• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

How To Get a Sonoma County Mortgage Loan

October 2, 2012 by Scott Sheldon

Share on Facebook Share on Twitter Share on Pinterest Share on LinkedIn Share on Email

If you are thinking about how to get a Sonoma County Mortgage loan please stop and make sure to read this article in its entirety.

The mortgage loan process has transformed in the last few months and obtaining a Sonoma County mortgage loan is not a simple as it used to be. For illustration purposes I am going to break this down piece by piece so you can be best informed upfront. In obtaining a Sonoma County Mortgage Loan lenders will do a CIA analysis. Credit, Income, and Assets are critical to get the best mortgage rate. These three components support mortgage lending in today’s economic climate.

Mortgage lender’s will always want documentation of income. This is going to be categorized depending on your employment status. If are self employed we will need 1099’s for the last years, a year to date profit and loss statement and business license. If you are a W-2 wage earner and are seeking a mortgage refinance or purchase loan in Sonoma County you are going need to provide 30 days worth of pay stubs to support your current monthly gross income. We as mortgage lenders are going to look at the gross monthly income that you earn to qualify you for a home mortgage. We are also going to ask you for the two most recent year’s federal income tax returns which will further support your gross monthly income in qualifying for a home mortgage loan. The last item we as mortgage lenders are going to look for is your two most recent years W2’s from your current and or past employers. If you receive any other form of documentation rental income, dividend income, pension income, Social Security income, any other source of income will require further documentation and the likelihood of projected continuance for the next 12 months.

To get a Sonoma County Mortgage, you will need assets.

Assets that we are looking for usually are liquid assets that you have in the bank for example bank statements showing funds. In order to get a mortgage loan you will need to provide two months of full bank statements all pages showing proof of funds to close escrow as well as two months of statements for all other asset accounts or the last two quarters depending on the accounts that you have: 401(k)’s and other money market accounts can be quarterly, so we will need the last two quarters. These statements must show enough money for a down payment which must be at least 3.5 percent of the purchase price. If the down payment to purchase a home in Sonoma County is coming from a gift, you will need to have a signed the gift letter as well as a full bank statement showing the ability the giftor actually has the ability to give a gift. In other words when looking for a mortgage loan we will need a full and complete paper trail of the down payment. The relationship also must be a blood relative of the borrower. If there are any large deposits in any of the bank statements provided letters of explanation will be required by the mortgage lender to make the mortgage loan so they can satisfy today’s mortgage guidelines. Your Sonoma County mortgage lender can certainly give you a letter of explanation template which will make this process easier.

In order to get a Sonoma County Mortgage, pulling a current credit report is necessary.

To get a mortgage loan today you must have a credit score of 620 or better. For your information if your credit score is around 620 your mortgage lender is going to require you to provide letters of explanation for any of the past credit delinquencies, past collections, or old charge-offs and certainly any lates that may have been the past. You will need to have three credit scores one from each credit bureau Trans Union, Equifax and Experian. If you have less than three credit scores you will need to talk to your mortgage lender in order to get a mortgage decide what is the best action to take. A good mortgage lender can help you in this regard. You can always call me Scott Sheldon 707 217-4000.

If you have credit scores which are 640 or better you will be a better position to purchase a home than if your credit scores are beneath 640. Generally with regards to credit when getting a mortgage loan you will want your credit cards’ balances to be no more than 30% of the total allowable credit lines. You certainly do not want to have any lates on your mortgage. No mortgage lates or rental payment lates in the last 12 months. If there is a debt on your credit report that it’s not yours you will need to provide from whoever’s debt it is 12 months of canceled checks to prove that the debt is not yours so it can be omitted from your debt to income ratios when qualifying for a Sonoma County mortgage loan.

Lastly and probably most importantly when getting a Sonoma County Mortgage Loan is your debt income ratio and housing ratio. As a mortgage lender when helping a client get a mortgage loan, I like to show them how these numbers work. We take your total housing payment and divide that into your gross monthly income to come up with your housing ratio. Next we take your total housing payment plus any monthly debts that you have like auto loans credit cards etc. and add those items together. Once we have that figure, we divide that into your gross monthly income and that will give us your front-end and backend ratios in other words your housing ratio and debt income ratio. Mortgage lenders require the calculations to be performed in just this way. We usually do not want a borrower to have a front housing ratio of more than 36% of their gross monthly income and a debt income ratio of no more than 50% of their gross monthly income. It varies from client to client, but these are the general calculations. We do calculate these for you.

There are several other things that we look at as mortgage lenders to help you get a Sonoma County Mortgage Loan: including the appraisal of the property, if own any other property, the loan to value, the projected interest-rate as well as the bond market and what the best mortgage rates will be for you.

If you would like further clarification or are seeking a loan today be prepared to provide documentation, potential letters of explanation and remember that getting a mortgage loan today is not an easy however working with me is. I mitigate the process and guide you through the maze of obtaining a Sonoma County mortgage refinance or a Sonoma County Mortgage purchase loan. So if you are seeking a Sonoma County refinance loan and want the best interest rate give me a phone call at 707-217-4000.

Related Mortgage Advice from Scott Sheldon

  • Do I Need To Provide Bank Statements For Getting A Sonoma County Loan?

    Yes, lenders will need full supporting documentation showing cash to close and/or savings in the…

  • one smart move for getting a mortgage
    One really smart move to best prepare for getting a mortgage

    Securing mortgage loan financing requires a laundry list of paperwork. Here's a really simple tip…

  • Sonoma County Mortgages... The Ins & Outs

    You probably already know if you have a decent credit score, have an overall low…

  • Comparing Mortgage Rates In Sonoma County

    What to look for in comparing mortgage rates in Sonoma County. The Federal Reserve came…

Filed Under: Invesment Properties/Second Homes Tagged With: how to get a mortgage, how to get a Sonoma County mortgage loan, loan programs, mortgage comparison shopping, qualifying for a mortgage

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window