With higher interest rates, we’re getting questions regarding “buying down” the rate. Some people want to do a 2-1 buydown. What is this? How does this work? Is this the same as permanently buying down the rate for the life of the loan? A 2-1 buydown is an example of a temporary buydown. In a 2-1 buydown, the interest rate is 2% lower in the first year, and 1% lower in the second year. If today’s rate is 7%, then the first year the rate would be 5%, and the second year the rate would be 6%. The lender,...
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WHAT IS UNDERWRITING?
What is underwriting? Underwriting is the process of reviewing the loan package to determine whether it meets the established criteria to approve the loan. An underwriter reviews the loan package, including, the loan application, tax returns, paystubs, bank statements, retirement account statements, contract (if a purchase), title insurance, and appraisal to determine whether the documents will meet the criteria to approve the loan. After the package is reviewed, one of three decisions will be issued: approval, suspension, or denial. If the underwriter issues an approval, it is typically a conditional approval. This means the approval is...
March 24, 2023March 25, 2023
ARE YOU CONSIDERING A BRIDGE LOAN?
If you have a lot of equity in your home, and want to purchase a new home before selling your current home, you may want to consider a bridge loan. A bridge loan allows you to leverage the equity in your current home to make a down payment on the new home, without selling your current home. Here’s how it works. The lender will take the value of your current home and the value of the new home, and will lend up to a percentage of the total value of the 2 homes. The loan will be on...
March 22, 2023March 23, 2023
ANOTHER LENDER TO WHOM WE CAN BROKER – PACRES WHOLESALE
As a mortgage broker, we can broker loans to many different lenders. Here we feature Pac Res. PacRes is a full service lender, and offers a variety of financing options. They offer conventional financing through Fannie Mae and Freddie Mac, jumbo products, asset depletion, and bank statement loans, to name a few. An asset depletion loan is one where income is calculated from your total assets to qualify you for the loan. Bank statement loans are for self-employed individuals where a percentage of their deposits are considered as income for qualification. PacRes also offers a lock and shop product where...
March 20, 2023June 17, 2023
MORTGAGE BANKING ADVERTISEMENTS
You may hear many mortgage bankers advertise they have in-house underwriting and fund their own loans which gives them an advantage in getting your loan approved and funded. FAKE NEWS. Bankers promote these services as something special, but, it is not special to have your loan underwritten and funded on time. This should be expected when you apply for a loan. We are a mortgage broker. We work for you and shop wholesale rates and costs, typically lower than what is offered by bankers. We have access to wholesale underwriters and funders. We are a client of the wholesalers,...
March 14, 2023March 15, 2023
ON-LINE LENDING
On-line lending tends to emphasize on closing a loan quickly and making the process automated; this approach implies that counseling to find the right mortgage is not necessary, and leaves the choice of finding the right mortgage to the customer. This approach, however, may not work for the following sample of customers who may need advice to find the right mortgage: First time homebuyers Seniors who may benefit from a reverse mortgage Step up buyers who are looking to purchase a bigger home contingent on the sale of their current home Customers analyzing adjustable-rate mortgages versus short term fixed...
March 12, 2023March 13, 2023
ARE YOU CONSIDERING AN EARLY PAY-OFF?
Some loans may have a pre-payment penalty in the event you pay off the loan early. You probably won’t see these on conventional or government residential loans, but you may see them on other residential loan products and on commercial loans; the penalty is a certain percentage of the loan amount. Example: You borrow $200,000 to do a fix and flip from a hard money lender. The hard money lender’s Note states he will collect a penalty of 3% of the loan amount if it is paid off in the first year. You fix up the property and...
March 6, 2023March 7, 2023
ARE YOU LOOKING FOR A COMMERCIAL REAL ESTATE LOAN?
Are you looking for a commercial real estate loan? Do you own a business, or are looking to get qualified for a business loan to purchase or refinance real estate? Are you confused as to whether to get an SBA loan or conventional financing? We can help you with these decisions. We broker commercial loans. The right lender for you will typically depend on your business. One lender may specialize on multi-family, while another lender may specialize on gas station loans or land development. We’ll shop the lenders to find the lender for your purposes. We work for...
March 4, 2023March 4, 2023
ANOTHER LENDER TO WHOM WE CAN BROKER – FIRST NATIONAL BANK OF AMERICA
As a mortgage broker, we can broker loans to many different lenders. Here we feature First National Bank of America. They offer vacant land loans, which can be hard to find today. They also lend on both single-wide and double-wide manufactured homes. Here is another example of a lender that offers loans that your bank may not. If you are working with your bank, or a mortgage banker, you may be limiting yourself. When it comes to, likely, the most important purchase in your life, you should consider working with us, a mortgage broker, who has access to...
February 24, 2023June 17, 2023
ARE YOU INVESTING IN A PRIMARY, SECONDARY OR VACATION HOME?
Are you looking to invest in a primary, secondary or vacation home in Arizona, California, Hawaii or Illinois? We are licensed and broker loans in these states. Why is it beneficial to work with a mortgage broker licensed in multiple states? Example: We can help you refinance and take cash out of your Illinois home to make a down payment on a new home in Arizona, California, or Hawaii. We can help you with both loans. Contact Counsel Mortgage Group. We counsel you to find the right loan products for you. Ask us how we can help you today. We...
February 22, 2023February 23, 2023