Q: Is it possible to buy a home with no money down?

A: Yes,  There are still a number of loan programs that allow for a "no down payment loan".  There are some limitations and you will need to contact me to see how they work and to get you approved for that particular loan.

Q: I've heard that on these zero and Low Down loan programs that the interest rates are higher.?

A: No. The interest rate is determined by your credit score first.   We have access to all of the current loan programs at competitive rates and terms.

Q: I've had credit issues.  Will that keep me from buying a home?

A: No.  We are the local credit score experts.  We know things, like how to improve your credit scores, that your banker doesn't even know.  For years we have helped people improve their credit scores so they can buy a home and realize their dreams, regardless of their past credit history.  Often times it only takes a matter of weeks to improve scores.  In some cases it might take a few months.

Q: How do I get approved for a loan and what is the difference between a pre-qualification and a pre-approval?

A: A pre-qualification is where we would only ask a few questions and detemine if you might qualify for any loan.  A pre-approval is where we gather all of the relevant documents and actually submit your application to a lender for conditional approval.  This is the only way we do it.  The last thing you want is to go looking for a home , make an offer, pay for and appraisal and home inspection only to have the underwriter turn the loan down for something that we should have know at the beginning.  So we get the approval at the beginning.  We don't do pre-quals.  It is the best for you.

Q: Is this a good time to buy a home?

A: YES. I'm not a Realtor, but I can tell you that home prices are stable.  There are more people moving into our area than out and employment is stronger here than in most other areas of the country.  Even though the market has been a little slow in the past number of months, all it takes is for it to heat up a little and the home prices will start to increase again and the inventory will decrease.  When that happens then you will be limited on the home you could have bought now.  If the interest rates also increase then it will reduce your buying power even further.  So I would suggest buying now or as soon as possible if you can make it work.

Q:What loan programs do you offer.  I've heard the with the "mortgage meltdown" that most of the loans are gone?

A: We offer ALL of the loans available today.  What is gone are the exotic loans like "Pay-option ARM's" and Sub Prime loans.  Currently we have:

• FHA financing.  These are loans that are underwriten and funded by the lender and insured by HUD (The federal government)  They require a 3 1/2% down payment that can be your own money or gift money.  There are other ways you can obtain that money as well, if you need we can discuss the other methods.
• VA loans.  Zero down payment loans. These loans are guaranteed by the Veterans Administration and are available to current and discharged members of the US military branches.  Also the seller can pay the closing costs upto 4%.  Plus most people don't realize that the seller can also contribute up to another 4% to help reduce the Vet's other bills.  This can be kind of tricky about how it is applied so ask us about how all this works so you understand. 
• RHS financing.  ZERO DOWN PAYMENT Rural housing loans a department of USDA.  Part of King County, about 3/4 of Snohomish county and most of Skagit and Whatcom county qualify.  Other limitation like income caps exist so contact me and we'll help you to qualify when possible.  These are great loans because there is NO mortgage insurance.  That means your payments will be less.  Also the closing costs can be paid one of three ways 1) you can pay the closing costs from your own pocket 2) the seller can pay your closing costs (upto 6%) or 3) if the appraised value of the home exceeds the purchase price the closing costs can be rolled into the loan.  Just ask and we can explain all three options.
• Conforming loans.  These are called conforming loans because they conform to Faniie Mae and Freddie Mac guidelines.  They generally require 5% or more down payment.  Plus there will be private mortgage insurance (PMI) on any loan financed over 80% of the appraised value of the home.
• Jumbo loans In Washington State these are any loan that currently exceeds $417,000.  There are some variations of these within FHA and VA as well as Conforming loans.  But any loan that exceeds the limit are considered "Jumbo loans" and we can help walk you through the best programs for those as well
• 30 year Fixed Rate and Adjustable Rate loans All of the above programs (FHA, VA Conforming and so on) have either options for 30 year fixed rate, Adjustable Rate Mortgage (ARM), Interest only, and other types of loans.  As a Mortgage Planner I discuss your wants and needs and help you understand the pro's and con's of each type of loan program available.

Q: What documents do I need to be approved for a loan?

A: Most loans today require full documentation of income and assets for approval.  So when you are ready to apply for loan approval you will need to supply the following documents:

• Last two years tax returns
• last two years W2's, 1009's
• Last two months bank statements for all accounts (checking, savings, money market, CD's etc)
• Most recent IRA and/or 401K statement
• Last two pay period pay stubs for all borrowers on the loan
• Insurance agent name and phone mumber

These are the most common documents necessary.  There are more required depending on the individual.  But this is always a good place to start.  If you are self employed or work on commission the average income over the last two years is usually used to determine your average monthly income.

If you have any other questions or feel we need to add more to this FAQ please feel free to contact us any time.  We are here to help.