Upbeat Home & Real Estate The Mortgage Coach T


he morning light comes streaming through my


window, nudging me out of bed. As we approach the lon- gest day of the year, the pro- longed daylight stretches into the night.


of year invokes growth


This time and


change. We plan our vacations, at- tend graduations, weddings, BBQs, and meander through the far- mer’s markets.


June has cycled around and summer is in the air! Summer officially kicks off the home buying season. This is an ideal time to move and establish roots. The summer,


by Barry O'Meara of Santa Rosa, CA • barryo@stearns.com Summer, A Moving Season!


between school’s end and re- sumption, allows time to get kids established and regis- tered for new schools. Lon- ger daylight allows for proj- ects; gardening, painting or just nesting. Owning a home, builds a foundation for raising your fam- ily.


Whether you are


a first-time home buyer, or a move- up buyer, sum- mer is the ideal


time for making a move. The market is hot, values are up, and interest rates are low. The economy is thriving. Now is that ideal time to make the move.


When getting ready to buy a home, it is essential to be prepared. Unless you have all cash, you will need to get some financing. Know what you need to show, and what to expect from the lender. There are few “stated income” loans, and you need to show an “ability to repay” means what it states, the ability to pay the loan. A qualifying income means “debt-to-in- come” (DTI) must fit the in- vestor guidelines. Seasoned assets mean your funds need to be seasoned in a bank for at least two bank statements, with no large deposits. Ability to repay means


we need a verified, reliable income.


W-2 earners are easy. W-2s, and one month’s


paystubs should be suffi- cient to document an income. Self-employed will require two years taxes. If you don’t declare it, we can’t count it as income. There are programs that will calculate an income off bank statements, but those loans are non-Qualified Mort- gages (non-QM) and come with a higher interest rate, and guidelines vary based on the investor. Regardless of the in- vestor, you need to document an income.


Debt-to-income (DTI) is determined by the investor. A Qualified Mortgage is the loan where the investor usu- ally accepts the finding from the Automated Underwriting System (AUS). These are sys- tems that take the numbers in the system and measures the risks in the loan. This system will crunch numbers based on your credit score, debt, and payment history.


If AUS ap-


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proves you with a 49% DTI, we can close your loan. As long as the investor has no overlays (less than 49% DTI), that forbid high DTI. The un- derwriter’s job is to verify the findings.


Seasoned assets, those that have sat in the bank for two bank statements time, mean no cash only loans. Lend- ers don’t not like cash. They want your funds tucked away in some institution. If you have cash you need to use, consider having someone gift you the funds. Have them wired directly to escrow. All large deposits will need to be paper-trailed and sourced. Now that you have made the decision to make the move, get your ducks in a row. Get pre-approved, so you know what you qualify for.


Keep


your income documents avail- able, and ready to show. Keep


...continued on page 28 Always wear a smile because you never know who is watching. ~ Gracie Gold Weird Facts & Fun Trivia - 6


Bay Leaves or Laurel, are the dried leaves of the evergreen tree, Laurus nobilis. The elliptically shaped leaves are light green in color and brittle when dried.


Dried bay leaves are used in Turkey and Italy to wrap licorice for shipping, and in China for packaging rice (to deter weevils).


In Ancient Greece and Rome, bay leaves and branchlets were used as wreaths to crown their victors. Cham- pions of the Olympic games wore garlands of bay leaves. Our word "baccalaure- ate" means "laurel berries" and signi- fies the successful completion of one's studies. It alludes to the bay wreaths worn by poets and scholars when they received academic honors in ancient Greece.


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