Welcome to “Ask A Mortgage Officer,” our weblog collection the place potential debtors get the within scoop on mortgage lending from the attitude of skilled Motion Mortgage mortgage officers. 

In our newest version of the collection, we’ll hear from two mortgage mortgage officers from completely different elements of the nation. Joey is from North Carolina and serves primarily the Charlotte metro space. And Tatyana makes magic occur in Springfield, Missouri. 

This pair have seen all of it, and so they’re right here to share real-life tales — and suggestions — from their time working with purchasers. Every will tackle a special matter highlighting widespread challenges and pitfalls that purchasers face when making use of for a house mortgage, and supply solutions on avoiding these conditions in your homebuying journey.

Whether or not you’re a first-time homebuyer, a seasoned actual property investor, or someplace in between, we hope “Ask A Mortgage Officer” helps you get into your new house shortly and stress-free.

Problem #1: Debtors with restricted credit score historical past.

Joey Robinson

NMLS #: 2103427

Area: Fort Mill, South Carolina

(704) 966-9563

Join with Joey!

What Occurred: I bear in mind working with a younger couple who had been actually excited to buy their first house. That they had each not too long ago graduated from school and had secured new jobs to begin their careers. Regardless of having no debt, regular jobs, and a good earnings, they didn’t have a lot in the way in which of credit score historical past. Because of this, they needed to delay their plans of homeownership a couple of months longer than they initially anticipated.

Joey’s Recommendation: As a mortgage officer, my skilled tip to keep away from being in the identical place when making use of for a house mortgage is to determine and preserve good credit score early on. This may be completed by paying payments on time, maintaining bank card balances low and avoiding opening too many new credit score accounts concurrently. 

Your credit score rating is among the most essential numbers you’ve gotten, the aim of which is to point out how seemingly you’re to change into a minimum of 90 days late in making funds within the subsequent 24 months based mostly on patterns in your credit score historical past. Fortunately for this younger couple, we had been capable of put a sport plan collectively that allowed them to buy a house simply two brief months after their preliminary utility. 

Problem #2: Debtors who’re self-employed.

Tatyana Osenniy

NMLS #: 1574807

Area: Springfield, Missouri

(417) 380-6972

Join with Tatyana!

What Occurred: How enterprise earnings is reported or how a enterprise is ready up can have an effect when attempting to get accredited for a house mortgage. Self-employed debtors are sometimes nice at their enterprise and making an earnings. Sadly, they typically don’t understand how mortgage underwriters view “eligible” earnings. Many aren’t conscious that non-public debt, even when it’s for the enterprise, could be counted in opposition to them and harm their possibilities of qualifying for a house. 

For instance, I had a borrower who bought a semi-truck for his enterprise. He purchased it in his title, and this debt had a hefty month-to-month obligation. His enterprise was structured as a easy Schedule C Revenue-and-Loss mannequin, and for the reason that debt was new and in his private title, we couldn’t exclude it. After some dialog, I directed him to attach with a CPA (Licensed Public Accountant) and to acquire an employer identification quantity (EIN) for his enterprise. 

As soon as that was established, I prompt he join together with his financial institution to see if they’d be prepared to make a mortgage assumption from his private title into the enterprise entity. They agreed and, inside a matter of weeks, he had a semi-truck particularly for enterprise use, with the mortgage additionally beneath his enterprise entity! This freed up sufficient of his private debt-to-income ratio so he might qualify for and shut on his house mortgage!

Tatyana’s Recommendation: I extremely encourage all self-employed debtors to get with a lender who’s well-versed in self-employment and may simply focus on how underwriters have a look at their earnings. Apply early within the course of to offer your self loads of time to evaluate your monetary scenario, make any essential corrections, and put your self within the profitable lane. 

Have a strong CPA, lawyer or accountant who will help you identify the perfect construction for what you are promoting so that you’re not managing the operational wants of what you are promoting by leveraging your private earnings or creditworthiness. Understanding your numbers, how they’re interpreted in underwriting, and what choices you must finest elevate your eligibility will make the home-buying course of easier than doing accounting in what you are promoting. 

Have a homebuying hurdle to beat? Our mortgage officers are right here to assist.

We hope our “Ask A Mortgage Officer” weblog collection has given you a greater understanding of the mortgage lending course of and helped you keep away from some widespread challenges. We’ll have one other within the collection within the subsequent month or so.

When you’re searching for a reliable lender who can information you thru the method, look no additional than Motion! Our mortgage officers are educated, pleasant and at all times glad to assist. Arrange a gathering with a mortgage officer in your space.