That’s amazing! BUT… don’t do anything until you talk to me first. Gifts from relatives and other approved individuals have to be documented in a very specific way. Depending on your loan program, this could include bank statements, cancelled checks, etc. Call me today to discuss how a gift could affect your loan process and what documentation must be provided. Buying Grandpa’s house and he wants to give you a gift of equity? I’ve got you covered on that too! Call today for details.
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That’s amazing! BUT… don’t do anything until you talk to me first. Gifts from relatives and other approved individuals have to be documented in a very specific way. Depending on your loan program, this could include bank statements, cancelled checks, etc. Call me today to discuss how a gift could affect your loan process and what documentation must be provided. Buying Grandpa’s house and he wants to give you a gift of equity? I’ve got you covered on that too! Call today for details.

ByBrandon Butler

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What is a “Rent Back Agreement”? When you purchase a home, there are times when a seller may ask to “rent back” the home after closing. There are many reasons why a seller may request this. For example, they may only want to move once, and the closing date on their new home is after this home’s closing date. Rent Back Agreements are generally not an issue provided they do not exceed 60 days, which is due to the requirements of your Deed/Security agreement required by your lender. If your seller requests this option, let’s talk!
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What is a “Rent Back Agreement”? When you purchase a home, there are times when a seller may ask to “rent back” the home after closing. There are many reasons why a seller may request this. For example, they may only want to move once, and the closing date on their new home is after this home’s closing date. Rent Back Agreements are generally not an issue provided they do not exceed 60 days, which is due to the requirements of your Deed/Security agreement required by your lender. If your seller requests this option, let’s talk!

ByBrandon Butler

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Are you currently receiving distributions from you retirement account and are considering buying or refinancing a home?  For home financing purposes, lenders will look at your current monthly income or total assets to determine how much you qualify for.  If adjustments need to be made on your distribution, I can help you determine how to do this in order to finance your new home.  I’m happy to answer any of your questions!
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Are you currently receiving distributions from you retirement account and are considering buying or refinancing a home?  For home financing purposes, lenders will look at your current monthly income or total assets to determine how much you qualify for.  If adjustments need to be made on your distribution, I can help you determine how to do this in order to finance your new home.  I’m happy to answer any of your questions!

ByBrandon Butler

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If I’m only on the title to a property that I and my spouse own, will that obligation be counted against me if I want to buy another property? For conventional financing, housing debt obligations will only be considered if you, as the borrower, are personally obligated. This is also true in community property states. Let’s talk about how I can assist you in purchasing your next home.
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If I’m only on the title to a property that I and my spouse own, will that obligation be counted against me if I want to buy another property? For conventional financing, housing debt obligations will only be considered if you, as the borrower, are personally obligated. This is also true in community property states. Let’s talk about how I can assist you in purchasing your next home.

ByBrandon Butler

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Did you know that in some states, real estate taxes are paid in “arrears,” and in others, they are paid “in advance”?  When real estate taxes are paid in “arrears,” this results in a significant tax credit from the seller when you purchase a home!  If your State collects real estate taxes “in advance,” this means you owe the seller real estate tax at closing. The difference can mean either less money needed for closing or a lot more!  If you’re not sure how your area’s real estate taxes are paid, let’s talk!  I’m happy to show you how this one little item may affect your purchasing power!
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Did you know that in some states, real estate taxes are paid in “arrears,” and in others, they are paid “in advance”?  When real estate taxes are paid in “arrears,” this results in a significant tax credit from the seller when you purchase a home!  If your State collects real estate taxes “in advance,” this means you owe the seller real estate tax at closing. The difference can mean either less money needed for closing or a lot more!  If you’re not sure how your area’s real estate taxes are paid, let’s talk!  I’m happy to show you how this one little item may affect your purchasing power!

ByBrandon Butler

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With interest rates starting to normalize, many of you are considering refinancing your home or even buying another home.  If you recently changed employment, let’s talk!  Some people are surprised to find that even the smallest of changes can affect your ability to get home financing! I’ll review your situation and let you know if there may be any potential issues.
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With interest rates starting to normalize, many of you are considering refinancing your home or even buying another home.  If you recently changed employment, let’s talk!  Some people are surprised to find that even the smallest of changes can affect your ability to get home financing! I’ll review your situation and let you know if there may be any potential issues.

ByBrandon Butler

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Are You Owed a Credit When Refinancing or Selling? If you purchased a home when rates were higher and you are now thinking about refinancing or selling, you may have participated in a rate buydown program where the seller gave you funds to lower your payment for years 1, 2, or 3.  This is called a Temporary Buydown, as it temporarily reduces your payment. Many clients ask me what happens to these funds if they have not been used. In most cases, the outstanding balance in your buydown escrow will be applied to your principal balance.  If you are considering refinancing or selling, let’s talk first!
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Are You Owed a Credit When Refinancing or Selling? If you purchased a home when rates were higher and you are now thinking about refinancing or selling, you may have participated in a rate buydown program where the seller gave you funds to lower your payment for years 1, 2, or 3.  This is called a Temporary Buydown, as it temporarily reduces your payment. Many clients ask me what happens to these funds if they have not been used. In most cases, the outstanding balance in your buydown escrow will be applied to your principal balance.  If you are considering refinancing or selling, let’s talk first!

ByBrandon Butler

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Downsizing & Hoping to Rent Out Your Present Home as an Income Stream?  As the Boomer population ages, many are choosing to downsize their property and keep their present home as a rental property.  This creates an income stream in addition to their other retirement income.  Prior to making this decision, let’s talk!  Many of my clients did not realize the implications of doing this when buying a new home, and I have the facts you need.
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Downsizing & Hoping to Rent Out Your Present Home as an Income Stream?  As the Boomer population ages, many are choosing to downsize their property and keep their present home as a rental property.  This creates an income stream in addition to their other retirement income.  Prior to making this decision, let’s talk!  Many of my clients did not realize the implications of doing this when buying a new home, and I have the facts you need.

ByBrandon Butler

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Virtual Currency & Buying a Home – As the use of Virtual Currency grows, more of my clients are asking how they can use this asset to buy a home.  When financing a home, there are a couple of twists and turns that you need to know in order to use your virtual currency.  If this is something you are thinking about, message me and I’ll step you through the process.
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Virtual Currency & Buying a Home – As the use of Virtual Currency grows, more of my clients are asking how they can use this asset to buy a home.  When financing a home, there are a couple of twists and turns that you need to know in order to use your virtual currency.  If this is something you are thinking about, message me and I’ll step you through the process.

ByBrandon Butler

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Thinking about buying a condo? If you are in the market for a condominium, pay attention to any “special assessments” placed on the property. A special assessment is generally a significant repair/update issue assigned to the condo owners. The condominium board votes on this assessment, and each condo unit is responsible for paying this fee. It is independent of the monthly condominium fee and can sometimes be substantial. Understanding any additional fees you would be responsible for before signing a contract is essential. If you have any questions, I’m here to help!
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Thinking about buying a condo? If you are in the market for a condominium, pay attention to any “special assessments” placed on the property. A special assessment is generally a significant repair/update issue assigned to the condo owners. The condominium board votes on this assessment, and each condo unit is responsible for paying this fee. It is independent of the monthly condominium fee and can sometimes be substantial. Understanding any additional fees you would be responsible for before signing a contract is essential. If you have any questions, I’m here to help!

ByBrandon Butler

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For Home Financing purposes, we rely on credit scores to help approve a client for their new home.  Historically, the Classic FICO score has been the “go-to” score for lenders, but that is changing!  The agencies have determined that there is more to a person’s credit than just those accounts traditionally reported to the bureaus, such as car loans, credit cards, and mortgages.  Items such as rent, utilities, cell phone, and other monthly bills also demonstrate a Borrower’s ability to repay debt.  So starting next year, lenders will be using a new credit score model that factors in a more complete credit picture of the Borrower.  That’s great news for many!  If you would like to know more, please let me know and I’m happy to share the details!
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For Home Financing purposes, we rely on credit scores to help approve a client for their new home.  Historically, the Classic FICO score has been the “go-to” score for lenders, but that is changing!  The agencies have determined that there is more to a person’s credit than just those accounts traditionally reported to the bureaus, such as car loans, credit cards, and mortgages.  Items such as rent, utilities, cell phone, and other monthly bills also demonstrate a Borrower’s ability to repay debt.  So starting next year, lenders will be using a new credit score model that factors in a more complete credit picture of the Borrower.  That’s great news for many!  If you would like to know more, please let me know and I’m happy to share the details!

ByBrandon Butler

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Can a seller credit be used to pay off the buyer’s debt so that they qualify for a mortgage loan? In markets where seller credits are normal, you may wonder how these credits can be applied to help you buy a home. For conventional or FHA loans, you can use seller credits to pay for closing costs, prepaid expenses, or even points to lower your rate. However, you cannot use them to pay down your debt to qualify for a loan. There is one exception to this, however, and that is a VA loan for Veterans. For VA loans, the credit from the seller can be used to pay off borrower debt to qualify. If you are thinking about buying a home, let’s talk!
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Can a seller credit be used to pay off the buyer’s debt so that they qualify for a mortgage loan? In markets where seller credits are normal, you may wonder how these credits can be applied to help you buy a home. For conventional or FHA loans, you can use seller credits to pay for closing costs, prepaid expenses, or even points to lower your rate. However, you cannot use them to pay down your debt to qualify for a loan. There is one exception to this, however, and that is a VA loan for Veterans. For VA loans, the credit from the seller can be used to pay off borrower debt to qualify. If you are thinking about buying a home, let’s talk!

ByBrandon Butler

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What happens if you co-signed for someone’s debt and want to buy a home? Depending on the financing, you must show at least a 12-month history of someone else paying the debt on time. Otherwise, the lender will count it as your debt. If you would like the “What to Consider Before Co-Signing a Loan” tip sheet, comment below, and I’ll send it to you. If you already co-signed for another person’s loan, let’s talk about your situation and structure a plan.
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What happens if you co-signed for someone’s debt and want to buy a home? Depending on the financing, you must show at least a 12-month history of someone else paying the debt on time. Otherwise, the lender will count it as your debt. If you would like the “What to Consider Before Co-Signing a Loan” tip sheet, comment below, and I’ll send it to you. If you already co-signed for another person’s loan, let’s talk about your situation and structure a plan.

ByBrandon Butler

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Do you need “Reserves” to buy a home? For some clients, Yes; for others, No. It depends on the financial strength of your file. While it is always a great idea to have money left over after buying a home for decorating or an emergency, you may get a loan approval condition that requires reserves after closing costs and down payments.  This means that your loan can be approved if we can document that you have assets available to you “just in case” there is a financial hardship issue that makes it difficult to pay your mortgage.  Reserves can vary based on loan type, borrower, and property type.  The good news is that reserves can be many different types of assets!  Buying a home is a significant investment, so call me with any questions, and I’m happy to help!
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Do you need “Reserves” to buy a home? For some clients, Yes; for others, No. It depends on the financial strength of your file. While it is always a great idea to have money left over after buying a home for decorating or an emergency, you may get a loan approval condition that requires reserves after closing costs and down payments.  This means that your loan can be approved if we can document that you have assets available to you “just in case” there is a financial hardship issue that makes it difficult to pay your mortgage.  Reserves can vary based on loan type, borrower, and property type.  The good news is that reserves can be many different types of assets!  Buying a home is a significant investment, so call me with any questions, and I’m happy to help!

ByBrandon Butler

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Buying a Home as a Displaced Homemaker! – An individual that is a displaced homemaker or single parent will be considered a First Time Homebuyer if he or she had no ownership interest in a principal residence, other than a joint ownership interest with a spouse, during the preceding three-year time period. This is great news for some of you that want to take advantage of first-time homebuyer programs. Let’s talk and build your road map to homeownership!
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Buying a Home as a Displaced Homemaker! – An individual that is a displaced homemaker or single parent will be considered a First Time Homebuyer if he or she had no ownership interest in a principal residence, other than a joint ownership interest with a spouse, during the preceding three-year time period. This is great news for some of you that want to take advantage of first-time homebuyer programs. Let’s talk and build your road map to homeownership!

ByBrandon Butler

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