Lenders cannot discriminate based on age. So, even if you are 100 years old, and can qualify for the payment, you can get a 30-year mortgage. This applies regardless of whether it is a forward mortgage or a reverse mortgage. A forward mortgage is the mortgage you are familiar with, I.e. you make monthly payments. However, if you are 100 years old, you may want to consider a reverse mortgage so you don’t have to make payments on the mortgage out-of-pocket, instead the equity in the home makes the payments. So, regardless of your age, you can buy that new...
Category: Lenders
TAX AND INSURANCE IMPOUND, WHAT SHOULD YOU DO?
An impound account is an escrow account funded monthly by the borrower which includes a pro-rata amount of insurance and real estate taxes. When the insurance and tax bills become due, the lender pays them out of the escrow account. In many instances, you have the option of whether to Impound your insurance and taxes or pay them separately. So, what should you do? Lenders prefer they be included with your mortgage-payment and will often provide a better interest rate. The lender will collect these payments on a monthly basis (and invest the funds for their benefit) and pay the...
March 12, 2020March 12, 2020john
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, 2020john
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, 2020john
NO DISCRIMINATION IN LENDING
As we honor Martin Luther King Jr. today and his fight for civil rights, we want to let you know that, when it comes to lending, there is no discrimination. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The...
January 20, 2020January 20, 2020john