You may have received a phone call, mailer, or email with the promise of low rates and lower payments. But, is simply reducing your payment the smart thing to do? Below are some thoughts to consider before you refinance. The most basic analysis is to compare the savings to the costs. For example, if the costs are $2,500 and the savings is $100 per month, then it would take 25 months ($2,500/$100) to recover the costs. So, if you continue to live in the home for more than 25 months, you will benefit from the refinance. If you are going to...
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CONDOMINIUM ASSOCIATION APPROVAL AND LENDING
A majority of home buyers are not aware of the fact that when you apply for a loan there are actually 2 approvals that take place. What does that mean exactly? Well, the lender reviews the file based on a few things: your credit and income, and the collateral; the collateral must be sufficient in order for a loan to be approved. When the collateral happens to be a condominium there is increased scrutiny by the lender. Why? The fact that a condo typically has shared walls, ceilings, or floors, and there is more risk to the lender because the...
March 7, 2020March 7, 2020
WHO CALLS THE SHOTS?
The first rule told to me when I started in the mortgage business was, “He who has the gold, makes the rules.” It is very true. It means, if you are looking for money from someone else to help you finance a property, you have to follow their rules to get the money. If they are asking you to send over a printout of the transactions in your bank account, after you already gave them 2 months bank statements, then, if you want the loan, you send it over. If you have to write a letter explaining why this is a...
March 5, 2020March 5, 2020
IS AN APPRAISAL NEEDED WHEN APPLYING FOR A MORTGAGE?
An appraisal may not be needed when applying for a mortgage. How can you get an appraisal waiver? Generally, an appraisal is needed to get a home loan, but, there are instances where this requirement is waived. Most home loans are sold to Fannie Mae or Freddie Mac. When underwriting these loans, they are submitted through their software, known respectively as Desktop Originator and Loan Product Advisor. The results determine the documentation needed to approve the loan and whether the property requires an appraisal. It is the algorithms in the software that determines whether an appraisal is needed. A large...
March 4, 2020March 4, 2020
WHAT IS THE DIFFERENCE?
Pre-qualification v. pre-approval, what is the difference? A pre-qualification is based on information provided to the loan originator. The information could be as simple as a conversation about your income, assets, and debts, to providing the supporting documentation. A pre-approval is where an underwriter reviews your file, including the loan application, credit report, income and asset documentation, and approves the file subject to finding a property. This is also known as a credit and income approval. A pre-approval gives you confidence when shopping for a home because you are already approved by the lender. You may also be able to...
March 3, 2020March 3, 2020
CHECK YOUR CREDIT REPORT IN ADVANCE
Are you considering buying a home? It may be worthwhile to review your credit report beforehand. To check your credit for free go to: www.annualcreditreport.com Many sites promise free credit reports, but this website is the only official site authorized by Federal law; It is sponsored by Experian, TransUnion, and Equifax. You are allowed to get a free copy of your credit report, without the score, every 12 months to ensure the information on your credit report is correct and up to date. You can also get your credit score on this site for a small fee. Each credit reporting...
March 2, 2020March 2, 2020
HOW SHOULD CRE INVESTORS PREPARE FOR THE NEXT DOWNTURN
Today’s post is written by Michael Green, Commercial Loan Originator for Counsel Mortgage Group, LLC. A recession is unlikely to hit this year, but that doesn’t mean that you shouldn’t start preparing. Experts say that this is the perfect time for investors to reevaluate portfolio performance to prepare for the next downturn—whenever it may come. “Real estate is a cyclical industry, and it is impossible to predict exactly when a downturn will happen. As was once said by a well-known and celebrated source (paraphrased) … “It’s very difficult to make predictions, especially about the future.” ...
March 1, 2020March 1, 2020
PLEDGING ASSETS
With the way the stock market is running, many people do not want to liquidate their accounts to make a large down payment on a home. They are conflicted because they want to make a large down payment to get a better interest rate, but do not want to sell the assets in their investment accounts and pay taxes on any gains. By pledging their assets to the lender, they will be able to keep money in the market and be given credit for a large down payment. Example, a couple is looking to purchase a $700,000 home, and want...
February 27, 2020February 27, 2020
CAN I SKIP A PAYMENT, OR TWO?
Have you heard you can “skip” a payment, or maybe even 2 months payments, when you refinance? Is this practice considered tricking the system, or getting away with something? No, in fact, you may be front-loading more cash at closing. This is how it works: The first thing to understand is how a mortgage payment works. Mortgage payments are paid in arrears, as opposed to rent which is paid in advance. For example, when you make your May rent payment, you are paying to live there in the month of May. However, when you make the May mortgage payment, you...
February 18, 2020February 18, 2020
WE SUPPORT OUR VETERANS
Are you a veteran? One of the best loans is the VA loan. To start, you would need your DD214 form and Certificate of Eligibility for a VA loan. We can help you obtain the Certificate. You may be able to qualify for 100% financing. We support our vets and have many veteran employees who are qualified originators who specialize in veteran loans. We’re a Mortgage Brokerage based out of Scottsdale, Arizona providing services in both Arizona and California specializing in straight talk to help you find the best mortgage product at the lowest rate and costs. Contact us to...
February 17, 2020February 17, 2020