Long Beach California Real Estate Loans

Long Beach, Ca.  What is a "Full Doc" Loan?  In the last two years we have seen an evaporation of almost all "stated income" loans.  These loans enabled home buyers to purchase properties without disclosing their actual incomes.  Partly, because of these types of loans, the sub-prime loan melt down was conceived,  born, and died, throwing the financial markets into a tailspin.   As a reaction to the housing collapse, the pendulum has completely swung to the other the opposite side of the banking world.

This means that in the current market, you now have to prove income in order to purchase a home and qualify for a mortgage.  In the lending business, we call these, "Full Doc" loans, short for, "full documentation," loans.  Historically, banks like to see the following items to document your income:

•1.      Federal Tax returns for the last two calendar years.

•2.      The latest pay check stub from all of the signers on the loan.

•3.      The last two months of Bank Statements from all buyers.

 This will be required from all signers that go on a loan application.  Note, that if a person in not employed or is a homemaker, they may still go on a loan application but typically will not add to the viability of a loan.  In truth, a non-employed spouse may actually hinder the loan origination in that the bank will take into account all of their debts which makes the ratios of income to future housing payment higher; thus, making a higher risk loan. 

 There are four items that any lender needs to accurately pre-qualify a buyer:

A).  Gross income from the entire household.

B).  Total monthly debt obligation of all parties on the loan.

C).  Available liquid cash that can be used for the purchase.

D).  An accurate and recent credit report.

If a lender is set up properly, he can run the above information through an Automatic Underwriting System(AUS) like Fannie Mae's "Desktop Underwriter," which will give a computerized approval within minutes.  However, remember the old adage here, "Junk in junk out."  If the information was not properly inputted into the computer software, you may have a faulty approval or worse, a loan rejection when you could have actually have qualified.  You may take a free loan application by contacting:

Kirk Mulhearn, Mortgage Planner

866-961-8042 ext. 110

www.longbeachrealestateandloans.com

www.kirkmulhearn.com