You entered into a contract and agreed to a purchase price with the seller. You are applying for a mortgage, and the lender asks if you are ready to order the appraisal. What is the appraisal and why is it necessary? An appraisal is an independent opinion of value provided by a licensed appraiser. The...
Tag: mortgage
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INVESTOR VIDEO SERIES – CAN I QUALIFY TO PURCHASE AN INVESTMENT PROPERTY?
If you can qualify for a primary residence, you can probably qualify to purchase an investment property. When purchasing an investment property, the appraiser prepares a schedule of market rents. The lender takes 75% of the rents on this schedule and subtracts the proposed mortgage payment. This amount is then added to your income or...
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THE SCARIEST TERM IN YOUR NEW COMMERCIAL MORTGAGE
We’ve written before about lenders raising the bar, or tightening, lending terms and conditions. One of the terms that’s started showing up in the covenants is “full recourse only”. Everything beyond the value of the property is now on the line. This was a somewhat common term in the 70’s and early ‘80s going...
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FIRST-TIME HOMEBUYER VIDEO SERIES – DOWN PAYMENT ASSISTANCE
You may have heard of loans where you don’t have to put any money down, where the county or another entity will make the down payment for you. These are known as down payment assistance (DPA) programs. The down payment assistance can take many forms, such as a loan that will have to...
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FIRST-TIME HOMEBUYER VIDEO SERIES – FHA V. CONVENTIONAL LOANS
There are a couple of different types of loans that are popular for first-time homebuyers. A conventional loan requires a minimum 3% down payment, and has monthly mortgage insurance. The mortgage insurance can be removed from the payment when you have 20% equity in the home. A FHA loan requires a minimum 3.5% down...
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FIRST-TIME HOMEBUYER VIDEO SERIES – CLOSING COSTS AND PREPAID EXPENSES
When you purchase a home with a mortgage, closing costs and prepaid expenses are due at closing, in addition to the down payment. Closing costs include items such as underwriting fees, processing fees, appraisal, credit report, title insurance, title escrow, and recording fees. These are the costs that are paid to obtain the loan. Prepaid...
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FIRST-TIME HOMEBUYER VIDEO SERIES – THE MORTGAGE PAYMENT – PITIMI
The monthly mortgage payment includes the following items, known by the acronym PITIMI: P = principal I = interest T = taxes (real estate) I = insurance (homeowners) MI = mortgage insurance The principal and interest is what you pay back to the lender. These are the monthly payments to the lender...
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ANOTHER LENDER TO WHOM WE CAN BROKER – UNITED WHOLESALE MORTGAGE
Our account rep, Mike Stein from United Wholesale Mortgage (UWM), recently flew in from Michigan to visit us to see how they can help our business. UWM is the #1 wholesale lender in the Nation, and their owner recently bought the Phoenix Suns. The only way to get a loan from UWM is to work...
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ATTENTION FIRST TIME HOMEBUYERS!
Are you looking for a home loan, but don’t know where to start because you don’t know anything about home loans? You’ve researched on-line and found many different programs, but do not know which program is right for you. Should you put a little money down, no money down, or a lot of money down?...
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ARE YOU LOOKING FOR A COMMERCIAL LOAN?
Are you looking to purchase a plaza, office building, apartment complex, gas station, or some other type of commercial real estate? We can help you with these loans. We are a mortgage broker and have relationships with many lenders to find the best terms for your investment. As you know, the rate and terms...