Don’t Let Your Lack of Rations Delay Your Purchase!

There’re “Five C’s” every mortgage loan officer (LO) looks for when qualifying a borrower. They are Credit, Capital, Capacity, Collateral and Character. My last Blog covered Credit and the importance of preplanning for your home purchase. This time around, I’ll focus on the importance of Capital or in my best Military lingo, your “Rations”.

When applying for a home loan one of the first qualifying questions a Loan Officer will ask relates to your available funds, i.e. capital for your home purchase. One of the major benefits of your VA status is that no down is required for the purchase of a home with a VA loan. I’d be remised if I didn’t offer a general warning: some lenders mislead the true costs of their VA Loans in their advertising. Generally speaking, most VA Loans have a cost associated with origination. It’s very important to ask the right questions of your LO to ensure you know the benefits and the costs of your VA Loan.

Back to our second C of the “Five C’s” – capital! There are 3 buckets of funds, or capital that are needed to purchase a home:

1 – down payment,

2 – prepaid items

3 – closing costs.

Together these three buckets of capital generally make up the total amount of cash needed to close. As mentioned previously, with a VA purchase loan most Vets qualify for a no down payment loan option – I’ll repeat that just so it sinks in – no down payment if one stays within the maximum loan amount for your county (more on that in a later post!). So, generally with a VA loan all one would need for capital are their pre-paids and closing costs. The good news being, there’re several ways to accomplish this! One can have the seller, the person they’re purchasing the home from, credit the costs; the lender can pay the costs by adjusting the interest rate to accommodate the credit; and lastly, in addition to the VA benefits there’re Down Payment Assistance programs that can cover the pre-paids and closing costs as well.

If you are interested in owning your own home, don’t assume you’re not able to qualify because you don’t have the capital or the “rations”. I’m here to be of service to all the loyal Veterans in El Dorado County and beyond. My goal is to help those with the dream of homeownership make it a reality. If you are thinking of buying in the next 12 months, don’t hesitate to call me for a free mortgage planning session so we can get your “Rations” plan in place.

*Please note – each borrower’s situation is different. The above is meant for illustrative purposes and is subject to a complete loan file.

Christina Margo is a Certified Mortgage Planning Specialist and has been in the real estate industry serving future and existing homeowners along with investors since 1989. She is a proud resident in El Dorado County, wife, step mother, daughter of a Korean War Veteran, coach and ready to be of service.

Contact:

Christina Margo, CMPS

Direct: 916-990-2887

Email: Christina.Margo@lhfs.com

Website: www.ChristinaMargo.com

NMLS/CA-DBO #1032783

Land Home Financial Services, Inc. is an Equal Housing Opportunity Lender.

Corp NMLS #1796

 
 
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    julieJulie Leconte

    Julie is a 3rd generation California native married to a Frenchman and together they have 4 grown children.  Many of her family relations have served in the US military, but most were quiet about their experiences.  It wasn’t until her own son joined the Army in 2005 that she understood the sacrifices, pride, fear & emotional chaos involved with being a military family.  It was the isolation part that struck her the most since most civilians do not understand what it is all about.  It was a relief to discover the Military Family Support Group with her husband in 2009 (when their son was deployed in Afghanistan) and realize that here was a group of people who understood…who ‘got it’!  She has been an active member ever since. Her son is now a veteran.  In 2014 she took on the role as Facilitator of the organization with the goal of making El Dorado County military families feel valued & understood.


    Lisa Rodriguez

    Lisa is a proud wife of a U.S. Army Reservist.  A mother of two, IT consultant, avid reader and guest blogger/IT administrator for Military Family Support Group.  Lisa has a background in government consulting regarding military service members benefits, specifically Combat-Related Special Compensation, the U.S. Army Wounded Warrior Program, Family Readiness Support with the U.S. Marine Corps and Social Security Disability benefits.  She has lived many places to include North Carolina, Washington, DC and overseas.  She is a military spouse that has endured many months of having a spouse deployed and serial volunteer for veteran/military service member organizations.

     

     

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