The David M. Damaré Mortgage Newsletter

In light of today’s lending environment, homebuyers are discovering, just within days or upon the day of closing on a new home that they don’t qualify for their mortgage, even though they were “pre-qualified” from a bank or lending institution. Moreover, realtors, in haste to get a contract signed, may not allow you, the buyer, time to properly qualify for a home mortgage.

If there are problems after signing a contract, it could take 30-60 days to correct, which could delay closing or even cancel a contract. Such a situation can not only be damaging to the buyer financially, but it can also rob them of a positive home-buying experience. However, this situation can be avoided:

Steps you can take to ensure your home-buying experience is a positive one.
Before you sign a contract for a new home, here are some steps you can take to confirm your closing goes smoothly.

• Review and understand your credit and all three credit scores with a mortgage professional. Mistakes that hurt your credit scores can be corrected with enough time, and if you need to raise your score, there are easy steps you can take.

• Let The David Damaré Team walk you through the mortgage lending process, ensuring you that you have been pre-approved for a specific home loan.

• Allow enough time before your closing for all necessary home inspections and home repairs.

• Perform a final walk through of home and request an accurate estimate (within 10%) of closing costs from your mortgage lender a minimum of 7-10 days prior to closing.

The David Damaré Team can provide a preapproval for homebuyers, versus a prequalification from a larger lending institution. Preapprovals cost a lender money to provide but ensure that all due diligence is complete with regards to your mortgage.  A prequalification is a no cost personal opinion with little to no supporting information or assurance of the worth of the loan or how much the loan will cost you at closing.

These simple steps will give you the confidence to know that when you walk in for the closing on your new home, you won’t be taken by surprise!

Before you sign that contract with a deposit or move forward with items such as a home inspection or appraisal, consult The David Damaré Team, 919-851-0999 for a current and accurate credit assessment and home loan preapproval.

ADR Mortgage and The David M. Damare’ Team remain independently owned and operated, neither accepting nor requiring any government assistance.  We are a boutique lender operating in many states with low cost, the savings of which we pass on to our clients and a penchant for platinum customer service that ensures our continued success and livelihood.

“Mortgage Lending is Our Business: Customer Service is Our Passion.”

Stay tuned and stay in touch with your mortgage professional.  Thank you for the opportunity to serve you.  David.  919.851.0999.

Raleigh Mortgage Man, NC Mortgage Man, Triangle Mortgage Man, Triangle Mortgage Expert all owned and licensed by David M. Damare’.  All rights reserved.

While traditional 9-5 jobs have been taking quite a hit over the past few years, more individuals are turning to a creative combination of self-employment and part-time positions.

Yet, before you step into your new position, self-employment may affect refinancing a home or securing a loan. Before you step into your newly created position, here’s what you need to know:

• You must have two years of tax returns (24 months of self-employment history) in order to submit a loan application as a self-employed borrower.

• The lender first looks at adjusted gross income (AGI) on your personal tax return.

• If your median credit score is 740 or greater, then a conservative gross monthly debt to income (DTI) ratio to qualify for a mortgage is 35%. This means your total monthly expenditures for must not exceed 35% of your gross monthly income. Taxes and insurance on your home will be included.

• If business tax returns are required, income, assets and liabilities have no direct effect on the successful completion of a home mortgage.

If you are going into business for yourself, then purchase or refinance your home before you give up your W-2 income-producing job, or attempt to maintain your W-2 income producing job while establishing your 24 month self-employment history. As you are beginning to build your business, reduce as much debt as possible and maintain a high credit rating.

Do you need a plan to move to secure a mortgage as a self-employed borrower?

ADR Mortgage and The David M. Damare’ Team remain independently owned and operated, accepting nor requiring any government assistance.  We are a boutique lender operating in many states with low cost, the savings of which we pass on to our clients and a penchant for platinum customer service that ensures our continued success and livelihood.

“Mortgage Lending is Our Business: Customer Service is Our Passion.”

Stay tuned and stay in touch with your mortgage professional.  Thank you for the opportunity to serve you.  David.  919.851.0999.

Raleigh Mortgage Man, NC Mortgage Man, Triangle Mortgage Man, Triangle Mortgage Expert all owned and licensed by David M. Damare’.  All rights reserved.