If you saw my tweet of the week then you know that, the Federal Housing Administration (FHA) updated their student loan payment requirement policy for mortgages! Prior to Thursday, FHA lenders would consider one percent of your student loan balance as your monthly payment.

So for example, if you chose a college major that required you to get a masters degree and now you have an outstanding student loan balance of $100K, FHA lenders would use $1,000 (1%) as your monthly payment for your student loan which in turn gave you a higher DTI (debt to income ratio) thus qualifying you for less house. NOW and effective immediately the FHA will consider your actual monthly payment which almost always is significantly less than 1% of your balance.

All in all this is definitely a game changer! So if you previously were unqualified to buy or given a less than ideal budget for a FHA backed loan due to high student loans assuming you meet all other requirements you are now eligible. Contact me today and I will introduce you to some of my preferred lenders so they can help me get you YOUR OWN KEYS!

Read the full press release here
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Tony Stanford, Realtor®️
EZ Realty Group
📞704-941-0624

Recently I completed the Canopy Workforce Housing Certificate Program. The program is designed to position Realtors® as experts in the first-time home buying experience and to promote affordable housing initiatives. As you know I want to help you get “your own keys” and completing this program gave me a whole new set of tools to assist future buyer clients like you!
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Tony Stanford, Realtor®️
EZ Realty Group
📞704-941-0624

What is a Mortgage Pre-Approval?
When you are pre-approved for a mortgage, it means a lender has determined how much you can borrow, the loan programs that you may qualify for, as well as the interest rate you qualify for. This assessment is based on things like credit score, income, debts, and employment history. You’ll generally get a written statement from a lender stating this information, which can be used to give sellers confidence that you’ll be approved for a loan after they accept your offer. Most pre-approval letters are good for 60 to 90 days.

Why Should You Get Pre-Approved?
There are many reasons why you should get pre-approved. The most important reason is that you will get an accurate idea of how much home you can afford. This can help to target your home search and ensure you only look at houses that are truly in your price range. A pre-approval letter also helps you prove to real estate agents and sellers that you’re a credible buyer and able to act fast when you find the home you want to buy. Most sellers even require buyers to submit a pre-approval letter with their offers, although having a pre-approval letter does not guarantee that your offer will be accepted by a seller. 

Does Pre-Approval Guarantee a Loan?
No. A pre-approval letter is not an offer to lend, a commitment to make a loan, or a guarantee of specific rates or terms. Regardless of pre-approval, a lender may require additional income and asset verification, as well as the satisfaction of other conditions, before extending you a loan. Pre-approval letters are subject to modification or cancellation if your financial situation or other conditions change. 

What information is typically needed in the Pre-Approval Process?

• Driver’s license
• Social Security Number (Allows lender to pull your credit)
• Paystubs – Last 30 Days
• W2s – Last two years
• Bank Statements – Last 60 Days (Please send the account that has your savings for closing)

• 401k Last Quarterly Statement (If applicable, this will show your available 401K balance)
• 401k Terms & Conditions (If applicable, this is a document that outlines the reasons you can withdraw funds )

• Student Loans – If you have student loans, please contact your student loan servicer and request a breakdown of all your repayment options in writing. You do not have to set a payment up yet but the lender needs to know the estimated amount in order to finalize your home loan approval.​
• Independent Contractor ONLY - 1099’s/ Last Two Years Tax returns

How Do You Find a Lender to Get Pre-Approved?
The good news is there is a lender for everyone. As I learn about you and your home-buying goals during the free consultation I will make recommendations on lenders who will be best suited to assist you in getting your own keys!