At Your Service!
At Your Service!
GO DIRECT TO MFA or first time home buyers / owners!
VA LOANS ARE UP TO $240,000 NOW!
WHAT CAN YOU
AFFORD IN A HOME? THE FOLLOWING IS BASED ON 30 YEAR AMORTIZATION PRINCIPAL
AND INTEREST ONLY.
RIO
RANCHO NEW MEXICO HOMES west Albuquerque.
CORRALES NEW MEXICO HOMES
north river Albuquerque
PLACITAS NEW MEXICO HOMES
north of AlBUQUERQUE
LOS
LUNAS NEW MEXICO HOMES south Albuquerque
SOCORRO
LAND ONLY
Loan Applications information needed:
Photo id
Address for the last three years
Employment history 3 years
W-2 Forms two years
Pay stubs previous month
Account numbers for:
Credit accounts
Bank accounts
Settlement statements for properties sold three years
Purchase contract for new home
Insurance agents name and phone number
Rent or mortgage payments verification twelve months
Self employed, tax returns two years
Profit and loss statement
Lease agreements
Divorce decree if applicable.
What is P.I.T.I.?
| Monthly Payment (PI) |
7% | 8% | 9% | 10% |
|---|---|---|---|---|
| $ 600 | 90,200 | 81.800 | 68,400 | 63,000 |
| 800 | 120,000 | 109,100 | 99,450 | 91,200 |
| 1,000 | 150,200 | 136,400 | 124,300 | 114,900 |
| 1,200 | 180,200 | 163,700 | 149,150 | 136,800 |
| 1,400 | 210,200 | 191,000 | 174,000 | 159,600 |
| 1,600 | 240,200 | 218,300 | 198,850 | 182,400 |
| 1,800 | 270,200 | 245,600 | 223,700 | 205,200 |
| 2,000 | 300,200 | 272,900 | 248,550 | 228,000 |
| 2,200 | 330,200 | 300,200 | 273,400 | 250,800 |
| 2,400 | 360,200 | 327,500 | 298,250 | 273,600 |
by Lew Sichelman, Housing Scene
Advocates of mortgage scoring see it as a fairer, faster way to predict which potential borrower will eventually wind up in foreclosure.
Because they are competitors, the private mortgage insurance companies that are developing mortgage-scoring systems for use by primary lenders say the inner workings of their respective programs are classified information.
That doesn't sit well with government regulators like Peggy Twohig, who works in the division of credit practices at the Federal Trade Commission and thinks mortgage applicants have a right to know what makes scoring tick.
"It is very important that people understand what goes into their scores, what they can do to improve their ability to get credit and why they are being denied. And right now, scoring is not very well understood, even by regulators.:, she said.
When all is said and done, all the scoring programs available now or in the near future judge essentially the same information. What's more, it's the same information human underwriters have always considered.
"People shouldn't feel threatened. It's just a different way of trying to assess the ability of people to manage credit, says Mark Amacher of United Guaranty.
With that in mind, here's an explanation of the variables believed to have the greatest predictive impact on a borrower's ability to pay. There are no hard and fast rules with mortgage scoring. Depending on other variables, what could be negative in one instance could be positive in another. And there may be enough positive compensating factors to outweigh one or more negative ones.
To asses how you manage credit, some systems rely on credit scores derived by others, while others go directly to your credit history for data. Either way, it's extremely important that the information in your file be correct because under most scoring systems, you won't know what did you in if you are turned down. Your credit record consists of many things: the number of late payments, how many credit cards you have, and for how long, whether you consistently live at your credit limit, whether or not you have a savings account or accounts. But perhaps the most important factor is how many inquiries there have been of late. Lenders get nervous if there have been lots of requests for your credit data over the past six months.
|
Easy First Steps, to find out what price
house you can afford: |
First, you need to find what interest rate is currently being
charged for 30-year fixed rate loans. But, instead of phoning several lenders,
you can simply give me a call (or
an e-mail message). I make it my business to have the latest information
on lenders' rates and financing packages right at hand.
Next, apply the following do-it-yourself system to zero in on the approximate
mortgage amount lenders are likely to approve:
1. Calculate your gross monthly income - the amount you make before deductions. Add your spouse's gross monthly income, if any.
2. Deduct from the total any monthly payments you make on long-term debts (more than 10 months), such as an auto loan or regular payments on furniture, appliances, school, alimony or child support.
3. Multiply the resulting figure by 36% (.36) to get your "income-to-debt ratio." The answer will conform with generally accepted lenders standards of what borrowers can afford, after a down payment of 10%. Some lenders and mortgage plans apply more or less strict factors, say 33% or 38%, especially when your down payment is 5% or 20% respectively.
Also many lenders will calculate a second "PITI ratio" figure (Principal, Interest, Taxes and Insurance), using 28% times gross monthly income without subtracting debts, to establish your qualified monthly payment range. Again, the % factor without subtracting debts may vary, say 25% or 33%, under certain circumstances.
4. Take a "guesstimate" of average annual real estate taxes in your area (in Phoenix/Scottsdale, it is approximately .75 of 1% of the sales price), plus the annual cost of homeowner's insurance. Divide by 12 to obtain a monthly figure. (On average, the monthly cost of these two items might be about .10 of 1% of the house purchase price. Ask me about your specific situation.)
5. Deduct the monthly taxes and insurance cost from both figures you arrived at in Step 3. The result is the ballpark monthly payment on principal and interest you can afford to pay on a mortgage.
With the amount of principal and interest (PI) payment you can make, in hand, I can calculate the amount of mortgage you can obtain, at various rates.
FIRST TIME HOME OWNERS....HOW IT WORKS! Mortgage finance authority is a non profit organization set up to assist in low income earners in the purchase of a first time home through conventional lenders. The client goes to a lender applies for a loan (VA, Fha, Conventional etc.) under the conditions of the program. The lender submits the loan to MFA for criteria approval and the loan is then out to underwriting through the lender. Qualifications and eligibility: The Mortgage saver: 30 year fixed rate at current and below current rate program: Have not lived in any home in the last three years that they held ownership in (non permanent foundation mobile is not considered a residential home). Income, expense, employment, past credit determine qualifications that vary by zip code targeted areas. Albuquerque and Valencia areas: income under $30k, three person house or more can earn $34k Purchasing power: new construction=$146,410 existing home=$116,900 target area figures are in our office. The Help program: this is a second loan for the purpose of making the down payment. Once again through the lender a 10 year, 6% rate in the amount of $4,000 paid back in equal payments. Borrower must make a 1% down using funds saved or this can be gifted funds in some cases. The Payment Saver program: Borrower gets a below market interest rate loan plus a second no interest *loan to cover down payment and up front costs or 1st loan interest buy downs. Income chart at office starts at under $22,575 single, 2 member family less than 25,812 Bernalillo, sandoval, valencian new or existing home: $114k *note: the zero interest may not exceed 8% of sales price or $10,000 for our areas.
FHA 1-Unit Loan Limit Increases 7/99 MSA or NECMA Name County Name 10/98 Limit 1/99 Limit Dollar Amount Percentage ALBUQUERQUE, NM, (MSA) Bernalillo, NM 130,150 140,600 10,450 8.0% Non-Metro Catron, NM 109,032 115,200 6,168 5.7% Non-Metro Chaves, NM 109,032 115,200 6,168 5.7% Non-Metro Cibola, NM 109,032 115,200 6,168 5.7% Non-Metro Curry, NM 109,032 115,200 6,168 5.7% Non-Metro De Baca, NM 109,032 115,200 6,168 5.7% LAS CRUCES, NM, (MSA) Dona Ana, NM 109,032 115,200 6,168 5.7% Non-Metro Eddy, NM 109,032 115,200 6,168 5.7% Non-Metro Grant, NM 109,032 115,200 6,168 5.7% Non-Metro Guadalupe, NM 109,032 115,200 6,168 5.7% Non-Metro Harding, NM 109,032 115,200 6,168 5.7% Non-Metro Hidalgo, NM 109,032 115,200 6,168 5.7% Non-Metro Lea, NM 109,032 115,200 6,168 5.7% Non-Metro Lincoln, NM 109,032 115,200 6,168 5.7% SANTA FE, NM, (MSA) Los Alamos, NM 160,950 185,250 24,300 15.1% Non-Metro Luna, NM 109,032 115,200 6,168 5.7% Non-Metro McKinley, NM 109,032 115,200 6,168 5.7% Non-Metro Mora, NM 109,032 115,200 6,168 5.7% Non-Metro Otero, NM 109,032 115,200 6,168 5.7% Non-Metro Quay, NM 109,032 115,200 6,168 5.7% Non-Metro Rio Arriba, NM 114,800 115,200 400 0.3% Non-Metro Roosevelt, NM 109,032 115,200 6,168 5.7% Non-Metro San Juan, NM 109,032 115,200 6,168 5.7% Non-Metro San Miguel, NM 109,032 115,200 6,168 5.7% ALBUQUERQUE, NM, (MSA) Sandoval, NM 130,150 140,600 10,450 8.0% SANTA FE, NM, (MSA) Santa Fe, NM 160,950 185,250 24,300 15.1% Non-Metro Sierra, NM 109,032 115,200 6,168 5.7% Non-Metro Socorro, NM 109,032 115,200 6,168 5.7% Non-Metro Torrance, NM 109,032 115,200 6,168 5.7% Non-Metro Union, NM 109,032 115,200 6,168 5.7% ALBUQUERQUE, NM, (MSA) Valencia, NM 130,150 140,600 10,450 8.0%
How credit scores work: Typically, scores range from 300-900. The higher the score the greater the likelihood of repayment according to the lenders. The scoring model analyze all the credit information stored in the bureaus credit files such as: Past performance is 35% of the weight Credit utilization is 30% Credit history is 15% Types of credit is 10% Inquiries is 10% Multiple inquiries for mortgages or auto loans within a 30 day period are counted as one inquiry Promotional or employer inquires do not adversely impact the score Only authorized inquires by the you for the granting of credit can impact the credit score. Your score gets better if: you pay down balances and/or increase your credit limit on revolving accounts to less than 30% of the available credit line. A few open accounts are better than none. Sometimes debt consolidation can hurt your score. Call us....MORTGAGE INFORMATION PRE-QUAL ON LINE
NEW MEXICO INFORMATION PAGE
"Your specialist in New Mexico"
EMAIL US YOUR REQUIREMENTS TO SEND MAIL TO TRISH AND CHUCK DAWSON nmhomes@nmhomes.com
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Click Here for COPYRIGHT AND DISCLAIMER NOTICETHE INFORMATION HAS BEEN OBTAINED FROM SOURCES BELIEVED RELIABLE. WHILE WE DO NOT DOUBT ITS ACCURACY, WE HAVE NOT VERIFIED IT AND MAKE NO GUARANTEE, WARRANTY OR REPRESENTATION ABOUT IT. ALL OFFERINGS ARE SUBJECT TO PRIOR SALE CHANGE IN PRICE AND CONDITIONS AND VARY FROM LENDER TO LENDER.
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