Nancy Guzman is an Expert Realtor for the Metro Denver Colorado area, who can help you decide where to live. Because, Nancy understands finding your special place means taking in many factors that include accessibility to work, education and recreational activities. It also includes the size and style of your home, the style of the neighborhood that will make you feel more at home. All of these factors must come together to make your new Metro Denver Colorado home, feel like home.

For a PERSON that wants a New Home and has GOOD CREDIT*, only EXPERT MORTGAGE LENDERS and EXPERT REALTORS with their Competition Programs and Rates, will allow You to sleep with confidence while your HOME BUYING TRANSACTION IS BEING COMPLETED.

*Includes persons with a past history of bad credit, or you just want to start over again, and have minimal credit or don't have any credit!

"ALL OF THE MORTGAGE INFORMATION YOU NEED TO GET STARTED"

AN EXAMPLE OF A QUALIFYING EXAMPLE (conventional)

PLEASE FILL-IN THE INFORMATION OUTLINED AND MAIL IT TO YOUR MORTGAGE BROKER WITH ALL PERTINENT INFORMATION TO GET YOUR APPROVAL COMPLETED BY THE MORTGAGE BROKER WITHIN 7 DAYS.

PLEASE DON'T LEAVE ANYTHING OUT, IT WILL ONLY DELAY THE APPROVAL!

ALLOWABLE TYPES OF INCOME

WAGE AND SALARY INCOME IS THE MOST COMMON TYPE TO USE, WITH THE BORROWER BEING PAID HOURLY, WEEKLY, MONTHLY OR YEARLY. THIS CAN BE VERIFIED WITH PAYCHECK STUBS, W-2'S AND VERIFICATION FORMS.
MILITARY PERSONNEL MAY BE ENTITLED TO DIFFERENT TYPES OF PAY IN ADDITION TO THEIR BASE PAY. SUCH AS FLIGHT OR HAZARD PAY, CLOTHING ALLOWANCE, QUARTERS ALLOWANCE AND CAN BE CONSIDERED ALLOWABLE INCOME AS LONG AS ITS FUTURE CONTINENCE CAN BE ESTABLISHED.
COMMISSION INCOME MAY BE SUBJECT TO FLUCTUATION FROM YEAR TO YEAR. THE LENDER MUST DEVELOP AN AVERAGE OF THE LAST TWO YEARS' INCOME TO USE IN EVALUATING THE BORROWER'S INCOME QUALIFICATIONS. COMMISSION INCOME MUST BE SUPPORTED BY SIGNED FEDERAL INCOME TAX RETURNS FOR THE PAST TWO YEARS. IF THE EARNINGS SHOW A DECLINE TOWARD THE CURRENT YEAR, THERE MUST BE STRONG OFFSETTING FACTORS FOR THE COMMISSION INCOME TO BE ACCEPTABLE.
OVERTIME AND BONUS INCOME CAN BE USED TO QUALIFY THE APPLICANT IF THE EMPLOYER VERIFIES THAT THE APPLICANT HAS RECEIVED IT FOR THE LAST TWO YEARS AND INDICATES THAT THE OVERTIME OR BONUS INCOME WILL IN ALL PROBABILITY CONTINUE. THE LENDER MUST DEVELOP AN AVERAGE FOR THE LAST TWO YEARS' OVERTIME AND BONUS INCOME TO DETERMINE THE AMOUNT OF INCOME THAT CAN BE CONSIDERED IN EVALUATING THE BORROWER'S QUALIFICATIONS.
PART-TIME INCOME OR SECOND-JOB INCOME MAY BE USED IF IT CAN BE VERIFIED AS HAVING BEEN UNINTERRUPTED FOR THE PREVIOUS TWO YEARS AND IF IT HAS A STRONG LIKELIHOOD OF CONTINUATION. SEASONAL PART-TIME OR SECOND JOB INCOME--SUCH AS THAT RECEIVED BY A PERSON WHO WORKS PART-TIME AT A DEPARTMENT STORE DURING THE CHRISTMAS SHOPPING PERIOD--CAN BE CONSIDERED AS UNINTERRUPTED IF THE BORROWERS HAS WORKED IN THE SAME JOB "IN SEASON" FOR THE PAST TWO YEARS AND EXPECTS TO BE REHIRED FOR THE NEXT "SEASON."
RETIREMENT INCOME AND SOCIAL SECURITY INCOME IS ACCEPTABLE. BENEFITS THAT HAVE DEFINED EXPIRATION DATES MUST HAVE A REMAINING TERM OF AT LEAST THREE YEARS TO BE CONSIDERED AS INCOME.
ALIMONY OR CHILD SUPPORT MUST CONTINUE FOR AT LEAST THREE YEARS AFTER THE DATE OF THE APPLICATION IN ORDER TO BE CONSIDERED AS INCOME. THE BORROWER MUST PROVIDE EVIDENCE THAT THE FUNDS HAVE BEEN RECEIVED FOR THE LAST 12 MONTHS.
NOTES RECEIVABLE MUST BE VERIFIED WITH A COPY OF THE NOTE TO ESTABLISH THE AMOUNT AND LENGTH OF PAYMENT. PAYMENTS MUST CONTINUE FOR AT LEAST THREE YEARS BEYOND THE DATE OF THE MORTGAGE APPLICATION. BORROWERS MUST PROVIDE EVIDENCE THAT THEY RECEIVED THE FUNDS FOR THE LAST 12 MONTHS.

THE BORROWER MUST HAVE THE FOLLOWING......

The borrower must have enough liquid assets to cover the amount of the down payment that must come from his or her own funds, his or her share of the closing costs, the prepaid items that have to be paid by the property purchaser, and the required cash reserves. (We require reserves equal to at least two mortgage payments on conventional loans.)

A....CONTRIBUTIONS: Any closing costs normally paid by the property purchaser are considered contributions if they are not paid by the purchaser. The maximum allowable contributions from interested parties, which depend on the loan-to-value ratio and the occupancy type, are limited to---

3% of the sales price or appraised value, if the loan-to value ratio is greater than 90% and the property will be occupied as a principal residence;

6% of the lesser of the sales price or appraised value, if the loan-to-value ratio is 90% or less and the property will be occupied as a principal residence; or

6% of the lesser of the sales price or appraised value, if the loan-to value ratio is 80% or less and the property will be occupied as a second home.

B....GIFTS (or grants):

Conventional;A borrower can use funds obtained as a gift to satisfy part of the cash requirement for closing only if the donor is a relative, or a church, municipality, or non-profit organization. Even when the borrower receives funds as a gift toward the purchase of a home, the borrower generally must use his or her own funds to cover the required minimum cash outlay, at least 5% of the sales price, the prepaid items that are the responsibility of the property purchaser, and the required cash reserves. However, we will waive this requirement with respect to the minimum cash outlay and allow the full down payment to come from a gift or grant if the loan-to-loan value ration for the mortgage is 80% or less. A gift from a relative must be evidenced by a letter that is signed by the donor. The letter must:

specify the dollar amount of the gift and the date the funds were transferred;

indicate the donor's name, address, telephone number, and relationship to the borrower; and

include the donor's statement that no repayment is expected.

When the funds are not transferred prior to settlement, the donor may give the closing agent a certified check for the amount of the gift. A copy of that check will be sufficient documentation for the lender's records.

C....SALES PROCEEDS: The proceeds from the sale of a currently owned home are a common and acceptable source for the down payment and closing costs on a new house. A photocopy of the fully executed settlement statement on the sale of the home, which shows sufficient net cash proceeds to consummate the purchase of the new home, must be used to verify the source of these funds.

D....Borrowed Funds: Borrowed funds that are secured by an asset that may be used to secure funds include certificates of deposit, stocks, bonds, automobiles, real estate, and life insurance policies. The lender must verify both the terms of the loan and the fact that it is a secured loan. Monthly payments for the loan must be considered as debt when qualifying the borrower. Examples of unacceptable borrowed funds include signature loans, lines of credit on credit cards, and overdraft protection on checking accounts.

E....Sources of Borrower's Funds: Deposit on sales contract. The lender must verify the deposit amount indicated in the sales contract or escrow instructions when it exceeds 2% of the sales price.

Checking and savings accounts. The Verification of Deposit or last 3 months worth of bank statements should be used to verify these accounts.

F....Cash-in-Hand: Cash-on-Hand is not generally an acceptable source of funds for the down payments or closing costs.

EXPLANATION OF THE LIABILITIES PART OF YOUR PURCHASING PROGRAM.

A....RECURRING OBLIGATIONS: The Buyer's liabilities include the following:

INSTALLMENT LOANS

REVOLVING CHARGE ACCOUNTS

LINES OF CREDIT/OVERDRAFT PROTECTION (THAT CONTAIN A BALANCE)

401K/IRA/INSURANCE POLICY LOANS

ALIMONY/MAINTENANCE/CHILD SUPPORT

REAL ESTATE LOANS

CHILD CARE OBLIGATIONS

Keep in mind, that debts lasting less than 6 months may not need to be counted.

B....CONTINGENT LIABILITIES: A contingent liability exists when an individual would be held responsible for payment of a debt should another party default on that payment.

SUCH AS WHEN A BUYER HAS SOLD A HOME WITHIN THE LAST FIVE YEARS, WITHOUT BEING RELEASED FROM LIABILITY. THIS PAYMENT WILL BE COUNTED AGAINST THE BUYER UNLESS:

The Buyers ex-spouse was awarded both property and payment responsibility as a result of divorce.

The Buyer is covered by an employer home sale plan.

the loan-to-value ratio does not exceed 75%.

The property was sold to an owner occupant.

SUCH AS WHEN A BUYER IS A CO-SIGNER ON AN AUTO LOAN, STUDENT LOAN, ETC. UNLESS:

The buyer can document other party has made payment for the last 12 months.

The Buyer's ex-spouse was given responsibility for payment of obligation a result of divorce.

C....PROJECTED OBLIGATION: Debt payments coming due within 12 months of mortgage loan must be counted.

D....NON-OBLIGATION: Those obligations not to be considered as debt (nor subtracted from gross income) include the following:

Federal, State, Local Taxes (unless they are delinquent)

Retirement Contributions, FICA, IRA, 401K

Union Dues

Open Accounts with Zero Balances (except VA)

Voluntary Deductions

THE MINIMUM REQUIREMENTS OF YOUR CREDIT INFORMATION, IN ORDER TO PURCHASE A HOME FROM US!

WE ARE MORE CONCERNED ABOUT A BORROWER'S OVERALL PATTERN OF MAKING PAYMENTS THAN WE ARE ABOUT A FEW INDIVIDUAL OCCURRENCES. IF YOU SEE ANY PROBLEMS ON YOUR PART, CLEAN YOUR CREDIT REQUIREMENTS UP, OR CONTACT US FOR ANY ASSISTANCE, OR FOR ANY QUESTIONS THAT NEED TO BE ANSWERED.

A....CREDIT HISTORY: the lender should look at the borrower's credit history over the past seven years to determine whether there are any major indications of derogatory credit (such as undisclosed debts, judgments, bankruptcies, etc.). Unless the borrower's credit history over the last 24 months raises some serious concerns (or there are major indications of derogatory credit at any time during the last seven years), the lender can consider a borrower's credit history as acceptable if, over the last 12 months, the borrower has had:

NO PAYMENTS 60 DAYS OR MORE PAST DUE AND NO MORE THAN TWO PAYMENTS 30 DAYS PAST DUE--FOR ALL OF HIS OR HER REVOLVING CREDIT ACCOUNTS;

NO PAYMENTS 60 DAYS OR MORE PAST DUE AND NO MORE THAN ONE PAYMENT 30 DAYS PAST DUE--FOR ALL OF HIS OR HER INSTALLMENT CREDIT ACCOUNTS;

NO PAYMENTS PAST DUE--FOR ALL OF HIS OR HER HOUSING DEBT (FIRST OR SECOND MORTGAGE).

B....DEROGATORY CREDIT: Any judgments, garnishments, or liens must be paid in full before closing.

A bankruptcy must have been discharged fully and the borrower must have re-established good credit and demonstrated an ability to manage financial affairs. We consider an elapsed time of at least two years between the discharge of the bankruptcy and the mortgage application as sufficient time to re-establish credit.

Generally, we will not purchase or securitize a mortgage if the borrower(s) has been a defendant in mortgage foreclosure proceedings that were completed in the past three years.

C....LACK OF CREDIT:

Lenders must develop a credit history for borrowers who normally do not use credit or do not have the type of credit history that will appear on a credit report. Credit histories can be developed from rent verifications, from the current and previous landlords, verifications of utility payments and telephone bills, verification of personal property tax payments or verifications from other sources of credit or services for which the borrower has (or had) a regular financial obligation. When adequate credit histories cannot be established, the lender should consider only more conservative mortgage terms, such as a much higher down payment.