me, Jim Carter at Element Funding, at 305-525-6742. Your Miami Home Mortgage expert!