Contributions toward closing costs allow costs at closing and prepaid expenses to be paid by interested parties to the transaction. So, if you only have the down payment, or are looking to do a no down payment loan and do not have much cash, you can negotiate to have the closing costs paid for you. Closing costs can be paid by the seller, real estate agent, or lender. There are limits on the amount a party can contribute depending on the type of loan and amount of down payment: • If you are applying for a conforming loan for...
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WE WORK WITH LENDERS WHO UNDERWRITE TO EITHER DU OR LPA
What is DU and LPA, you might ask? Loan Originators use both DU and LPA automated underwriting programs. DU is Desktop Underwriter and is Fannie Mae’s underwriting software. LPA is Loan Product Advisor and is Freddie Mac’s underwriting software; most conforming loans are run through one of these software programs. These programs dictate details such as the documents to be requested by lenders, whether the property qualifies for an appraisal waiver, and whether a condominium will need a full or limited review. Underwriters condition loans to their findings in order to make the loans saleable to either Fannie Mae...
ARE YOU A REALTOR IN THE STATE OF ILLINOIS?
Are you a realtor in the state of Illinois and looking for lending partner? Counsel Mortgage Group is licensed and brokers loans in Illinois. We are also licensed in Arizona, California and Hawaii. We are experts in mortgage finance, having closed thousands of loans over the years including jumbo, conforming, VA, FHA, USDA, reverse mortgages, commercial loans, and private money. We are mortgage brokers and shop wholesale rates and costs to find the best solution for you and your client. Thus, we are not tied to only one lender’s rules, if the loan does not fit with them, we’ll find...
GIFT OF EQUITY FOR DOWN PAYMENTS
You may, or may not be familiar with a gift of equity. What is a gift of equity? Perhaps your child is looking to purchase a home and you are ready to sell your home. Your child has expressed an interest in living in the childhood home instead of you selling it to a third party. but, your child has no money for down payment or closing costs. If your child can qualify for a mortgage, you can gift the equity in the home for the down payment. Lenders are keen on the non-arms length nature of this transaction, so...
QUESTIONS REGARDING DEMOGRAPHICS
Let us reassure you, when a lender requests information pertaining to demographics, it’s not intended to be discriminatory. You may wonder why is it necessary to provide personal information when applying for mortgage loans? Applicants are asked their demographic information in order to monitor compliance with equal credit opportunity, fair housing, and home mortgage disclosure laws. You are not required to provide this information, but are encouraged to do so. The law provides that lenders shall not discriminate on the basis of this information. Pursuant to the Home Mortgage Disclosure Act (HMDA), lenders collect race and ethnicity information to ensure...
HOW LONG DO YOU PAY ON PRIVATE MORTGAGE INSURANCE?
A common question for those who have private mortgage insurance (“PMI”) is when can I stop paying it? When can I get out? If you recently obtained a FHA loan, unfortunately, you cannot get out of mortgage insurance as it stays with the loan for the life of the loan. However, if you have a conventional loan, Federal Law provides for when PMI can be removed. This is governed by the Homeowners Protection Act (“Act”). The Act provides two ways PMI can be canceled: The borrower requests it to be canceled (to cancel PMI, contact your servicer); or it is automatically...
WHAT DOCUMENTS ARE NEEDED TO APPLY FOR A LOAN?
The most common question I am asked is,” What documents are needed to apply for a loan?” Each scenario is different, and there are probably documents that would not apply to you in this list. Alternatively, there may be items that do apply to you that are not in this list. The following is a list of documents that are typically needed to apply for a residential loan: Copy of front and back of drivers license Copy of social security card Last two years W-2s Last two years tax returns, all pages Last two years Schedule K-1s, if applicable Last...
CLOSING COST BREAKDOWN
Here are the typical closing costs involved in getting a loan and a quick explanation of each cost: Underwriting/Administration Fee the fee charged by the lender to underwrite the loan. Appraisal fee – lenders require a third party valuation of the property by a licensed appraiser. Credit report fee – the fee charged by credit reporting companies. Escrow fee – the fee charged by the escrow company to handle the paperwork to process the transaction. Title insurance – insures against loss due to liens, encumbrances, or defects in the title to the property. Recording fee – the fee charged...
OUR BROKERAGE HAS THE FREEDOM TO CHOOSE A LENDER THAT IS RIGHT FOR YOU
Our brokerage has the freedom to choose the lender that is right for you. By knowing the specifics of your scenario, and the nuances of the lenders, a broker can match you with the lender that fits your needs. You may ask whether this matters; aren’t all lenders the same? No, they are not. You may be looking for a lender that offers a bi-weekly payment plan after closing; not every lender offers this. A broker cannot only find this lender, but can find the competitive rate and costs to go with it. A bank does not have...
WHEN APPLYING FOR A MORTGAGE LOAN, THE DETAILS MATTER
When applying for a mortgage loan, the details matter. It is important that you provide us with all of the information, so we know how best to get the loan for you. Many times we’ll talk to someone on the phone who appears to know the process, or “has a friend” who did or did not need to provide certain documents. That may be true, but each scenario is different, and is individual to you. So, certain documents or information is requested, you’ll have to provide it.