Tag: <span>Isabella’s Kitchen</span>

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PRODUCTS FOR BUILDERS

We have a product for builders who are building spec homes for profit. The minimum loan amount is $150,000 with a maximum loan amount of $3 million. For review, we need the detailed budget, construction schedule/development phases, and architect drawings. The lender considers the following in the credit decision: ● Borrower characteristics/Total exposure approval (experience...

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TWO APPROVALS, PLUS COLLATERAL

Two approvals take place when you apply for a loan.  Lenders review both your credit and income, and the collateral. The collateral must be sufficient for the loan to be approved.  What if the collateral is a condominium? When the collateral is a condominium, there is increased scrutiny by the lender. This is due to...

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WHAT ARE THE ADVANTAGES OF WORKING WITH A MORTGAGE BROKER?

One advantage of working with a mortgage broker instead of a banker is the lender credit. The lender credit is a credit towards closing costs. This credit represents the excess premium from the lender after paying the broker’s commission. Brokers get paid a fixed percentage of the loan amount from the lender for each transaction....

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APPRAISED VALUE

An appraisal is typically required when applying for a mortgage. If you are purchasing a home, the lender will base the loan amount off of the lesser of the sales price or the appraised value. Many people will look to the price per square foot when valuing a home, however, this valuation could be misleading....

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DETERMINING YOUR CREDIT SCORE

Credit cards are a significant factor in determining your credit score. Credit bureaus look at your credit card balances and history to determine how you manage your discretionary spending. The credit bureaus do not know your spending habits, but by reviewing credit card balances, they make conclusions regarding your ability to manage credit which will...

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UNDERWRITING A LOAN

When underwriting a loan lenders look at the debt-to-income ratio for a comparison of monthly debts to monthly income, this is a major factor lenders consider. Lenders like to see the ratio at or below 43%, but loans have been approved up to 50%. Example: Let’s say you are salaried and gross $4,000 per month;...

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SMALL BUSINESS ACT

The SBA is the Small Business Administration and offers business loans. The most common types refer to Sections 504 and 7(a) of the Small Business Act. If you’re looking for a small business loan to purchase commercial real estate or heavy machinery/equipment, then the 504 loan is the best choice. If you are purchasing a...

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FIRST THINGS FIRST

You’ve decided you want to buy a house but don’t know where to begin. You’re not sure what to do. First things first; Here’s where to start: • The first thing to do is check your credit, you will need a good credit score to get a good loan. Student loans, car loans, and credit...

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DO YOU HAVE A COLLECTION, CHARGE-OFF, OR JUDGMENT?

Can you get a mortgage if you have a derogatory item on your credit report, such as a collection, charge-off, or judgment? Maybe. Believe it or not, your credit score may be high enough to qualify even with the derogatory item on your credit report.  Depending on the dollar amount of the derogatory item, it may...

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FINANCING HOMES WITH SOLAR POWER

Solar panels are increasingly popular, and many homes on the market have solar panels nowadays. If you are looking to finance a home with solar panels, you should consider the following rules: Many solar companies will file a UCC-1 Financing Statement on the title of the home. Mortgage lenders will likely request it to be...