xmlns:og='http://ogp.me/ns#' Wil Coloma: December 2012

Tuesday, December 25, 2012

Merry Christmas to all, from the Seattle Colomas!

The Seattle Colomas want to wish everyone a Merry Christmas and a prosperous New Year!  To our family, friends, colleagues, clients from the past, the present and the future, we wish you the best!

See you all in 2013!

Sunday, December 16, 2012

What does it mean to be Pre Approved for a Mortgage Loan?

Personal Note:  I have been quite busy this last week.  I feel the growing undercurrent of my business while getting prepared for 2013.  It is encouraging that, during this "slow" period in the real estate industry, I'm picking up more new clients.  So, I am enjoying today and enthusiastic about 2013.  

Anyway, I am borrowing some information from credit.com which is below.  We don't need to reinvent the wheel when it comes to information.  There are so many publications out there that one does not need to write something new when it is already out there.  So, with that said, here is some good information on what it means to be pre approved.

Of course, please don't hesitate to call on me on any day.   I'm available from 9am to 9pm on a daily basis.  My consultation is always free.  Hang loose!  Wil

Valuable information below for you:

What does pre approval mean?

Before you start shopping for a home, you need to work with a lender to get pre-approved for a mortgage. Pre-approval is basically a promise from the lender that you’re qualified to borrow up to a certain amount of money at a specific interest rate. This promise is subject to a property appraisal and other conditions. It is smart at this point to review your credit score and report profile first.

In the pre-approval process, the lender looks closely at your credit and verifies your income (as opposed to pre-qualification, for which your information is not verified). The lender then gives you a pre-approval letter, which says that your loan will be approved once you make a purchase offer on a home, and once you submit the following documents – the purchase contract, the preliminary title information, the appraisal, and your income and asset documentation. Keep in mind, though, that pre-approval is not an absolute guarantee that your loan will be approved.
Pre-approval means that the lender is confident that you can make the necessary down payment and that your income is sufficient to cover the mortgage payments. At this stage, only one concern remains. The lender needs to make certain that the property’s value offers sufficient collateral in relation to the loan amount. In other words, the home must be appraised for an amount more than, or equal to, the purchase price.

Why is it important to get pre approved?

When you’re ready to make a purchase offer, both your real estate agent and the seller will want to see a pre-approval letter. This proves that you‘re likely to be able to make the purchase and, therefore, you can be taken seriously. In a competitive housing market, sellers prefer a pre-approved buyer to those who, for all anyone knows, might be unable to close the deal.

How to get pre approved?

Before you roll up your sleeves and look into the details of getting pre-approved, you should first understand all three basic stages of the mortgage application process: pre-qualification, pre-approval, and mortgage commitment.

Getting pre-qualified is an informal process in which you are interviewed by a mortgage professional about your income and expenses. This gives you a general idea of the price range you can afford. It really doesn’t bring you any closer to securing a mortgage.

When you are pre-approved for a mortgage, it means that a lender has looked closely at your credit report, your employment history and your income and has then determined which loan programs you qualify for, the maximum amount that you can borrow, and the interest rates you will be offered. Be aware, however, that your loan representative is not the one who will ultimately approve your loan. That is the underwriter’s role, and these days underwriting is automated. In order for your loan representative to submit your application for pre-approval, you must provide your last two years’ tax returns and W-2s, your most recent pay stubs, bank account statements, and a signed authorization to order your credit report. The automated underwriting system will deliver a pre-approval letter within minutes, and will list any conditions that need to be met for full approval.

Mortgage commitment
A lender will issue a loan commitment after it has approved both you and the property you intend to purchase. Having examined all of the necessary documentation to verify your ability and willingness to repay the loan, your loan representative will submit your complete application to the underwriter. The underwriter will return one of four decisions: approval, approved with conditions, suspended (which means they need more documentation from you before they can make a decision), or denied.

The process of getting pre-approved
Most of the factors that will determine your pre-approval – your credit report, the down payment, your expense ratios – have been already been addressed in detail in the first module of this course,  The process of getting pre-approved is actually quite simple. All you have to do is provide your lender the documentation that they require. Be prepared to supply your loan representative with pay stubs, bank account statements, tax returns and W-2 forms from the previous 2 years, and documents to show other sources of income (which could include a second job, overtime, commissions and bonuses, interest and dividend income, Social Security payments, VA and retirement benefits, alimony, and child support). Beyond that, the ball is in the underwriter’s court..

Sunday, December 9, 2012

Five costly errors you'll want to avoid when refinancing

Click Me  (click here for the article)

Personal Note or Quick Thoughts:

I would encourage that you shop around to a minimum of three lenders for a refinance.  But be aware of the difference between a Broker and a Bank/Lender.  A banker or lender (e.g. Bank of America, Wells Fargo, US Bank and such) will have their own programs and guidelines.  So, if you don't "fit" within their program guidelines, then that's it.  If you do, then great!

On the other hand, the Broker is able to shop many lenders for you and will locate the best program out there that fits your situation.  If you don't fit with one lender, then you might with another.  So, programs and guidelines will be different and you'll have options to choose from.  The biggest advantage of using a Broker as opposed to a Banker/Lender is that the Broker can do the shopping for you!  Then with your approval, you can pick the best program that fits.  Of course, we at Cascadia Lending are a Brokerage and I prefer to do business this way.  Also, the Broker can usually match up with the Banker/Lender when it comes down to closing costs/fees, etc.  The Broker has flexibility.

I hope you enjoy this article and that it is somewhat educational for you.  I pulled the link from Yahoo.com.  In closing, I would add at least one thing to that list in that, one should avoid making major purchases while refinancing.  For obvious reasons.

Hope you all had a great weekend.  Hang loose!  Wil 425-772-1713

Monday, December 3, 2012

Coloring Contest & Storybook Reading at RE/MAX Town Center December 1st, 2012

On December 1st, 2012, we had our Christmas event with kids/parents at our office on Main Street, Mill Creek.  Of course, the parade followed after that.  We had 49 entries by kids for the coloring contest and over 60 kids coming over for the storybook reading!  What a wonderful way to enter December!

Enjoy the pictures!  Wil.