When a lender issues you a loan approval, what does it mean? It means the loan meets program guidelines for saleability. A lender will grant you a loan approval when they know they can sell the loan and make money on it. The game is about the lender making money on the loan. When the lender asks you for certain documents during a transaction, it is so they can package the file to sell it, which in turn allows them to lend you money. For example, a lender may inquire about large deposits in your accounts due to anti-money laundering...
Blog
WHO’S MAKING CRE LOANS
Today’s post is written by Michael Green, Senior Commercial Loan Originator with Counsel Mortgage Group, LLC. Mike writes monthly on the commercial mortgage market. Check back each month to check his commentary. Part of MSCI’s recent Periodic Capital Trends Report covering 2023 looks at financing sources that are the most active for different CRE types. (For more, see https://MSCI.com ) Overall, the breakdown by lender type in 2023 was fairly close to that of 2022, excepting a significant increase in government agency funding from 19% to 26%. But that shift was closer to the 2015 to 2019 average of 23%....
April 1, 2024April 1, 2024
JIM MOORE, A VETERAN HELPING VETERANS
I am proud to work with Jim Moore. Jim is a Loan Originator with Counsel Mortgage and has worked with us for about 16 years. Jim served as an Army Ranger in Vietnam. His heart is in helping veterans attain home ownership. Jim helps veterans with their disability claims and puts them in touch with a VA disability attorney, thereby giving the veteran a chance to earn income and qualify for a VA loan so they can own a home. He is a Certified Credit Specialist and a Certified Veteran Lending Specialist with the National Association of Mortgage Brokers. For...
March 22, 2024March 22, 2024
WHEN TO LOCK-IN AN INTEREST RATE – PURCHASE TRANSACTION
We often get asked when to lock-in the interest rate after you have entered into a contract to purchase a home. You typically have 30-45 days to close, so you’ll have to lock-in the rate during this time. Hopefully, during the pre-qualification process, you had discussions with your loan originator as to interest rates and payments you would be comfortable making. It is during this process when you can consider your options of loan products, payments, and interest rates. Many times, lenders will qualify you for a higher payment than what you would want to pay. Make sure the payment...
March 17, 2024March 17, 2024
INTEREST CREDIT
Did you know if you close in the first few days of the month, you may be able to choose when to make your first mortgage payment? This can help if you have a cash flow issue right after closing. When you make a mortgage payment, you pay the prior month’s interest. For example, if you make a mortgage payment on April 1st, you are paying March’s interest. The reason is that the lender can only charge you interest for the time you lived in the home. This is different than rent, i.e. when you make the April 1st rent...
March 10, 2024March 10, 2024
BANKS EXPECT MORE TIGHTENING FOR CRE LOANS
Today’s post is written by Michael Green, Senior Commercial Loan Originator with Counsel Mortgage Group, LLC. Mike writes monthly on the commercial mortgage market. Check back each month to check his commentary. The Federal Reserve’s Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) regularly checks with banks to better understand their lending landscape. The short take for CRE from the most recent survey is that even tighter underwriting standards can be expected in the future. And while easing interest rates are eventually expected to support relatively low demand from borrowers, that is unlikely to happen now until late...
March 3, 2024March 3, 2024
INTEREST RATES AND VALUES
Each month we send out the Interest Rates and Values email to keep you up-to-date with what is happening in the residential real estate market. We review and analyze mortgage rates and median sales price charts and data to keep you apprised of the trends in the marketplace. Here is the video we sent out this month. If you would like to receive these emails and videos, message me and I’ll add you to the list. We feel the more you know, the better you will be able to make a decision on purchasing and financing real estate. We stay...
February 25, 2024February 25, 2024
HOME EQUITY LOANS AND LINES OF CREDIT
You may have a lot of equity in your home and would like to leverage it to make repairs or take cash out for other purposes. But, you have a low rate mortgage and do not want to refinance your home at higher rates. Well, you can keep that low rate mortgage and take the cash out with a second mortgage, i.e. a home equity loan or a home equity line of credit. Home equity loans are fixed rate loans. You have to take the entire amount of the loan at closing. Payments are to principal and interest. Home equity...
February 15, 2024February 15, 2024
RENOVATION AND CONSTRUCTION LOANS
Are you looking to purchase a property, but it needs a bit of work? Or, are you looking to build a home, ground-up construction? Or, do you have an existing home and want to add a room? We can help you find financing for these scenarios. Renovation and construction loans have 2 approvals. One is the credit and income approval, which is required on all loans. The second is the approval of the construction project. Renovation and construction loans allow you to roll the costs to build into the loan. You will need to have the building plans, specs, and...
February 7, 2024February 7, 2024
IF WE CAN’T HIT THE TARGET, MAYBE WE SHOULD CHANGE THE TARGET
Today’s blog is written by Michael Green, Commercial Loan Originator for Counsel Mortgage Group, LLC It’s well-entrenched in market participants’ minds by now that the Federal Reserve’s target rate for inflation is 2%. While that goal is admirable, we are still in a period of “sticky” pricing pressure, making the central bank’s target seemingly difficult to achieve. The most recent CPI report for December included components that showed some sectors of the economy are still facing persistently higher costs. History shows that once entrenched in an economy, inflation tends to be “sticky” indeed. Sector rotation among goods and services, imports...
February 3, 2024February 3, 2024