Need Loan info

[Ineedinfo]

What is the name of your state?Idaho

It's the weekend and I have a few questions I hope someone here can answer. Here's the current situation:

Some very close friends bought a house for us since we could not at the time qualify for a loan on our own. 3 yrs ago, they transferred interest to us via Quit Claim deed. We did not at the time know anything about a "due on sale" clause in the mortgage they took out, nor did any of us think to notify the lender of the transfer of interest. There has never been a request by the mortgage co to call the loan due either. QC was filed with the county clerks office.

We would like to get the house soley in our name now and we have a couple of ways of going about it.
1. We refinance in our names.
2. they pay off the existing mortgage in cash, and we have the house free and clear according to the banks. Then we do a personal agreement between us.

We don't make a great deal of money, are self employed and have never purchased a home before.

Mortgage balance is $60k, and home value is ~$160-$180K. Plenty of equity.

Questions are:

1. What info is required for a home loan (tax returns, bank statements etc)

2. If they pay off the mortgage (cash), we could take out a loan against the house to repay them, but what kind? Would it be a regular mortgage since the house is already in our name, or would a home equity loan be right?

3. Would proving that past mortgage payments were made by us, help in acquiring a loan? We could supply cancelled checks, deposit statements and a notarized letter from our friends.
4. I'm not sure if can even qualify for a loan due to past credit problems, and being self employed. We've got a few credit cards for almost a year now, and have kept payments current all the time, but presently they are close to their limits. Paying these down would significantly help our credit score would it not?


I know these can be answered by whichever lender we go to, but since it's the weekend, we are hoping to glean a little info from here about what we could be getting ourselves into.

Any help?

[HomeGuru]

Originally Posted by Ineedinfo

What is the name of your state?Idaho

It's the weekend and I have a few questions I hope someone here can answer. Here's the current situation:

Some very close friends bought a house for us since we could not at the time qualify for a loan on our own. 3 yrs ago, they transferred interest to us via Quit Claim deed. We did not at the time know anything about a "due on sale" clause in the mortgage they took out, nor did any of us think to notify the lender of the transfer of interest. There has never been a request by the mortgage co to call the loan due either. QC was filed with the county clerks office.

We would like to get the house soley in our name now and we have a couple of ways of going about it.
1. We refinance in our names.
2. they pay off the existing mortgage in cash, and we have the house free and clear according to the banks. Then we do a personal agreement between us.

We don't make a great deal of money, are self employed and have never purchased a home before.

Mortgage balance is $60k, and home value is ~$160-$180K. Plenty of equity.

Questions are:

1. What info is required for a home loan (tax returns, bank statements etc)

**A: contact any mortgage broker or any bank or S&L's loan origination department. Or go online. There are millions of websites.

********
2. If they pay off the mortgage (cash), we could take out a loan against the house to repay them, but what kind? Would it be a regular mortgage since the house is already in our name, or would a home equity loan be right?

**A: see above. Regular first mortgage.
*****

3. Would proving that past mortgage payments were made by us, help in acquiring a loan? We could supply cancelled checks, deposit statements and a notarized letter from our friends.


**A: see above. some lenders require" seasoning" and your 3 year payment history should suffice.
******
4. I'm not sure if can even qualify for a loan due to past credit problems, and being self employed. We've got a few credit cards for almost a year now, and have kept payments current all the time, but presently they are close to their limits. Paying these down would significantly help our credit score would it not?

**A: yes as well as other steps/methods to increase your FICO score.

*******

I know these can be answered by whichever lender we go to, but since it's the weekend, we are hoping to glean a little info from here about what we could be getting ourselves into.

Any help?

**A: my suggestion would be to search online.