Required Documents For Loan Applications

Below is a list of documents that are required when you apply for a mortgage. However, every situation is unique and you may be required to provide additional documentation. So, if you are asked for more information, be cooperative and provide the information requested as soon as possible. It will help speed up the application process.  

Your Property

• Copy of signed sales contract including all riders
• Verification of the deposit you placed on the home
• Names, addresses and telephone numbers of all realtors, builders, insurance agents and attorneys involved
• Copy of Listing Sheet and legal description if available (if the property is a condominium please provide condominium declaration, by-laws and most recent budget)

Your Income

• Copies of your pay-stubs for the most recent 30-day period and year-to-date
• Copies of your W-2 forms for the past two years
• Names and addresses of all employers for the last two years
• Letter explaining any gaps in employment in the past 2 years
• Work visa or green card (copy front & back)

If self-employed or receive commission or bonus, interest/dividends, or rental income:

• Provide full tax returns for the last two years PLUS year-to-date Profit and Loss statement (please provide complete tax return including attached schedules and statements. If you have filed an extension, please supply a copy of the extension.)
• K-1's for all partnerships and S-Corporations for the last two years (please double-check your return. Most K-1's are not attached to the 1040.)
• Completed and signed Federal Partnership (1065) and/or Corporate Income Tax Returns (1120) including all schedules, statements and addenda for the last two years. (Required only if your ownership position is 25% or greater.)

If you will use Alimony or Child Support to qualify:

• Provide divorce decree/court order stating amount, as well as, proof of receipt of funds for last year

If you receive Social Security income, Disability or VA benefits:

• Provide award letter from agency or organization

Source of Funds and Down Payment

• Sale of your existing home - provide a copy of the signed sales contract on your current residence and statement or listing agreement if unsold (at closing, you must also provide a settlement/Closing Statement)
• Savings, checking or money market funds - provide copies of bank statements for the last 3 months
• Stocks and bonds - provide copies of your statement from your broker or copies of certificates
• Gifts - If part of your cash to close, provide Gift Affidavit and proof of receipt of funds
• Based on information appearing on your application and/or your credit report, you may be required to submit additional documentation

Debt or Obligations

• Prepare a list of all names, addresses, account numbers, balances, and monthly payments for all current debts with copies of the last three monthly statements
• Include all names, addresses, account numbers, balances, and monthly payments for mortgage holders and/or landlords for the last two years
• If you are paying alimony or child support, include marital settlement/court order stating the terms of the obligation
• Check to cover Application Fee(s) 

Source: Rock Mortgage Houston

Winter Time is High Time for Remodeling Tips

 “What doesn’t bankrupt us makes us stronger,” writes Josh Garskof, a serial remodeler and contributing writer and/or editor for Money magazine, “This Old House,” and Martha Stewart Living.  Houston property owners who have attempted a remodel anytime recently are likely to find the humor – and the truth – in his wisecrack. 

With the spring selling season just over the horizon, this would be about the right time for homeowners who are considering bringing their property to market to finalize plans and firm up any remodeling arrangements.  Whether the project is just to freshen up a bathroom or re-landscape a whole backyard, Garskof offers the following tips:

Plan to Overspend – Yes, we all hate to acknowledge it, but surprises happen with predictable regularity. If you don’t allow for that cushion, you may find yourself in a tight spot when your contractor discovers a missing drainage system under the house.

Magnet Sweep – If you’re planning exterior work, have your team do a magnet sweep of the outdoor space when they are finished.  Dozens of old, rusty nails can find their way into your lawn and into the mulch – nothing you want bare feet to encounter when summer comes (and the last thing you want potential visitors or agents stepping on during Broker’s Tour!)

Permits – Be sure to secure copies of a Certificate of Occupancy or other Houston code clearances from your contractor before you issue the final payment. It’s one way to help ensure the work is safe, up to code – and to have the paperwork handled when a sale is being finalized.

If you are preparing for spring and plan to do some remodeling before bringing your Houston property to market, I hope you will feel free to consult me before spending a single dollar.  I’m here to help my clients save money where they don’t have to spend it -- and make money where they can. Especially when it comes to property improvements, knowing today’s homebuyers can make a real difference. Email me today!

	Diego E. Jaramillo Broker Associate, CIPS, ABR diego@houstonheritage.com	Jair A. Jaramillo Real Estate Consultant jair@houstonheritage.com
	Houston Heritage Group Keller Williams Realty - The Metropolitan Office: 713-980-5115 Fax: 832-603-4304 Website: www.HoustonHeritage.com Facebook: www.facebook.com/HoustonHeritageGroup Twitter: www.twitter.com/HoustonDiego Blog: www.TheHoustonBlog.com

 

	Diego E. Jaramillo Broker Associate, CIPS, ABR diego@houstonheritage.com	Jair A. Jaramillo Real Estate Consultant jair@houstonheritage.com
	Houston Heritage Group Keller Williams Realty - The Metropolitan Office: 713-980-5115 Fax: 832-603-4304 Website: www.HoustonHeritage.com Facebook: www.facebook.com/HoustonHeritageGroup Twitter: www.twitter.com/HoustonDiego Blog: www.TheHoustonBlog.com

Houston Realtor® Plays Watchful Role in Appraisals

It may be a fundamental element in nearly two-thirds of every residential real estate transaction, yet when you think about buying or selling a local home, it’s not likely to be your major focus.

Important though it may be, for most people, the appraisal process seems like a mere formality. After all, haven’t the seller and buyer already agreed to the deal? What’s left to do, other than dot the I’s and cross the T’s? Of course, if you are a cash buyer, you can choose to skip the appraisal altogether.

If so, congrats - you are ready to buy as soon as you find the right property! But for the rest of us, if a loan is involved, so too is the lender’s appraisal – or appraisals.

Yet many real estate agents are not a part of this element. The entire transaction hinges upon its success because the lender needs assurance that the property has at least the agreed value. If the home doesn’t comp out, the bank will not fund the loan. When it comes to the appraisal, I will admit to being one Realtor who favors the proactive approach.

One way to help assure the right outcome at appraisal time is for your Realtor to meet the appraiser at the property -- armed with a package of comparables that support the agreed-upon price.

Most appraisers may have uncovered the same comps already, but that’s not always the case. If my help justify a higher price. Making the appraiser’s job easier is an important part of a Realtor’s job.

As a trusted Realtor in town, I’ve found that taking an active role during appraisal is an important way to protect my client’s interests. It’s a commitment I make to help insure that each and every closing finishes as planned. If this winter finds you looking for a local Realtor who will be by your side from start to finish -- drop me an email, or give me a call!

®Realtor is a trademark of the National Association of Realtors

	Diego E. Jaramillo Broker Associate, CIPS, ABR diego@houstonheritage.com	Jair A. Jaramillo Real Estate Consultant jair@houstonheritage.com
	Houston Heritage Group Keller Williams Realty - The Metropolitan Office: 713-980-5115 Fax: 832-603-4304 Website: www.HoustonHeritage.com Facebook: www.facebook.com/HoustonHeritageGroup Twitter: www.twitter.com/HoustonDiego Blog: www.TheHoustonBlog.com

A Cure for Windy, Creaky Houston Homes

           If you live in a home built in the early 20^th Century (or before), cold winter evenings can send visions of new homes dancing through your head. With floors that creak and windows that barely slow the icy gales, even the antique charm of your original wooden banisters can wear thin (most noticeably after your sister’s kid knocks another handrail loose).

But don’t despair. While new homes in Houston may be a preferred investment for some buyers, duplicating the authenticity of your hand-hewn, turn-of-the-century Victorian is, quite simply, not possible.  With the right specialists to help, keeping your original home in top repair might not be as time consuming or costly as some fear.

Original windows, for example (the kind famous for letting chilly drafts pass unmolested) don’t necessarily need complete $1,000 replacements. A less expensive solution is to call in an experienced carpenter for an overhaul.  True pros know how to remove built-up paint, add new hardware, wax the rails, and most importantly, weatherstrip the gaps.  That cost is usually between $100 - $200.  Another common problem is wooden floors that squeak after decades of wear and multiple re-finishings. That noisy problem can often be fixed by using tiny screws to secure them to the framing below.

That creaky banister?  Locating the newel post and the corresponding nut at the base of the stairs can often strengthen the rails – they were designed to tighten the whole banister.   DC contractor Stephen Ortado (a veteran whose clients include the White House) says, “This is a simple $200 fix for someone who knows what he’s doing.”

Of course, if one of the new homes in Houston is your ultimate goal, repairing and restoring your older home before listing it is a doable project. 

The fact is, I delight in discovering the magic in both new homes and older ones -- contact me today if you would like an up-to-the-moment pricing evaluation.

http://www.houstonheritage.net/	Diego E. Jaramillo Broker Associate, CIPS, ABR diego@houstonheritage.com	Jair A. Jaramillo Real Estate Consultant jair@houstonheritage.com
	Houston Heritage Group Keller Williams Realty - The Metropolitan Office: 713-980-5115 Fax: 832-603-4304 Website: www.HoustonHeritage.com Facebook: www.facebook.com/HoustonHeritageGroup Twitter: www.twitter.com/HoustonDiego Blog: www.TheHoustonBlog.com

When Does a Reverse Mortgage Make Sense?

Everyone sees those TV commercials featuring sincere celebrities pitching reverse mortgages. If you are 62 or older, chances are you’re also subjected to glossy mailers (and even DVDs!) that show up in your mailbox at regular intervals. 

 

Latest stats show that approximately 83% of baby boomers plan to stay in their homes during retirement. That may be why some Houston homeowners who have built equity in their homes may be paying attention. 

You can’t blame them if they have one overriding question -- is this some kind of scam?

Essentially, a reverse mortgage is just one way to tap into a home’s equity regardless of the owner’s credit score or income. Under a reverse mortgage, borrowers receive a monthly payment, line of credit, or lump sum. Although the borrowed amount accrues interest immediately, borrowers don’t need to repay anything until they move or become deceased – at which point they (or their estate) repays the loan plus interest.

Elder law attorney Janet Colliton believes a reverse mortgage can be a useful financial tool for homeowners aged 70 or older committed to remaining in their homes…if they lack the financial resources needed to comfortably cover their living and medical expenses.  

However, for Houston homeowners younger than 70 (who can expect a longer retirement), or who would elect to take the cash in a lump sum, there is a clear red flag. In either case, a reverse mortgage increases the risk of running out of cash - and home. Additionally, for homeowners who have not yet built equity in their home, a reverse mortgage is not available.

If you are starting to consider your retirement plans and would like to survey all of your options, I am happy to meet to go over the buying and selling alternatives that will work best for you. You won’t know until you’ve run the numbers -- call me anytime to begin the discussion. 

	Diego E. Jaramillo Broker Associate, CIPS, ABR diego@houstonheritage.com	Jair A. Jaramillo Real Estate Consultant jair@houstonheritage.com
	Houston Heritage Group Keller Williams Realty - The Metropolitan Office: 713-980-5115 Fax: 832-603-4304 Website: www.HoustonHeritage.com Facebook: www.facebook.com/HoustonHeritageGroup Twitter: www.twitter.com/HoustonDiego Blog: www.TheHoustonBlog.com

FREE eBook : 8 Steps To Buy Your First Home

For Your Free Copy Click Here

	Diego E. Jaramillo Broker Associate, CIPS, ABR diego@houstonheritage.com	Jair A. Jaramillo Real Estate Consultant jair@houstonheritage.com
	Houston Heritage Group Keller Williams Realty - The Metropolitan Office: 713-980-5115 Fax: 832-603-4304 Website: www.HoustonHeritage.com Facebook: www.facebook.com/HoustonHeritageGroup Twitter: www.twitter.com/HoustonDiego Blog: www.TheHoustonBlog.com

Relocating to Houston, TX...A Newcomer's Guide

Congratulations! If you're moving to Houston, you've chosen one of America's truly great metropolises.
Houston is the fourth largest city in the nation and offers a warm, sunny climate year-round. Economically and ethnically diverse, Houston abounds with employment opportunities, housing options, and entertainment choices. While Houston has long been recognized as the "Energy Capital of the World", it is the energy of its diverse population, vibrant business climate and quality of life that make it unique. It is an international city. It is a leader in the arts, education and health care. It is a city that continues to take the best of its past and build on the future.

Affordable
The cost of living in Houston is among the lowest of all urban settings in the United States. Houston has the lowest cost of living and least expensive housing among twenty-nine metropolitan areas with populations of more than 1.7 million in the U.S. (ACCRA Cost of Living Index, third quarter 2002).

Industrious
The twenty-two Fortune 500 companies, which call Houston home, provide a sound economic base for the city. A prized asset is the Texas Medical Center - the largest medical center in the world. With its plentiful oil and gas companies, Houston is considered by many to be "Energy Capital of the World". NASA's Johnson Space Center and its surrounding contractors are the reason Houston is called Space City.

Diverse
The international flavor of Houston is apparent through art, music, food, and shops. Houston is home to more than 100 different nationalities, supported by consular offices representing seventy-seven nations, and more than sixty languages can be heard throughout the city. Festivals, such as the Houston International Festival, pay tribute to virtually every culture in the Houston area.

Entertainment
Houston is world-renowned for its rich culture that offers arts, entertainment, and dining. It is among only a handful of cities that supports professional companies in ballet, opera, theatre, and the symphony. The city's Theater District is home to eight performing arts groups with more than 12,000 seats - placing it second only to New York City. In the Museum District you can experience nationally ranked Museum of Fine Arts, Houston (MFAH), Children's Museum of Houston, Contemporary Arts Museum (CAM), Museum of Health and Medical Sciences, and Museum of Natural Science, as well as many galleries and other cultural institutions.

If you are a sports enthusiast, Houston has something for everyone and every season. Cheer for your favorite professional team - the National Baseball League Houston Astros, National Football League Houston Texans, Houston Comets, Houston Rockets, or American Hockey League Houston Aeros - from a comfortable seat in one of three state-of-the-art stadiums. Golf year-round, sail on Galveston Bay, take a stroll down Kemah's Boardwalk, jog on miles of trails, swim or just lie on a beach.

Educated
For those with families, Houston provides educational opportunities that include distinguished public and private schools. Twenty-three public school districts lie entirely or partly within Harris County, and the seven surrounding counties contain another thirty-eight districts. Houston's youth are encouraged to take part in after-school and summer programs (some right on the UH campus), and to visit the Houston Public Library for reading enrichment.  Nationally acclaimed colleges and universities are of interest to local residents and international students including - University of Houston, Rice University, Houston Baptist University, Houston Community College, University of St. Thomas and many others.

Livable
Houston and its surrounding areas offer affordable real estate in a variety of master-planned communities, wooded neighborhoods, and historic enclaves. The heart of the city is experiencing a renaissance, with the development of numerous loft-style, high-rise and garden apartments. To search for the hottest new homes for sale in Houston, sign up with my New Listings Notifications.  You'll receive updates via email to the properties you are most interested in... even days before they hit the widely acclaimed MLS database.

Houston Education Highlights

Median age of area citizens is 30.9 years. Population is both racially and ethnically mixed. Job market has many opportunities for internships. Area abounds in resources for recreation and cultural events. Population is 26.4% foreign born. Several charter schools available for elementary and high school education. 70.4% of residents have a high school degree or higher. Same ratio of males to females in area. Student-teacher ratio (14:1) is improving. Nearly 50% more libraries in area than the nation's average. Source: Houstoneducation.com 4/2006

Let me show you the way...
I understand that finding your new home is just one of the tasks that face you when you're relocating. My goal is to coordinate everything as smoothly and efficiently as possible here, while you're wrapping up the final details of packing up and moving out of your current home. I would be happy to send you a relocation package complete with area and school information, maps, and real estate listings for the area or neighborhood that interests you. Beat other home buyers to the hottest new homes for sale in Houston with my New Listings Notifications.  You'll receive updates via email to the properties that match your search criteria and be better prepared to preview homes prior to your move to Houston.

To find out more about Houston, visit the following Web sites:

• Greater Houston Partnership
  • www.houston.org
• Greater Houston Convention & Visitor's Bureau
  • www.houston-guide.com
• City of Houston
  • www.cityofhouston.gov
• Houston Business
  • http://www.houstonbusiness.com
• Houston Association of Realtors
  • Search Homes on Houston MLS
• Explore Houston Neighborhoods
  • www.homepages.com/houstonheritage

	Diego E. Jaramillo Broker Associate, CIPS, ABR diego@houstonheritage.com	Jair A. Jaramillo Real Estate Consultant jair@houstonheritage.com
	Houston Heritage Group Keller Williams Realty - The Metropolitan Office: 713-980-5115 Fax: 832-603-4304 Website: www.HoustonHeritage.com Facebook: www.facebook.com/HoustonHeritageGroup Twitter: www.twitter.com/HoustonDiego Blog: www.TheHoustonBlog.com