At NE Moves Mortgage L.L.C., Senior Vice President of Sales Phil Tocci shared an insider”™s look at what homebuyers need to know in the current market.
Q: What advice do you have for potential homebuyers in terms of obtaining mortgages in 2009?
Tocci: “In today’s home-buying market, knowing what you can afford is critical. Becoming pre-approved by a licensed lender is essential. A pre-approval letter states that based on a review of  documents supplied to the lender: bank statements, pay stubs, W-2 forms for two years or two years of federal tax returns, they are able to borrow a specific amount on a given mortgage product and rate.”
“If a lender is not willing to indicate these items in a letter, seek another lender who will.
Knowing that a lender will finance you with a certain loan amount at a given rate on a specific program are essential terms to have in a pre-approval letter. Pre-approval letters are typically subject to rate movements and have an expiration date. A credit report is valid for a period of 120 days.”
“Most lenders look for 12-24 months of timely payment history along with a corresponding credit score ”¦ In today”™s market, a down payment is almost always going to be required. Having savings accumulate over time (2-3 months) is a key strength ”¦ most lenders will want to see that no more than 28-33 percent of one’s monthly income is going to go toward the monthly mortgage bill ”¦ All lenders in today’s market will require a valuation of the subject property. Ensuring that the value of the house is proportionate to the loan request is necessary in the eyes of the lender.”
“Monthly payments on loans, credit cards, 401K loans and alimony are all calculated by the lender in a total debt ratio. This ratio typically requires no more than 38-45 percent of a monthly income go towards the total debt.”
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NE Moves Mortgage offices are located inside Coldwell Banker Residential Brokerage offices throughout Fairfield County and New England. For information, visit www.NEMMortgage.com or contact Phil.Tocci@NEMoves.com.
